1

A

PROJECT STUDY REPORT

ON

“Performance Appraisal System”

At

ICICI Bank

Submitted in

Partial fulfillment for the Award of degree of

Master of Business Administration

Submitted By:- Submitted to:-

NAIMUDDIN ALI MR. VIKASH SHARMA

M.B.A. Part- IV

2009-2011

MAHATMA GANDHI INSTITUTE OF MANAGEMENT

Sikar (Rajasthan)

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PREFACE

As per norms and stipulations with respect to Rajasthan Technical University, I had

made an industrial serve report on performance appraisal of ICICI bank. Industrial

report is one of the major components for any professional course like M.B.A., the real

place where a professional person faces a problem in a field. It was a good exposure for

me to make an industrial report in such a company to get the knowledge and

experience regarding performance appraisal and future aspect.

I was able to get familiarized with the field component that will help me in the future. As

rightly quote by Pt. Jawaharlal Nehru “It is good to have enthusiasm but it is essential to

training. Project report can be in all way of life.”

Thus I would say that this report was beneficial, educative and good exposure to me,

which will certainly help in my near future. This project was designed with respect to

ICICI bank. The project made me to get the enhanced knowledge regarding investments

and how well the organization has performed in the past and trends in the near future

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ACKNOWLEDGEMENT

I express my sincere thanks to ICICI bank for guiding me right from the inception till the

successful completion of the project. I sincerely acknowledge him for their valuable

guidance, support for literature, critical reviews of the project and above all the report

and the moral support he had provided to me with all stages of this project.

I would also like to thank the supporting staff Department, for their help and cooperation

throughout the project.

I would also like to say thanks to Director Sir, Principal Sir, HOD Sir and project guide

and Asst. Professor VIKASH SHARMA of management department of my college.

NAIMUDDIN ALI

(Signature of student)

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DECLARATION

I NAIMUDDIN ALI Student of MBA Session 2009-2011, declare that the present work

titled “Performance Appraisal System At ICICI Bank” is an original work. I anywhere

else for the award of any degree/ diploma/ certificate or for any prize have not submitted

this project report. All the data given in the report is to the best of my knowledge.

NAIMUDDIN ALI

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EXECUTIVE SUMMARY

This project revolves around the Performance Appraisal System At ICICI bank. I have

conducted survey with the help of questionnaire to generate leads to find out prospects

who and how become get Appraisal in the company. This is basically a Human resource

activity.

Apart from this I have also studied the Human Resource Planning and operational

activities of the company.

Overall, this project gave me an opportunity to gain practical knowledge in the field of

banking sector. I am mainly in H.R Process team but I have also got the taste of other

philosophy of the company during Performance Appraisal system which reflects that

how industry relations also make impact on performance appraisal of the employee

which helps me here to develop my skills in the field of H. R Development process.

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CONTENT OF TABLE

S.NO. TOPIC PAGE NO.

1. 1 INTRODUCTION OF INDUSTRY

o History

o Definition

8

2. 2 INTRODUCTION OF ICICI Bank

o HISTORY OF ICICI BANK

o HR Department

12

3. 3 INTRODUCTION OF PROJECT

o Performance Appraisal

o Performance Appraisal System in ICICI Bank

33

4. 4 RESEARCH METHODOLOGY

o Title of the project

o Duration of the Project

o Objective of Research

o Method of data collection

o Limitations

73

5. 5 FACT & FINDING

78

6. 6 DATA ANALYSIS AND INTERPRETATION

80

7

7. 7 SWOT ANALYSIS

97

8. 8 CONCLUSION

101

9 RECOMMENDATIONS AND SUGGESTIONS

103

10 ANNUXERE

105

11 BIBLIOGRAPHY

111

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Chapter-1

INTRODUCTION OF

INDUSTRY

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Chapter-1

INTRODUCTION OF INDUSTRY

BANK:

A bank is a financial intermediary and appears in several related basic forms:

A central bank issues money on behalf of a government, and regulates the money

supply

A commercial bank accepts deposits and channels those deposits

into lending activities, either directly or through capital markets. A bank connects

customers with capital deficits to customers with capital surpluses on the world's

open financial markets.

A savings bank, also known as a building society in Britain is only allowed to borrow

and save from members of a financial cooperative

Banking is generally a highly regulated industry, and go Varmint restrictions on financial

activities by banks have varied over time and location. The current set of global bank

capital standards is called Basel II. In some countries such as Germany, banks have

historically owned major stakes in industrial corporations while in other countries such

as the United States banks are prohibited from owning non-financial companies.

In Japan, banks are usually the nexus of a cross-share holding entity known as

the keiretsu. In Iceland banks had very light regulation prior to the 2008 collapse.

History

Banking in the modern sense of the word can be traced to medieval and

early Renaissance Italy, to the rich cities in the north like Florence, Venice and Genoa.

The Bardi and Peruzzi families dominated banking in 14th century Florence,

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establishing branches in many other parts of Europe. Perhaps the most famous Italian

bank was the Medici bank, set up by Giovanni Medici in 1397.

Definition

The definition of a bank varies from country to country. See the relevant country page

(below) for more information.

Under English common law, a banker is defined as a person who carries on the

business of banking, which is specified as:

conducting current accounts for his customers

paying cheques drawn on him, and

Collecting cheques for his customers.

In most common law jurisdictions there is a Bills of Exchange Act that codifies the law in

relation to negotiable instruments, including cheques, and this Act contains a statutory

definition of the term banker: banker includes a body of persons, whether incorporated

or not, who carry on the business of banking' (Section 2, Interpretation). Although this

definition seems circular, it is actually functional, because it ensures that the legal basis

for bank transactions such as cheques does not depend on how the bank is organized

or regulated.

The business of banking is in many English common law countries not defined by

statute but by common law, the definition above. In other English common law

jurisdictions there are statutory definitions of the business of banking or banking

business. When looking at these definitions it is important to keep in minds that they are

defining the business of banking for the purposes of the legislation, and not necessarily

in general. In particular, most of the definitions are from legislation that has the

purposes of entry regulating and supervising banks rather than regulating the actual

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business of banking. However, in many cases the statutory definition closely mirrors the

common law one. Examples of statutory definitions:

"banking business" means the business of receiving money on current or deposit

account, paying and collecting cheques drawn by or paid in by customers, the

making of advances to customers, and includes such other business as the Authority

may prescribe for the purposes of this Act; (Banking Act (Singapore), Section 2,

Interpretation).

"banking business" means the business of either or both of the following:

1. receiving from the general public money on current, deposit, savings or other

similar account repayable on demand or within less than [3 months] ... or with a

period of call or notice of less than that period;

2. paying or collecting cheques drawn by or paid in by customers

Since the advent of EFTPOS (Electronic Funds Transfer at Point Of Sale), direct

credit, direct debit and internet banking, the cheque has lost its primacy in most banking

systems as a payment instrument. This has led legal theorists to suggest that the

cheque based definition should be broadened to include financial institutions that

conduct current accounts for customers and enable customers to pay and be paid by

third parties, even if they do not pay and collect cheques.

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Chapter-2

INTRODUCTION TO

ICICI BANK

13

Chapter-2

INTRODUCTION TO ICICI BANK

Introduction ICICI BANK

In 1955, the Government, in World Bank and a steering committee of 5 prominent

businessmen and other to cater to private sector needs of longs-term finance promoted

ICICI. Since then, the capital structure of the company has undergone significant

changes with that role of the government getting minimized. In the last fiscal, the

company created history by becoming the first Indian Company to list it shares on

NYSE.

The company has presence in various businesses in the financial sector. The prominent

ones are Infrastructure Finance, Structured Finance, Project Finance, Treasury

Services, Corporate Finance, Advisory services, Demat Services etc.

Due to the increase competition in the financial markets and fund-based business

getting affected by lower margins and higher level of NPAs, the company is typing to get

a major possible through the various subsidiaries, which the company has floated and

through expansion of the distribution network.

The company had realized the growing importance of technology revolution in the

market and has taken major initiatives to enter the e-commerce segment in the year

1999-2000. It has launched a number of portals and has also entered into alliances with

other major portals in the market.

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Over the year, ICICI has gained prominence in most of the segments in financial sector

through its various subsidiaries. Some of the important ones are:

1 ICICI Bank

2 ICICI Securities

3 ICICI Personal financial

4 Services

5 ICICI InfoTech

6 ICICI Web Trade

Over the years ICICI promoted a number of specialized Financial Institutions like HDFC,

CRISIL, and TDICI etc.

ICICI Bank is India‟s second largest bank and largest private sector bank with over 50

years of financial experience and with assets of Rs. 2416.79 Billions as on July 31,

2007. ICICI Bank offers a comprehensive range of deposit and loan products at its

branches to cater to different customer profiles and needs. ICICI Bank has over 746

branches and extension counters and over 2270 ATM‟s spread across the country. The

bank services its large customer base of more than 17.5 million customers‟ accounts

through a multi-channel delivery network of branches. ATM‟s call centers and Internet

Banking (www.icicibank.com) to ensure that customers have access to its services at all

times.

ICICI Bank has emerged as India‟s fastest growing retail bank. It offers individuals a

broad spectrum of deposit, investment and credit policies. The bank is often credited for

bringing in the retail finance phenomenon to India by pioneering the effort to make retail

loans much more accessible and affordable enabling the rising Indian middle class to

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fund their lifestyle requirements across the country. The bank has market leadership in

retail credit, which comprises mortgages, car loans, two wheeler, credit cards, personal

loans etc.

ICICI Bank is also India‟s foremost technology bank. ICICI Bank uses IT as a strategic

tool in all the business operation, so as to gain competitive advantages.

HISTORY OF ICICI BANK LIMITED

ICICI (INDUSTRIAL CREDIT AND INVESTMENT CORPORATION OF INDIA) Limited

was one of the largest financial corporation‟s formed in Independent India to make the

country self reliant in the financial sector. ICICI transformed its business from a

development financial services group offering a wide variety of products and services,

both directly and through a number of subsidiaries and affiliates like ICICI Bank. In

1999, ICICI become the first Indian company and the first bank or financial institution

from NON-JAPAN ASIA to be listed on the NYSE( NEW YORK STOCK EXCHANGE).

ICICI Bank was originally promoted in 1994 by ICICI limited as its wholly-owned

subsidiary. ICICI‟s shareholding in ICICI bank was reduced to 46% through a public

offering of shares in India in Fiscal 1998 by

1 An equity offering in the form of ADRs listed on the NYSE in Fiscal 2000

2 ICICI Bank‟s acquisition of Bank of Madura Limited in an all-stock amalgamation in

Fiscal 2001

3 Secondary market sales by ICICI to institutional investor in Fiscal 2001 and Fiscal 2002

Various corporate structuring alternatives were considered in the context of the

emerging competitive scenario in the Indian Banking Industry and the move towards

Universal Banking. The managements of ICICI and ICICI bank formed the view that the

merger of ICICI with ICICI Bank would be the optimal strategic alternative for both

entities and would create the optimal legal structure for the ICICI group‟s Universal

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Banking Strategy. In October 2001, the boards of directors of ICICI and ICICI bank

approved the merger of ICICI and two of its wholly owned retail finance subsidiaries.

