Professional Documents
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SYPONSIS
Human Resource is an very important part of any organization. They are the resource that majorly contribute towards attainment of organizational goals and these goals can be achieved only when people put in their best efforts. Performance Appraisal is one of the methods which ascertain whether an employee has shown his or her best performance on a given job.
Performance Appraisal is one of the most important tools used by the Human Resource Development in analyzing and evaluating its employees. It also gives the employees a chance to look back on what they have been doing.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. This project is based on Performance Appraisal.It goes in depth into what Performance Appraisal is, what it stands for and why it is done. It tries to explain the basic purpose and need of Performance Appraisal in the organization. It contains different types of approaches that can be used in different set of conditions. The project also tries to throw light on how theory can be put to practice.
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Methodology Introduction to Company Introduction to Performance Appraisal Performance Aprraisal at Union Bank Of India Highlights of Annually Performance Appraisal Form Findings and Analysis Recommendations Conclusion
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ANNEXURE: Bibliography.
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METHODOLOGY
To study the topic it is important to understand first how the Performance Appraisal works in an organisation. Thus to study and analyse various aspects of Performance Appraisal Interview Method was followed. Further,the questions where formed to collect all the data and the information regarding the process and impact of Performance Appraisal in an organization. The participants from the organisation where from different departments for the best results. After taking their answers/ feedback by asking questions we can come to the conclusion when we analyse the findings. For carrying out all this study a visit to Union bank of India was of great help in my project. Union Bank of India is one of the organizations that are using Self Performance Appraisal system in their organizations. Here I met Mr. Venkatesh Amin the Senior Manager of Union Bank of India, who told me about the process and impact of Performance Appraisal they are using in Union Bank of India. Very friendly and helpful in nature, Mr. Venkatesh Amin helped me a lot to understand how performance appraisal system is meant to work, what are the practical difficulties in the implementation and how they have managed to overcome these difficulties successfully.
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INTRODUCTION TO COMPANY
Once a Year Overview Union Bank of India was inaugurated by the Father of the Nation, Mahatama Gandhi, on November 11, 1919. Started as a limited company with its registered office at 7, Marzban Road, Mumbai, it was one of the few Financial Commercial banks in India. Until 1947, UBI had only 4 branches - 3 in Mumbai and 1 in Saurashtra, all concentrated in key trade centres. Catering to all the sectors of the society, be it agriculture, industry, trade and commerce, services or infrastructure, the bank has also played a major role in rendering services to the financial needs of every section. Apart from this, the bank also extended financial support to educational, housing and trade sector. Union Bank of India undertook the task of establishment of village knowledge centers and self-employment training centers. It was in 1975, that the Union Bank of India was nationalized. It was, then, that it merged with the Belgaum Bank, a private sector bank. Another merger was on cards in 1985, this time with the Miraj State Bank. Union Bank is a Public Sector Unit with 55.43% Share Capital held by the Government of India. The Bank came out with its Initial Public Offer (IPO) in August 20, 2002 and Follow on Public Offer in February 2006. Presently 44.57 % of Share Capital is presently held by institutions, individuals and others. Branch Network At the time Nationalization i.e. June 1969, it had 240 branches. Since then, the branch network had grown substantially across the country with presence in 28 states, including union territories. As on 31st March 2004, Bank has network 2020 branches 794 Rural, 457 Semi-urban, 426 Urban and 343 Metropolitan branches. Tech-Savvy With the age of global banking, Union Bank of India also changed its style, boasting of
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Performance Appraisal ______________________________________________________________________ urbanized and computerized core banking systems. A front runner among public sector banks in modern-day banking, it has all the facilities that a modern bank should have internet banking and centrally computerized branches. UBI was one of the pioneer public sector banks, which launched Core Banking Solution in 2002. As of September 2005, more than 670 branches/extension counters of Bank are networked under Core Banking Solution. The Bank has launched multiple Electronic Delivery Channels and has installed nearly 423 networked ATMs. Recent Development Union Bank of India (UBI) has informed the Bombay Stock Exchange (BSE) that the bank intends to raise additional funds up to Rs 400 crore in one or more tranches by issue of bonds on private placement basis for its Tier II capital requirement to shore up the capital to risk assets ratio subject approvals from the Ministry of Finance and Reserve Bank of India. Exact amount to be raised, coupon and tenor of bonds will be decided at the time of placement.
