Professional Documents
Culture Documents
ON
Submitted By
Submitted to Panjab University, Chandigarh
in partial fulfillment for the requirement
of the degree of
Submitted to:
Submitted by:
Mrs. Monica
Kanika Verma
BBA (3rd year)
Pupin No.14310000444
I certify that the project report PERFORMANCE APPRAISAL ON AXIS BANK has been
undertaken by me for the partial fulfillment of the requirement of degree of Bachelor of Business
Administration and is an original piece of work done by me and that no part of this project has
been submitted for any other degree, diploma, fellowship or similar title in university or in any
other university.
I express my sincere gratitude to my advisor Mrs. Monica for her valuable guidance support and
cooperation extended for completion of this project.
KANIKA
VERMA
143100
00444
CERTIFICATE
Project advisor
Mrs. Monica
PREFACE
Managing human resources in todays dynamic environment is becoming more and more
complex as well as important. Recognition of people as a valuable resource in the organization
has led to increases trends in employee maintenance, job security, etc
My research project deals with Performance Appraisal as carried out at AXIS BANK LTD. In
this report, I have studied &evaluated the performance appraisal process as it is carried out in the
company.
ACKNOWLEDGEMENT
I hereby take this opportunity to put on record my sincere thanks to Mrs. Monica (Project Guide)
for her valuable suggestion and cooperation to achieve the task.
I would also like to express my sincere thanks and gratitude to my banks guide Paran Gupta
(customer service).He have been immensely contributive with his ideas which was the guiding
light during the entire tenure of this work
Kanika Verma
INDEX
Sr no
Contents
Page no.
Company profile
Review of the literature
Research Methodology& Objective
Limitation
Conclusion
Suggestions
Bibliography
Appendix & Questionnaire
COMPANY PROFILE
Axis Bank Limited, formerly UTI Bank is a financial services firm that had begun
operations in 1994, after the Government of India allowed new private banks to be established.
The bank changed its name to Axis Bank in April 2007 to avoid confusion with other unrelated
entities with similar name. After the Retirement of Mr. P. J. Nayak, Shikha Sharma was named as
the bank's managing director and CEO on 20 April 2009.
The Bank's Registered Office is at Ahmedabad and its Central Office is located at Mumbai. At
the end of September 2010, The Bank has a very wide network of more than 1281 branches and
Extension Counters (as on 31st December, 2010). The Bank has a network of over 6270 ATMs
(as on 31st March, 2011). The Bank has loans now (as of June 2007) account for as much as 70
per cent of the banks total loan book of Rs 2,00,000 crore. For HDFC Bank, retail assets are
around 57 per cent (Rs 28,000 crore) of the total loans as of March 2007.
In the case of Axis Bank, retail loans have declined from 30 per cent of the total loan book of Rs
25,800 crore in June 2006 to around 23 per cent of loan book of Rs.41,280 crore (as of June
2007). Even over a longer period, while the overall asset growth for Axis Bank has been quite
high and has matched that of the other banks, retail exposures grew at a slower pace.
If the sharp decline in the retail asset book in the past year in the case of Axis Bank is part of a
deliberate business strategy, this could have significant implications (not necessarily negative)
for the overall future profitability of the business.
Despite the slower growth of the retail book over a period of time and the outright decline seen
in the past year, the banks fundamentals are quite resilient. With the high level of mid-corporate
and wholesale corporate lending the bank has been doing, one would have expected the net
interest margins to have been under greater pressure. The bank, though, appears to have insulated
such pressures. Interest margins, while they have declined from the 3.15 per cent seen in 200304, are still hovering close to the 3 per cent mark. (The comparable margins for ICICI Bank and
8
HDFC Bank are around 2.60 per cent and 4 per cent respectively. The margins for ICICI Bank
are lower despite its much larger share of the higher margin retail business, since funding costs
also are higher).
The Bank today is capitalized to the extent of Rs. 409.90 crores with the public holding (other
than promoters and GDRs) at 53.63%. It is also listed in the top 100 most trusted brands of India
in the Brand trust report.
The Bank's Registered Office is at Ahmadabad and its Central Office is located at Mumbai. At
the end of September 2010, The Bank has a very wide network of more than 1281 branches and
Extension Counters (as on 31st December, 2010). The Bank has a network of over 6270 ATMs
(as on 31st March, 2011). The Bank has loans now (as of June 2007) account for as much as 70
per cent of the banks total loan book of Rs 2,00,000 crore. For HDFC Bank, retail assets are
around 57 per cent (Rs 28,000 crore) of the total loans as of March 2007.
In the case of Axis Bank, retail loans have declined from 30 per cent of the total loan book of Rs
25,800 crore in June 2006 to around 23 per cent of loan book of Rs.41,280 crore (as of June
2007). Even over a longer period, while the overall asset growth for Axis Bank has been quite
high and has matched that of the other banks, retail exposures grew at a slower pace.
If the sharp decline in the retail asset book in the past year in the case of Axis Bank is part of a
deliberate business strategy, this could have significant implications (not necessarily negative)
for the overall future profitability of the business.