The guiding philosophy behind the merger was that it would enhance value for both

ICICI and ICICI Bank shareholders. The merger enhanced value for ICICI shareholders

through the merged entity‟s access to low-cost deposits, greater opportunities for

earning fee-based income and the ability to participate in the payments system and

provide transaction-banking services. The merger also enhanced value for ICICI Bank

shareholders through a large capital base and scale of operations, seamless access to

ICICI‟s strong corporate relationships built up over five decades, entry into new

business segments, higher market share in various business segments, particularly fee-

based services and access to the vast talent pool of ICICI and its subsidiaries.

January 2002, by the High Court of Gujarat at Ahmadabad in March 2002, and by the

High Court of Judicature at Mumbai and the Reserve Bank of India (RBI) in April 2002.

Consequent to the merger, the ICICI group‟s financing and Banking operations, both

wholesale and retail, have been integrated in a single entity.

ICICI in Brief

ICICI became the first Indian Company to get listed on the NYSE on September 22,

1999. ICICI, the only FI having private participation since its inception, is the second

largest in the sector with an assets base of Rs. 754.14 Billion as at FY2001 end.

Indian Financial System comprises financial institutions, which were set up with the

objective of providing long term finance, commercial banks fulfilling working capital and

general banking needs, specialized investment institutions like LIC, GIC,UTI, and

private sector Non-Banking Finance Companies(NBFCs). This demarcation no longer

exists. Historically, the twin forces of deregulation and technology have increased the

degree of competition in the Indian Financial Sector to unprecedented levels.

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Confessional funding is no longer available. Government guaranteed SLR and other

bonds, which used to be the pre-dominant sources of funding till 1993, ahs been

phased out in accordance with the reform process. These account for less than 10% of

assets base of FIs and are due for repayment within 3-4 years. On the other hand

interest rates have fallen sharply and disintermediation has grown rapidly. Banks are

competing in each area ( banks have a much wider access to deposits, especially low

cost demand deposits) spreads are under pressure, long term outlook unfavorable.

ICICI has transformed itself from the role of a FI to a Universal Bank. The company is

making constant efforts to take first mover advantage in the technology-related

businesses. In the past, there has considerable amount of influence and direction from

the government in ICICI‟s policies. However, of late, under the direction of Mr. K. V.

KAMATH, ICICI has quite successfully broken away from direct government

interference.

Private participation in equity since inception and its image of a professionally managed

company has enabled ICICI to recruit professional managers and fresh MBAs from

premier institutes consistently. Key rest with professional managers.

ICICI Business

In 1955, ICICI was set up with the following objectives:

1 Assist in creation, expansion and modernization of industrial enterprises in the private

sector.

2 Encourage industrial investment.

3 Furnish managerial, technical and administrative advice to the Indian industry so as to

increase production and employment opportunities.

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Since then it has come a long way and to counter the competition in the Indian Financial

Sector in the 1990s, it started working on the concept of a universal bank. ICICI

provides the complete spectrum of wholesale banking products and services including

project finance, corporate finance, hybrid financing structures, syndication services,

treasury-based financial solution, cash flow based financing products, lease financing,

equity financing, risk management tools as well as advisory services.

ICICI‟s activities in the wholesale banking segment can be classified broadly into project

finance activities and corporate finance activities.

Project Finance

The company is the premier provider of protect financing products and services in India.

In FY2001 the project finance activities included medium-term and long-term lending to

the manufacturing sector and structured finance to infrastructure, oil & gas and

petrochemicals sector.

Infrastructure Financing

ICICI is the leading player in infrastructure financing in the country. In FY2001 company

was involved in completion of the IPO for the first private sector basic services project in

the TELECOM Sector and it was lead arranger in two private sector power projects.

ICICI has been actively involved in transport project, including syndication of debt for

the first expressway-cum-real estate project and advising leading companies on the first

highway project being take up on an annuity basis. ICICI has also finalised a line of

credit from Asian Development Bank for Urban Infrastructure.

Corporate Finance

The company has executed a number of innovative financial transactions including

lending against intellectual property rights, brand financing and forward rate agreements

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for corporate loans. It had played a facilitating role in the ongoing phase or consolidation

in various sectors of the Indian Economy, by funding mergers and acquisitions.

Custodial Services

ICICI is registered with the SEBI as a Custodian & Depository participant, for both

National Securities Depository Limited and Central Depository Services Limited. It

provides custodial settlement services to the wholesale segment, including overseas

funds and corporate bodies, venture funds and domestic corporate and also to retail

customers. ICICI has rapidly build a large base of over 3,10,000 customers.

Retail Business

Retail business forms an integral part of company‟s portfolio diversification strategy. If

offers a comprehensive range of innovative products and services across the country,

using multiple distribution channels, which provide efficient customer services. During

the year the company made significant investment in setting up strong retails business

architecture, including augmentation of skilled manpower, and expansion through direct

marketing agents.

Retail Credit Products

The retail assets base of the company grew with products like auto loan, home loans,

and loans for consumer durables being well received by the customers. The total retail

disbursements increased by Rs.3395 million to Rs.3764 million in FY2001. The process

of consolidation saw the retail assets customer base increasing from about 40,000

customers to over 1,80,000 customers during the year. For the same period ICICI‟s

retail portfolio increased from Rs. 4750 millions to Rs. 22400 millions.

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Resources and Treasury Operations

ICICI provides services of mobilization of resources from domestic and international

market, managements of cash surpluses, setting of interest rates, hedging of exposure

of market risks and proprietary trading.

Rupee Resources

During FY2001, ICICI mobilized total medium-term and long-term rupee resources of

Rs157310 million, comprising Rs 127920 million from wholesale sources and Rs 34690

million from retail sources.

Foreign Currency Resources

ICICI has also played a key role in the provision of foreign currency loans and

advances, which enables Indian industrial concerns to meet their foreign exchange

requirements or the import of capital goods. ICICI has had good support from the World

Bank.

Treasury Operations

ICICI is an active participant in trading in all domestic financial markets; Government

securities, corporate debt, foreign exchange, equity and rupee and foreign exchange

swaps. ICICI also participates in select international financial markets.

Information Technology Services

The company had set up an in-house e-commerce group to exploit the opportunities

thrown by the new economy. The company apart from launching a B2B internet based

supply chain solution is also working on an open-loop payment gateway. The company

has also floated various subsidiaries and portals as different e-commerce ventures and

acquired stakes in other leading portals in the market too.

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Internet is going to be an important channel in the way business will be done in coming

years. The company seems in the right shape to take advantage of any such events in

future

OVERVIEW OF BANK

1 ICICI Bank is India‟s second-largest bank with total assets of about Rs.1,76,659 corers

at March 31, 2007 and profit after tax of Rs. 2115 corer for the year ended March 31,

2007(Rs. 1937 corer in Fiscal 2006)

2 ICICI Bank has a network of about 560 branches and extension counters and over 2100

ATMs.

3 ICICI Bank offers a wide range of banking products and financial services to corporate

retail customers through a variety of delivery channels and through its specialized

subsidiaries and affiliates in the areas of investment banking, life an non-life insurance,

venture capital and assets management.

4 ICICI Bank set up its international banking group in Fiscal 2004 to cater to the cross

border needs of clients and leverage on it domestic banking strengths to offer products

internationally.

5 ICICI Bank currently has subsidiaries in the United Kingdom and Canada, branches in

Singapore and Bahrain and representative offices in the United States, China, United

Arab Emirates, Bangladesh and South Africa.

6 ICICI Bank‟s Equity shares are listed in India on the Stock Exchange, Mumbai and the

National Stock Exchange of India Limited and its American Depositary Receipts (ADRs)

are listed on the New York Stock Exchange (NYSE).

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BOARD MEMBERS

Mr. Narayanan Vaghul, Chairman

Mr. Sridar Iyengar, Member

Mr. Ram Kishore Joshi, Member

Dr. Narendra Murkumbi, Member

Mr. Priya Mohan Sinha, Member

Mr. Laxmi Niwas Mittal, Member

Mr. Anupam Pradip Puri Member

Mr. Vinod Rai Member

Mr. Vivan Prem Wasta, Member

Mr. Thai Sales Vijayan, Member

Mr. Mahendra Kumar Sharma Member

Prof. Marti G. Subrahmanyam, Member

Vishakha Mulye Group Chief Financial Officer

Mr. Kundpur Vaman Kamath, MD & C.E.O

Ms. Lalita D. Gupta Joint Managing Director

Ms.Chanda Kochar, Deputy Managing Director

Dr. Nachiket Mor Deputy Managing Director

Ms. Madhabi Puri-Buch

MR. V. Vaidyanathan

Executive Director

Executive Director

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HR Department

FEATURES OF HUMAN RESOURCE MANAGEMENT

Its features include:

• Personnel administration

• Personnel management

• Manpower management

• Industrial management

But these traditional expressions are becoming less common for the theoretical

discipline. Sometimes even industrial relations and employee relations are confusingly

listed as synonyms, although these normally refer to the relationship between

management and workers and the behavior of workers in companies.

The theoretical discipline is based primarily on the assumption that employees are

individuals with varying goals and needs, and as such should not be thought of as basic

business resources, such as trucks and filing cabinets. The field takes a positive view of

workers, assuming that virtually all wish to contribute to the enterprise productively, and

that the main obstacles to their endeavors are lack of knowledge, insufficient training,

and failures of process.

HRM is seen by practitioners in the field as a more innovative view of workplace

management than the traditional approach. Its techniques force the managers of an

enterprise to express their goals with specificity so that they can be understood and

undertaken by the workforce and to provide the resources needed for them to

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successfully accomplish their assignments. As such, HRM techniques, when properly

practiced, are expressive of the goals and operating practices of the enterprise overall.

HRM is also seen by many to have a key role in risk reduction within organizations

The goal of human resource management is to help an organization to meet strategic

goals by attracting, and maintaining employees and also to manage them effectively.

The key word here perhaps is "fit", i.e. a HRM approach seeks to ensure a fit between

the management of an organization's employees, and the overall strategic direction of

the company.

The basic premise of the academic theory of HRM is that humans are not machines;

therefore we need to have an interdisciplinary examination of people in the workplace.

Fields such as psychology, industrial engineering, industrial and organizational

psychology, industrial relations, sociology, and critical theories: postmodernism, post-

structuralism play a major role. Many colleges and universities offer bachelor and

master degrees in Human Resources Management.

One widely used scheme to describe the role of HRM, defines 4 fields for the HRM

function:

Strategic business partner

Change agent

Employee champion

Administration

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However, many HR functions these days struggle to get beyond the roles of

administration and employee champion, and are seen rather as reactive as strategically

proactive partners for the top management. In addition, HR organizations also have the

difficulty in proving how their activities and processes add value to the company. Only in

the recent years HR scholars and HR professionals are focusing to develop models that

can measure if HR adds value.

