Professional Documents
Culture Documents
PROJECT REPORT
ON
Vishakha Kumari
(MBA/10009/14)
DECLARATION
I , Vishakha kumari do hereby declare that the Project Report entitled Performance appraisal
practices of HDFC Bank is submitted for the practical fulfillment of the requirements for the
Masters of Business Administration Programme, 2014- 2016 at Birla Institute of Technology,
Mesra, of my own and is not submitted to any other Institute or published anywhere before.
Place:
Date:
Vishakha Kumari
(MBA/10009/14)
This is to certify that the project entitled Performance Appraisal Practices Of HDFC Bank,
Ranchi is submitted for the partial fulfillment of the requirements for the Master of Business
Administration, 2014-2016 carried out by Vishakha Kumari, MBA/10009/14, who is a
bonafide student of Birla Institute of Technology, Mesra under my guidance.
The interpretation thereof has been done by her own.
Place:
Date:
( Internal Guide)
ACKNOWLEDGEMENT
As a management student, I feel privileged to have experienced panorama of their cherished
and enviable legacy. To undertake such a project in HDFC Bank and to achieve the desired
goals one needs quite a lot of guidance and support.
Hard work, knowledge, dedication & positive attitude all are necessary to do any task
successfully but one ingredient which is also very important than others and at times more
important than others is cooperation & guidance of experts and experienced person.
Among those to whom I owe particular thanks is my project guide Dr. Ravindra Nath Sir for
his immense and constant support and guidance, taking time out of his busy schedule to guide
me through. He was a constant source of encouragement for me during my training period. I
will always oblige to him for sharing his vulnerable knowledge and information with me.
I would also like to give a special vote of thanks to all the branch managers and the staff
members for helping me all throughout my project providing me all sorts of necessary details
when required and for encouraging me to do my work.
Vishakha Kumari
(MBA/10009/14)
CONTENTS
Topic
Chapter 1
Companys profile
Business profile
Chapter 2: Introduction
Performance appraisal
main features
objectives
advantages
techniques/ methods of performance appraisal
Chapter 3
Literature review
Chapter 4
Problem definition
Objective
Need for the study
Hypothesis
Chapter 5
Sampling plan
Research methodology
Tools & techniques for data collection
Chapter 6
Data analysis & interpretation
Chapter 7
Findings
Conclusion
Recommendations & suggestion
References
Appendix
Page No.
6
7
11
16
17
18
19
20
23
27
28
33
34
35
36
37
38
39
40
41
42
43
54
55
56
57
58
Chapter 1
COMPANY PROFILE
The Housing Development Finance Corporation Limited (HDFC) was amongst the first to
receive an in principle approval from the Reserve Bank of India (RBI) to set up a bank in
the private sector, as part of RBIs liberalization of the Indian Banking Industry in 1994.
The bank was incorporated in August 1994 in the name of 'HDFC Bank Limited', with its
registered office in Mumbai, India. HDFC Bank commenced operations as a Scheduled
Commercial Bank in January 1995.
MISSION
HDFC Banks mission is to be a World Class Indian Bank ,benchmarking ourselves
against international and best practices in terms of product offerings, technology, service
levels, risk management and audit & compliance. The objective is to build sound
customer franchises across distinct businesses so as to be a preferred provider of banking
services for target retail and wholesale customer segments, and to achieve a healthy
growth in profitability, consistent with the Banks risk appetite. We are committed to do
this while ensuring the highest levels of ethical standards, professional integrity, corporate
governance and regulatory
BUSINESS FOCUS
HDFC Banks mission is to be a World Class Indian Bank. The objective is to build sound
customer franchises across distinct businesses so as to be the preferred provider of
banking services for target retail and wholesale customer segments, and to achieve healthy
growth in profitability, consistent with the banks risk appetite. The bank is committed to
maintain the highest level of ethical standards, professional integrity, corporate
governance and regulatory compliance. HDFC Banks business philosophy is based on
five core values: Operational Excellence, Customer Focus, Product Leadership, People
and Sustainability.
