A

Project Report
On

A STUDY OF
PERFORMANCE APPRAISAL
AMONG THE EMPLOYEES
OF BANK OF BARODA
NASIK.
By
Mrs Kulkarni Archana Anil
PRN: 2010017002884707
Guide
Dr.A.R. Bhardwaj
M.A., M.P.M., Ph.D.
YashwantraoChavan Maharashtra Open University, Nashik.
Study Centre 54245
Year 2012-2013

A
Project Report
On

A STUDY OF PERFORMANCE APPRAISAL AMONG

THE EMPLOYEES OF BANK OF BARODA NASIK .
Submitted in partial fulfilment of the requirement for the
Degree Master of Business Administration-HR
Yashwantrao Chavan Maharashtra Open University, Nashik.
YEAR- 2012-2013
Study Centre 54245
Prepared by :-

Guided by :-

By

Dr. A.R. Bhardwaj

: Mrs. Kulkarni Archana A

MBA II

M.A. M.P.M. Ph.D.

Principal,
NSPMs Late Bindu Ramrao
Deshmukh Arts & Commerce
Mahila Mahavidyalay, Sane
Guruji Nagar, Jail Road.

PRN: 2010017002884707

Research Guide

DECLARATION BY THE RESEARCH STUDENT

I hereby declare that this Project Report title A STUDY

OF

PERFORMANCE APPRAISAL AMONG THE EMPLOYEES OF BANK

OF BARODA NASIK . submitted by me is based on actual work carried
out by me under the guidance and supervision of A R BHARADWAJ.
Any reference to work done by other person or institution or any material
obtained from other sources have been duly cited and referenced. It is
further to state that this work is not submitted anywhere else for any
examination.

Arts, Commerce Mahila

Mahavidyalaya,Nashik Road.

Mrs. Kulkarni Archana Anil

PRN No 2010017002884707

Centre Code :54245

ACKNOWLEDGEMENTS
I am immensely happy to acknowledge personal thanks those
who helped me in the completion of dissertation entitled A STUDY OF
PERFORMANCE APPRAISAL AMONG THE EMPLOYEES OF BANK
OF BARODA NASIK ..
Thanks goes first to Dr. A. R. Bhardwaj, M.A., M.P.M., Ph. D,
Research Guide, Arts, Commerce Mahila Mahavidyalaya, Nashik Road
and Dr. (Mrs) Mrunal A. Bhardwaj for his encouragement and valuable
guidance. I am also thankful to the Librarian of Mahila Mahavidyalaya,
Nasik Road for lending books to me.
I am indebted to my beloved husband Mr. Anil Kulkarni , and my
Sun Adwait, for their continuous moral support.
I am

extend my thanks to my sister, Manjusha ,my beloved

mother and colleague Mrs. Usha Pimple and Mrs.Sangeeta Inamdar for
their suggestions and continuous support.

Mrs. Kulkarni Archana Anil

CERTIFICATE FROM THE GUIDE

This is to certify that Mrs. . Kulkarni Archana Anil has completed
the Research project A STUDY OF PERFORMANCE APPRAISAL
AMONG THE EMPLOYEES OF BANK OF BARODA NASIK . Under
my guidance and supervision and submitted the project report as laid
down by Yashwantrao Chavan Maharashtra Open University,
Nashik. The material that has been obtained from other sources is duly
acknowledged in the dissertation. It is further certified that the work or
its part has not been submitted to any other University for examination
under my supervision. I consider this work worthy for the award of the
degree of Master of Business Administration (HR)

Arts, Commerce Mahila

Mahavidyalaya,Nashik Road.

Centre Code :54245

Dr. A. R. Bhardwaj

Date :

PREFACE
Human beings working in the organization are an important asset of
every company. Effectively managing the human resource of an Organization is
as important as managing other resources like finance.

The principal

component of an organization is its human resource or people at work. It is

the human resource which is of paramount important in the success of any
organization because most of the problems in organizational settings are human
and social rather than physical, technical or economic. Human Resource
Management encompasses several important functions that include the
following: Recruitment and selection of employees, employee training and
development, performance appraisal system, Wage and Salary Administration
and many other important functions.
This project work is based on Performance appraisal, which is one of the
most important managerial activities. It can be said that is the process of
assessing qualitative &quantitative aspects of an employee job performance.
Most organizations have a formal Performance appraisal system. This
holds true for large and small, union and non-union and manufacturing
companies.
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 judgements made will be lawful, fair,
defensible and accurate.
The process was firmly linked to material outcomes. If an employees
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.
6

These observations were confirmed in empirical studies. Pay rates were

important, yes; but they were not 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. Finally Performance appraisal serves as a
work planning and review function. The appraisal and subsequent subordinate
review provide an opportunity to review subordinates progress, provide person
with feedback and map out a plan for rectifying performance deficiencies that
might be identified.
Performance elements tell employees what they have to do and standards
tell them how well they have to do it. Performance appraisal identifies the
performance gap (if any) so employee can decrease this gap.

ABBREVIATIONS
Abbreviations
PA
BOB
HR
Y
N
MBO

Meaning
Performance Appraisal
Bank of Baroda
Human Resources
Yes
No
Management by Objective

INDEX
Chapter
No.
1

Topic

Page No.

Introduction of Performance Appraisal

Objective of Performance Appraisal

10

Method of Performance Appraisal

2

Review of Litrature

24

Profile of Organization
3

Vision, Mission

27

Quality Policy
Environmental Policy
About Production of Bank of Baroda
Details of Organization
Research Methodology
Objective of the Study
4

30

Hypothesis
Scope of Study
Research Design
Data Analysis/Interpretation
Conclusions
Suggestions and Recommendations

35
63
66

Limitations of Project
Bibliography
Annexure

68
70

Questionnaire

5
6
7

Self-Appraisal form of Bank of Baroda.

Synopsis
Table
No.

Contents of Table

Page
No.
9

Percentage of employees saying that Bank of Baroda

34

Performance Appraisal System.

Standards of performance appraisal are properly

35

3
4
5
6
7
8

communicated
Frequency of performance appraisal
Performance appraisal should be more frequent
Performance appraisal covers area of specialization
Performance appraisal ascertain potential of employee
PA assess training need
Personal bias affect performance
Personal behaviour of employee or critical incidents

36
37
39
40
42
45
46

9
10
11
12
13
14
15
16

used in performance appraisal.

Result of PA conveyed
Corrective measures taken on the outcome of PA
PA used for promotions/increments
Any other methods are used for promotions
Factors on which employees are promoted
Performance appraisal system has shortcomings
Performance appraisal method respondents like to

48
49
50
52
53
54
55

17

have
People in favour of performance appraisal

57

18

Method better than Performance appraisal

58

19

Performance appraisal better despite its flaws

20

Table
No.
1
2

Suggestion of any other system

59
60

Contents of Graph

Page

Percentage of employees saying that Bank of Baroda

No.
34

Performance Appraisal System.

Standards of performance appraisal are properly

35
10

3
4
5
6
7
8

communicated
Frequency of performance appraisal
Performance appraisal should be more frequent
Performance appraisal covers area of specialization
Performance appraisal ascertain potential of employee
PA assess training need
Personal bias affect performance
Personal behaviour of employee or critical incidents

36
37
39
40
42
45
46

9
10
11
12
13
14
15
16

used in performance appraisal.

Result of PA conveyed
Corrective measures taken on the outcome of PA
PA used for promotions/increments
Any other methods are used for promotions
Factors on which employees are promoted
Performance appraisal system has shortcomings
Performance appraisal method respondents like to

48
49
50
52
53
54
55

17

have
People in favour of performance appraisal

57

18

Method better than Performance appraisal

58

19

Performance appraisal better despite its flaws

59

20

Suggestion of any other system

60

11

12

CHAPTER I
INTRODUCTION

13

INTRODUCTION OF PERFORMANCE APPRAISAL

Performance appraisal has been considered as a most significant and
indispensable tool for human resource development. It is also useful for
organization, for the information it provides is highly useful in making
decisions regarding various personal aspects such as promotions and merit
increases, selection, training and compensation, etc. Performance measure also
link information gathering and decision making processes which provide a basis
for judging the effectiveness of personnel. If valid performance data is available
timely, accurate, standard and relevant, management can maintain consistent
promotion and compensation policies throughout the organization. Performance
appraisal plans are designed to meet three needs, one for organization and other
two of individual namely:
They provide systematic judgments to back up salary increases, transfers,
demotions or terminations.
They are means of telling a subordinate how he is doing and suggesting
needed changes in his behaviours attitudes, skills or job knowledge, they
let him know where he stands with his boss.
They are used as a base for coaching and counselling the individual by
the superior.
One of the aims of a Performance appraisal is to form a basis for
personnel decisions: salary increases, promotions, disciplinary actions, etc.
Performance appraisal is a means of telling the subordinates that how he
is doing. It also suggests needed changes in his behaviour attitudes, skills or job
knowledge.
The superior uses Performance appraisals as a base for training and
development of individual.
What is Performance Appraisal ?