Despite the slower growth of the retail book over a period of time and the outright decline seen
in the past year, the banks fundamentals are quite resilient. With the high level of mid-corporate
and wholesale corporate lending the bank has been doing, one would have expected the net
interest margins to have been under greater pressure. The bank, though, appears to have insulated
such pressures. Interest margins, while they have declined from the 3.15 per cent seen in 200304, are still hovering close to the 3 per cent mark. (The comparable margins for ICICI Bank and
HDFC Bank are around 2.60 per cent and 4 per cent respectively. The margins for ICICI Bank
are lower despite its much larger share of the higher margin retail business, since funding costs
also are higher).
9
The Bank today is capitalized to the extent of Rs. 409.90 cores with the public holding (other
than promoters and GDRs) at 53.63%. It is also listed in the top 100 most trusted brands of India
in the Brand Trust Report.
Axis Bank operates the worlds highest ATM site at Taegu, Sikkim at 13,200 feet above sea level.
10
VISIONTo be the preferred financial solutions provider excelling in customer delivery through insight,
empowered employees and smart use of technology
CORE VALUES
Customer Centricity
Ethics
Transparency
Ownership
11
CREDIT CARD
CONSUMER BANKING
CORPORATE BANKING
INVESTMENT BANKING
MORTGAGE LOAN
PRIVATE BANKING
PRIVATE EQUITY
WEALTH MANAGEMENT
13
Number of Employees
21,640
BOARD OF DIRECTORS
Dr. Adders Kishore
Chairman
Director
Director
Director
Shri K. N. Prithviraj
Director
Shri V. R. Kaundinya
Director
Shri S. B. Mathur
Director
Director
Shri R. N. Bhattacharyya
Director
Director
Shri A K Dasgupta
Director
Director
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PERSON ACCOUNT
Easy Access Savings Account
Presenting, Axis Bank's Easy Access Savings Account. The account is an endeavor by the Bank
to understand the consumers' needs and redefine banking to suit your requirements for a truly
comfortable banking experience. Easy Access Savings Account gives you instant access to your
money anywhere, anytime. Possessing a range of unmatched features, it has been devised to
better suit the convenience of our eclectic client base.
Salary Account
We, at Axis Bank, believe in providing total financial solutions to the employer as well as the
employee, through the salary relationship. We understand that each employee in an organization
is at a different station of life having different financial and banking needs.
Customized solutions
One solution may not fit all. Therefore, each employee in an organization is offered a zero
balance salary account and associated privileges commensurate with her/his net monthly salary.
Our Salary Account offering has six variants, as follows:
Private Salary - For employees with net monthly salary of Rs.5,00,000/- or more
Wealth Salary - For employees with net monthly salary of Rs.2,00,000/- or more
Priority Salary - For employees with net monthly salary of Rs.60,000/- or more
Prime Salary - For employees with net monthly salary of Rs.25,000/- or more
Easy Access Salary - For employees with net monthly salary of Rs.9,000/- or more
Salary Plus - For employees with net monthly salary of Rs.9,000/- or more. Currently
being offered only to existing relationships
Smart Pay Card - For employees with net monthly salary less than Rs.9,000/15
Convenience in banking:
o Anywhere Banking at any of our over 1400 branches and a network of over 6800
ATMs spread across more than 900 centers
o Multi-city at par cheque books
o Electronic Fund Transfer facility across all banks in India
o Internet Banking with secure fund transfer facility (with 2-factor authentication)
to self and third party accounts
o 24x7 convenience at no charges with Axis Mobile
o Free SMS Banking with features such as alerts on debits / credits over Rs.5,000/balance enquiry, enquiry on last 3 transactions and status of cheque clearance etc
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Pensioner records are credited centrally through its Centralized Pension Payment Hub
(CCPH) at Mumbai.
Timely issue of Form- 16A for tax deducted at source in the immediately previous
financial year
LOANS
HOME LOAN
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features such as flexible tenures, transparent processing and quick service have made our
products stand out among the best home loans in India.
We have products to suit every budget, taste and need. Whether you are self-employed or
salaried, want a floating or fixed rate, Axis Bank will offer a loan that is just right for you.
Car Loan
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Personal Loan
Loans at higher rates can be transferred to Axis Bank with our Balance transfer facility.
Simplified documentation.
19
Education Loan
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CREDIT CARD
Presenting, Axis Bank's Silver Credit Card. Now, you can experience freedom like never before.
Freedom from cash, long queues and all other hassles.
EShop Card
Making your online shopping more secure
Worried about revealing your credit card details on the Internet?
Axis Bank presents the eShop Card. A virtual credit card that allows you to shop online securely
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DEBIT CARD
Gold Plus Debit Card
22
The Gold plus Debit Card is an effort from Axis Bank to offer our customers the best value
possible through a debit card. Available only to our most privileged Savings Bank account
holders, the Gold plus Debit Card mirrors your success and needs with a host of privileges,
benefits and exclusive value deals.
Axis Bank's Gold Debit Card is more than just a debit card. It comes with a host of enhanced
benefits and reward program. It is exclusively issued to our Premium Salary account customers,
it is a result of our constant Endeavour to understand your requirements and design products and
services keeping you in mind
Modern times necessitate that you need to have access to your money anytime and any where.
The Axis Bank International Debit Card addresses this need.