PROCESS IN HUMAN RESOURCE MANAGEMENT

• Human resources management comprises several processes. Together they are

supposed to achieve the above mentioned goal. These processes can be performed in

an HR department, but some tasks can also be outsourced or performed by line-

managers or other departments

• Workforce planning

• Recruitment

• Induction and Orientation

• Training and development

• Compensation in wage or salary

• Time management

• Travel management

• Payroll

• Performance appraisal

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WORK FORCE PLANNING

Workforce planning involves analyzing and forecasting the talent that companies need

to execute their business strategy, proactively rather than reactively, it is a critical

strategic activity, enabling the organization to identify, develop and sustain the

workforce skills it needs to successfully accomplish its strategic intent whilst balancing

career and lifestyle goals of its employees.

Strategic Workforce Planning is a relatively new management process that is being

used increasingly to help control labor costs, assess talent needs, make informed

business decisions, and assess talent market risks as part of overall enterprise risk

management. Strategic workforce planning is aimed at helping companies make sure

they have the right people in the right place at the right time and at the right price

Through Strategic Workforce Planning organizations gain insight into what people the

organization will need, and what people will be available to meet those needs. In

creating this understanding of the gaps between an organization‟s demand and the

available workforce supply, organizations will be able to create and target programmes,

approaches and develop strategies to close the gaps.

RECRUITING

Recruiting refers to the process of sourcing, screening, and selecting people for a job or

vacancy within an organization. Though individuals can undertake individual

components of the recruitment process, mid- and large-size organizations generally

retain professional recruiters.

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RECRUITMENT PROCESS

I. Sourcing

Sourcing involves:

Advertising, a common part of the recruiting process, often encompassing

multiple media, such as the Internet, general newspapers, job ad newspapers,

professional publications, window advertisements, job centers, and campus

graduate recruitment programs.

Recruiting research, which is the proactive identification of relevant talent who

may not respond to job postings and other recruitment advertising methods.

Screening & selection

Suitability for a job is typically assessed by looking for skills, e.g. communication, typing,

and computer skills. Qualifications may be shown through résumés, job applications,

interviews, educational or professional experience, the testimony of references, or in-

house testing, such as for software knowledge, typing skills, numeracy, and literacy,

through psychological tests or employment testing.

In some countries, employers are legally mandated to provide equal opportunity in

hiring.

On boarding

A well-planned introduction helps new employees become fully operational quickly and

is often integrated with the recruitment process.

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ONBOARDING PROCESS AT INDEGENE

• Educational Certificates.

• Work Experience Certificate

• Form-16 From Previous Concern

• Passport Details

• Pan Card

• Driving License Details/I.D Proof

ON BOARDING REQUIREMENTS

• Member Profile

• Bank Account Form And Photos

• Pf Declaration Form And Gratuity Nomination Form(Form-40)

• Mediclaim Application

• Income Tax Declaration

• Id Card Form

• Employee Undertaking-Isms

• Indigene Mail Id Form

ONBOARDING REQUIREMENTS FOR NEW JOINEE

• Appointment Letter

• Employee Hand Book

• Company‟s Instruction

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INDUCTION AND ORIENTATION

• Induction processes are vital to ensuring that new staff is productive as quickly as

possible.

• For better integration into the team

• To imbibe high morale for the rookies

• To encourage one to work to their highest potential.

• A good induction programmers‟ brings in a more settled employee.

• The employee would have a more effective response to training.

• Induction is the process of introducing the newly appointed employee to the working of

the company. Induction is normally done to make the new employee familiar with all the

rules and regulation of the company with he has to follow.

TRAINING AND DEVELOPMENT

• In organizational development, the related field of training and development (T & D)

deals with the design and delivery of learning to improve performance, skills, or

knowledge within organizations.

• In some organizations the term Learning and Development is used instead of Training

and Development in order to emphasis the importance of learning for the individual and

the organization. In other organizations, the term Human Resource Development is

used.

• Work @ Indigene

• We adapt global best practices to provide a progressive and growth-oriented work

environment that blends the best of talent with the best of opportunities.

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• Training and Development.

• We recognize that our true success can be built on a strong foundation of people

development.

• There are structured and result-oriented training and mentoring processes to ensure

that every Indigoes is ramped up in the shortest time to being independently productive

in his/her job. We recognize the leaders for tomorrow and fast-track them through

institutionalized leadership development programs.

• Every Indigoes is continuously encouraged upgrading his/her knowledge, skills, and

understanding of the landscape in which we deliver our solutions and services.

• There are several ongoing training programs that are designed for every employee to

upgrade his/her scientific, technical, and soft skills. These programs often include

sessions/ workshops by industry experts and eminent professionals.

• Work Culture

• We place premium on creating a congenial place to work in. We take pride in providing

challenging work profiles in an environment that is progressive and transparent.

• There are several forums in which Indigenous meet and interact not only with each

other but also with senior management and board members.

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• We respect the need of every Indigoes to balance his or her work and personal life. To

facilitate this, we organize social and fun activities that often include families and loved

ones of the employees. SANAS meaning "fun & excitement" is a part of our work culture

that encourages Indigenous to pursue varied areas of interests such as arts, culture,

and sports

COMPENSATION IN SALARY

• A salary is a form of periodic payment from an employer to an employee, which may be

specified in an employment contract. It is contrasted with piece wages, where each job,

hour or other unit is paid separately, rather than on a periodic basis.

• From the point of a view of running a business, salary can also be viewed as the cost of

acquiring human resources for running operations, and is then termed personnel

expense or salary expense. In accounting, salaries are recorded in payroll accounts.

TIME MANAGEMENT

• Time management is commonly defined as the management of time in order to make

the most out of it. Time management can refer to all of the practices that individuals

follow to make better use of their time, but such a definition could range over such

diverse areas as the selection and use of personal electronic devices, time and motion

study, self-awareness, and indeed a great deal of self-help. As narrowly defined, it

refers to principles and systems that individuals use to make conscious decisions about

the activities that occupy their time.

PAY ROLLS

In a company, payroll is the sum of all financial records of salaries, wages, bonuses,

and deductions. A paycheck is traditionally a paper document issued by an employer to

32

pay an employee for services rendered. In most countries with a developed wire

transfer system, using a physical check for paying wages and salaries has been

uncommon for the past several decades.

EMPLOYEES BENEFITS

Employee benefits and (especially in British English) benefits in kind (also called fringe

benefits, perquisites, or perks) are various non-wage compensations provided to

employees in addition to their normal wages or salaries. Where an employee

exchanges (cash) wages for some other form of benefit, this is generally referred to as a

'salary sacrifice' arrangement. In most countries, most kinds of employee benefits are

taxable to at least some degree.

33

Chapter-3

INTRODUCTION

OF PROJECT

34

Chapter-3

INTRODUCTION OF PROJECT

PERFORMANCE APRAISAL

Performance appraisal, also known as employee appraisal, is a method by which the

job performance of an employee is evaluated (generally in terms of quality, quantity,

cost and time). Performance appraisal is a part of career development. Performance

appraisals are a regular review of employee performance within organizations.

Performance Appraisal is the systematic evaluation of individual with respects to his/

her performance on the job and his potential for development. The performance being

measured against such factors as job knowledge, quality and quantity of output,

initiative, leadership abilities, supervision, dependability co-operation, judgment,

versatility, health and the like. Assessment should not be confined to past performance

alone. Potential of the employee for future performance must also be assessed.

Performance appraisal is the process of obtaining, analyzing and recording information

about the relative worth of an employee. The focus of the performance appraisal is

measuring and improving the actual performance of the employee and also the future

potential of the employee. Its aim is to measure what an employee does.

According to Flipped, a prominent personality in the field of Human resources,

“performance appraisal is the systematic, periodic and an impartial rating of an

employee‟s excellence in the matters pertaining to his present job and his potential for a

better job." Performance appraisal is a systematic way of reviewing and assessing the

performance of an employee during a given period of time and planning for his future

35

It is a powerful tool to calibrate, refine and reward the performance of the employee. It

helps to analyze his achievements and evaluate his contribution towards the

achievements of the overall organizational goals.

By focusing the attention on performance, performance appraisal goes to the heart of

personnel management and reflects the management‟s interest in the progress of the

employees.

Purpose of Performance Appraisal

Performance Appraisal is being practiced in 90% of the organizations worldwide. Self-

appraisal and potential appraisal also form a part of the performance appraisal

processes.

Typically, Performance Appraisal is aimed at:

To review the performance of the employees over a given period of time.

To judge the gap between the actual and the desired performance.

To help the management in exercising organizational control.

To diagnose the training and development needs of the future.

Provide information to assist in the HR decisions like promotions, transfers etc.

Provide clarity of the expectations and responsibilities of the functions to be performed

by the employees.

To judge the effectiveness of the other human resource functions of the organization

such as recruitment, selection, training and development.

To reduce the grievances of the employees.

36

Helps to strengthen the relationship and communication between superior –

subordinates and management – employees.

According to a recent survey, the percentage of organizations (out of the total

organizations surveyed i.e. 50) using performance appraisal for the various purposes.

The most significant reasons of using Performance appraisal are:

Making payroll and compensation decisions – 80%

Training and development needs – 71%

Identifying the gaps in desired and actual performance and its cause – 76%

Deciding future goals and course of action – 42%

Promotions, demotions and transfers – 49%

Other purposes – 6% (including job analysis and providing superior support, assistance

and counseling)

IMPORTANCE OF PERFORMANCE APPRAISAL

Performance appraisal is considered to be most significant and indispensable tool for an

organization for the information it provides is highly useful in making decision:

1. Regarding various personal aspects such as promotions, salary increase, transfers,

demotion and termination.

2. They are means of telling a subordinate hoe he is doing, suggesting needed changes in

his behavior, attitudes, skills or job knowledge.

3. The superior uses them as a base for coaching and counseling the individual.

37

OBJECTIVES OF PERFORMANCE APPRAISAL-

To help each employee to understand more and more about his role and become clear

about his functions.

To help each employee to understand his own strengths and weaknesses with respect

to his role and functions in the company.

To identify the developmental needs of each employee with respect his role and

functions.

To increase mutually between each employee and his supervising officer so that every

employee feels happy to work with his supervisor and thereby contributes his maximum

to the organization.

To increase communication between the employee and his supervising officer so that

each employee gets to know the expectations of his boss from him and each boss also

gets to know the difficulties of his subordinates and attempts to solve them and thus

they together accomplish the tasks.

To provide an opportunity for the employee for self-reflection and individual goal setting

so that individually planned and monitored development takes place.

To help every employee internalize the culture norms and values of the organization so

that an organizational identity and commitment is developed throughout the

organizations.

To prepare employee for performing higher-level jobs by continuously reinforcing the

development of behaviors and qualities registered for higher-level position in the

organization.