CAPITAL STRUCTURE
As on 31st March, 2015 the authorized share capital of the Bank is Rs. 550 crore. The
paid-up share capital of the Bank as on the said date is Rs501,29,90,634/- ( 2506495317 )
equity shares of Rs. 2/- each). The HDFC Group holds 21.67 % of the Bank's equity and
about 18.87 % of the equity is held by the ADS / GDR Depositories (in respect of the
bank's American Depository Shares (ADS) and Global Depository Receipts (GDR)
Issues). 32.57 % of the equity is held by Foreign Institutional Investors (FIIs) and the
Bank has 4,41,457 shareholders.
The shares are listed on the Bombay Stock Exchange Limited and The National Stock
Exchange of India Limited. The Bank's American Depository Shares (ADS) are listed on
the New York Stock Exchange (NYSE) under the symbol 'HDB' and the Bank's Global
Depository Receipts (GDRs) are listed on Luxembourg Stock Exchange under ISIN No
US40415F2002.
DISTRIBUTION NETWORK
HDFC Bank is headquartered in Mumbai. As of March 31, 2015, the Banks distribution
network was at 4,014 branches in 2,464 cities. All branches are linked on an online realtime basis. Customers across India are also serviced through multiple delivery channels
such as Phone Banking, Net Banking, Mobile Banking and SMS based banking. The
Banks expansion plans take into account the need to have a presence in all major
industrial and commercial centers, where its corporate customers are located, as well as
the need to build a strong retail customer base for both deposits and loan products. Being a
clearing / settlement bank to various leading stock exchanges, the Bank has branches in
centers where the NSE / BSE have a strong and active member base .The Bank also has a
network of 11,766 ATMs across India. HDFC Banks ATM network can be accessed by all
domestic and international Visa / MasterCard, Visa Electron / Maestro, Plus / Cirrus and
American Express Credit / Charge cardholders.
MANAGEMENT
Mrs. Shyamala Gopinath holds a Masters Degree in Commerce and is a CAIIB. Mrs.
Gopinath has 39 years of experience in financial sector policy formulation in different
capacities at RBI. As Deputy Governor of RBI for seven years and member of the Board.
Mrs. Gopinath had been guiding and influencing the national policies in the diverse areas
of financial sector regulation and supervision, development and regulation of financial
markets, capital account management, management of government borrowings, forex
reserves management and payment and settlement systems. The Managing Director, Mr.
Aditya Puri, has been a professional banker for over 25 years and before joining HDFC
Bank in 1994 was heading Citibank's operations in Malaysia.
The Bank's Board of Directors is composed of eminent individuals with a wealth of
experience in public policy, administration, industry and commercial banking. Senior
executives representing HDFC are also on the Board.
Senior banking professionals with substantial experience in India and abroad head various
businesses and functions and report to the Managing Director. Given the professional
expertise of the management team and the overall focus on recruiting and retaining the
best talent in the industry, the bank believes that its people are a significant competitive
strength.
TECHNOLOGY
10
BUSINESS PROFILE
HDFC Bank caters to a wide range of banking services covering commercial and
investment banking on the wholesale side and transactional / branch banking on the retail
side. The bank has three key business segments:
Wholesale Banking
The Banks target market is primarily large, blue-chip manufacturing companies in the
Indian corporate sector and to a lesser extent, small & mid-sized corporates and agri-based
businesses. For these customers, the Bank provides a wide range of commercial and
transactional banking services, including working capital finance, trade services,
transactional services, cash management, etc. The bank is also a leading provider of
structured solutions, which combine cash management services with vendor and
distributor finance for facilitating superior supply chain management for its corporate
customers. Based on its superior product delivery / service levels and strong customer
orientation, the Bank has made significant inroads into the banking consortia of a number
of leading Indian corporates including multinationals, companies from the domestic
business houses and prime public sector companies. It is recognized as a leading provider
of cash management and transactional banking solutions to corporate customers, mutual
funds, stock exchange members and banks.
Treasury
Within this business, the bank has three main product areas - Foreign Exchange and
Derivatives, Local Currency Money Market & Debt Securities, and Equities. With the
liberalization of the financial markets in India, corporates need more sophisticated risk
management information, advice and product structures. These and fine pricing on various
treasury products are provided through the banks Treasury team. To comply with
statutory reserve requirements, the bank is required to hold 25% of its deposits in
government securities. The Treasury business is responsible for managing the returns and
market risk on this investment portfolio.