14

Performance appraisals are regular reviews of employee performance

with in organizations.
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, cost and time). Performance appraisal is a part of career development.
Performance appraisal is an objective assessment of an individuals
performance against well-defined benchmarks.
Performance appraisal is a process of evaluating performance and
qualification of employee in terms of the requirements of the job for which he is
employed, for purposes of administration including placements, selection for
promotions, providing financial rewards and other actions.
Performance appraisal is a process by which management is able to
ascertain what the potential of an employee is & what is his actual performance
on the job& what are the reasons for underperformance if any.
Performance appraisal is the step where management finds out how
effective it has been at hiring and placing employees.
Definition of Performance Appraisal
Performance appraisal is a formal, structured system of measuring and
evaluating an employees job related to behaviours and outcomes to discover
how and why the employee is presently performing on the job and how the
employee, organization and society will be benefited.
Objective of Performance Appraisal
To let the employee know where they stand in context with their
performance and to assist them with constructive

criticism and guidance

for the purpose of their development.

It improves understanding of persona objective.
15

 To assess the training and development needs of employees.

To effect promotions based on competence and performance of the
individuals and to decide upon the monetary benefits.
To confirm the services of probationary employees upon their completing
the probationary period satisfactorily.
Finally, Performance appraisal can be used to determine whether HR
Programs such as selection, training and transfers have been effective or
not.
Methods of Performance Appraisal
Several methods and techniques of appraisal are available for
measurement of performance of an employee. Each of the methods discussed
could be effective for some purposes, for some organizations. The methods and
scale differs1) In the source of traits or qualities to be appraised because
of difference in Job requirements, Statistical requirement and the
opinion of the Management.
2) Because of different kinds of workers who are being rated.
3) By the degree of precision attempted in an evaluation.
4) Because of the methods used to obtain weightings for various
traits.

PERFORMANCE APPRAISAL METHODS

PERFORMANCE
APPRAISAL

Traditional Methods

Modern Methods
16

1) Essay Appraisal Method

2) Straight Ranking Method
3) Paired Comparison
4) Critical Incidents Methods
5) Field Review

1) Management by
Objectives (MBO)
2) 360 Degree Appraisal
3) Assessment Centres
4) Behaviourally
Anchored Rating

6) Checklist Method

Scales

7) Graphic Scale

5) Human Resource

8) Forced Distribution

Accounting

There are many methods for doing performance appraisals. Performance

appraisals are used to determine a lot of things. Here are some of those things
listed below

Deciding Promotions
Determining transfers
Deciding of future employment
Determine training employees need
Finding out skill and competency deficits
Deciding who get rewards

TRADITIONAL METHODS
ESSAY APPRAISAL METHOD
In the essay method approach, the appraiser prepares a written statement about the
employee being appraised. The statement usually concentrates on describing specific
strengths and weaknesses in job performance. It also suggests courses of action to
remedy the identified problem areas.
The statement may be written and edited by the appraiser alone, or it be closed in
collaboration with the appraise.
Advantages
17

The essay method is far less structured and confining than the rating sea.5 method.
It permits the appraiser to examine almost any relevant issue or attribute performance.
This contrasts sharply with methods where the appraisal criteria are rigidly defined.
Appraisers may place whatever degree of emphasis on issues or attributes that they
feel appropriate. Thus the process is open-ended and very flexible. The appraiser is not
locked into an appraisal system the limits expression or assumes that the employee traits
can be neatly dissected and seated.
Disadvantages
Essay methods are time-consuming and difficult to administer. Appraisers often
find the essay technique more demanding than methods such as rating scales. The
techniques greatest advantage freedom of expression is also its greatest handicap.
The varying writing skills of appraisers can upset and distort the whole process. The
process of subjective and, in consequence, it is difficult to compare and contrast the
results of individuals or to draw any broad conclusions about organizational needs.

STRAIGHT RANKING METHOD

It is the oldest and simplest method of Performance appraisal, by which the man
and his performance are considered as an entity by the rater. No attempt is made to
fractionalize the rate or his performance; the whole man is compared with the whole
man, that is the ranking of a man in a work group is done against that of another. The
relative position of each man is tested in terms of his numerical rank. It may also be done
by ranking a person on his job performance against that of another member of
competitive group by placing him as number one or two or three in total group, i.e.
persons are tested in order of merit and placed in a simple grouping.
Advantages
This is the simplest method of separating the most efficient from the least efficient
and relatively easy to develop and use.
18

Disadvantages
In practice it is very difficult to compare a single individual with human beings
having varying behaviour traits. Secondly the method only tells us how a man stands in
relation to others in the group but does not indicate much better or worse he is than
another. Thirdly, the task of ranking individuals is difficult when a large number of
persons are rated. Fourth, the ranking system does not eliminate snap judgements.

PAIRED COMPARISON TECHNIQUE

By this technique, each employee is compared every trait with all the other
persons in pairs one at a time. The number of times each individual is compared is tallied
on the piece of paper. These numbers yield the rank order of the entire group. The results
of these comparisons are tabulated and a rank is assigned to each individual.

Advantages
With this technique, judgement is easier and simpler than ordinary ranking
method.
Disadvantages
This method is not suitable when a group is large because in that case, the number
of judgements becomes excessively large.

CRITICAL INCIDENT METHOD

This method was developed following research conducted by the armed forces in
the United States during World War II. The essence of this system is that it attempts to
measure workers performance in terms of certain events or episodes that occur in the
performance on the Ratees job. These events are known as critical incidents. The basics
of this method are the principle that there are certain significant acts in each employees
behaviour and performance which make all the difference between the failures on the
job.
Advantages
19

This method provides an objective basis for conducting a discussion of an

individuals performance.
This approach reduces recency effect (most recent incidents get too much
emphasis) of most performance ratings.
Disadvantages
1) Negative incidents are generally more noticeable than positive ones.
2) The recording of Incidents is a chore to the supervisor and may be put off and
easily forgotten.
3) Managers may unload a series of complaints about incidents during an annual
performance review session.

FIELD REVIEW METHOD

Under this method, a trainer employee from the personnel department interviews
line supervisors to evaluate their respective subordinates. The appraiser is fully equipped
with definite test questions, usually memorized in advance, which he puts to the
supervisor.

The superior is required to give his opinion about the progress of the

subordinate, his weaknesses, good points, outstanding ability, promotability and the
possible plans of action in cases requiring further consideration. The question are asked
and answered verbally. The appraiser takes detailed notes of the answers, which are then
approved by the supervisor and placed in the employees personal folder.
Advantages
This method is useful for a large organization and does not suffer from the
weaknesses which are evident in other systems.
Disadvantages
The success of the method depends on the success of interviewer.

GROUP RATING METHOD

20

Under this method, employees are rated by an appraisal group, consisting of their
supervisor and three or four other supervisors who have some knowledge of their
performance. The supervisor explains to the group the nature of his subordinates duties.
The group then discusses the standards of performance for that job, the actual
performance of the jobholder and the causes of their particular level of performance and
offer suggestion for future improvement, if any.
Advantages
The advantage of this method is that is it thorough, very simple and is devoid of
any bias, for it involves multiple judges.
Disadvantages
It is very time-consuming.

FORCED DISTRIBUTION
It requires the rater to appraise an employee according to predetermined
distribution scale. Under this system, it is performance and promotability. For this
purpose, a five-point performance scale is used without any descriptive statement.
Employees are placed between 2 extremes of good and bad.
Advantages
This system is used to eliminate or minimize raters bias, so that all personnel may
not be placed at the higher end or at the lower end of the scale.