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In many organizations - appraisal results are used, either directly or indirectly, to help determine reward outcomes also it leads to the identification of the training and development needs of the employee.That is, the appraisal results are used to identify the better performing employees who should get the majority of available merit pay increases, bonuses, and promotions. By the same token, appraisal results are used to identify the poorer performers who may require some form of counseling, or in extreme cases, demotion, dismissal or decreases in pay. (Organizations need to be aware of laws in their country that might restrict their capacity to dismiss employees or decrease pay.)
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. Helps to strengthen the relationship and communication between superior subordinates and management employees. To diagnose the strengths and weaknesses of the individuals so as to identify the training and development needs of the future. To provide feedback to the employees regarding their past performance. Provide information to assist in the other personal decisions in the organization. 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.
BASIC PURPOSE: Effective performance appraisal systems contain two basic systems operating in conjunction: an evaluation system and a feedback system. Employee Viewpoint : From the employee viewpoint, the purpose of performance appraisal is four-fold: (1) Tell me what you want me to do
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Performance Appraisal ______________________________________________________________________ (2) Tell me how well I have done it (3) Help me improve my performance (4) Reward me for doing well. Organizational Viewpoint : From the organization's viewpoint, one of the most important reasons for having a system of performance appraisal is to establish and uphold the principle of accountability
BENEFITS OF APPRAISAL : Perhaps the most significant benefit of appraisal is that, in the rush and bustle of daily working life, it offers a rare chance for a supervisor and subordinate to have "time out" for a one-on-one discussion of important work issues that might not otherwise be addressed. Appraisal offers a valuable opportunity to focus on work activities and goals, to identify and correct existing problems, and to encourage better future performance. Thus the performance of the whole organization is enhanced. Motivation and Satisfaction Performance appraisal can have a profound effect on levels of employee motivation and satisfaction - for better as well as for worse. Training and Development Performance appraisal offers an excellent opportunity - perhaps the best that will ever occur - for a supervisor and subordinate to recognize and agree upon individual training and development needs. Recruitment and Induction Appraisal data can be used to monitor the success of the organization's recruitment and induction practices. Employee Evaluation Though often understated or even denied, evaluation is a legitimate and major objective of performance appraisal.
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Performance Appraisal ______________________________________________________________________ The Link to Rewards Research has reported that appraisees seem to have greater acceptance of the appraisal process, and feel more satisfied with it, when the process is directly linked to rewards.
PROCESS: Each step in the process is crucial and is arranged logically. The process shown down is somewhat idealized
Performance Interview
METHODS: There are various methods of performance appraisal.An organization selects the most appropriate method which suits its business.Following are few of them: -Rating Scale -Checklist
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Performance Appraisal ______________________________________________________________________ -Critical incidents Method -Essay Method -Confidential Records -Self Appraisal -Ranking Method
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Performance Appraisal ______________________________________________________________________ From the above scores given by the appraiser and reviewing authority for various attributes, Performance is rated on the scale of : Outstanding Good Average Below Average (80 100) (60 - 79 ) (40 59) (Below 40)
After the information so obtained from the assessment of performance, the bank is able to provide training needs and is able to find out the potentiality of the employees.
