A

PROJECT STUDY REPORT ON

“Performance Appraisal Process”

At

ICICI Bank

Submitted in

Partial fulfillment for the Award of degree of

Master of Business Administration

Submitted by: - Submitted To:-

MD. IRFAN ALI C.P. VERMA

M.B.A.
ENROLLMENT NO.1804201149

(2018-2020)

SANSKRITI UNIVERSITY CHHATA, MATHURA UTTAR

PRADESH

13
1
 PREAMBLE

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

13
 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 C.P. VERMA of management department of my college.

MD. IRFAN ALI

(Signature of student)

13
 DECLARATION

I IRFAN ALI Student of MBA Session 2018-2020, declare that the present work titled
“Performance Appraisal Process 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.

MD. IRFAN ALI

13
 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.

13
 CONTENT OF TABLE
S.NO TOPIC PAGE NO.
.
1 8
INTRODUCTION OF INDUSTRY

History
Definition

2 12
INTRODUCTION OF ICICI Bank

HISTORY OF ICICI BANK

HR Department

3 33
INTRODUCTION OF PROJECT

Performance Appraisal
Performance Appraisal Process in ICICI Bank

4 73
RESEARCH METHODOLOGY

Title of the project

Duration of the Project
Objective of Research
Method of data collection
Limitations

5 78
FACT & FINDING
6 80
DATA ANALYSIS AND INTERPRETATION

13
 7 97
SWOT ANALYSIS
8 10
CONCLUSION 1
9 10
RECOMMENDATIONS AND SUGGESTIONS 3

10 10
ANNUXERE 5

11 11
BIBLIOGRAPHY 1

13
 Chapter-1
INTRODUCTION OF
INDUSTRY

13
 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 a r e p r o h i b i t e d f r o m o w n i n g n o n -financial
c o m p a n i e s . In Japan, banks are usually the nexus of a cross -shareholding 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,

13
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

13
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.

13
 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

13
 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

15
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.
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
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.
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.
 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 was originally promoted in 1994 by ICICI Limited, an Indian financial
institution, and was its wholly-owned subsidiary

2 ICICI Bank is a leading private sector bank in India. The Bank’s consolidated total
assets stood at Rs. 13.77 trillion at March 31, 2020. ICICI Bank currently has a network
of 5,324 branches and 15,688 ATMs across India

3 ICICI Bank is deeply engaged in human and economic development at the national
level. The Bank works closely with ICICI Foundation across diverse sectors and
programs.

4 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.

5 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.

6 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.

7 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).
 BOARD MEMBERS

Mr. Girish Chandra Chaturvedi Chairman

Mr. Hari L. Mundra Independent Director

Mr. S. Madhavan Independent Director

Ms. Neelam Dhawan Independent Director

Mr. Radhakrishnan Nair Independent Director

Ms. Rama Bijapurkar Independent Director

Mr. B. Sriram Independent Director

Mr. Uday Chitale Independent Director

Mr. Lalit Kumar Chandel Government Nominee Director

Mr. Sandeep Bakhshi MD & C.E.O

Ms. Lalita D. Gupta Joint Managing Director

Mr. Sandeep Bakhshi Deputy Managing Director

Ms. Mr. Anup Bagchi Executive Director

Ms. Vishakha Mulye Executive Director

 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
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
 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
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.
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.
 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
 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.
• 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.
• 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
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.
 Chapter-3
INTRODUCTION
OF PROJECT
 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
 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.

  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.
 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
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
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
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
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
 Approaches to Performance Development

Performance
Appraisal

Traditional Method Modern

1. Essay Appraisal 1. Management By

Method Objectives
2. Straight Ranking (MBO)
Method 2. 360 Degree
3. Paired Comparison Appraisal
4. Critical Incidents 3. Assessment
Method Centers
5. Field Review 4. Behaviorally
6. Checklist Method Anchored Rating
7. Graphic Rating Scales
Scale 5. Human Resource
8. Forced Distribution Accounting
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.
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.
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
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

Customers
Suppliers/ Vendors

EMPLOYEE

Peers

Subordinates
 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
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
48
 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.
 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
 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

 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
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.
 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

 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.
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.
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).
 Performance Appraisal Process 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 f orm an ce
app ra i sal ” t h a t the b a n k s use f o r r e wa rd in g i t s em p lo ye e. 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
 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 f orm an ce app ra i sa 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 of f e r e d to h im . I f the emp lo yee ref use s t o lea ve t h e n
h i s s er v i ce is 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.
Ef f e c t i ve ban ks a re not bu i ld m e rel y on in ves tm ent and r e t u rn s
but 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.
 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 it i s ea s y to im p lem ent bec a u s e tho se who ca r r y out t he p lan
a l so 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 in 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
 Performance Appraisal System in ICICI Bank

Performance Planning

Ongoing Performance
Communication

Data Gathering,
Observation and
Documentation

“Performance Appraisal” Meetings

Performance Diagnosis and Coaching An effective “Performance Ap

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
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.