21

MODERN METHODS
MANAGEMENT BY OBJECTIVE METHOD
MBO (Management by Objectives) methods of Performance Appraisal are resultoriented. That is, they seek to measure employee performance by examining the extent to
which predetermined work objectives have been met.
Usually the objectives are established jointly by the supervisor and subordinate.
Once an objective is agreed, the employee is usually expected to self - audit; that
is, to identify the skills needed to achieve the objective. Typically they do not rely on
others to locate and specify their strengths and weaknesses. They are expected to monitor
their own development and progress.
Advantages
The MBO approach overcomes some of the problems that arise as a result of
assuming that the employee traits needed for job success can be reliably identified and
measured.
Instead of assuming traits, the MBO method concentrates on actual outcomes.
The guiding principle of the MBO approach is that direct results can be observed,
whereas the traits and attributes of employees (which may or may not contribute to
performance) must be guessed at or inferred.
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.
Disadvantages
MBO method of Performance appraisal can give employees a satisfying sense of
autonomy and achievement.

But on the downside, they can lead to unrealistic

expectations about what can and cannot be reasonably accomplished.

22

Supervisors and subordinates must have very good reality checking skills to use
MBO appraisal methods.

360-DEGREE APPRAISAL
360-degree feedback, also known as multi-rater feedback, multi source
feedback, or multi source assessment, is feedback that comes from all around an
employee. 360 refers to the 360 degrees in a circle, with an individual figuratively in
the centre of the circle. Feedback is subordinates, peers, and supervisors. It also includes
a self-assessment and in some cases, feedback from external sources such as customers
and suppliers or other interested stakeholders.

It may be contrasted with upward

feedback, where managers are given feedback by their direct reports, or a traditional
Performance appraisal, where the employees are most often reviewed only by their
managers.

HUMAN RESOURCE ACCOUNTING

The human asset accounting method refers to actively devoted 1 attaching money
estimates to the value of a firms internal human organization and itsexternal customer
goodwill.

If able, well trained personnel leave a firm, the human organization is

worthless, if they joint human assets are increased.

SELF APPRAISAL METHOD

The self-appraisal approach relies on self-evaluation. The group approach uses
evaluation by group of persons. The trait approach us the conventional method of
evaluation against certain traits.
Development or change takes place only if the appraise is interested in
development or change.
reflection.

Such a desire is normally an outcome of self-review or

It is an opportunity for the appraise to recapitulate list down his

accomplishments and failures. The most important part of self-appraisal is the process of
review and reflection through performance analysis.
23

A thorough performance analysis done prior to the review discussion helps in

making the review discussion fruitful. Review discussion aims at making the appraiser
and the appraise understand each other better by communicating the performance analysis
1)
2)
3)
4)
5)
6)

of the appraisers performance. It is in this discussion that the appraiser should:

Complement the appraise his difficulties and good qualities
Understand and appreciate his difficulties and make action plans to help
him in the future.
Understand the appraisers performance of the situation and correct the
perceptions if necessary.
Help him to recognize his strong points and weak points.
Communicate the expectations of the appraiser from the appraise and
Identify developmental needs of the appraise and chalk out a course of
action for meeting these needs.

Significance of the study :The researcher did his Master in Business Administration in HR from Nasik City.
Nasik City is a prominent urban centre from Maharashtra enjoys status of education hub
of that region as many offices have come up there in the last decade.
The result of this situation is that large number of employees working in Bank of
Baroda from nearby villages and semi-urban areas, to seek professional job.
The researcher observed that the employees of Bank of Baroda get frustrated of
convincing their superiors. And after getting exhausted of doing such sort of work they
get the answer that to improve your work, this causes depression among the employees.
The researcher also observed that doing such kind of duty an employee has to
suffer from many mental and physical disturbances.
It was also observed that, the employees have no specific target to achieve during
the year i.e. the work of office to be completed in time. This creates pressure on the
employees that if they do not achieve the work done in time then they will be punished.

24

To avoid this pressure, the employer of Bank of Baroda also provides some
incentive schemes for motivation and encouragement of the employees. Sometimes these
schemes reduce frustrations and tensions of the employees.

25

REVEIW OF LITERATURE

26

The amount of research regarding the topic Performance Appraisal is so vast. The topic
is literally not new; it is as old as the formation of the organizations. Before the early
1980s, majority of theoretical studies emphasized on revamping the rating system within
the organization. The actions were a great thing to reduce the chaotic of employees
performance appraisal (Feldman, 1981). With the passage of the time the methods and
rating system among the employees got enhanced and received an immense appreciation
and attentions of the managers.
Behavioral Observation Scale (BOS) is one of the best techniques utilized by the
managers to arte the employees. The dilemma was on the peak in the 1960s and 1970s. In
the same period couple of new innovated rating scales were introduced, which was
Behaviorally Anchored Rating Scale (BARS) and the Mixed Standard Scale (MSS). The
innovations were dominant one which condensed the errors and improved the observation
skills from the performance appraisal practice. According to the research of Arvey and
Murphy (1998), there were hundreds of thousands of researches had been taken place
between the periods of 1950 to 1980, which merely focused on the different types of
rating scales. Landy and Farr (1980) reviewed and researched the methods of
performance appraisal in totally a different manner, in which they understand the rater
and process in an organizational context. Other Performance appraisal reports include the
rater characteristics in their report like race, gender and likeability.
After the year 1980 the biasness among the performance appraisal system occurred
outrageously and appraisal had been granted on the favoritism or race and gender basis
rather examined the knowledge, skills and style of the work of the employee. The
accuracy criteria among the performance appraisal system clutched its grip in the start of
the 1980s, where the researches were emphasized on common psychometric biases which
include the diversified rating errors like leniency, central tendency and halo, which were
termed as rating errors in the appraisal method. It has been observed that the bias free
appraisals were inevitably true or more precisely we can say more accurate, but the
concept was totally refused by the research of Hulin in 1982. According to them the
biasfree appraisals were not necessarily accurate (Murphy & Balzer, 1989).
27

Researches which had been done in the year 1980 were found the most dominating one
which contributed the appraisal system in a great deal. The researches of the1980 also
helped out to clarify some presumed assumptions regarding the performance appraisal,
just like the work of Murphy (1982). Research has included the measure of employee
attitudes towards the system of performance appraisal and its acceptance (Roberts, 1990).
Bernardian and Beatty (1984), suggested in their research that behavioral and attitudinal
kinds of measure ultimately prove to be better anticipator as compared with the traditional
psychometric variables, which we have declared earlier as well, like leniency, halo and
discriminability. A Performance Appraisal system is totally ineffective in practice due to
the dearth of approval from the end users (Roberts, 1990).
According to a number of researchers, the enhanced and upgraded performance appraisal
procedure and method will enhance the satisfaction level of the employees and definitely
will improve the process of goal setting within the organization.

28

CHAPTER II
PROFILE
OF
THE
ORGANIZATION

29

COMPANY PROFILE
Name of the Company

: BANK OF BAROAD

Year of Establishment

: 1908

Corporate Office

Chairman

Industry Category

BARODA

MR. MUNDRA
PUBLIC SECTOR BANK

Bank of Baroda is one of the leading commercial banks in India. The Bank's solutions
includes personal banking, which includes deposits, gen-next services, retail loans,
credit cards, debit cards, services and lockers; business banking, which includes
deposits, loans and advances, services and lockers; corporate banking, which includes
wholesale banking, deposits, loans and advances and services, and international
business, which includes non-resident Indian (NRI) services, foreign currency credits,
ECB, offshore banking, export finance, import finance, correspondent banking, trade
finance and international treasury. The Bank offers services, such as domestic
operations and Forex operations. They also offer rural banking services, which include
deposits, priority sector advances, remittance, collection services, pension and lockers.
They also offer fee based services such as cash management and remittance services.
The Bank is having their head office located at Baroda and their corporate office is
located at Mumbai. Bank of Baroda was incorporated on July 20, 1908 as a as a
private bank with the name The Bank of Baroda Ltd. The Bank was established with a
paid up capital of Rs 1 million and was founded by Maharaja Sayajirao III of Baroda.
In the year 1910, the Bank opened their first branch in the city of Ahmedabad. In the
year 1919, they opened their first branch in Mumbai City. In the year 1953, the Bank
opened first international branch at Mombasa, Kenya. During the period 1953-1969,
the Bank opened three branches in Fiji, five branches in Kenya, three branches in
Uganda and one each in London and Guyana. In the year 1958, The Hind Bank
merged with the Bank and in the year 1962, The