23
A deposit access program, the Debit Card redefines convenience. Apart from being an ATM
(Automated Teller Machine) Card used for withdrawing cash, it also enables you to shop and
make cashless purchases. You can use the card to make payments at shops, department stores,
restaurants, petrol pumps and many more outlets in India and overseas.
The Axis Bank Debit Card is a VISA Electron Card and is accepted at VISA and VISA Plus
ATMs worldwide and all merchant establishments using electronic terminals and displaying the
VISA Electron sign.
SAFEDEPOSITELOCKER
Wide Availability: As on November 30, 2010 lockers are available at 944 branches and
extension counters.
Direct debits for locker rentals from your account rid you of the hassles in writing out
cheques.
TAX E PAYMENT
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Axis Bank is authorized by Reserve Bank of India (RBI) and Govt. of India for collecting
Income/ other Direct Taxes and Central Excise & Service Tax since August 2003 through its
authorized Braches and through e-Payments.
You can pay your Income / Other Direct Taxes, as well as Central Excise & Service Tax* through
connect from your account online and get on-line acknowledgement of the payment by way of a
Cyber Receipt, including Chillan Identification Number (CIN) immediately after making the
payment.
INSURANCE
Motor Insurance
Your car insurance policy is the most important document in your vehicle. No wonder millions
of car owners across India trust Bajaj Allianz to insure their car. Along with comprehensive
coverage against physical damage, bodily injury and cover against third-party liability, your car
insurance brings to you confidence and peace of mind. All this is backed by our superior claims
servicing capability and fast settlement record.
Safe Guard
Axis Bank and Bajaj Allianz General Insurance present you the 'Safe Guard' personal Accident
Insurance cover. A unique policy that offers you insurance coverage at premiums that is
extremely competitive and exclusively meant for Axis Bank customers.
Safe Home
Your home is your most valued possession, a haven of safety. But is it really as safe as you
would like to believe?
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We at Axis Bank realize your need to make your home as secure in reality, as it is in your mind,
which is why we, in association with Bajaj Allianz General Insurance bring you - Safe Home, an
insurance policy exclusively designed for Axis Bank customers, which provides protection for
your property and valuables at your home.
Family Health
Only Axis Bank offers you the advantage of insuring not just yourself but your entire family with
one policy. Our Family Health insurance programme provides a comprehensive health insurance
that covers you, your spouse and 3 dependent children up to the age of 18 years. Thanks to our
association with Bajaj Allianz General Insurance, now you don't have to pay multiple premiums
to insure all the members in your family.
Family Health Insurance Programmed provides you and your family members,
Hospital Reimbursement:
Reimbursement of your hospital expenses in case of sudden illness, accidents or
emergency surgeries and
Travel Companion
Whether you travel for business or pleasure, international travel involves risk. Medical treatment
abroad can be expensive and one never knows when one would require it. Having to spend for
medical bills in foreign currency can be expensive proposition. There are other difficult
situations also, that one might face like loss of passport or baggage. Bajaj Allianz's Travel
Companion is specially designed to help you deal with such situations while overseas travel.
Business Advantage
You have built your business by investing so much hard work, time, energy and money. You
could face heavy losses if your business premises are burgled or if machinery breaks down.
26
Therefore it's essential to safeguard your investment with an insurance cover that protects against
losses due to unforeseen calamities.
Advantages:
Competitive rates
Simple documentation
27
INTERNRT BANKING
Get control over your account anytime, anywhere at your comfort with Axis Bank Internet
Banking - a one stop solution for all your banking needs. View all your accounts detail, submit
requests and undertake a wide range of transactions.
Features
Account Details: View your bank account details, account balance, download statements
and more. Also view your Demand, Loan & Credit Card Account Details too all in one
place.
Fund Transfer: Transfer fund to your own accounts, other Axis Bank accounts or Other
Bank account seamlessly.
Request Services: Give a request for Cheque book, Demand Draft, Stop Cheque
Payment, Debit Card Loyalty point Redemption etc.
Investment Services: View your complete Portfolio with the bank, Create Fixed Deposit,
Apply for IPO etc.
Value Added Services: Pay Utility bills for more than 160 billers, Recharge Mobile,
Create Virtual Cards, Pay any Visa Credit Card bills, Register for statement and sms
banking etc.
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MOBILE BANKING
Keep a watch on your account with our round the clock SMS Banking service. Every debit or
credit in your account is intimated to you by an SMS as soon as it happens. Be in a smart
position to detect any unauthorized access to your account.
Missing debit cards, unauthorized card usage or compromised passwords are no longer a threat
to you. Axis Bank's SMS Banking service provides you with the ability to detect and prevent
misuse of your bank account.
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appraisal is to enhance the performance of an employee and not to lower his morale. Managers
should consider every point from the start and not a particular negative behavior or incident
while writing review. He should also not hold any personal grudges with the employee. He
should give an unbiased report concentrating totally on an employees overall performance in the
organization.
Performance appraisal is carried out so that an employee works with full devotion and is
committed to his work. He does not show a laid back attitude and get irregular. It should increase
employees efficiency and his commitment towards work. Regular review of performance is very
useful because it makes the organization aware of employees who are poor or non performers
and are not improving. These employees need to be fired or should not be given a pay hike.