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SELF APPRAISAL (By appraisee): (A)Highlights of my performance during the year are as under (B)Areas in which I feel I have not done well as under (C)Constraints faced
(D)What according to me would enable me to perform better
(E)Any outstanding performance outside the Bank (Assigned by the Bank) KEY RESPONSIBILITY AREAS : (A)For non-operational assignments (B)For operational assignments
(A) House Keeping (B) Inspection & Audit (C) Customer Service (D) Submission of Periodical Returns (E) Recovery Performance (F) Aptitude for Poverty Alleviation Programmes For operational assignments:
(A) Job Knowledge
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FOR OPERATIONAL ASSIGNMENTS: ATTRIBUTES Business Dimensions Qualitative Aspects of Business Managerial Dimensions Outstanding Performance TOTAL(100 MARKS) TOTAL 30 20 40 10 100 BY APPRAISER BY REVIEWING AUTHORITY
NON-OPERATIONAL ASSIGNMENTS: ATTRIBUTES Key Responsibility Areas Managerial Dimensions Outstanding Performance TOTAL(100 MARKS) Outstanding Good Average Below Average (80 100) (60 - 79 ) (40 59) (Below 40) 20 TOTAL 50 40 10 100 BY APPRAISER BY REVIEWING AUTHORITY
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Performance Appraisal ______________________________________________________________________ FINDINGS AND ANALYSIS The Appraisal is undertaken every year on regular basis.
The appraisal system followed is at officer level,i.e. for non-operational assignments and for operational assignments, i.e. apart from few criterias they are rated differently for different attributes depending on their job profile. At clerical level the superiors prepare Confidential Report and there is no part taken by the employees at this level.
The whole Performance Appraisal System is Designed in such a way that the appraisee can be evaluated on their Key Responsibilities Areas like - Quantity of work, Meeting job requirements on a timely basis, Quality of work, Effectiveness & Accuracy, Knowledge of job etc. and Managerial Attributes like - Team Spirit, Decision Making Ability, Attendance, reliability and dependability, Planning and organizational effectiveness, Initiative and creativity etc.
Apart from this the appraiser comments on Conceptual abilities, Flexibility of mind, Emotional Strength, Responsiveness to corporate concerns, Willingness to assume Responsibilities, Creativity & Innovativeness, Communication Skills.
It is observed that the review done by the Reviewing Committee gets delayed sometimes.
The appraisal is undertaken not mainly for deciding an increment but the main objective behind this is to evaluate the annual performance of the employee so that training can be provided and bank is able to find out the potentiality of
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Performance Appraisal ______________________________________________________________________ the employees and also to maintain the records for the same for future reference so that it can be used for promoting the employee in future.
In the whole appraisal system, often superiors assume the role of judges. In contrast the aim is to develop employees; managers need to be counselors, helpers and teachers.
The employees showed eagerness to learn from their mistakes which they hoped to rectify and perform better.
Employees were hopeful that after the performance appraisal is over, they will be properly rewarded for their work and that it was a way to ensure that their efforts dont go unnoticed.
Although the employees believe that performance appraisals are for their betterment, in the beginning they had doubts in their minds about the issue of bias being a factor in the process of evaluation.
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Performance Appraisal ______________________________________________________________________ RECOMMENDATIONS The Performance Appraisal System is Designed in such a way that the employees can highlight their achievements and mention constraints but apart from this target should be set as goals such that people strive to attain goals to satisfy their emotions & desire.
Also the appraiser and the reviewer comments on various attributes of appraisee but there is no proper face-to-face feedback given to employees wherein the appraisee can personally discuss the problems faced by him and some solution can be arrived at.
Also major feedback is given by work itself, a personal feedback along with positive acknowledge would be welcomed by employees.
There can be sometimes some dissatisfaction on the part of the employee as the comments and review given by the superiors can be biased so care should be taken to avoid such an instance.
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From the above study we can conclude that maximum employees in the agency see that the performance appraisal is a positive step taken by the organization to help them to improve their own performance. Employees feel highly responsible towards the job due to the freedom given for planning & completing their own objective, they will feel even more responsible and involved if the changes in their work (changes by client) are given taking their opinion.
Thus it can be concluded that Performance Appraisal is one of the best methods to not only evaluate employees performance but also to motivate him and enhance his skills by providing him with proper training by knowing the constraints he faces at his work.
Hence, Performance Appraisal is a very positive step taken by any organization to grow and also improve human resource quality.
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Reference Books: K Aswathappa - Human Resource and Personnel Management by Tata McGraw Hill Publishing Company Limited, New Delhi, Third Edition. K Aswathappa - Organizational Behaviour.
Website: www.unionbankofindia.com
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