To create positive and healthy climate in the organization that drives people to give

their best and enjoy doing so.

In addition to assist in a variety of personal decisions by generating data about each

employee periodically

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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

39

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 degrees of their contribution to the organizational

goals and objectives. The standards set should be clear, easily understandable and in

measurable terms. In case the performance of the employee cannot be measured, great

care should be taken to describe the standards.

COMMUNICATING THE STANDARDS

Once set, it is the responsibility of the management to communicate the standards to all

the employees of the organization.

The employees should be informed and the standards should be clearly explained to

them. This will help them to understand their roles and to know what exactly is expected

from them. The standards should also be communicated to the appraisers or the

evaluators and if required, the standards 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 of the employees that 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 measurement, taking care that personal bias does not affect

the outcome of the process and providing.

COMPARING THE ACTUAL WITH THE DESIRED PERFORMANCE

The actual performance is compared with the desired or the standard performance. The

comparison tells the deviations in the performance of the employees from the standards

40

set. The result can show the actual performance being more than the desired

performance or, the actual performance being less than the desired performance

depicting a negative deviation in the organizational performance. It includes recalling,

evaluating and analysis of data related to the employees‟ performance.

DISCUSSING RESULTS

the result of the appraisal is communicated and discussed with the employees on one-

to-one basis. The focus of this discussion is on communication and listening. The

results, the problems and the possible solutions are discussed with the aim of problem

solving and reaching consensus. The feedback should be given with a positive attitude

as this can have an effect on the employees‟ future performance. The purpose of the

meeting should be to solve the problems faced and motivate the employees to perform

better.

DECISIONMAKING

The last step of the process is to take decisions, which can be taken either to improve

the performance of the employees, take the required corrective actions, or the related

HR decisions like rewards, promotions, demotions, transfers etc.

Challenges involved in the performance appraisal process

In order to make a performance appraisal system effective and successful, an

organization comes across various challenges and problems. The main challenges

involved in the performance appraisal process are:

• Determining the evaluation criteria

dentification of the appraisal criteria is one of the biggest problems faced by the top

management. The performance data to be considered for evaluation should be carefully

41

selected. For the purpose of evaluation, the criteria selected should be in quantifiable or

measurable terms

• Create a rating instrument

The purpose of the Performance appraisal process is to judge the performance of the

employees rather than the employee. The focus of the system should be on the

development of the employees of the organization.

• Lack of competence

Top management should choose the raters or the evaluators carefully. They should

have the required expertise and the knowledge to decide the criteria accurately. They

should have the experience and the necessary training to carry out the appraisal

process objectively.

• Errors in rating and evaluation

Many errors based on the personal bias like stereotyping, halo effect (i.e. one trait

influencing the evaluator‟s rating for all other traits) etc. may creep in the appraisal

process. Therefore the rater should exercise objectivity and fairness in evaluating and

rating the performance of the employees

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Approaches to Performance Development

Traditional Method Modern

Performance

Appraisal

1. Essay Appraisal

Method

2. Straight Ranking

Method

3. Paired Comparison

4. Critical Incidents

Method

5. Field Review

6. Checklist Method

7. Graphic Rating

Scale

8. Forced Distribution

1. Management By

Objectives

(MBO)

2. 360 Degree

Appraisal

3. Assessment

Centers

4. Behaviorally

Anchored Rating

Scales

5. Human Resource

Accounting

43

PERFORMANCE APPRAISAL – TRADITIONAL METHOD:

Traditionally, performance appraisal has been used as just a method for determining

and justifying the salaries of the employees. Than it began to be used a tool for

determining rewards (a rise in the pay) and punishments (a cut in the pay) for the past

performance of the employees.

This approach was a past oriented approach which focused only on the past

performance of the employees i.e. during a past specified period of time. This approach

did not consider the developmental aspects of the employee performance i.e. his

training and development needs or career developmental possibilities. The primary

concern of the traditional approach is to judge the performance of the organization as a

whole by the past performances of its employees

Therefore, this approach is also called as the overall approach. In 1950s the

performance appraisal was recognized as a complete system in itself and the Modern

Approach to performance appraisal was developed.

1. ESSAY APPRAISAL METHOD

This traditional form of appraisal, also known as “Free Form method” involves a

description of the performance of an employee by his superior. The description is an

evaluation of the performance of any individual based on the facts and often includes

examples and evidences to support the information. A major drawback of the method is

the inseparability of the bias of the evaluator.

2. STRAIGHT RANKING METHOD

This is one of the oldest and simplest techniques of performance appraisal. In this

method the appraiser ranks the employees from the best to the poorest on the basis of

their overall performance. It is quite useful for a comparative evaluation.

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3. PAIRED COMPARISON

A better technique of comparison than the straight ranking method, this method

compares each employee with all others in the group, one at a time. After all the

comparisons on the basis of the overall comparisons, the employees are given the final

rankings.

5. CRITICAL INCIDENTS METHODS

In this method of Performance appraisal, the evaluator rates the employee on the basis

of critical events and how the employee behaved during those incidents. It includes both

negative and positive points. The drawback of this method is that the supervisor has to

note down the critical incidents and the employee behavior as and when they occur.

6. FIELD REVIEW

In this method, a senior member of the HR department or a training officer discusses

and interviews the supervisors to evaluate and rate their respective.

7. CHECKLIST METHOD

The rate is given a checklist of the descriptions of the behavior of the employees on job.

The checklist contains a list of statements on the basis of which the rater describes the

on the job performance of the employees.

9. GRAPHIC RATING SCALE

In this method, an employee‟s quality and quantity of work is assessed in a graphic

scale indicating different degrees of a particular trait. The factors taken into

consideration include both the personal characteristics and characteristics related to the

on-the-job performance of the employees. For example a trait like Job Knowledge may

be judged on the range of average, above average, outstanding or unsatisfactory.

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10. FORCED DISTRIBUTION

To eliminate the element of bias from the rater‟s ratings, the evaluator is asked to

distribute the employees in some fixed categories of ratings like on a normal distribution

curve. The rater chooses the appropriate fit for the categories on his own discretion.

MODERN METHODS OF PERFORMANCE APPRAISAL

1. 360 DEGREE PERFORMANCE APPRAISALS

360 degree feedback, also known as 'multi-rater feedback', is the most comprehensive

appraisal where the feedback about the employees‟ performance comes from all the

sources that come in contact with the employee on his job.

360 degree respondents for an employee can be his/her peers, managers (i.e.

superior), subordinates, team members, customers, suppliers/ vendors - anyone who

comes into contact With the employee and can provide valuable insights and

information or feedback regarding the “on-the-job” performance of the employee

360 degree appraisal has four integral components:

1. Self appraisal

2. Superior‟s appraisal

3. Subordinate‟s appraisal

4. Peer appraisal

Self appraisal gives a chance to the employee to look at his/her strengths and

weaknesses, his achievements, and judge his own performance. Superior‟s appraisal

forms the traditional part of the 360 degree appraisal where the employees‟

responsibilities and actual performance is rated by the superior.

Subordinates appraisal gives a chance to judge the employee on the parameters like

communication and motivating abilities, superior‟s ability to delegate the work,

leadership qualities etc. Also known as internal customers, the correct feedback given

46

by peers can help to find employees‟ abilities to work in a team, co-operation and

sensitivity towards others.

Self assessment is an indispensable part of 360 degree appraisals and therefore 360

degree Performance appraisal have high employee involvement and also have the

strongest impact on behavior and performance. It provides a "360-degree review" of the

employees‟ performance and is considered to be one of the most credible performance

appraisal methods.

360 degree appraisal is also a powerful developmental tool because when conducted at

Regular intervals (say yearly) it helps to keep a track of the changes others‟ perceptions

about the employees. A 360 degree appraisal is generally found more suitable for the

managers as it helps to assess their leadership and managing styles. This technique is

being effectively used across the globe for performance appraisals.

Superiors

Suppliers/

Vendors

Customers

Peers Team members

Subordinates

EMPLOYEE

47

1. 360-degree appraisal diagram

Arguments against 360 Degree Performance Appraisal

Despite the fact that 360 degree appraisals are being widely used throughout the world

for appraising the performance of the employees at all levels, many HR experts and

professionals argument against using the technique of 360 degree appraisals. The main

arguments are:

360 performance rating system is not a validated or corroborated technique for

Performance appraisal.

With the increase in the number of raters from one to five (commonly), it

becomes difficult to separate, calculate and eliminate personal biasness and

differences.

It is often time consuming and difficult to analyze the information gathered.

The results can be manipulated by the employees towards their desired ratings with the

help of the raters.

The 360 degree appraisal mechanism can have an adversely effect the motivation and

the performance of the employees.

360 degree feedback – as a process- requires commitment of top management and the

HR, resources (time, financial resources etc), planned implementation and follow-up.

360 degree feedback can be adversely affected by the customers‟ perception of the

organization and their incomplete knowledge about the process and the clarity o f the

process.

2. MANAGEMENT BY OBJECTIVES

The concept of „Management by Objectives‟ (MBO) was first given by Peter Drucker in

1954. It can be defined as a process whereby the employees and the superiors come

together to identify common goals, the employees set their goals to be achieved, the

standards to be taken as the criteria for measurement of their performance and

48

contribution and deciding the course of action to be followed.

The essence of MBO is participative goal setting, choosing course of actions and

decision making. An important part of the MBO is the measurement and the comparison

of the employee‟s actual performance with the standards set. Ideally, when employees

themselves have been involved with the goal setting and the choosing the course of

action to be followed by them, they are more likely to fulfill their responsibilities.

UNIQUE FEATURES AND ADVANTAGES OF MBO

The principle behind Management by Objectives (MBO) is to create empowered

employees who have clarity of the roles and responsibilities expected from them,

understand their objectives to be achieved and thus help in the achievement of

organizational as well as personal goals.

The goals thus set are clear, motivating and there is a linkage between organizational

goals and performance targets of the employees.

The focus is on future rather than on past. Goals and standards are set for the

performance for the future with periodic reviews and feedback..

3. 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

49

orientation etc. assessment centers are also an effective way to determine the training

and development needs of the targeted employees.

Assessment centre refers to a method to objectively observe and assess the people in

action by experts or HR professionals with the help of various assessment tools and

instruments. Assessment centers simulate the employee‟s on-the-job environment and

facilitate the assessment of their on-the-job performance.

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 and on-the-job behavior and potential 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.

1. Social/Informal Events – An assessment centre has a group of participants and also a

few assessors which gives a chance to the employees to socialize with a variety of

people and also to share information and know more about the organization.

Information Sessions – information sessions are also a part of the assessment centers.

They provide information to the employees about the organization, their roles and

responsibilities, the activities and the procedures etc.

2. Assignments- assignments in assessment centers include various tests and exercises

which are specially designed to assess the competencies and the potential of the

employees. These include various interviews, psychometric tests, management games

etc. all these assignments are focused at the target job.

The following are the common features of all assessment centers:

The final results is based on the pass/fail criteria

All the activities are carried out to fill the targeted job.