62
 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

63
excess potential that could be better utilized, and communicate objectives
more accurately to workers. B y do in g s o, 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
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.
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.
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.
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:
 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,
 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.
 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.
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.
 Chapter-4
RESEARCH
METHODOLOGY
 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

  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

  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.
 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
 Chapter-5
FACT & FINDING
 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.
 Chapter-6
DATA ANALYSIS
AND
INTERPRETATION
 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.

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.
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
Q4.Do you know about future goal of the company in the beginning of every
year?

66%
70%

60%
50%
40%
30% Substaintally
To Certain Extent Marginally

18%
20%
10% To Less Extent
6%
10% Not At All
0%
0%

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.
Q5.Will the clarity of future goal helps you in doing your work better?

66%
70%

60%

50%
Substaintally
40% 31% To Certain Extent Marginally
30% To Less Extent
Not At All
20%
10%3%
0% 0%
0%

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.
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.

.
Q7. Are you able to understand the relationship between goal and activities?

60% 54%

50%

40%
28% Substaintally
30% To Certain Extent Marginally
To Less Extent
20% Not At All
10% 8%
10%
0%
0%

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.
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.
Q9. Does your company give the proper feed back after the performance
appraisal?

60%
56%

50%

40% 34%
Substaintally
30% To Certain Extent Marginally
To Less Extent
20% Not At All
7%
10% 3%
0%
0%

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.
Q10.Are the same quality rates used in the appraisal form managed for the future
reference and clarification?

50% 46%
45%
40% 38%
35%
30%
25% Substaintally
20% To Certain Extent
15%
10% Marginally
5% 10% To Less Extent Not At All
0%
3% 3%

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
Q11.Do you understand each customer is different and you handle each of them
in different ways?

70
65%
%
60
%
50
%
40 31% Substaintally
% To Certain Extent Marginally
30 To Less Extent
% Not At All
20
%
10 2% 2
%
0%
0
%
%

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.
Q12.Does equal sharing of information in a team is helpful in the improvement in
future performance?

70% 65%

60%
50%
40%
Substaintally
31% To Certain Extent Marginally
30% To Less Extent
20% Not At All
10%
2% 2% 0%
0%

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.
Q13.Does maintaining unity in your teamwork improves efficiency and able to
finish task within a period?

70% 65%

60%

50%
Substaintally
40% 31% To Certain Extent Marginally
30% To Less Extent
Not At All
20%
4%
10% 0% 0%
0%

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.
Q14.Does equal sharing of information in a team and unity; helps you to improve
Group Corporation?

70%
60%
60%

50%
36% Substaintally
40% To Certain Extent Marginally
30% To Less Extent
Not At All
20%
4%
10% 0% 0%
0%

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
Q15. Does your manager do regular one on one talk with you and discuss your
strength and weakness?

44%
45%
40%
35%
30%
25% 25%
20% Substaintally
15% To Certain Extent Marginally
10% To Less Extent
12% 13%
5% Not At All
0% 6%

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
Q16.Does your manager give you regular feedback on how you need to improve
more ahead in your career?

43%
45%
40% 37%
35%
30%
25%
20% Substaintally
15% To Certain Extent
10%
5% Marginally
9% 8% To Less Extent Not At All
0%
3%

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
 Chapter-7
SWOT ANALYSIS
 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.

STRENGTHS:

 Quality of work is very good.

good

 Standardized Measurement.

 Easy understandable for the employee.

 Image of Performance Appraisal Process in ICICI Bank is very good

among people.
people

 It provide proper training to his employee so the working stile of employee is

very good.

 Ability to overcome commercial and technical challenges.

 Provide propel sources with employee 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

  Product planning

 Company is upgrading its website regularly

WEAKNESSES:
WEAKNESSES
 A some part of employee is not aware by the Performance Appraisal System in
ICICI Bank.

 Precipitation of employee is not clear about Performance Appraisal System in

ICICI Bank..

 Lack of credit easy availability.

availability

 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.

OPPORTUNITY:

 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.

  Company advertises its policies on internet.

 Start on line facility

 It can give the customer services training t h employe f

o is e o
programs satisfaction of his customer.
r
 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.

THREATS:

 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.

 Chapter-8
CONCLUSION
 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.
 Chapter-9
RECOMMENDATIONS
AND SUGGESTIONS
 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.
Chapter-10
ANNUXERE
 Chapter-10

ANNUXER

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
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
 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 feedback 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
 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
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
 Chapter-11
BIBLIOGRAPHY
 Chapter-11
BIBLIOGRAPHY

1. Books & References

1. Research Methods & Techniques: G. C. Beri, C.R. Kothari

2. Pannerselvan R: Research Methodology

3. Kothari C.R: Research methodology

2. Websites

1. www.icicibank.com

2. www.google.com

3. www.sbride.com

pg. 113