Good performers move up the ladder and acquire respectable positions in the organization thus
leading to the profitability in the long run.
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Performance Goals are linked to the Corporate Strategy and Goals logically cascaded
down organization units to individual level.
Individual Performance Agreements include performance measures that are derived from
a position's job/role description, as well as relevant corporate cascaded-down goals.
Line managers ensure that employees have sufficient resources and tools to get the job
done, and that systems, processes and policies facilitate (and not hinder) optimal
performance.
Both line managers and their direct reports are keeping a record of the letters'
performance to refer to during performance reviews.
Performance Agreements are adapted as and when priorities and the situation on the
ground change.
In addition to the formal performance reviews, line managers and their direct reports
should meet at least monthly (1-1) to discuss performance progress and challenges.
Employees are given adequate warning (at least 14 days) of performance reviews (date
and time mutually agreed).
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Performance reviews are facilitated by line managers in a way that involves the employee
and asks for their input first on how they have fared on each measure and what ratings
they think best reflects their performance. Line managers add their own view, and
facilitate agreement. Second-level line managers are brought in with disputes, and have
the final say. A grievance policy and procedure exists as employee last resort when still
unhappy.
Personal Development Plans (as a performance review output) are based on current
competency shortfalls as well as new role challenges and employee career goals.
Performance is linked to remuneration in a way that sends a clear message to both good
and poor performers. Sufficient reward differentiation is made so that top performers are
lifted out materially and psychologically for their efforts.
33
Human Resource (or personnel) management, in the sense of getting things done through people,
is an essential part of every managers responsibility, but many organizations find it
advantageous to establish a specialist division to provide an expert service dedicated to ensuring
that the human resource function is performed efficiently.
People are our most valuable asset is a clich, which no member of any senior management
team would disagree with. Yet, the reality for many organizations is that their people remain
undervalued, under trained and underutilized.
Performance Appraisal is the process of assessing the performance and progress of an employee
or a group of employees on a given job and his / their potential for future development. It
consists of all formal procedures used in the working organizations to evaluate personalities,
contributions and potentials of employees.
The history of performance appraisal is quite brief. Its roots in the early 20th century.
But this is not very helpful, for the same may be said about almost everything in the field
of modern human resources management. As a distinct and formal management procedure used
in the evaluation of work performance, appraisal really dates from the time of the Second World
War - not more than 60 years ago. Yet in a broader sense, the practice of appraisal is a very
ancient art. In the scale of things historical, it might well lay claim to being the worlds second
oldest profession! There is, says Dulewicz (1989),
".. a basic human tendency to make judgments about those one is working with, as well as about
oneself."
Appraisal, it seems, is both inevitable and universal. In the absence of a carefully structured
system of appraisal, people will tend to judge the work performance of others, including
subordinates, naturally, informally and arbitrarily. The human inclination to judge can create
serious motivational, ethical and legal problems in the workplace. Without a structured appraisal
system, there is little chance of ensuring that the judgments made will be lawful, fair, defensible
and accurate. Performance appraisal systems began as simple methods of income justification.
That is, appraisal was used to decide whether or not the salary or wage of an individual employee
34
was justified. The process was firmly linked to material outcomes. If an employee's performance
was found to be less than ideal, a cut in pay would follow. On the other hand, if
their performance was better than the supervisor expected, a pay rise was in order. Little
consideration, if any, was given to the developmental early motivational researchers were aware
that different people with roughly equal work abilities could be paid the same amount of money
and yet have quite different levels of motivation possibilities of appraisal. It was felt that cut in
pay, or a rise, should provide the only required impetus for an employee to either improve or
continue to perform well. Sometimes this basic system succeeded in getting the results that were
intended; but more often than not, it failed. For example, early motivational researchers were
aware that different people with roughly equal work abilities could be paid the same amount of
money and yet have quite different levels of motivation and performance. These observations
were confirmed in empirical studies. Pay rates were important, yes; but they were not the only
element that had an impact on employee performance. It was found that other issues, such as
morale and self-esteem, could also have a major influence. As a result, the traditional emphasis
on reward outcomes was progressively rejected. In the 1950s in the United States, the potential
usefulness of appraisal as tool for motivation and development was gradually recognized. The
general model of performance appraisal, asset is known today, began from that time. Most
persons share a desire to know the answer to the question, "How am I doing?"They want to know
what is expected of them, how well they are meeting the expectations, how they can improve,
and some want to know how they might qualify for higher responsibilities. The process of
performance appraisal should provide the opportunity for discussion of these concerns. The
process should also provide the basis for enhanced communication among college personnel.
The feedback is one of the most important tools provided by Human Resources to managers as
the motivational tool. The feedback by Human Resources is organized usually in the process of
the Performance Appraisal.
When speaking with HRM Professionals, you can hear a lot about the performance
management process and the forms used to formalize the whole process of the performance
appraisals. Generally, the manager should give feedback and the quality of the feedback provides
the performance appraisals to the individual employee. But as the HRM Function wants to have a
control over the whole performance management process, the main stress is put on the formal
record of the whole performance appraisal discussion. The performance appraisals can have a
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huge impact on the future of the employee in the company. When the feedback is provided
correctly and the manager makes a follow up of all the agreements done during the performance
appraisal interview, the performance appraisals can work without any formal documents. As the
HRM Function is responsible for the performance management process, it brings new and better
performance appraisal forms every single year. And the result usually fails every year. The
managers and the employees do not see the benefits of participating in the performance review
process as they take it as an activity driven by Human Resources for Human Resources.