50

Each session lasts from 1 to 5 days.

The results are based on the assessment of the assessors with less emphasis on self-

assessment

Immediate review or feedbacks are not provided to the employees.

An organization‟s human resources can be a vital competitive advantage and

assessment centre helps in getting the right people in right places. 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

4. 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 e.g. 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 behavior is judged against the desired

behavior by recording and comparing the behavior with BARS. Developing and

practicing BARS requires expert knowledge.

5. 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

51

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.

The Factors Affecting Performance

Ability

Character traits, skills and knowledge which are used in the performance. It is always

present and will not vary widely over short periods of time.

Effort

The amount of manual or mental energy that a person is prepared to expend on a job to

reach a certain level of performance. Can vary according to incentive and motivation.

Motivation

Many people who are not motivated keep their performance to an acceptable level by

expending only 20-30% of their ability. Managers who know how to motivate their

employees can achieve 80-90% ability levels and consequently higher levels of

performance.

Basic needs - food clothing

Safety needs - security, avoidance of risk/harm

Social needs - friendship, acceptance, group

Esteem needs - responsibility, recognition

52

Self realization - independence, creativity

Equity & Expectation

Again, detailed notes elsewhere. Basically, people expect to be treated equally, within

the company and as others are in similar companies; they expect to get a certain

reward for a certain effort; and they expect to get promoted if they.

Task, or role, perception

The direction in which the person wishes to channel his or her effort and ability. It varies

according to such factors as.

Whether or not the job is seen to be important or of value

o In itself,

o To the organization,

o To workmates,

o To the individual

Whether or not there is an end in sight

o Is what I do simply lost in the larger organization?

o Can I see it as a finished entity in its own right, no matter how small?

Environmental factors

Those factors over which an individual has no control, e.g.: the job may have been

completed under severe time constraints, with a lack of adequate resources, or by using

obsolete equipment; there may have been conflicting priorities or information overload,

such that the individual was confused and under stress; other staff and departments

may have been less than cooperative; the restrictive policies of the organization may

53

have prevented the individual from using her initiative and imagination to the extent that

she wished; the quality of the supervision exercised may have been defective - some

people need encouragement and support, whereas others like to be left to get on with

the job. Cannot be used as excuses for poor performance, but they do have a modifying

effect.

Performance Appraisal for Employees at Different Levels:

Performance appraisal is important for employees at all levels throughout the

organization. The parameters, the characteristics and the standards for evaluation may

be different, but the fundamentals of performance appraisal are the same. But as the

level of the employees‟ increases, performance appraisal is more effectively used as the

tools of managing performance.

54

Performance Appraisal of Managers:

Appraising the performance of managers is very important, but at the same time, it is

one of the most difficult tasks in the organization. It is difficult because most of the

managerial work cannot be quantified i.e. it is qualitative in nature like leading his/her

team, guiding, motivating, planning etc.

Therefore, the two things to be noted and evaluated for the purpose of appraisals are:

Performance in accomplishing goals, and

Performance as managers

Performance in accomplishing goals

Managers are responsible for the performance of their teams as a whole. Performance

in accomplishing goals would mean to look at the completion or achievement of the

goals set for a team of employees which is being assigned to or working under a

particular manager. The best measuring criteria for a manager are hi goals, his plans of

course of action to achieve them and the extent of achievement of the goals.

Performance as managers

The responsibilities of managers include a series of activities which are concerned with

planning, organizing, directing, leading, motivating and controlling. Managers can be

rated on the above parameters or characteristics

Criteria for measuring performance at different levels:

The criteria for measuring performance changes as the levels of the employees and

their roles and responsibilities change.

For top level management

Degree of organizational growth and expansion

55

Extent of achievement of organizational goals

Contribution towards the society

Profitability and return on capital employed

For middle level managers

Performance of the departments or teams

Co-ordination with other departments

Optimal use of resources

Costs Vs. revenues for a given period of time

The communication with superiors and subordinates

For front line supervisors

Quantity of actual output against the targets

Quality of output against the targets

Number of accidents in a given period

Rate of employee absenteeism

Measuring the performance of the employees based only on one or some factors can

provide with inaccurate results and leave a bad impression on the employees as well as

the organization. For example: By measuring only the activities in employee‟s

performance, an organization might rate most of its employees as outstanding, even

when the organization as a whole might have.

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Components of the appraisal format

Key performance areas, self-appraisal, performance analysis, performance ratings and

counseling are the important components of a performance appraisal system oriented to

development of human resources in an organization. The appraisal format should be

designed in consonance with the objectives of the performance appraisal system, and

generate information on a number of important aspects, including (Rao, 1985)

• Identification of Key Performance Areas

The first step in an appraisal process is identifying key performance areas and setting

targets for the next appraisal period. This may be done either through periodic

discussions or at the beginning of the year, as in research institutions.

Self-appraisal by the subject At the end of the appraisal period, employees

appraise their own performance against the key performance areas, targets and pre-

identified behavior. Information on these issues is provided in an appraisal format. The

employees also write their self-evaluation reports and hand them to their supervisors.

• Analysis

The supervisor reflects on the performance of the employee, and identifies the factors

which facilitated or hindered the employee's performance. The manager then calls the

employee for a discussion to better understand his or her performance and provide

counseling on further improvements. During this discussion, appraisal records (such as

notes, observations, comments, etc.) are exchanged. The manager then gives a final

rating and recommendations regarding the developmental needs of the individual.

These are shown to the subject and his or her comments are recorded on the appraisal

form. The appraisal form is then transmitted to the personnel department for the

necessary administrative action. The personnel or human resource development.

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Identification of Training Needs

The use of a development-oriented performance appraisal system is based on a good

understanding of the concept of human resources development. The need for

developing employee capabilities, the nature of capabilities to be developed, and the

conditions under which these capabilities can be developed have to be appreciated.

During the discussion between the supervisor and the employee, the development

needs of the subject are identified and goals set for the next period.

Identification of Qualities

The supervisor may also identify the qualities required for current as well as future

tasks, and assess the employee's potential and capabilities to perform jobs at higher

responsibility levels in the organization.

Attributes considered in evaluating performance

There are many personality traits, which could be considered when evaluating

performance, and methods to facilitate such consideration include scaling methods that

differentiate employees on a series of given traits. The important personality traits fall

into two categories: personal qualities and demonstrated qualities (Table 1).

58

Performance Appraisal System in ICICI Bank

The facilitation of high achievement by employees. Performance

management involves enabling people to perform their work to the best of

their ability, meeting and perhaps exceeding targets and standards.

Performance management can be coordinated by an interrelated framework between

manager and employee.

Key of the framework to be agreed is objectives, human

resource management, standards and performance indicators, and means of

reward. For successful performance management in ICICI , a culture of

collective and individual responsibility for the continuing improvement of

business process needs to be established, and individual skills and

contribution need to be encouraged and nurtured as the bank deals in

service sector where the employees are the main factor of making the

difference. One tool for monitoring performance management is “pe r fo rmance

appra isa l ” tha t the banks use fo r reward ing i t s emp loyee . For the

bank, performance management is usually known as company performance and is

monitored through business appraisal.

Reasons for “Performance Appraisal” in ICICI

Increase motivation to perform effectively

Increase staff self-esteem

Gain new insight into staff and supervisors

Better clarify and define job functions and responsibilities

Develop valuable communication among appraisal participants

Encourage increased self-understanding among staff as well as insight into the

kind of development activities that are of value

Distribute rewards on a fair and credible basis

59

Clarify organizational goals so they can be more readily accepted

Improve institutional/departmental manpower planning, test validation, and

development of training programs

Modern Trends in Banks for P.A

A growing number of front running banks like ICICI, and others have

adopted a “pe r fo rmance app ra isa l ” m o d e l i n w h i c h b e s t - t o - w o r s t

ranking methods are used to identify poor performers. The identified poor

performers are then given a time period during which they have to show an

improvement in their performance. In cases where the employee fails to improve

his performance he is asked to leave the organization gracefully and a severance

package is o f fe red to h im . I f the emp loyee re fuses to leave then h is

serv i ce i s terminated and no compensation is offered. This system is called “rank

and yank strategy”. Advocates of this system feel that it continually motivates

employees to better their performance since nobody would like to be included

in the poor performance band. But the flip side of this strategy is that employees

become too competitive and team spirits not nurtured. E f fec t i ve banks a re no t

bu i ld mere ly on inves tment and re tu rns bu t more on the quality of the

workforce, its commitment to the organizational goals and investments made

to attract train and retain superior human capital.

An integrated Performance Management system is essential to get the best out if its

people. E m p l o y e e performance is linked to the bank‟s performance. This helps in

achieving the organizational goal and creates a performance culture in the bank.

Invention, creativity, diversity of perspectives is fostered. Employees act as one

bank one brand.

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ICICI BANK PEFORMENCE APPRAISAL ENVIRONMENT

The bank is using the Management by Objectives (MBO) method. In this

method the subordinate in consultation with the supervisor chalks out short term

objectives followed by specific actions that he has to carry out. The goals are

finally set and are action oriented. The goals set are specific, measurable,

achievable, review able and time bound a n d m o s t i m p o r t a n t l y t h e y

u s e t o b e a l i g n e d w i t h t h e g o a l o f t h e organization. At the end of a

specified time period, the activities are jointly reviewed by both the subordinate

and his supervisor depending upon performance of subordinate; the goals are modified

or redesigned for the next period of time. The MBO is thus a performance oriented

system. A well thought outbox system provides multiple benefits. It

establishes a link between the performance of the individual and the bank i t i s

easy to imp lement because those who ca r ry ou t t he p lan a lso

participate in setting it up. Each employee becomes aware of the task h e h a s t o

p e r f o r m i n t h e b a n k .

T h i s l e a d s t o b e t t e r u t i l i z a t i o n o f capacity and talent. It promotes better

communication and information sharing. It provides guidelines for self evaluation as well

as evaluation by the superior against set tasks and goals. It facilitates guidance and

counseling

The Effective Components of ICICI P .A System

Performance Planning (includes employee goal setting / objective setting)

Ongoing Performance Communication

Data Gathering, Observation and Documentation

“Performance Appraisal” Meetings

Performance Diagnosis and Coaching An effective “Performance Appraisal” system in

ICICI bank

61

Performance Appraisal System in ICICI Bank

Performance appraisals are essential for the effective management and evaluation of

staff. Appraisals help develop individuals, improve organizational performance, and feed

into business planning. Formal performance appraisals are generally conducted

Performance Planning

Ongoing Performance Communication

Data Gathering, Observation and Documentation

“Performance Appraisal” Meetings

Performance Diagnosis and Coaching An effective “Performance Appraisal” system

62

annually for all staff in the organization. Each staff member is appraised by their line

manager. Directors are appraised by the CEO, who is appraised by the chairman or

company owners, depending on the size and structure of the organization.