30

The Bank proposes to further expand their network by opening additional branches in
countries where they are already present, and, also wants to enter new territories. They
have initiated steps for opening of two branches and two EBSUs in UAE, one branch in
Oman and one branch in Mauritius. The work related to the opening of eight new branches
of the subsidiaries is at an advanced stage. The subsidiaries in Uganda, Kenya and New
Zealand will be opening two branches each and in Botswana and Guyana, one additional
branch will be opened. The Banks applications for setting up of a subsidiary in Suriname
and Canada, opening of a branch in Qatar and upgradation of a Representative Office in
Australia to a branch are under process by the host country regulators. The Bank has
already initiated steps for identification of new centres for overseas expansion

31

CHAPTER II
RESEARCH
METHODOLOGY

32

THE METHOD USED IN BANK OF BARODA

IS SELF APPRAISAL METHOD
A self-Appraisal is a method in which the employee evaluates his own
performance and then with his manager. The method can be used as an introduction
phase of an Appraisal process. An advantage of doing so is that it provides the
employee with the opportunity to reflect on his own performance and reasons behind
it. It can be a good preparation for the appraisal by the manager of the employee and
can help to increase the size of the future oriented part of it.

OBJECTIVE
1.

To know how performance appraisal is used for the purpose of

promotion, training or executive development of employees.

2.

To study work related problems of the employees of BOB NASIK

3.

To know whether the present performance appraisal system is appropriate

or not for the purpose of employee training need identification or for the
purpose of promotion.

4 To know whether the employees are satisfied with the present performance
appraisal system.

METHODOLOGY OF STUDY

33

For this project, individuals performance was considered for evaluation of

outcome. While preparing the report the data was collected from the following
sources.
1)
a)

Primary Data:
Interview:- Interview Method is the method of collecting data that involves

presentation of oral and verbal stimuli and reply orally. It is a method in which
interview schedules are prepared and disturbed among employees. Informal interview
b)

will be conducted with both i.e. officers and staff members.

Structured Questionnaire:- This is an important and most widely used method for
data collection. It is a document which includes number of questions printed in proper
sequence. It includes general information of employee, Pro-motional activities,

incentives criteria, duration of Performance appraisal, etc.

2) Secondary Data:
a) Organizations records:- It includes Performance appraisal form, Remarks of
Superiors on it, etc.
Reference books:- For concepts and theory part of project reference books and
web site are used.

SAMPLE DESIGN
Sample Size:I have taken sample size as 50 staff. From which 36 Male and 14 Female are
staff members.
Sampling technique:Random sampling method is used at Bank of Baroda. A random sample is one
chosen by a method involving an unpredictable component. Random sampling can
also refer to taking a number of independent observations from the same probability
distribution, without involving any real population. Sample is chosen by lottery
method.

Table 1) Analysis of performance appraisal method used for male and female
staff members.
Sr.
No.

Frequency
Statement
Y

Other

PA

Self- 360

MBO

34

Factors

Does Bank of Baroda, follow the Performance Appraisal

40 0

System?
Are you properly communicated with all the standards

31 09

of performance appraisal system at Bank of Baroda?

How many times the performance appraisal of

employees is done in a year at Bank of Baroda?

Do you think that performance appraisal should be more

29 11

frequent?
Does the performance appraisal system cover your area

18 22

of specialization/competency?
Do you think performance appraisal is able to ascertain

33 07

potential of employees?
Do you think performance

36 4

appropriate training need?

Do you think that personal bias affects performance

18 22

appraisal system?
Are factors such as personnel behaviour of employee or

33 07

10
11

critical incidents used in performance appraisal?

Is the result of performance appraisal conveyed to you?
Is any corrective measure taken on the outcome of

40 0
34 6

12

performance appraisal?
Is performance appraisal

promotions/

33 07

13

increments?
Whether any other method is used for promotions? (If

07 33

14
15

yes please mention)

On what basis employees are promoted?
Do you think that there are any shortcomings in the

17 23

16

performance appraisal system?

What type of performance appraisal method would like

appraisal

used

for

assesses

PA

40

35

24 6

10

to have?

17

Do you think that performance appraisal is

better than Goal setting method?

18

Do you think of any other method which is

better than performance appraisal?

19

Do you think that performance appraisal

method is helpful despite its flaws?

20

Would you suggest any changes in

performance appraisal system?

35

36

CHAPTER III
DATA ANALYSIS
&
INTERPRETATION

37

1)

Does Bank of Baroda follow the Performance appraisal system?

Table 1: Performance appraisal followed at Bank of Baroda.

Sr.No.
1
2

Description
Frequency
Percentage
Yes (P.A.Followed)
40
100%
No (P.A. not followed)
0
0%
Total
40
100%
The pie Chart No.1 shows percentage of employees saying that Bank of Baroda
Performance Appraisal System.

Yes

No

100%

38

As shown in the above chart, all the respondents were of the opinion that Bank
of Baroda follows the Performance Appraisal System. The reason for using the
Performance Appraisal may be as follows:
1)
2)
3)
4)

A means of telling the subordinate that how he is doing

To ascertain what the potential of an employees
To find out reasons for underperformance if any
To assess the training and development needs of employees.

2) Are you properly communicated with all the standards of performance appraisal
system at Bank of Baroda?
The employees performance will be affected if the standards of Performance
appraisal are not properly known to the employee.
The following table shows the employees view.
Table 2: Standards communicated properly
Sr.No.
1

Description
Yes (Standards communicated

Frequency
31

Percentage
78.00%

properly)
No (Standards not communicated

09

22.00%

properly)
Total

40

100%

Standards22%
communicated properly

Standards not communicated

78% properly

39

The above Pie Chart No.2 shows percentage of employees of saying that
standards of Performance appraisal system are properly communicated to them and
also the percentage of employees saying that standards of Performance appraisal
system are not properly communicated to them.

The job duties tell the employee what is to be done, performance standards
provide the employee with specific performance expectations for each major duty.
They are the observable behaviour and actions which explain how the job is to be
done, plus the results which are expected for satisfactory job performance. They tell
the employee what a good job looks like. The purpose of performance standards is to
communicate expectations.
Performance standards, which allow evaluating an employees job performance
objectivity.
The chart No.2 indicates that 78% of the employees are properly
communicated with all the standards of Performance appraisal system at Bank of
Baroda, But 22% of the employees are of the opinion that performance standards are
not properly communicated to them. According to them, since they are unaware of the
expectations and since the evaluation is against the performance standards, their
performance will be affected.

So according to these respondents, performance

standards should be communicated properly well in advance. The key problems were
lack of proper communication between both sides.

40

Many of the gaps between employers and employees result from unclear
communication and limited transparency regarding how the review process is
conducted and its impact on the employee, said Albrecht.
So it is really important that standards should be communicated properly to the
employees at proper time.
3) How many times the Performance Appraisal of employees is done in a year at
Bank of Baroda?
It is really important to know the frequency of Performance appraisal in a time
span.

The frequency of Performance appraisals should be standardized so that

employees are not caught by surprise.

Following Table No.3 is explaining the frequency of Performance appraisal in a
year at Bank of Baroda.
Table No.3: Frequency of Performance Appraisal
Sr.No.
1
2
3

Description
1
2
More than 2
Total
The chart No.3 is showing percentage of

Frequency
Percentage
40
100%
0
0%
0
0
40
100%
respondent with the opinion that

Performance appraisal is done once in a year.

41

PA once in a year

PA twice in a year

More than 2 times

Slice

42

The above chart no.3 indicates that the Performance appraisal of employees is
done once in a year at Bank of Baroda100% of the respondents is of this opinion.
4) Do you think that Performance appraisal should be more frequent?
As we have already discussed that it is really important to know the frequency
of performance appraisal in a time span. So it is necessary to understand that how
many respondents think that performance appraisal should be more frequent.