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CONCEPTS
Typically, performance appraisal has been limited to a feedback process between employees and
supervisors. However, with the increased focus on teamwork, employee development, and
customer service, the emphasis has shifted to employee feedback from the full circle of sources
depicted in the diagram below. This multiple-input approach to performance feedback is
sometimes called 360-degreeassessment to connote that full circle. There arena prohibitions in
law or regulation against using a variety of rating sources, in addition to the employee
supervisor, for assessing performance. Researches shown assessment approaches with multiple
rating sources provide more accurate, reliable, and credible information. For this reason, the U.S.
Office of Personnel Management supports the use of multiple rating sources as an effective
method of assessing performance for formal appraisal and other evaluative and developmental
purposes. The circle, or perhaps more accurately the sphere, of feedback sources consists of
supervisors, peers, subordinates, customers, and ones self. It is not necessary, or always
appropriate, to include all of the feedback sources in a particular appraisal program. The
organizational culture and mission must be considered, and the purpose of feedback will differ
with each source. For example, subordinate assessments of a supervisors Performance can
provide valuable developmental guidance, peer feedback can be the heart of Excellence in
teamwork, and customer service feedback focuses on the quality of the teams or agencys
results. The objectives of performance appraisal and the particular aspects of performance that
are to be assessed must be established before determining which sources are appropriate.
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SUPERIORS
Evaluations by superiors are the most traditional source of employee feedback. This form of
evaluation includes both the ratings of individuals by supervisors on elements in an employees
performance plan and the evaluation of programs and teams by senior managers.
SELF-ASSESSMENT
This form of performance information is actually quite common but usually used only as
informal parts of the supervisor-employee appraisal feedback session. Supervisors frequently
open the discussion with: How do you feel you have performed? In a somewhat more formal
approach, supervisors ask employees to identify the key accomplishments they feel best
represent their performance in critical and non-critical performance elements. In a 360-degree
approach, if self-ratings are going to be included, structured forms and formal procedures are
recommended.
PEERS
With downsizing and reduced hierarchies in organizations, as well as the increasing use of teams
and group accountability, peers are often the most relevant evaluators of their colleagues
performance. Peers have a unique perspective on a co-workers job performance and employees
are generally very receptive to the concept of rating each other. Peer ratings can be used when
the employees expertise is known or the performance and results can be observed. There are
both significant contributions and serious pitfalls that must be carefully considered before
including this type of feedback in a multifaceted appraisal program.
SUBORDINATES
An upward-appraisal process or feedback survey (sometimes referred to as a SAM, for
Subordinates Appraising Managers) is among the most significant and yet controversial
features of a full circle performance evaluation program. Both managers being appraised and
their own superiors agree that subordinates have unique, often essential, perspective. The
subordinate ratings provide particularly valuable data on performance elements concerning
managerial and supervisory behaviors. However, there is usually great reluctance, even fear,
38
concerning implementation of this rating dimension. On balance, the contributions can outweigh
the concerns if the precautions noted below are addressed.
CUSTOMERS
Executive Order 12862, Setting Customer Service Standards, requires agencies to survey internal
and external customers publish customer service standards, admeasure agency performance
against these standards. Internal customers are defined as users of products or services supplied
by another employee or group within the agency or organization. External customers are outside
the organization and include, but are not limited to, the general public.
39
Appraisal is a process that provides an analysis of a Persons overall capabilities and potential,
allowing informed decisions to be made for particular purposes. An Important part of the
process is assessment, whereby data on an individuals past and current work behavior and
Performance are collected and reviewed
Performance Appraisal is defined as the process of assessing the performance and progress of an
employee or a group of employees on a given job and his / their potential for future development.
It consists of all formal procedures used in working organizations and potential of employees.
According to Flippo, Performance Appraisal is the systematic, periodic and an important rating
of an employees excellence in matters pertaining to his present job and his potential for a better
job.
CHARACTERISTICS
1.
2.
3.
4.
It is scientific and objective study. Formal procedures are used in the study.
It is an ongoing and continuous process wherein the evaluations are arranged
periodically according to a definite plan.
5.
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PROCESS
The process of performance appraisal:
1. Establishing performance standards
2. Communicating the Standards
3. Measuring Performance
4. Comparing the actual with the standards
5. Discussing the appraisal
6. Taking Corrective Action
LIMITATIONS
1.
Errors in Rating
2.
Lack of reliability
3.
Negative approach
4.
Multiple objectives
5.
Lack of knowledge
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The foregoing list of major program pitfalls represents a formidable challenge, even considering
the available battery of appraisal techniques. But attempting to avoid these pitfalls by doing
away with appraisals themselves is like trying to solve the problems of life by committing
suicide. The more logical task is to identify those appraisal practices that are (a) most likely to
achieve a particular objective and (b) least vulnerable to the obstacles already discussed.