Performance Appraisal is an important activity of every organization. It is an

omnipresent activity. As every firm industry want to be succeed, it is possible when it

has motivated, hard working, skilled employees. But in today‟s scenario employee

retention is the major problem. It can be solved if employees would be awarded for their

performance.

Performance Management is a process which start from the employee‟s first day in the

company. When an employee joins the company, his/her Key Responsibility Areas are

identified by his/her immediate supervisor (R1) and senior supervisor (R2, Boss of R1).

He/she works according to them.

Performance Appraisal Feedback

Performance appraisal process is incomplete without the feedback given to the

employee about his appraisal and his performance. But the way of giving as well as

receiving the feedback differs from person to person and their way of handling and their

outlook towards the issue. According to a popular saying:

“A SUCCESSFUL MAN IS ONE WHO CAN LAY A FIRM FOUNDATION WITH THE

BRICKS OTHERS HAVE THROWN AT HIM.”

Therefore, On the part of the person receiving the feedback, the following points are

important to be taken care of:

The employee should have a positive attitude towards the feedback process

He should listen to the suggestions of the appraiser calmly and try to incorporate them

in his plans.

63

He should not hesitate to ask for the help of his superiors.

Should have a co-operative attitude during the feedback meeting.

Don‟t judge the appraiser as a person. & should take the feedback objectively.

Should not judge the appraiser as a person on the basis of the feedback.

On the part of the appraiser or the manager / person giving the feedback, the following

points are to be taken care of:

The appraiser should make the receiver feel comfortable during the feedback meeting.

The appraiser should make it a two – way conversation i.e. let the employee speak.

Listen to the employee and note his points, suggestions, problems etc.

The appraiser should not adopt a confrontational approach towards the meeting. The

goal is not to criticize the employee.

Provide a constructive feedback to the employee i.e. in a way which will motivate him to

perform better.

Have a positive attitude towards the process Try to understand the reasons of his

failure. Be fair and objective Prepare yourself for what to say and how to say.

ICICI HR Philosophy on Performance Appraisal

“Performance Appraisal” is one such method that allows for the optimization of

employee. In a broad sense , it is a formal structure that allows for the

continued measuring and evaluation of individual behavior and performance,

whilst influencing an employee‟s job related attributes though such factors as increased

job satisfaction and recognition (with the use of promotional aids such as better

equipment, duties, and salaries). The purpose of any such system, is not

only to measure the performance of human resources but also to find areas

of skill deficit for further development (through employee feedback), identify

64

excess potential that could be better utilized, and communicate objectives

more accurately to workers. By do ing so , businesses move one step closer to

the achievement of their set goals and objectives. Included here is also one other factor

that is not direct objectives of appraisals, but becomes a valuable asset within itself.

This simply is the provision for maintaining records of workers that are legally viable,

that can protect the business when dealing in case of dismissals and demotions. This is

especially important in today‟s society because of the "increasing legislation and

regulation dealing with victimization and discrimination" making bank liable for all their

actions. The annual “Performance Appraisal” is usually done in two steps. First, the

employees and their manager complete the “Performance Appraisal” from –doing

self assessment. Often the bank also uses 360 degree feedback process,

asking for input from peers secondly,

Performance appraisals are essential for the effective management and evaluation of

staff. Appraisals help develop individuals, improve organizational performance, and feed

into business planning. Formal performance appraisals are generally conducted

annually for all staff in the organization. Each staff member is appraised by their line

manager. Directors are appraised by the CEO, who is appraised by the chairman or

company owners, depending on the size and structure of the organization.

Performance Appraisal is an important activity of every organization. It is an

omnipresent activity. As every firm industry want to be succeed, it is possible when it

has motivated, hard working, skilled employees. But in today‟s scenario employee

retention is the major problem. It can be solved if employees would be awarded for their

performance.

Performance Management is a process which start from the employee‟s first day in the

company. When an employee joins the company, his/her Key Responsibility Areas are

65

identified by his/her immediate supervisor (R1) and senior supervisor (R2, Boss of R1).

He/she works according to them.

Next step is to review the employee‟s performance. It may be quarterly, half yearly or

yearly. There is a provision period in every company for confirmation. Usually it is of 6

month. After completing the confirmation period the employee is confirmed as a

permanent employee of a company. So before completing 6 month in a company, the

employee is not appraised. He gets only a rank according to his/her performance. It

means he will be considered as a superior for next appraisal with his ranking.

In Performance Management System, there are some reviews as employee‟s self

review, R1 & R2 review. In Self Review, a form is given to employee. She/he gives rank

for himself according his views. The form is based on his KRA‟s. After it R1 checks that

employee ranked himself right or wrong. If anything is not correct according to him/her,

he/she can make changes in it and can rank according to him/her after it. The form is

sent to R2. He checks it. But he can‟t make any change in it. He can recommend only to

HR Dept. After all this, the form is sent to HR Dept.

The next step is employee‟s performance rating normalization. Employee‟s performance

rank makes a curve. For performance appraisal, there should be a bell shaped curve. If

it is not in a bell shaped curve, then it is made. For normalize any curve, HR dept.

consult with R1 and R2. After this, they rank the employees once again and make the

curve in bell shape.

Last step is to appraise the employee. For appraising an employee at first, HR dept.

consider all things as employee‟s performance, company‟s profit, Business report,

vacancies for higher post etc. After keeping all these in mind, they promote the

employee to higher post, enrich the job, give incentives etc.

66

Writing performance appraisals

Writing performance appraisal involves creating a document, which has the summary of

the every employee‟s performance over a period of time and a snapshot of their

observed strengths and weaknesses, and the rater‟s feedback that can be used for

other purposes.

Writing Performance appraisal depend significantly on the writer‟s various abilities and a

combination of other factors. A rater or a manager needs:

• An objective rating method to assess an employee‟s performance, behavior, and skills

and knowledge.

• All the relevant data related to the employee‟s performance, the standards, and his job

description.

• To observe and accurately recall the employee‟s behavior throughout the time period

of the appraisal.

• Using meaningful, unambiguous and clear language for the description in the

document.

The written performance appraisal document should ideally contain 3 basic sections:

Performance elements

A performance element is a general description of an employee‟s overall responsibility

in a particular area of work. Performance elements are basically the job description of

the employee clearly describing the roles and responsibilities expected from him.

67

Performance standards

Performance standards are the expected or the desired level of the tasks to be

accomplished by the employee.

Actual performance

This section records the data of the actual performance of the employee, his

accomplishments, successes and failures, his on-the-job performance, his strengths

and weaknesses

Plans for employee development

The developmental requirements (the training needs) felt or found by the appraiser for

the employee.

An overall rating

An overall rating for the employee‟s overall performance like satisfactory performance,

unsatisfactory performance, requires improvement etc.

The common errors that creep in the writing the appraisals and should be avoided are:

Halo effect:

Halo effect is the tendency of the rater to allow one aspect of a man‟s character to

influence his overall rating of the employee.

Central tendency

Central tendency is the tendency of the rater to give average ratings to the employee

without actually appraising or condemning them.

68

Recent behavior (the pitchfork effect)

As per the human nature, it is a common tendency to rate the people on the basis of

their most recent behavior and forgetting the events and their performance in the

starting of the period.

Stereotyping an employee on the basis of the performance of his/her team is another

common error.

Therefore, with proper preparation, training and effort, writing appraisals can be

converted from a time consuming activity into a meaningful activity for the employee

and the organization.

Performance appraisal training

Every organization conducts performance for assessing the performance of the

employees and the organization. But if not conducted properly, they can give a false

impression about the performance of the employees and affect the overall performance

of the organization; therefore, there is a need to train the appraisers to ensure the

maximum effectiveness of the process.

Studies have revealed that appraisals are often conducted by the managers and the

supervisor who sometimes, are themselves not aware of the procedures to be followed.

They should be explained the importance and the implications of the Performance

appraisal to the organizations

The methods to be followed, the principles and the processes of the appraisal

All managers and supervisors who consult performance appraisals should be given

training for the following:

69

Methods, techniques and guidelines for setting goals and objectives

How to evaluate the performance and rate the employees

Standards for performance documentation

How to complete a performance appraisal form

How to maintain objectivity in the appraisal

Questioning techniques for appraisals

Responding to employee reactions

Improves rapport and communication

Building morale and motivating employees Observing and measuring performance

Tracking results

Structuring the interview with the focus on improving performance

Feedback techniques (providing constructive feedback)

How to deal with non-performers and people who refuse to co-operate

Post review actions

The training can be given by conducting special workshops by professional HR

consultants or qualified and experienced HR professionals of human resource

management. The venue for the purpose can be a suitable seminar hall, training room,

70

conference hall, boardroom, or at some place away from the workplace like some hotel

etc.

How to measure employee performance

The most difficult part of the performance appraisal process is to accurately and

objectively measure the employee performance. Measuring the performance covers the

evaluation of the main tasks completed and the accomplishments of the employee in a

given time period in comparison with the goals set at the beginning of the period.

Measuring also encompasses the quality of the accomplishments, the compliance with

the desired standards, the costs involved and the time taken in achieving the results.

Measuring employee performance is the basis of the Performance appraisal processes

and performance management. Accurate and efficient performance measurement not

only forms the basis of an accurate performance review but also gives way to judging

and measuring employee potential.

For the purpose of measuring employee performance, different input forms can be used

for taking the feedback from the various sources like the superior, peers, customers,

vendors and the employee himself. All the perspectives thus received should be

combined in the appropriate manner and to get an overall, complete view of the

employees‟ performance. Observation can also be exercised by the superior to obtain

information. Some suggestions and tips for measuring employee performance are:

Select a good time, minimize interruptions.

Start with something positive, Ask open ended questions to encourage discussion.

Clearly define and develop the employee plans of action (performance) with their role,

duties and responsibilities.

Also take note of the skills, knowledge and competencies and behaviors of the

employees that help the organization to achieve its goals.

71

Focus on accomplishments and results rather than on activities.

Set mutually agreeable goals for improvement.

If possible, collect the feedback about the performance of the employees through multi-

point feedback and self-assessments.

Financial measures like the return on investment, the market share, the profit generated

by the performance of the team should also be considered.

For an organization to be an effective organization and to achieve its goals, it is very

important to monitor or measure its‟ and its employee performance on a regular basis.

Effective monitoring and measuring also includes providing timely feedback and reviews

to employees for their work and performance according to the pre-determined goals and

standards and solving the problems faced. Timely recognition of the accomplishments

also motivates the employees and help to improve the performance.

Measuring the performance of the employees based only on one or some factors can

provide with inaccurate results and leave a bad impression on the employees as well as

the organization. For example: By measuring only the activities in employee‟s

performance, an organization might rate most of its employees as outstanding, even

when the organization as a whole might have failed to meet its goals and objectives.

Therefore, a balanced set of measures (commonly known as balanced scorecard)

should be used for measuring the performance of the employee.

There is a provision period in every company for confirmation. Usually it is of 6 month.