43

Table No.4: Performance appraisal should be more frequent

Sr.No. Description
Frequency Percentage
1
Yes (P.A.should be more frequent)
29
72.00%
2
No (P.A.should not be more frequent)
11
28.00%
Total
40
100%
As shown in the chart no. 4 majority of the respondents are of the opinion that
Performance appraisal should be more frequent.

28%
PA should be more frequent

PA should not be more frequent

72%

The frequency of Performance appraisal plays a major role in the evaluation. 72%
of the respondents are of the opinion that Performance appraisal should be more
frequent.

44

The frequency of Performance appraisals should be standardized so that employees

are not caught by surprise. They can be more frequent. Most of the employees are
of the opinion that Performance Appraisal should be at least quarterly.
According to them, if the frequency of Performance appraisal is increased then the
gap between the actual performance and performance standards can be decreased at
proper time. Rewards and motivation will be more frequent. They also think that
critical incidence can be considered in better way when Performance appraisals are
more frequent. So majority of the respondents are of the opinion that Performance
appraisal should be more frequent.
5) Does the Performance appraisal system cover your area of specialization /
competency?
Coverage of area is also an important aspect. Each person has different area of
specialization.

So individuals performance also dependent on the area of

specialization. Following table no.6 shows that how many respondents are of the
opinion that their area of specialization is covered in Performance appraisal.
Sr.No.
1
2

Description
Frequency
Percentage
Yes
18
46.00%
No
22
54.00%
Total
40
100%
The pie chart no.5 gives us the pictorial representation of the percentage of
respondents who agree that Performance appraisal covers their area of specialization
and also of those who do not agree.

45

PA covers area of specialization

54%

46%
PA do not cover specialization

As shown in the Chart no.5, 46% of the respondents are of the opinion that
Performance appraisal system covers their area of specialization.
According to chart no.54% of the respondents are of the opinion that
Performance appraisal system does not cover individuals area of specialization /
competency. Each employee is different. So their area of specialization may differ.
For e.g. somebody is expert in accounts. Other person may be expert in computers.
Same self-appraisal form is given to every employee.

So questionnaire will be

common for each employee. So majority of the employees are of the opinion that
their area of specialization is not covered in present Performance appraisal.

So

according to majority of employees along with general self-appraisal form a

specialized form for their area of work must be included in the process.
6) Do you think Performance appraisal is able to ascertain potential of
employee?
Management is always interested in ascertaining the potential of the
employees. This is because by knowing the individuals potential, management can
assign him/her appropriate job responsibility.

This information is also used for

promotion process.

46

Following table no.6 shows that how many respondents are of the opinion that
their Performance appraisal ascertains potential of employee.
Sr.No.
1
2

Description
Yes
No
Total

Frequency
33
07
40

Percentage
82.00%
18.00%
100%

18%

PA is able to ascertain potential

PA is not able to ascertain potential

82%

47

The chart no.6 shows percentage of the respondents who are of the opinion that
Performance appraisal is able to ascertain potential of employee.
Performance appraisal is a systematic evaluation of present potential
capabilities of personnel.
employees promotions.

Potentials of the employee are especially useful for

So to find out employees potential is need of every

organization. Considering each ones potential management can decide each ones
performance objective in a better way. Employee will also perform according to
performance standards. Ultimately his/her performance will be good. According to
respondents Performance appraisal, helps to identify the hidden talents and potential
of the individuals, identifying these potential talents can help in preparing the
individuals for higher responsibilities and positions in the future. The Performance
appraisal process in itself is developmental in nature.
82% employees are of the opinion that Performance appraisal is able to
ascertain potential of employee.
But 18% employees are saying that Performance appraisal is unable to do so.
According to these respondents, potential of the employee is depending upon
situational factors which are not properly assessed in the present system. Hence, they
are not convinced with the effectiveness of the Performance appraisal system.
7) Do you think Performance appraisal assesses appropriate training need?
Management expects good performance from each of the employee.

But

sometimes employees cannot perform well. Each employee is doing different job and
so each employee requires different skills. So every employee has different training
need. So Performance appraisal should assess appropriate training need to increase
the performance of employee.
Following table no.8 shows the percentages of respondents who are of the
opinion that Performance appraisal assess the appropriate training need.

48

Table 7: PA assess training need

Sr.No.
1
2

Description
Frequency
Yes (P.A.assess training need)
36
No (P.A. not assess training need)
4
Total
40
Following Chart No.7 shows graphical representation of the same.

Percentage
90.00%
10.00%
100%

10%

PA access training need

PA not access training need

90%

As shown in the chart no.7, 90% of the respondents are saying that
Performance appraisal system appropriate training need.

The output of the

Performance appraisal system shows employees good areas and grey areas.

49

The aim is to reduce the grey areas. Majority of respondents are of the opinion
that Performance appraisal could rightly find out the grey areas and so training need of
employee can be found out.
10% of respondents are saying that Performance appraisal do not find out the
training need of employee. According to them, Performance appraisal is not able to
1) Identify the deficiencies.
2) Determine whether employees lack
As per 90% of respondents, Performance appraisal can significantly help in
identifying the training needs of the employees. Performance appraisal helps to reveal
the differences and discrepancies in the desired and the actual performance of the
employees. The causes of the discrepancies are also found whether they are due to the
lack of adequate training or not. The employee can also tell about his training
required (if any) in his self-appraisal.
As per discussion some of the training needs are as follows:
1)
2)
3)
4)

Communication
Personality development
Training of a particular software
Skills development

The following Chart no.8 shows graphical representation of the tabular data.

Personal bias-affect PA
54%

46%
Personal bias not affect PA

50

According to the chart no.8 more respondents are of the opinion that personal biases
do not affect Performance appraisal system. Some respondents are of the opinion that
personnel biases affect the output of Performance appraisal. According to them some
predetermined opinion of the superior about the subordinate affect the output of the
Performance appraisal.

Following are the sources of Bias in Performance appraisals:

8) Do you think that personal bias affects Performance appraisal system?
Self-appraisal form is rated by the superior. So we can say that Personal biases
of the individual with the rating may affect the performance.
Following table no.9 shows frequency of respondent who agree and disagree
with statement that personal bias affect performance:
Table 8: Personal bias affects performance
Sr.No.
1
2

Description
Yes (Personal bias affect performance)
No (Personal bias do not affect
performance)
Total

Frequency
18
27

Percentage
46.00%
54.00%

40

100%

51

1) Leniency Errors are common and reflect and inclination to inflate everyones
performance evaluation. In other words, there is a tendency to evaluate everyone
favourably.
2) Halo Effects occur when an initial positive impression of an individual leads to
perceiving everything the person does in a favourable light. The opposite bias is
termed a devil effect, and occurs after we form a negative overall impression of
a person and then are more attentive to negative than positive aspects of everything
the person does next.
3) Affective Reactions toward the person being evaluated affects the evaluation.
4) Similar-to-Me Errors occur when raters assign higher ratings to persons who are
similar to the rater on various dimensions than to people who are dissimilar.
/being human, we appreciate and like people who are similar to us. We can readily
put ourselves in these peoples shoes, and understand (we think) the motivational
attributions. Thus, this bias links to the prior two factors affective and attribution
prejudice
5) Stereotyping occurs when evaluations are influenced to some degree by a persons
membership in a particular social group.
Above five psychological factors that bias our evaluations of others.
According to Chart No.8, 46% respondents are of the opinion that personnel
biases affect the output the Performance appraisal. They are of the opinion that the
factor that affects the output of Performance appraisal is Halo Effects, Similar-to-Me
Errors etc.
Majority i.e. 54% of the respondents are of the opinion that personal biases do
not affect Performance appraisal system.
9) Are factors such as personnel behaviour of employee or critical incidents
used in Performance appraisal?
Behaviour of the person always depends upon the situation. In some critical
situations some employees perform extremely well. These events are very rare but the
performance of employee should be considered.