Before relating the specific techniques to the goals of performance appraisal stated at the outset
of the article, I shall briefly review each, taking them more or less in an order of increasing
complexity.
The best-known techniques will be treated most briefly.
ESSAY APPRAISAL
In its simplest form, this technique asks the rater to write a paragraph or more covering an
individual's strengths, weaknesses, potential, and so on. In most selection situations, particularly
those involving professional, sales, or managerial positions, essay appraisals from former
employers, teachers, or associates carry significant weight.
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vary with the job but usually include personal traits like reliability and cooperation. It may also
include specific performance items like oral and written communication.
FIELD REVIEW
The field review is one of several techniques for doing this. A member of the personnel or central
administrative staff meets with small groups of raters from each supervisory unit and goes over
each employee's rating with them to (a) identify areas of inter-rater disagreement, (b) help the
group arrive at a consensus, and (c) determine that each rater conceives the standards similarly.
FORCED-CHOICE RATING
Like the field review, this technique was developed to reduce bias and establish objective
standards of comparison between individuals, but it does not involve the intervention of a third
party.
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MANAGEMENT BY OBJECTIVES
To avoid, or to deal with, the feeling that they are being judged by unfairly high standards,
employees in some organizations are being asked to set - or help set - their own performance
goals. Within the past five or six years, MBO has become something of a fad and is so familiar to
most managers that I will not dwell on it here.
RANKING METHODS
For comparative purposes, particularly when it is necessary to compare people who work for
different supervisors, individual statements, ratings, or appraisal forms are not particularly
useful. Instead, it is necessary to recognize that comparisons involve an overall subjective
judgment to which a host of additional facts and impressions must somehow be added. There is
no single form or way to do this.
The best approach appears to be a ranking technique involving pooled judgment.
The two most effective methods are alternation ranking and paired comparison ranking.
1.
Alternation ranking:
Ranking of employees from best to worst on a trait or traits is another method for evaluating
employees. Since it is usually easier to distinguish between the worst and the best employees
than to rank them, an alternation ranking method is most popular. Here subordinates to be rated
are listed and the names of those not well enough to rank are crossed. Then on a form as shown
below, the employee who is highest on the characteristic being measured and the one who is the
lowest are indicated. Then chose the next highest and the next lowest, alternating between
highest and lowest until all the employees to be rated have been ranked.
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45
2.
Paired-comparison ranking:
This technique is probably just as accurate as alternation ranking and might be more so. But
with large numbers of employees it becomes extremely time consuming and cumbersome.
Both ranking techniques, particularly when combined with multiple rankings (i.e., when two or
more people are asked to make independent rankings of the same work group and their lists are
averaged), are among the best available for generating valid order-of-merit rankings for salary
administration purposes.
ASSESSMENT CENTERS
So far, we have been talking about assessing past performance. What about the assessment of
future performance or potential? In any placement decision and even more so in promotion
decisions, some prediction of future performance is necessary. How can this kind of prediction
be made most validly and most fairly?
46
appraisal. Once gathered in, the assessment from the various quarters are compared with one
another and the results communicated to the manager concerned.
Another technique that is useful for coaching purposes is, of course, MBO. Like the critical
incident method, it focuses on actual behavior and actual results, which can be discussed
objectively and constructively, with little or no need for a supervisor to "play God.
Advantages
Instead of assuming traits, the MBO method concentrates on actual outcomes. If the employee
meets or exceeds the set objectives, then he or she has demonstrated an acceptable level of job
performance. Employees are judged according to real outcomes, and not on their potential for
success, or on someone's subjective opinion of their abilities.
The guiding principle of the MBO approach is that direct results can be observed easily. The
MBO method recognizes the fact that it is difficult to neatly dissect all the complex and varied
elements that go to make up employee performance.
MBO advocates claim that the performance of employees cannot be broken up into so many
constituent parts, but to put all the parts together and the performance may be directly observed
and measured.
Disadvantages
This approach can lead to unrealistic expectations about what can and cannot be reasonably
accomplished. Supervisors and subordinates must have very good "reality checking" skills to use
MBO appraisal methods. They will need these skills during the initial stage of objective setting,
and for the purposes of self-auditing and self-monitoring.
Variable objectives may cause employee confusion. It is also possible that fluid objectives may
be distorted to disguise or justify failures in performance.
47
Improves understanding and relationship between the employee and the reporting
manager and also helps in resolving confusions and misunderstandings.
Plays an important tool for communicating the organizations philosophies, values, aims,
strategies, priorities, etc among its employees.
48
Leniency or severity: - Leniency or severity on the part of the rater makes the
assessment subjective. Subjective assessment defeats the very purpose of performance
stems from certain doubts and anxieties, which the raters have been assessing the rates.