After completing the confirmation period the employee is confirmed as a permanent

employee of a company. So before completing 6 month in a company, the employee is

not appraised. He gets only a rank according to his/her performance. It means he will be

considered as a superior for next appraisal with his ranking.

72

In Performance Management System, there are some reviews as employee‟s self

review, R1 & R2 review. In Self Review, a form is given to employee. He/She gives rank

for himself according his views. The form is based on his KRA‟s. After it R1 checks that

employee ranked himself right or wrong. If anything is not correct according to him/her,

he/she can make changes in it and can rank according to him/her after it. The form is

sent to R2. He checks it. But he can‟t make any change in it. He can recommend only to

HR Dept. After all this, the form is sent to HR Dept.

The next step is employee‟s performance rating normalization. Employee‟s performance

rank makes a curve. For performance appraisal, there should be a bell shaped curve. If

it is not in a bell shaped curve, then it is made. For normalize any curve, HR dept.

consult with R1 and R2. After this, they rank the employees once again and make the

curve in bell shape.

Last step is to appraise the employee. For appraising an employee at first, HR dept.

consider all things as employee‟s performance, company‟s profit, Business report,

vacancies for higher post etc. After keeping all these in mind, they promote the

employee to higher post, enrich the job, give incentives etc.

73

Chapter-4

RESEARCH

METHODOLOGY

74

Chapter-4

RESEARCH METHODOLOGY

RESEARCH METHOLOGY is the process, which guide the researcher during the

whole course of research. It works as a device without which an effective research

cannot be done. Hence it is, very much necessary for the researcher that he / she have

to adopt the design best suited to them.

If the due importance is not given to the research design it would create

impurities in the research process, thus the work would lose the reliability. This is the

reason that it is not desirable but also important to construct a good research

methodology.

TITLE OF THE PROJECT

The Title of the project is “Performance Appraisal in ICICI bank”

Duration of the Project

The Duration of the Project this 30 Days

Objective of Research

To study Performance Appraisal at ICICI Bank.

To survey the employees on their satisfaction levels on their Performance

Appraisal

To study their Annual goal setting process

75

To study the employees knowledge about the goals which are set for them.

To Understand the challenges he faces with his/her reporting manager during the

review process

To study the feedback of employees towards their performance appraisal system

TYPE OF RESEARCH:

Research Design

Research Design is the overall description of all the steps though which the

projects have preceded from the setting of objectives to the writing of the

project report. The success of the project depends on the soundness of the

research design, which includes problem definition, specific method of data

collection and analysis and time required for the project. Actually it is the blue

print of research project.

While doing the research, questionnaire was prepared for collecting the primary

data. Questionnaire contained 17 questions. They were multiple choice

questions.

SOURCES OF DATA

The Primary sources:

First hand collection of data with the help of questionnaire,

Direct personal contact.

The secondary sources

Reading of handbook of company

Going through books related to Performance Appraisal

76

Doing internal survey of the organization.

Searching on the internet for relevant information.

Method of data collection:

Questionnaire:-

A questionnaire consists of a number of questions printed or typed in a definite order on

a form or set of forms.

For collecting Primary Data I have prepared a structured questionnaire for the

respondent. After meeting them I filled the questionnaire and got the data. I prepared

my questionnaire with having all the objective of the study in my mind. My questionnaire

has closed ended questions.

SAMPLE SIZE AND METHOD OF SELECTING SAMPLE

Population :--- 40 employee

Sample Size:--- 40 employee

Sample instrument:--- questionnaire

Sample technique :--- random sample

LIMITATIONS

The duration of the project is one of the primary constraints.

As the executives and managers in all functional departments were busy, the

number of respondents was restricted to 30 only & second thing is that as it is a

research on performance appraisal so I could not include all employees of the

company.

77

The study was done in Sikar branch. Therefore, the findings, conclusions and

suggestions pertaining to opinion of employees about their performance appraisal

are relevant only to Sikar branch. This is some part of the study cannot be

generalized to entire Indigence.

This is an academic effort and it is limited to cost, time and geographical area

78

Chapter-5

FACT & FINDING

79

Chapter-5

FACT & FINDING

Performance appraisal system is the most vital part of any company‟s human

Resource Department.

The most important thing that by it an organization can make proper

Performance appraisal system for his employee.

Before arranging Performance appraisal system, proper goals have been set in

the company which made it successful.

Performance appraisal system program really needs an eagle‟s view for getting a

competent person for the organization‟s continuous growth.

Performance appraisal system program is a linking activity as it brings together

those is related with the company.

Performance appraisal system program differ from one organization to another.

After performance appraisal According to the need, trainings are also arranged

(external or internal) for the employees.

A well-considered and pre-planned Performance appraisal system based on the

goals, needs, environment of the organization will help to avoid hasty or ill-

conceived decisions and help to man the organization with the right kind of

personnel.

ICICI bank has planned to Performance appraisal system for the employee‟s

evaluation.

80

Chapter-6

DATA ANALYSIS

AND

INTERPRETATION

81

Chapter-6

DATA ANALYSIS AND INTERPRETATION

Q1.Do you know about the performance appraisal system?

Interpretation

66 % of the employees substantially know about performance appraisal system.

10% of the employees marginally know about performance appraisal system.

18% of the employees to certain extent know about performance appraisal

system.

6% of the employees not know about performance appraisal system.

82

Q2.Are you satisfied by the performance appraisal system of the company?

Interpretation

56% of the employees are substantially satisfied by the performance appraisal

system of the company.

31% of the employees are marginally satisfied by the performance appraisal

system of the company.

9% of the employees are certain extent satisfied by the performance appraisal

system of the company.

4% of the employees are not satisfied by the performance appraisal system of

the company.

83

Q3.Are you think that performance appraisal system of the company is helpful for

the better performance?

Interpretation

41% of the employees certain extent agree that performance appraisal system of

the company are helpful for the better performance.

19% of the employees substantially agree that performance appraisal system of

the company is helpful for the better performance.

19% of the employees marginally agree that performance appraisal system of the

company is helpful for the better performance.

15% of the employees less extent that performance appraisal system of the

company is helpful for the better performance.

6% of the employees not agree that performance appraisal system of the

company is helpful for the better performance

84

Q4.Do you know about future goal of the company in the beginning of every

year?

Interpretation

66 % of the employees substantially know about the goal in the beginning of

year.

10% of the employees marginally know about the goal in the beginning of year.

18% of the employees to certain extent know about the goal in the beginning of

current goal.

6% of the employees don‟t know about the goal in the beginning of current year.

0%

10%

20%

30%

40%

50%

60%

70%66%

18%

10%

0% 6%

Substaintally

To Certain Extent

Marginally

To Less Extent

Not At All

85

Q5.Will the clarity of future goal helps you in doing your work better?

Interpretation

66 % of the employees substantially agree that clarity of future goal substantially

help them in doing in work better.

31% of the employees agree that to certain extent clarity of future goal help them

in doing their work better.

3% of employees marginally agree that clarity of future goal marginally help them

in doing work better.

0%

10%

20%

30%

40%

50%

60%

70%66%

31%

3% 0% 0%

Substaintally

To Certain Extent

Marginally

To Less Extent

Not At All

86

Q6.Will a regular review of your goals is helpful for the better results?

Interpretation

51% of the employees substantially agree that regular review of their goal

substantially helpful for the better results.

30% of the employees agree that to certain extent review of their goal is helpful

for the better results.

13% of the employees marginally agree that review of their goal is helpful for the

better results.

3% of the employees agree that to less extent review of their goal is helpful for

the better results.

3% of employees not agree that review of their goal not at all is helpful for the

better results.

.

87

Q7. Are you able to understand the relationship between goal and activities?

Interpretation

54% of the employees are to certain extend able to understand the relationship

between goal and activities.

28% of the employees are substantially able to understand the relationship

between goal and activities.

10% of the employees are marginally able to understand the relationship

between goal and activities.

8% of the employees are to less extend able to understand the relationship

between goal and activities.

0%

10%

20%

30%

40%

50%

60%

28%

54%

10% 8%

0%

Substaintally

To Certain Extent

Marginally

To Less Extent

Not At All

88

Q8. Does your department do the regular performance appraisal of his all

employees?

Interpretation

54% of the employees are certain extend agree that his department do the

regular performance appraisal of his all employees.

28% of the employees are substantially agreed that his department do the

regular performance appraisal of his all employees.

10% of the employees are marginally agreed that his department do the regular

performance appraisal of his all employees.

8% of the employees are less extend that his department do the regular

performance appraisal of his all employees.

89

Q9. Does your company give the proper feed back after the performance

appraisal?

Interpretation

56% of the employees are substantially agreed that the company give the proper

feed back after the performance appraisal.

34% of the employees are certain extend agree that the company give the proper

feed back after the performance appraisal.

7% of the employees are less extend that the company give the proper feed back

after the performance appraisal.

3% of the employees are marginally agreed that the company give the proper

feed back after the performance appraisal.

Conclusion:

56% of the employees agree that the company give the proper feed back after

the performance appraisal.

0%

10%

20%

30%

40%

50%

60%56%

34%

3% 7%

0%

Substaintally

To Certain Extent

Marginally

To Less Extent

Not At All

90

Q10.Are the same quality rates used in the appraisal form managed for the future

reference and clarification?

Interpretation

46% of the employees are certain extend agree that to certain extent same

quality rates are used in the appraisal form managed for the future reference

38% of the employees agree that substantially same quality rates are used in the

appraisal form managed for the future reference and clarification

10% of the employees agree that not same quality rates are used in the appraisal

form managed for the future reference and clarification

3% of the employees agree that to less extent same quality rates are used in the

appraisal form managed for the future reference and clarification

3% of the employees are marginally agree that same quality rates are marginally

used in the appraisal form managed for the future reference and clarification

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

38%

46%

3% 3%

10%

Substaintally

To Certain Extent

Marginally

To Less Extent

Not At All

91

Q11.Do you understand each customer is different and you handle each of them

in different ways?

Interpretation

65% of the employees substantially understand that each customer is different

and they handle each of them in different ways

31% of the employees agree that to certain extent they understand that each

customer is different and they handle each of them in different ways

2% of the employees agree that marginally they understand that each customer

is different and they handle each of them in different ways.

2% of the employees agree that to less extent they understand that each

customer is different and they handle each of them in different ways.

0%

10%

20%

30%

40%

50%

60%

70%65%

31%

2% 2% 0%

Substaintally

To Certain Extent

Marginally

To Less Extent

Not At All

92

Q12.Does equal sharing of information in a team is helpful in the improvement in

future performance?

Interpretation

65% of the employees are substantially agree that maintaining unity in their

teamwork substantially improves efficiency and able to finish task within a period.

31% of the employees are certain extend that maintaining unity in their teamwork

to less extent improves efficiency and able to finish task within a period.

2% of the employees are marginally agree that maintaining unity in their

teamwork marginally improves efficiency and able to finish task within a period.

2% of the employees are to less extend that maintaining unity in their teamwork

marginally improves efficiency and able to finish task within a period.