11
Retail Banking
The objective of the Retail Bank is to provide its target market customers a full range of
financial products and banking services, giving the customer a one-stop window for all
his/her banking requirements. The products are backed by world-class service and
delivered to customers through the growing branch network, as well as through alternative
delivery channels like ATMs, Phone Banking, Net Banking and Mobile Banking.
The HDFC Bank Preferred program for high net worth individuals, the HDFC Bank Plus
and the Investment Advisory Services programs have been designed keeping in mind
needs of customers who seek distinct financial solutions, information and advice on
various investment avenues. The Bank also has a wide array of retail loan products
including Auto Loans, Loans against marketable securities, Personal Loans and Loans for
Two-wheelers. It is also a leading provider of Depository Participant (DP) services for
retail customers, providing customers the facility to hold their investments in electronic
form.
HDFC Bank was the first bank in India to launch an International Debit Card in
association with VISA (VISA Electron) and issues the MasterCard Maestro debit card as
well. The Bank launched its credit card business in late 2001. By March 2015, the bank
had a total card base (debit and credit cards) of over 25 million. The Bank is also one of
the leading players in the merchant acquiring business with over 235,000 Point-of-sale
(POS) terminals for debit / credit cards acceptance at merchant establishments. The Bank
is well positioned as a leader in various net based B2C opportunities including a wide
range of internet banking services for Fixed Deposits, Loans, Bill Payments, etc.
12
AWARDS
Barron's
Finance Asia poll on Asia's Best Best Managed Public Company India' Best
Companies 2015
CEOBest
Aditya
Corporate
Puri
Governance-Rank3
Rates
2014
Euro money
Euro money Private Banking and Best Private Banking Services award for NetWealth Management Survey 2015 worth-specific
services
category
for Super
Best
Bank
in
the
New
Private
sector
13
Winner
Profitability
Winner - Efficiency
Business Today - KPMG Study Best
2014
Large
Bank
Overall
Large
Bank
Dun & Bradstreet - Polaris Best Bank - Managing IT Risk (Large Banks)
Financial Technology Banking Best Bank - Mobile Banking (Large Banks)
Awards 2014
Forbes Asia
14
Chapter 2
15
INTRODUCTION
PERFORMANCE APPRAISAL
Performance Appraisal is the systematic evaluation of the performance of employees and to
understand the abilities of a person for further growth and development. Performance
appraisal is generally done in systematic ways which are as follows:
1. The supervisors measure the pay of employees and compare it with targets and plans.
2. The supervisor analyses the factors behind work performances of employees.
3. The employers are in position to guide the employees for a better performance.
16
Main features
A performance appraisal is a systematic and periodic process that assesses an individual
employee's job performance and productivity in relation to certain pre-established criteria and
organizational objectives. Other aspects of individual employees are considered as well, such
as organizational citizenship behavior, accomplishments, potential for future improvement,
strengths and weaknesses, etc.
To collect PA data, there are three main methods: objective production, personnel, and
judgmental evaluation. Judgmental evaluations are the most commonly used with a large
variety of evaluation methods. Historically, PA has been conducted annually (long-cycle
appraisals); however, many companies are moving towards shorter cycles (every six months,
every quarter), and some have been moving into short-cycle (weekly, bi-weekly) PA.
The interview could function as "providing feedback to employees, counseling and
developing employees, and conveying and discussing compensation, job status, or
disciplinary decisions". PA is often included in performance management systems. PA helps
the subordinate answer two key questions: first, "What are your expectations of me?" second,
"How am I doing to meet your expectations?"
Performance management systems are employed "to manage and align" all of an
organization's resources in order to achieve highest possible performance. "How performance
is managed in an organization determines to a large extent the success or failure of the
organization. Therefore, improving PA for everyone should be among the highest priorities of
contemporary organizations".
Some applications of PA are compensation, performance improvement, promotions,
termination, test validation, and more. While there are many potential benefits of PA, there
are also some potential drawbacks. For example, PA can help facilitate managementemployee communication; however, PA may result in legal issues if not executed
appropriately, as many employees tend to be unsatisfied with the PA process. PAs created in
and determined as useful in the United States are not necessarily able to be transferable crossculturally.