Halo error: - A halo error takes place when one aspect of an individual's performance
influences the evaluation of the entire performance of the individual. The halo error
occurs when an employee who works late constantly might be rated high on productivity
and quality of output as well as on motivation. Similarly, an attractive or popular
personality might be given a high overall rating. Rating employees separately on each of
the performance measures and encouraging raters to guard against the halo effect are the
49
One way of guarding against such an error is to ask the rater to consider the composite
50
d) HR Head
-Secretary to the normalization committee
-Assists HODs / Reporting Managers in communicating the performance rating of all the
employees
e) Normalization Committee
-Decides on the final bell curve for each function in the respective Business Unit / Circle
51
-Reviews the performance ratings proposed by the HODs, specifically on the upward /
downward shift in ratings, to ensure an unbiased relative ranking of employees on
overall performance, and thus finalize the performance rating of each employee
52
BANK
2012
LEADERSHIP
COMPETENCY
FRAMEWORK:
This
54
Performs
consistently
and
substantially above expectations in all
areas
Consistently
targets
Is proactive
Coaches others
Is self motivated
Develops others
delivers
on
stretch
problems,
55
56
the form isnt important. Theyre wrong. If youre designing a new form internally, make sure it
assesses both behaviors and results.
Five
Build your mission, vision, values, and core competencies into the form. Performance appraisal
is a means, not an end. The real objective of any performance management systems to make sure
that the companys strategic plan and vision and values are communicated and achieved. Core
competencies expected of all organization members should be included, described and assessed.
If your mission statement isnt clearly visible in the performance appraisal system, cynicism will
likely result. Values become real only when people are held accountable for living up to them.
Six
Assure on-going communication. Circulate drafts and invite users to make recommendations.
Keep the development process visible through announcements and regular updates. Use surveys,
float trial balloons, request suggestions and remember the cardinal principle "People support
what they help create."
Seven
Train all appraisers. Performance appraisal requires a multitude of skills behavioral
observation
and
discrimination,
goal-setting,
developing
people,
confronting
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Eight
Orient all appraises. The programs purposes and procedures must be explained in advance
and explained enthusiastically to everyone who will be affected by it. Specific skills training
should be provided if the new performance management procedure requires self-appraisal, multirater feed-back, upward appraisal, or individual development planning.
Nine
Use the results. If the results of the performance appraisal are not visibly used in
making promotion, salary, development, transfer, training and termination decisions, people will
realize that its merely an exercise.
Ten
Monitor and revise the program. Audit the quality of appraisals, the extent to which the system is
being used, and the extent to which the original objectives have been met. (One of the great
advantages of an online performance appraisal system is that all of these data are available
instantaneously.)
Provide feedback to management, appraisers and appraises. Train new appraisers as they are
appointed to supervisory positions. Actively seek and incorporate suggestions for improvement.
A companys performance appraisal process is critically important. It answers the two questions
that every member of an organization wants to know: 1) what do you expect of me? And 2) how
am I doing at meeting your expectations? Using these ten tips will help you develop or select a
system to will give accurate and complete answers to everyone.
58
To carry out the study of AXIS BANK, we framed the following objectives
1. Identification of the technique of performance appraisal followed in AXIS BANK.
2. Employee attitude towards the present appraisal system.
3. Review of the current appraisal system in order to
1. Enhance productivity
2. Attain global standards
4. To provide suggestions & recommendations from the study conducted
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RESEARCH METHODOLOGY
Is a way to systematically solve the research problem? When we talk of research methodology
we not only talk of research methods but also consider the logic behind it. We use in the context
of our research studies and explain why we are not using the other method so that research result
is capable of being evaluated either by the researcher himself or by the other. The purpose of this
section is to describe the methodology carried out to complete the work. the effectiveness of any
research work depend upon the correctness and effectiveness of the research methodology.
DATA COLLECTION
Data is defined as raw facts that need to be processed so that information is produced. For
achieving useful result it is necessary to collect accurate data. If the data collected is incorrect, on
the basis of which we are conducting the survey then will be worthless.
Kind of data collection
Primary Data
Secondary Data
Primary Data
Primary data is collected very first time for a specific purpose directly from the field of study.
Primary data relating to the training has to be collected through:
# Questionnaires
# Interviews
# Observation
60
Secondary Data
Secondary data means the information related to past period. Secondary data has to be collected
through:
#
Internet
# Newspaper
# Books
#
Bank sites
SAMPLING PLAN:
Sample Size = 25 Employees
Sample Area =AXIS BANK LTD, LUDHIANA [PB]
FEROZPUR ROAD LUDHIANA.
Duration = Two (1) Months.
61
62
Options
Response in (%)
Yes
97
No
Interpretation:
In the above graph it is observed that 97% of the respondents are in favour of yes that
awareness of performance appraisal is being practiced in their company whereas 3% respondents
are in favour of no.
63
Response in (%)
4 employees
40
5 employees
30
6 employees
30
64
Options
Response in (%)
Yes
90
No
10
Interpretation:
In the above
graph it is observed that 90% of respondents said yes that they understand the
65
Responses (in %)
Fully Satisfied
34
Satisfied
44
Cant Say
12
Dissatisfied
10
Interpretation
In the above graph it is concluded that 34% of employees are fully satisfied, 44% are satisfied,
and 12% cant give their opinion whereas 10% are being dissatisfied with their present
performance appraisal.
66
Options
Response (in %)
10
Continuous
84
Never
Cant Say
Interpretation:
67
If continuous appraisal what should be the gap between two appraisal period
Options
Response (in %)
Quarterly
20
Half Yearly
50
Yearly
30
Interpretation:
68
Motivated
Indifferent
Demotivated
+ Feedback
38
12
- Feedback
12
10
28
Neutral
24
21
Interpretation:
From the graph it has been observed that 38 % of employees has been motivated whereas 12%
has been indifferent and 0% has been demotivated.