0%

10%

20%

30%

40%

50%

60%

70% 65%

31%

2% 2% 0%

Substaintally

To Certain Extent

Marginally

To Less Extent

Not At All

93

Q13.Does maintaining unity in your teamwork improves efficiency and able to

finish task within a period?

Interpretation

65% of the employees are substantially agree that maintaining unity in their

teamwork substantially improves efficiency and able to finish task within a period.

31% of the employees are certain extend that maintaining unity in their teamwork

to less extent improves efficiency and able to finish task within a period.

4% of the employees are marginally agree that maintaining unity in their

teamwork marginally improves efficiency and able to finish task within a period.

Conclusion:

65% of the employees agree that maintaining unity in their teamwork

substantially improves efficiency and able to finish task within a period.

0%

10%

20%

30%

40%

50%

60%

70% 65%

31%

4% 0% 0%

Substaintally

To Certain Extent

Marginally

To Less Extent

Not At All

94

Q14.Does equal sharing of information in a team and unity; helps you to improve

Group Corporation?

Interpretation

60% of the employees are substantially agree that equal sharing of information in

a team and unity; substantially helps them to improve Group Corporation.

36% of the employees are certain extend that equal sharing of information in a

team and unity; to less extent helps them to improve Group Corporation.

4% of the employees are marginally agree that equal sharing of information in a

team and unity; marginally helps them to improve Group Corporation

0%

10%

20%

30%

40%

50%

60%

70%60%

36%

4% 0% 0%

Substaintally

To Certain Extent

Marginally

To Less Extent

Not At All

95

Q15. Does your manager do regular one on one talk with you and discuss your

strength and weakness?

Interpretation

44% of the employees agree that to certain extent their manager do regular one

on one talk with them and discuss their strength and weakness

25% of the employees agree that their manager substantially does one on one

talk with them and discuss their strength and weakness

13%of the employees not at all agree that their manager does regular one on

one talk with them and discuss their strength and weakness

12% of the employees agree that to less extent their manager does regular one

on one talk with them and discuss their strength and weakness

6% of the employees agree that their manager marginally does regular on one

talk with them & discuss their strength & weakness

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

25%

44%

6%

12% 13%

Substaintally

To Certain Extent

Marginally

To Less Extent

Not At All

96

Q16.Does your manager give you regular feedback on how you need to improve

more ahead in your career?

Interpretation

43% of the employees agree that their manager substantially give regular

feedback on how they need to improve more ahead in your career

37% of the employees agree that to certain extent their manager give regular

feedback on how they need to improve more ahead in your career

9% of the employees agree that to less extent their manager give regular

feedback on how they need to improve more ahead in your career

8% of the employees agree that their manager not at all give regular feedback on

how they need to improve more ahead in your career

3% of the employees agree that their manager marginally give regular feedback

on how they need to improve more ahead in your career

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%43%

37%

3%

9% 8%

Substaintally

To Certain Extent

Marginally

To Less Extent

Not At All

97

Chapter-7

SWOT ANALYSIS

98

Chapter-7

SWOT ANALYSIS

In any organization, strength and weakness indicate the capability and preparedness of

the organization to respond the business opportunities likely to be available in the

environment and the extent to which it is able to use its strength to neutralize the treats,

SWOT analysis is done for generating a corporate plan. It is a macro level process,

which has to be interpreted at different micro level like technical, financial, human

resources etc.

SSTTRREENNGGTTHHSS::

QQuuaalliittyy ooff wwoorrkk iiss vveerryy ggoooodd.

SSttaannddaarrddiizzeedd MMeeaassuurreemmeenntt..

EEaassyy uunnddeerrssttaannddaabbllee ffoorr tthhee eemmppllooyyeeee..

IImmaaggee ooff Performance Appraisal System in ICICI Bank iiss vveerryy ggoooodd aammoonngg

ppeeooppllee.

IItt pprroovviiddee pprrooppeerr ttrraaiinniinngg ttoo hhiiss eemmppllooyyeeee ssoo tthhee wwoorrkkiinngg ssttiillee ooff eemmppllooyyeeee iiss

vveerryy ggoooodd..

Ability to overcome commercial and technical challenges.

Provide propel sources with eemmppllooyyeeee satisfaction

Strong foundation laid by the top management..

Improves the quality of a service continuously.

Quality and accuracy is the main strength.

Organization's productivity is too high

Business focus approach

99

Product planning

Company is upgrading its website regularly

WWEEAAKKNNEESSSSEESS:

AA ssoommee ppaarrtt ooff eemmppllooyyeeee iiss nnoott aawwaarree bbyy tthhee Performance Appraisal System in

ICICI Bank.

PPrreecciippiittaattiioonn ooff eemmppllooyyeeee iiss nnoott cclleeaarr aabboouutt Performance Appraisal System in

ICICI Bank..

LLaacckk ooff ccrreeddiitt eeaassyy aavvaaiillaabbiilliittyy.

High overheads

Work force with low skill levels

Lack sufficient personnel in frontier areas of technology

Company does not make the good employee relation.

Company does not proper introduce new product line to his employee.

Improper strategic decisions.

Early project termination.

OOPPPPOORRTTUUNNIITTYY::

ICICI Bank having a loyalty & name itself so it should take an advantage of it.

Proper HR policy will able to get employee help.

Competitors are having too much problems by Performance Appraisal System in

ICICI Bank must get the benefits from it & try to grab the opportunity.

Employee education and awareness camps can increase the market share for

ICICI Bank.

Covering maximum branches in India.

100

Company advertises its policies on internet.

Start on line facility

It can give the customer services training programs to his employee for

satisfaction of his customer.

Organizational research, inspection and development

Using the standard weights, grade and standardization.

Growing health consciousness among employee.

Vast untapped company potential.

Increasing dissatisfaction among other banks.

TTHHRREEAATTSS::

The growing some dissatisfaction among employees.

Employee are more attached emotionally only with other banks which is not

possible with the ICICI Bank.

Other banks easily decrease their price when they see that there is a recession

period in the market but it is not possible with ICICI Bank.

It regularly provides the training to his employee according to requirement.

101

Chapter-8

CONCLUSION

102

Chapter-8

CONCLUSION

As per response given by employees we conclude that

Employees are happy with Performance Appraisal of the company.

Employees understand very well about their goal set by the company.

Employees are satisfied with their reporting manager that they do regular

talk on feedback of their performance evaluation.

Employees are very much comfortable with their manager during the review

process.

Performance appraisal system program is a linking activity as it brings together

those is related with the company.

Performance appraisal system program differ from one organization to another.

ICICI bank has planned to Performance appraisal system for the employee‟s

evaluation.

Before arranging Performance appraisal system, proper goals have been set in

the company which made it successful

Performance appraisal system program really needs an eagle‟s view for getting a

competent person for the organization‟s continuous growth.

103

Chapter-9

RECOMMENDATIONS

AND SUGGESTIONS

104

Chapter-9

RECOMMENDATIONS AND SUGGESTIONS

Some Suggestions to increase the usefulness of the study:

Employees should be motivated & encourage having a positive view about the

performance appraisal held for them.

Training program must be designed & conducted scientifically & with a good spirit

& intention according to the feedback generated out off performance appraisal.

Performance Appraisal should be done at regular interval that is on a financial

year basis so that a perfect comparison of skill could be done. It should be done

after 2 months for new employees.

In case of transfer of employees from one department to another department

appraisal should be done again and training should be given specifically so that

organization is able to achieve the goals.

Organization should provide performance appraisal to cover the gap between the

desired & the present level in order to develop the competencies of people,

consequently the competencies of the organizations.

The techniques and processes of a performance appraisal should be related

directly to the needs and objectives of an organization.

Along with the technical, attitudinal based program, behavioral program etc.

should also be arranged for workers and staff members.

Performance appraisal should be conducted in the actual job environment to the

maximum possible extent.

105

Chapter-10

ANNUXERE

106

Chapter-10

ANNUXERE

QUESTIONNAIRE:

Q.1 EMPLOYEE PROFILE

A. Employee‟s name :- …………………………………………………….

B. Age :- ……………………………………………………

D. Education :- ………………………………………………………

Q2. Are you working?

o Part Time

o Full Time

Q3.Do you know about the performance appraisal system?

A. substantially

B. marginally

C. certain extent

D. less extend

E. not at all

Q4.Are you satisfied by the performance appraisal system of the company?

A. Substantially

B. marginally

C. certain extent

D. less extend

E. not at all

107

Q5.Are you think that performance appraisal system of the company is helpful for the

better performance?

A. Substantially

B. marginally

C. certain extent

D. less extend

E. not at all

Q6.Do you know about future goal of the company in the beginning of every year?

A. Substantially

B. marginally

C. certain extent

D. less extend

E. not at all

Q7.Will the clarity of future goal helps you in doing your work better?

A. Substantially

B. marginally

C. certain extent

D. less extend

E. not at all

Q8.Will a regular review of your goals is helpful for the better results?

A. Substantially

B. marginally

C. certain extent

D. less extend

108

E. not at all

Q9. Are you able to understand the relationship between goal and activities?

A. Substantially

B. marginally

C. certain extent

D. less extend

E. not at all

Q10. Does your department do the regular performance appraisal of his all employees?

A. Substantially

B. marginally

C. certain extent

D. less extend

E. not at all

Q11. Does your company give the proper feed back after the performance appraisal?

A. Substantially

B. marginally

C. certain extent

D. less extend

E. not at all

Q12.Are the same quality rates used in the appraisal form managed for the future

reference and clarification?

A. Substantially

B. marginally

C. certain extent

109

D. less extend

E. not at all

Q13.Do you understand each customer is different and you handle each of them in

different ways?

A. Substantially

B. marginally

C. certain extent

D. less extend

E. not at all

Q14.Does equal sharing of information in a team is helpful in the improvement in future

performance?

A. Substantially

B. marginally

C. certain extent

D. less extend

E. not at all

Q15.Does maintaining unity in your teamwork improves efficiency and able to finish task

within a period?

A. Substantially

B. marginally

C. certain extent

D. less extend

E. not at all

110

Q16.Does equal sharing of information in a team and unity; helps you to improve Group

Corporation?

A. Substantially

B. Marginally

C. certain extent

D. less extend

E. not at all

Q17. Does your manager do regular one on one talk with you and discuss your strength

and weakness?

A. Substantially

B. marginally

C. certain extent

D. less extend

E. not at all

Q18.Does your manager give you regular feedback on how you need to improve more

ahead in your career?

A. Substantially

B. marginally

C. certain extent

D. less extend

E. not at all

111

Chapter-11

BIBLIOGRAPHY

112

Chapter-11

BIBLIOGRAPHY

1. Books & References

1. Kothari C.R: Research methodology

2. Pannerselvan R: Research Methodology

3. Research Methods & Techniques: G. C. Beri, C.R. Kothari

2. Websites

1. www.icicibank.com

2. www.google.com

3. www.sbride.com