52

Following table No.10 shows the percentage of respondents who are of the
opinion that while doing Performance appraisal factors such as personnel behaviour of
employee or critical incidents are considered.
Table 9: Personnel behaviour of employee or critical incidents used in
Performance appraisal
Sr.No.
1

Description
Yes (Personal behaviour of employee or

Frequency
33

Percentage
82.00%

18.00%

critical incidents used in Performance

2

appraisal)
No (Personal behaviour of employee or
critical incidents used in Performance

appraisal)
Total
40
100%
The Pie Chart No.9 shows percentage of respondents of both employees who
agree and disagree with the same.

18%

Factors considered

Factors not considered

82%

53

The Chart No.9 indicates that the factors such as personnel behaviour of
employee or critical incident method are used in Performance appraisal.
The critical incidents are simply descriptions of behaviours that are especially
effective or ineffective.
Employees are assessed on how they do their job. Behaviour measures can be
very useful for feedback purposes because they indicate exactly what an employee
should do differently. Behaviour such as helpfulness, readiness for given work, ready
to accept challenges etc. are always welcomed. This behaviour should be considered.
18% of respondents have the opinion that Performance appraisal do not
considers factors like personnel behaviour or critical incidents.
82% of the employees are of the opinion that personnel behaviour of employee
or Critical incidents used in Performance appraisal.
10)Is the result of Performance appraisal conveyed to you?
If the result of Performance appraisal not conveyed to individual then he/she
will not understand the difference between actual performance and standards of the
performance.

So to increase individuals performance, it is required to convey

him/her the result of Performance appraisal.

Following table No.10 shows the opinion of the employees.
Sr.No.
1
2

Description
Frequency Percentage
Yes (Result of PA conveyed)
40
100%
No (Result of PA not conveyed)
0
0%
Total
50
100%
The Pie chart No.10 shows the percentage of the respondents who agree that
results of the Performance appraisal is conveyed to them.
54

Result of PA conveyed

Result of PA not conveyed

100%

All the employees agree that the result of Performance appraisal conveyed to
individual. This is a very important step of the process. Each employee is saying that
after rating the performance, feedback is given to individuals.
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:

55

A SUCCESSFUL MAN IS ONE WHO CAN LAY A FIRM FOUNDATION

WITH THE BRICKS OTHERS HAVE THROUGH AT HIM.
100% employees are saying that result of Performance appraisal conveyed to
individuals.
11) Is any corrective measure taken on the outcome of Performance appraisal?
Only conveying the outcome of Performance appraisal to respective person is
not sufficient. To improve his performance corrective measures must be taken.
Following table No.11 shows information about the corrective measures taken
a Bank of Baroda.
Sr.No.
1
2

Description
Frequency Percentage
Yes (Corrective measures taken)
34
86%
No (Corrective measures not taken)
06
14%
Total
40
100%
The following pie Chart No.11 shows the percentage of respondents who are of
the opinion that the corrective measures are taken on the result of Performance
appraisal.

14%
Corrective measures taken

Corrective measures not taken

86%

56

As per the Chart No.11 corrective measures are taken on the output of
Performance appraisal.

This is a very important stage of Performance appraisal

process. According to them, different corrective actions are taken depending on the
need of employees. Some of them are as follows:
Training
Job rotation
Counselling
Redesigning rewards
12)Is Performance appraisal used for promotions / increments?
The following table No.12 shows the opinion of respondent about use of
Performance appraisal for promotions/increments.
Sr.No.
1
2

Description
Yes (PA used for promotions/ increments)
No (PA not used for promotions/

Frequency
33
7

Percentage
82.00%
18.00%

increments)
Total

40

100%

The following Pie Chart No.12 represents the percentage of respondent who are
of the opinion that Performance appraisal results are used for promotions as well as
for increments.

57
18%
PA used for promotions/increments

Bank of Baroda follows a policy of promotion based upon performance. Hence

the Performance appraisal reports of the employees are taken into consideration while
giving promotions. If a candidate is recently promoted and his performance is good
then merit increment is given to that candidate.
As shown in Chart No.12, the majority of the employees are of the opinion that
Performance appraisal is used for promotions / increments. 81% of the employees are
promotions are based on performance. Few employees are saying that promotions are
not only based on performance but also on some other factors as seniority, personnel
bias, relations with management etc. But majority of the employees do not agree with
this opinion. According to them promotions and increments always based on the
performance and no other factors.
13)Whether any other method is used for promotions? (if yes please mention)
The following table No.14 shows the opinion of responds. According to some
of them other methods than Performance appraisal are used for promotions/increment

58

Table 13: any other methods are used for promotions.

Sr.No.
1

Description
Yes (other methods are used for

Frequency
07

Percentage
18.00%

promotions)
No (other methods are not used for

33

82.00%

promotions)
Total

40

100%

The pie chart No. 13 shows percentage of respondents of the opinion

that other modes are also used for promotions.

18%
Other methods used for Promotion

Other methods not used for Promotion

82%

59

As shown in the chart no. 13, 82% of the respondents are of the opinion that other
methods than Performance appraisals are not used for promotions. Few employees do
not agree with the statement. According to them some other methods are also used for
promotions.
14)On what basis employees are promoted?
Some respondents have the opinion that promotions are not only based on
performance but also on some other factors.
The Table No. 14 shows the opinion of respondents. Table 15: Factors on
which employees are promoted.
Sr.No.
1
2
3

Description
Seniority
Performance appraisal
Other factors
Total

Frequency
02
33
05
40

Percentage
06.00%
82.00%
12.00%
100%

Following Pie chart No. 14 shows the percentages of respondents having

different opinions about factors on which promotion depends.

60

12%

Seniority

6%

Performance Appraisal

Other factors

82%

15)Do you think that there are any shortcomings in the Performance appraisal
system?
Table 15: Performance appraisal system has shortcomings
Sr.No. Description
1
Yes
2
No

Frequency
21
29

Percentage
42.00%
58.00%
61

Total
50
100%
The pie chart No. 15 shows percentage of employees who agree and do not
agree that there are shortcomings in performance method.

Yes
58%

42%
No

42% of the employees are of opinion that system has shortcomings. They have
mentioned following points as shortcomings
1. Low frequency of the Performance appraisal
2. Performance appraisal does not cover their area of specialization
3. Performance standards are not communicated properly.

62

58% employees are of the opinion that Performance appraisal system does not
have any shortcomings and employees are satisfied with the current Performance
appraisal system.

16)What type of Performance appraisal method would you like to have?

There are various methods available. According to respondents following is the
opinion about performance methods.
Table 16: Performance appraisal method respondents like to have
Sr.No.
1
2
3

Description
Frequency Percentage
Self-Performance Appraisal
30
60.00%
360 Performance Appraisal
08
16.00%
Management by Objectives
12
24.00%
Total
50
100%
Following pie chart No. 16 shows Graphical Representation of above data.

24%

Self appraisal
16%

360

MBO
60%

63

As shown in the chart No. 16, 60% of the employees will like to have selfPerformance appraisal. Majority of the employees are satisfied with the currently used
appraisal method i.e. Self-Performance appraisal method.
40% of the employees are saying that the appraisal method should be changed.
There are two opinions for the method to be used.
1) 360 Performance appraisal method
2) Management Objectives
16% of the employee saying that 360 degree Performance appraisal method
will be beneficial to them. 24% employees are of the opinion that MBO method will
be useful to them.
Maximum employees are saying that Self-Performance appraisal is good
enough for them and that should be continued.

17)Do you think that Performance appraisal is better than goal setting method?

As shown in the chart, 90% of the respondents are of the opinion that
performance appraisal is better than the goal setting method. Few employees do not
agree with the statement. According to them goal setting method is best.
Performance appraisal method is able to ascertain the potential of employees,
while goal setting method lacks up to certain extent.

64

Table 17: People in favour of performance appraisal

Sr.No. Description
Frequency
1
Performance Appraisal Method
36
2
Goal Setting Method
04
pie chart No. 17 shows Graphical Representation of above data.

Percentage
90.00%
10.00%

10%

Performanc e Appraisal

Goal Setting

90%

18)

Do you think of any other method that is better than performance

appraisal method?
No single method is foolproof and hence at any given time there may exist a method
that may be better than the previous method. Here are the statistics of peoples opinion
regarding the existence of better method

65

Table 18: Opinion regarding the better method

Sr.No. Description
Frequency Percentage
1
Yes
30
60.00%
2
No
08
16.00%
Following pie chart No. 18 shows Graphical Representation of above data.