17
18
b. The subordinates can also understand and create a trust and confidence in
superiors.
c. It also helps in maintaining cordial and congenial labour management
relationship.
d. It develops the spirit of work and boosts the morale of employees.
All the above factors ensure effective communication.
6. Motivation: Performance appraisal serves as a motivation tool. Through evaluating
performance of employees, a persons efficiency can be determined if the targets are
achieved. This very well motivates a person for better job and helps him to improve
his performance in the future.
20
21
Rating Scales: Rating scales consists of several numerical scales representing job related
performance criterions such as dependability, initiative, output, attendance, attitude etc. Each
scales ranges from excellent to poor. The total numerical scores are computed and final
conclusions are derived. Advantages Adaptability, easy to use, low cost, every type of job
can be evaluated, large number of employees covered, no formal training required.
Disadvantages Raters biases
2.
Checklist: Under this method, checklist of statements of traits of employee in the form
of Yes or No based questions is prepared. Here the rater only does the reporting or checking
and HR department does the actual evaluation. Advantages economy, ease of
administration, limited training required, standardization. Disadvantages Raters biases, use
of improper weighs by HR, does not allow rater to give relative ratings
3.
Forced Choice Method: The series of statements arranged in the blocks of two or more
are given and the rater indicates which statement is true or false. The rater is forced to make a
choice. HR department does actual assessment. Advantages Absence of personal biases
because of forced choice. Disadvantages Statements may be wrongly framed.
4.
Forced Distribution Method: here employees are clustered around a high point on a
rating scale. Rater is compelled to distribute the employees on all points on the scale. It is
assumed that the performance is conformed to normal distribution. Advantages Eliminates
Disadvantages Assumption of normal distribution, unrealistic, errors of central tendency.
22
5.
employee that makes all the difference in the performance. Supervisors as and when they
occur record such incidents. Advantages Evaluations are based on actual job behaviors,
ratings are supported by descriptions, feedback is easy, reduces regency biases, chances of
subordinate improvement are high. Disadvantages Negative incidents can be prioritized,
forgetting incidents, overly close supervision; feedback may be too much and may appear to
be punishment.
6.
behaviors determine the points. They are said to be behaviourally anchored. The rater is
supposed to say, which behavior describes the employee performance. Advantages helps
overcome rating errors. Disadvantages Suffers from distortions inherent in most rating
techniques.
7.
Field Review Method: This is an appraisal done by someone outside employees own
Performance Tests & Observations: This is based on the test of knowledge or skills.
The tests may be written or an actual presentation of skills. Tests must be reliable and
validated to be useful. Advantage Tests may be apt to measure potential more than actual
performance. Disadvantages Tests may suffer if costs of test development or administration
are high.
9.
in industry is not ruled out. Here the report is given in the form of Annual Confidentiality
Report (ACR) and may record ratings with respect to following items; attendance, selfexpression, team work, leadership, initiative, technical ability, reasoning ability, originality
and resourcefulness etc. The system is highly secretive and confidential. Feedback to the
assessee is given only in case of an adverse entry. Disadvantage is that it is highly subjective
and ratings can be manipulated because the evaluations are linked to HR actions like
promotions etc.
23
10. Essay Method: In this method the rater writes down the employee description in detail
within a number of broad categories like, overall impression of performance, promote ability
of employee, existing capabilities and qualifications of performing jobs, strengths and
weaknesses and training needs of the employee. Advantage It is extremely useful in filing
information gaps about the employees that often occur in a better-structured checklist.
Disadvantages It its highly dependent upon the writing skills of rater and most of them are
not good writers. They may get confused success depends on the memory power of raters.
11. Cost Accounting Method: Here performance is evaluated from the monetary returns
yields to his or her organization. Cost to keep employee, and benefit the organization derives
is ascertained. Hence it is more dependent upon cost and benefit analysis.
12. Comparative Evaluation Method (Ranking & Paired Comparisons): These are
collection of different methods that compare performance with that of other co-workers. The
usual techniques used may be ranking methods and paired comparison method.
Ranking Methods: Superior ranks his worker based on merit, from best to worst.
However how best and why best are not elaborated in this method. It is easy to administer
and explanation.
Paired Comparison Methods: In this method each employee is rated with another
employee in the form of pairs. The number of comparisons may be calculated with the help of
a formula as under.