69
Options
Response ( in % )
Superior
Peer
Subordinate
Self Appraisal
Consultant
68
Superior + Peer
16
Interpretation:
From the above graph it is observed that 4% are in favor of superior ,0% for peer and
subordinate, 8% self appraisal,4% in favor of consultant,68% agree on opinion all of above
whereas 16% agree on both superior and peer.
70
Options
Response ( in % )
Yes
74
No
10
Somewhat
16
Interpretation
If the process of appraisal does not lead to the improvement of the skills and proficiency of the
employees, the very purpose of appraisal becomes illogical. In the survey conducted it was
observed that nearly 74 % of the respondents agree that Performance Appraisal does leads to
polishing the skills of the employees. Nearly 10 % of the respondents view that it does not serve
this purpose and around 16 % were not able to respond as to whether it serve any such purposes
or not.
71
Options
Response ( in % )
Yes
82
No
18
Interpretation
72
In the process of appraising, both the parties are human being, that is, the one who is being
apprised and the other who is appraising. Thus, there bound to be subjectivity involved, be it an
objective way of appraising.
Thus, when asked from among the sample size of 25 respondents, as huge as 82 % respond
ended that personal bias do creep in while appraising an individual. Hence, it is inevitable to say
that personal likings do not come in the process of appraisal. It is the extent to which the
appraiser manages it so that it does not become very partial and bias.
If given a chance, would employees like to review the current appraisal technique?
Options
Response ( in % )
Yes
72
No
Cant Say
24
Interpretation:
73
In the survey conducted it is observed that 72% of employees would like to review the current
appraisal technique, whereas 4% doesnt want, whereas 24% cant give their opinion.
74
Options
Response ( in % )
Ranking Method
12
Paired Comparison
Critical Incidents
20
MBO
58
Assessment Centre
360 degree
Interpretation:
75
From the above graph it is concluded that 58% of respondents considered MBO as an
appropriate method for conducting performance appraisal, 0% for paired comparison, 20% for
critical incident, 4% assessment centre, 6% 360 degree and 12% for ranking method.
Does performance appraisal leads to identification of hidden potential
Options
Response ( in % )
Yes
96
No
Interpretation:
From the survey conducted it is being observed that 96 % of respondents favors yes that it leads
to identification of hidden potential of the employees whereas 4% favors no.
76
77
INTERPRETATION
In the survey of performance Appraisal practices in AXIS BANK of 25 employees, it was found
that the employees of the bank are satisfied with the performance appraisal followed in the bank.
The method and process of performance appraisal in the banks are satisfactory to the employees.
The performance appraisal also increase and polishing the skills of employees.
The performance appraisal is satisfactory to all the employees in the AXIS BANK
78
79
CONCLUSION
After having analyzed the data, it was observed that practically there was good appraisal in the
organization. According to number of employees being satisfied with the performance appraisal
and most of them there aware about performance appraisal practice in the company.
From survey we came to know that the proper method of performance appraisal and awareness
of performance appraisal practice in company. The performance appraisal is practiced and
followed in proper way and taken as serious by the company to increase the employees
performance, ability and skills.
80
SUGGESTIONS
1.
2.
organization.
To market such a concept, it should not start at bottom; instead it should be started by the
initiative of the top management. This would help in percolating down the concept to the
advantage of all, which includes the top management as well as those below them. This
means that the top management has to take a welcoming and positive approach towards the
3.
4.
81
BIBLIOGRAPHY
1. www.axisbank.com
2. Internet
3. Official site of AXIS BANK
4. Macmillon-Human resource management
82
APPENDIX
Performance Appraisal Questionnaire
Name of the Employee
..
Questionnaire
1.
2.
b) No
Is there any number of employees being appraised in period of service, How many are
they?
a) 4 employees
3.
c) 6 employees
4.
b) 5 employees
b) No
What according to you should be the appropriate method for conducting performance
appraisal?
a)
Rating the employee on number of traits along with the range of performance for
each by the supervisor. (Ranking method)
b)
For every trait, each subordinate is paired with and compared to every
other Subordinate. (Pair comparison)
c)
d)
Setting specific measurable goals with each employee and periodically reviewing the
progress made. (MBO)
e) Reviewing performance through case studies, presentations, role playing, etc. For
future performance. (Assessment center)
f)
Receiving feedback from people whose views are considered helpful and relevant
including the appraise himself. (360)
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5.
6.
7.
b) Satisfied
c) Cant Say
d) Dissatisfied
b) Continuous
c) Never
d) Cant Say
Quarterly
b) Half Yearly
Appraisal?
c) Yearly
Indifferent
Demotivated
+ Feedback
- Feedback
Neutral
9.
10.
Superior
b) Peer
c) Subordinates
d) Self Appraisal
e) Consultant
Does the appraisal system helps in polishing the skills or performance area?
a) Yes
b) No
c) Somewhat
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11.
12.
b) No
If given a chance or an opportunity would you like that the current appraisal procedure
should be reviewed?
a) Yes
13.
b) No
c) Cant Say
b) No
................................
THANK YOU
85