20%

Yes

No

80%

19)

Do you think that Performance appraisal method is useful despite its

flaws?
As discussed above, performance appraisal method has following flaws :1. Low frequency of the Performance appraisal
2. Performance appraisal does not cover their area of specialization
3. Performance standards are not communicated properly.
75% employees think that performance appraisal method is better than any other
method despite these flaws while 25% disagree.

Table 19: Opinion of people regarding performance appraisal method despite

its flaws.

66

Sr.No. Description
Frequency Percentage
1
Yes
30
75.00%
2
No
10
25.00%
Following pie chart No. 19 shows Graphical Representation of above data.

25%

Yes

No

75%

67

20)

Would you suggest any other system?

Table 20: Number of people suggesting other methods

Sr.No. Description
Frequency Percentage
1
Yes
06
15.00%
2
No
34
85.00%
Following pie chart No. 16 shows Graphical Representation of above data.

15%

Yes

No

85%

The other methods suggested by people are:-ss

1. Goal Setting
2. 360o Performance appraisal
3. MBO.

CONCLUSIONS
68

From the analysis we can say that majority of respondents have following
opinion:
1) Bank of Baroda, follows the Performance Appraisal System
2) All the standards of Performance appraisal system are properly
communicated to the employees
3) The Performance appraisal of employees is doe once in a year at Bank of
Baroda.
4) Respondents think that Performance appraisal should be more frequent
5) The Performance appraisal system does not cover individuals area of
6)
7)
8)
9)

specialization / competency should be used.

Performance appraisal is able to ascertain potential of employee.
Performance appraisal assesses appropriate training need.
Personnel biases do not affect the performance.
Factors such as personnel behaviour of employee or critical incidents used

in Performance appraisal.
10)The result of Performance appraisal conveyed to individual.
11)Corrective measures are taken on the outcome of Performance
Appraisal.
12)Performance appraisal used for promotions / increments.
13)No other method is used for promotions.
14)Employees are promoted on the basis of Performance Appraisal.
15)There are few shortcomings in the Performance Appraisal system
16)Majority Employees prefer self-Performance Appraisal method
So the Conclusion is:
Bank of Baroda uses Performance appraisal to evaluate performance of the
employees. Employees are properly communicated with all Performance standards.
Performance appraisal of employees is done once in a year at Bank of Baroda. The
frequency of Performance appraisal plays a major role in the usefulness and reliability
of the system. Majority of respondents are of the opinion that frequency should be
increased so that rewards and motivation will be more frequent.
Performance differs as there as different areas of specialization. Majority of
respondents are of the opinion that current Performance appraisal system does not
cover individuals area of specialization/competency. So according to majority of

69

employees along with general self-appraisal form a specialized form for their area of
work must be included in the process.
Main aim of Performance appraisal is to evaluate performance of the employee
and to find out potentials of the employee. According to majority of respondents,
Performance appraisal is able to ascertain potential of employee.
One of the reasons for using the Performance appraisal is to assess the training
and development needs of employees. This is to improve the performance. According
to majority of respondents, Performance appraisal system assesses appropriate training
need.
Bank of Baroda is using Self-Performance appraisal method to evaluate
performance of the employee. Even if employee is evaluating himself, he is also rated
by his supervisor. So relation with boss may affect the performance. But more
respondents are of the opinion that personnel biases do not affect the performance. But
some respondent are of the opinion that personnel biases affect the performance. The
following sources of biases are given by respondent.

Leniency Errors
Halo Effects
Affective Reactions
Similar-to-Me Errors
Stereotyping

In a critical situation particular employee performs really well. This should be

considered while appraising the performance. Employees behaviour is also one of the
factors that should be considered while appraising the performance. According to
majority of respondents, personnel behaviour of employee or critical incidents used in
Performance appraisal.
After conducting the Performance appraisal, result of Performance appraisal is
conveyed to individual. So individual can think to improve his own performance. This
is a very important stage of Performance appraisal process.

70

According to respondents different corrective actions are taken depending on

the need of employee. This is to reduce grey areas of performance.
Some of the corrective actions are as follows
Training
Job rotation
Counselling
One of the reasons for using the Performance appraisal is for promotions. The
Result of Performance appraisal is used for promotions and also for increments. If the
employee is recently promoted then the merit increment is given to him. Another
method may be used for promotions. Majority of employees are of the opinion that
only Performance appraisal is used for promotions. Few employees are saying that
some other factors are also considered for promotions and increments than
Performance appraisal. These factors are as follows:
Seniority
Personnel bias,
Relationship with management
But Majority of the respondent is of the opinion that only Performance
appraisal is used for promotions and increments.
The hypothesis of the project is Performance appraisal method adopted by
Bank of Baroda is effective method used for promotions and increments.
So we can say that hypothesis is accepted.

71

CHAPTER - IV
SUGGESTIONS
RECOMMENDATIONS
AND LIMITATIONS

SUGGESTIONS AND RECOMMENDATIONS

1) Frequency of Performance appraisal can be increased.
2) Along with general self-appraisal form a specialized form for their area
of work must be included in the process.
72

3) Performance standards must be communicated properly.

4) Communication plays a vital role in the process of Performance
Appraisal. So proper communication between appraise and appraiser is important.
5) HRD department should convince the employees that Performance appraisal is
not only a tool for promotion and increments but it is concerned with overall
development of employee.

LIMITATIONS OF PROJECT
Any activity cannot be so articulate and perfect that there are no limitations to
it. It was the case with my project. In spite of the project being successful I felt that if
I had some more information, I would have worked better.
1)
2)
3)

This project is only according to the information provided by a company.

Organization cannot provide entire data due to confidential constraints.
The sample that I could target is small so statement cannot be generalized and

4)

cannot be applied to other industry.

The information obtained through the primary and secondary data is assumed

5)

true.
I could see the objective setting process of only few employees.

This was because

Some of the employees were not comfortable to express their views in front of
others except their supervisors/managers.

73

BIBLIOGRAPHY

BIBLIOGRAPHY
K. Aswathappa, Human Resource Management, Tata McGraw-Hill Publishing
Company Limited
C.B. MAMORIA & S.V.GANKAR, Personnel Management, Himalaya
Publishing House
T.V. Rao, Performance Management and Appraisal system
Keith Davis, Organizational behaviour
Agarwal R.D. 1977. Dynamics of Personnel Management in India. New Delhi:
Tata McGraw Hill.
74

 Armstrong, Michael. 1999. Human Resource Management The Art of HRD.

Crest Publication.
Aquinas, P.G.2005 Human Resource Management. New Delhi: Vikas
Publishing House Pvt. Ltd.
Basu K.S. 1972. New Dimensions in Personnel Management. New Delhi:
Macmillan.
Beach, D.S. 1975. Personnel: The Management of People at Work. New Delhi
Macmillan.
www.wikipedia.org
www.tatamc.growhill.com
www.indisage.com

ANNEXURE

75

a) Questionnaire of Performance appraisal

b) Form of Self-Appraisal
c) Synopsis

76

QUESTIONNAIRE
1]

Name:-

2]

Designation:

3]

Department:

4]

Gender:a) Male
b) Female

5]

Age (in yrs.):a) Less than 30

b) Between 30 to 40
c) 40 and above

6]

Experience with Bank of Baroda (in yrs.):a) Less than 10 yrs.

b) Between 10 to 20
c) 20 and above

7]

Does Bank of Baroda follow the Performance Appraisal System?

a) Yes
b) No

8]

Are you properly communicated with all the standards of performance

appraisal system at Bank of Baroda?
a) Yes
b) No

77

9]

How many times the Performance Appraisal of employees is done in a year at

Bank of Baroda?
a) 1
b) 2
c) >2

10]

Do you think that Performance Appraisal should be more frequent?

a) Yes
b) No

11]

Does the Performance Appraisal system cover your area of specialization/

competency?
a) Yes
b) No

12]

Do you think performance appraisal is able to ascertain potential of employee?

a) Yes
b) No

13]

Do you think Performance Appraisal System access appropriate training need?

a) Yes
b) No

14]

Do you think that personal bias affect Performance Appraisal System?

a) Yes
b) No

15]

Are factors such as personnel behaviour of employee or critical incidents

methods used in Performance Appraisal?
a) Yes
78

b) No
16]

Is the result of Performance Appraisal conveyed to you?

a) Yes
b) No

17]

Is any corrective measure taken on the outcome of Performance Appraisal?

a) Yes
b) No

18]

Is Performance Appraisal is used for promotions/increments?

a) Yes
b) No

19]

Whether any other method is used for Promotions? (If Yes please mention)

______________________________________________________________
20]

On what basis employees are promoted?