N x (N-1) / 2
Future Oriented Methods
1.
is rated against the achievement of objectives stated by the management. MBO process goes
as under.
Establish new goals and new strategies for goals not achieved in previous year.
24
potential for future performance rather than the past one. It is done in the form of in-depth
interviews, psychological tests, and discussion with supervisors and review of other
evaluations. It is more focused on employees emotional, intellectual, and motivational and
other personal characteristics affecting his performance. This approach is slow and costly and
may be useful for bright young members who may have considerable potential. However
quality of these appraisals largely depends upon the skills of psychologists who perform the
evaluation.
3.
Assessment Centres: This technique was first developed in USA and UK in 1943. An
assessment centre is a central location where managers may come together to have their
participation in job related exercises evaluated by trained observers. It is more focused on
observation of behaviours across a series of select exercises or work samples. Assesses are
requested to participate in in-basket exercises, work groups, computer simulations, role
playing and other similar activities which require same attributes for successful performance
in actual job. The characteristics assessed in assessment centre can be assertiveness,
persuasive ability, communicating ability, planning and organizational ability, selfconfidence, resistance to stress, energy level, decision making, sensitivity to feelings,
administrative ability, creativity and mental alertness etc. Disadvantages Costs of
employees traveling and lodging, psychologists, ratings strongly influenced by assesses interpersonal skills. Solid performers may feel suffocated in simulated situations. Those who are
not selected for this also may get affected.
Advantages well-conducted assessment centre can achieve better forecasts of future
performance and progress than other methods of appraisals. Also reliability, content validity
and predictive ability are said to be high in assessment centres. The tests also make sure that
the wrong people are not hired or promoted. Finally it clearly defines the criteria for selection
and promotion.
25
Chapter 3
26
27
LITERATURE REVIEW
Study by DDI (1997), Performance Management Practices is the most recent performance
management study. It proves that successful organizations realize that performance
management is a critical business tool in translating strategy into results. The CEOs in the
majority of the 88 Organizations surveyed say their performance management system drives
the key factors associated with both business and cultural strategies. Performance
management systems directly influence five critical organizational outcomes : Financial
performance, productivity, product or service quality, customer satisfaction & employee job
satisfaction. When performance management systems are flexible & linked to strategic goals,
organization are more likely to see improvement in the five critical areas : team objectives,
non- manager training, appraiser accountability & links to quality management are the
specific practices most strongly associated with positive outcomes.
Watkins (2007) puts it, most public sector business organization like those in Delta State of
Nigeria have not given adequate attention to performance management review as a tool for
improving performance even when recent studies suggest that performance review benefit
organizational performance in both private & public sectors. Performance management has
been described as a systematic approach to the management of people, using performance
goal measurement, feedback and recognition as a means of motivating them to realize their
maximum potentials. Public sector business organizations that strive to deliver quality
services at competitive prices are those that embrace various performance review practices to
assess their employee performance & motivate them with incentives.
Robert & Angelo (2001), The success or failure of public sector business organizations
depends on the ability to attract, develop, retain, empower & reward a diverse array of
appropriately skilled people and is the key to improving organizational performance. The
explanation therefore is that human resource managers in the public sector business concerns
should embark on periodic performance management reviews of their employees in order to
re-position their business organizations though owned by government for better performance
& improved competitiveness.
Study by Wm. Schiemann & Associates (1996), this national survey of cross-section of
executives concluded that measurement-managed companies- especially those that measure
28
30
implementation of the system makes the situation unfavourable for the psychological contract
to develop at Sainsburys UK.
The article of Javed Iqbal, Samina Naz, Mahnaz Asla Saba Arshad (2012), offers a
survey of selected literature on performance management. Purpose is to identify key themes
that govern the topic in the contemporary turbulent economic and business environment
where employees are more uncertain that anything else because every day they face
downsizing, volunteer retirement and golden hand shakes to get rid of them. Under these
circumstances it is worthwhile to look into the ways by which they can be motivated to work
under hard conditions. It is found that performance management processes, evaluation, its
impact and factors are key themes. Researchers apply popular research approaches for data
collection analysis and communication.