______________________________________________________________
21]

Do you think that there are any shortcomings in the Performance Appraisal
System?

______________________________________________________________
22]

What are the corrective measures to be taken?

_____________________________________________________________
23]

Would you suggest any other system?

______________________________________________________________
Group Sr.No.
Name of the Employee
Division
Cat./ Grade
Department
Place of Posting
79

Date of Birth
Qualification
Year of Passing
Date of Joining
Date of Retirement
Total Experience
Basic
Monthly Gross
Annual Gross
01.07.2009
01.07.2010
01.07.2011
01.07.2012

ANNUAL PERFORMANCE APPRAISAL

DIRECTIONS
Purpose
This appraisal has following important objectives:
1) To provide feedback to the appraise and, thereby help him/her to improve
his/her performance.
2) Help identify training needs of appraise
3) To serve as an input for salary actions
Guidelines for appraiser
1) This appraisal will become an important part of the appraisers record. You
are, therefore, requested to give it as much attention and care as you would like
from those appraising you.
2) Please assess the appraise in relation to the requirements of his present position
only.
3) Your rating should be objective as possible.

Please do not let personal

prejudices influence your appraisal.

4) Please assess the appraise on his/her performance during the entire appraisal
period, and not upon isolated incidents.

80

5) Consider each performance dimension independently, uninfluenced by the

rating you give to other factors.
6) In cases where there is a duel reporting relationship, the appraisal must be done
by the administrative superior in consolation with the functional superior.
Post appraisal interview: Providing Feedback
Both the on-going review and annual appraisal process involve the appraiser,
providing feedback (i.e. confirming good performance as well as giving direction and
constructive criticism as to how performance may be improved.
Below are some steps that an appraiser may utilize to provide feedback to an
employee.
Positive Feedback
1) Provide the employee in specific terms what he/she did well.
2) Express personal appreciation and explain how the achievement benefits the
entire organization.

Encourage the employee to continue making such

contributions
Corrective feedback
1)
2)
3)
4)
5)
6)

State clearly and directly, the purpose of the feedback.

Describe the situation of concern in specific behavioural terms
Listen openly and attentively to the employees response.
Seek agreement with the employee about the problem
Involve the employee in determining solutions to the problem.
Set a follow up date with the employee and be sure to follow up

For the next appraisal period

1) Set Clear, Specific, Realistic, Meaningful and Measurable objectives for your
subordinates. They must know what they are accountable for. Record these
objectives on a sheet for next year appraisal.
2) Involve your subordinates in both objective setting and performance planning.
This will ensure commitment.
3) Monitor performance and give feedback at regular intervals throughout the
year. Do not overlook any good points.
81

4) Carefully foster a climate of mutual respect and openness.

Part I to be filled in by the appraise (employee)

Part I
1) Describe responsibilities/specific tasks/goals assigned or carried out by you,
during the period under review:

2) Mention significant achievements and contributions made by you during the

period under review. Highlight the perceived benefits, tangible or intangible,
short term or long term to the organization:

3) Mention major constraints and difficulties, if any, faced by you in accomplishing

the desired level of performance in your activities during the period under review.
Describe the steps you have taken to overcome them:

4) What are the areas in which you feel, you need to have more training and
exposure in order to improve your job knowledge, sharpen your management
skills, and refine your style of functioning?
82

5) How long have you been on your present job? Do you consider it necessary for
your own growth and in the organizational interest to have a change of
assignments within or outside your function?

6) What efforts have you made for your self-development during the period under
review for improving your job knowledge, skills and attitudes?

Date:

Signature of the Employee

Part II to be filled in by the Appraiser

(Immediate Superior)
Part II
1) Performance review against agreed goals :
Ratings: 5-Outstanding, 4-Excellent, 3-Good, 2-Satisfactory, 1-Unsatisfactory
Sr.
No.
1

Agreed Goals

Actual

Ratings

Remarks

Performance

83

Overall

84

ratings

in Outstanding

Excellent

Good

Satisfactory

achieving

UnSatisfactory

the goals:
(Please tick
appropriate
column)

Note:
1) Please attach Goal and Performance standard document sheets along with this
appraisal filled up in the beginning of the year.
2) Remarks may consist of discussion during the quarterly review sessions.
3) If required additional sheets can be attached.
2) Ratings by superior on performance standards / dimensions :
Instructions
a) Please indicate your appraisal by ticking in the appropriate rating column
b) If a dimension is not applicable to the appraise or you do not have sufficient

information to rate his/her performance in that area, and then please draw a
straight line across the corresponding five rating columns.
Ratings:

5-Outstanding, 4-Excellent, 3-Good, 2-Satisfactory, 1-Unsatisfactory

No. Performance Dimensions
Planning and organizing skills:
1

3
4

Ratings

Remarks

Demonstrated ability to visualize all aspects of a

job anticipates eventualities, mobilize people
and resources and ensure co-ordination in work.
Communication skills:
Clarity and precision of verbal and written
communications; readiness to share relevant
information
with
appropriate
persons;
willingness to listen to others viewpoints.
Work output:
Volume of work as compared to departmental
standards: consistency and regularity of output
Quality of work:
Thoroughness, accuracy, timeliness and
85

7
8

10
11

12

13
14

15

excellence of work involvement

Job knowledge:
Demonstrated technical/professional expertise
awareness of latest developments in functional
discipline familiarity with systems, policies and
procedures.
Team spirit:
Able to work harmoniously with superiors, peers
and subordinates within and outside his/ her
department. Contributes significantly to teams
efforts; sub serves personal views and needs to
the teams needs and views keeping in mind the
corporate goal.
Cost consciousness:
Aware of cost implications of al actions and
continuously strives to eliminate wastage
Customer Orientation:
Understand the needs of internal and external
customer and orients and his/her actions
suitably.
Decision making:
Demonstrated ability to analyse relevant
alternatives and arrive at timely and workable
decisions.
Human relations:
Ability to get along well with people and to
maintain co-operative relations
Development for sub-ordinates (or team
members):
Ability to identify their strengths, weaknesses
and development needs, and effectiveness in
enabling them to improve their performance as
well as adapt themselves to changing
organizational needs.
Creativity and initiative:
Improvement orientation,demonstrated ability to
think of new approaches to job related problems;
readiness to action voluntarily.
Reliability under pressure:
Ability to remain unflustered by work pressure
of crisis.
Leadership and Motivation skills:
Demonstrated ability to assume responsibility,
set direction and inspire team members to
produce exceptional results.
Integrity:
Maintains honest and just approach in all things.
Loyalty and right intention of act towards
company and management.
86

87

Score table for the above

a
b
c
d
e

Cumulative total of tick marks

Multiply by column weight as shows in 5

Ratings
Weighted column wise total
Overall weighted total (all columns)
Average Index:
Overall weighted total
/No. of dimensions ticked

3) Comment on actual performance of appraise and indicate significant contributions

made during the period under review:

4) Mention any situational or environmental factor that may have helped or hindered the
accomplishment of tasks/goals/responsibilities.

5) Mention the major strengths and weakness of the appraise.

Strengths:
Weakness:

6) What type of training (technical/functional/managerial) do you recommend for the

appraise for the areas of needed improvements. Please identify programmes aimed at
enhancing the knowledge, updating skills and improving attitudes of the appraise with
respect to role related responsibilities.

88

7) Potential assessment
a) Do you think he/she was potential to go further?
Promotability
Read

Afte

After
2-3

Now

1 year

year

Position to which
Promotable
Give reasons
Job Rotation

Within

Other
Function

Other
Function

Function

(Same

(High

Level)

Level)

Position suitable
Give reasons
b) If he has no potential to grow further, what is lacking?
c) General assessment of long term potential:

89

8) Post appraisal interview with appraise:

Agenda for discussion

Appraisers reaction:

Concluding remarks:

90