The paper of Akua Asantewaa Aforo and Kodjo Asafo-Adjei Antwi (2012) shows that
academic libraries have a performance appraisal system comprising setting of goals,
feedback, participation and incentives for performance. This study aimed at evaluating the
performance appraisal system in the KNUST and GIMPA libraries in Ghana and give
recommendations on improving the system. Questionnaires were randomly administered to
46 staff members of these libraries.
Fletcher (2013) describes it as a high risk activity for managers, given the many pitfalls
associated with it and Newton and Findlay (1996) highlight the fallibility of appraisals as
they are open to manager manipulation. Despite the criticisms, the use of performance
appraisal is widespread and perceived to be an effective part of a performance management
system.
Results from the Watson Wyatt Worldwide (2004) study suggest that PM systems should
recognize high performers and confront poor performers as soon as possible, eliminate paper
forms, and utilize a user-friendly automation. Researchers from Watson Wyatt Worldwide
also assert that if PM systems are designed and implemented properly, they can lead to
positive impact on individual performance as well as better financial results for the
organization (i.e., improvement in shareholder value).
Sung & Ashton,(2005)It is the business strategy that gives the high performance working
practices their dynamism and provides the framework against which performance can be
evaluated and improved. Thus, the concern is not with the specific type or number of
practices employed, but the way they are linked to organizational performance.
31
Robert and Angelo, (2001) The success or failure of public sector business organizations
hinges on the ability to attract, develop, retain, empower and reward a diverse array of
appropriately skilled people and is the key to improving organizational performance The
explanation therefore is that human resource managers in the public sector business concerns
should embark on periodic performance management reviews of their employees in order to
re-position their business organizations though owned by government for better performance
and improved competitiveness.
32
33
Chapter 4
34
PROBLEM DEFINITION
To find out the effectiveness of contemporary performance appraisal techniques in
HDFC bank which indicates the satisfaction level leading to the turnover of the
employees.
Main aim is to find out the relation between effectiveness of PAS with the satisfaction
level of employees.
35
OBJECTIVES
To study the performance appraisal practices used in the branches of HDFC bank in
Ranchi.
To find out the satisfaction level of employees towards the existing performance
appraisal system.
36
37
HYPOTHESIS
The following hypothesis is laid down for the present study purpose:
The level of satisfaction of employees with the existing performance appraisal system
is satisfactory.
38
Chapter 5
39
SAMPLING PLAN
Sample size= 30 employees
Sample area= HDFC Bank, Ranchi, Jharkhand
Sample technique used= simple random sampling
Simple random sampling= this type of sampling is also known as chance sampling or
probability sampling where each item in the population has an equal chance of being
selected in the sample.
RESEARCH METHODOLOGY
Research design
40
It refers to framework or plan for a study that guides the collection and analysis of data.
Research design used in this report:
Explorative research design
Descriptive research design
EXPLORATIVE RESEARCH DESIGN
Exploratory research, as the name states, intends merely to explore the research
questions and does not intend to offer final and conclusive solutions to existing
problems. Exploratory research is the initial research, which forms the basis of more
conclusive research. It can even help in determining the research design, sampling
methodology and data collection method.
DESCRIPTIVE RESEARCH DESIGN
The research design used in this study is descriptive research design. It includes
surveys and fact finding with the help of a structured closed ended questionnaire.
Descriptive research involves gathering data that describe events and then organizes,
tabulates, depicts, and describes the data collection . It often uses visual aids such as
graphs and charts to aid the reader in understanding the data distribution. Because the
human mind cannot extract the full import of a large mass of raw data, descriptive
statistics are very important in reducing the data to manageable form. When in-depth,
narrative descriptions of small numbers of cases are involved, the research uses
description as a tool to organize data into patterns that emerge during analysis.
42
Chapter 6
43
1. For how many years are you working with this organization?
percentage
17%
6%
33%
0-5yrs
5-10 yrs
10-15 yrs
more than
15 yrs
44%
Interpretation:
30% of the employees are working with the organisation for less than 5 years and 40% of
employees is working within 5-10 years. And the rest percentage of employees is working
for more than 10 years.
44
performance appraisal
5%
19%
6%
70%
evaluation of
employees
promotion of
employees
job
satisfaction of
employees
motivation
Interpretation:
70% of the employees think that performance appraisal is the evaluation of the employees
45
360 degree
1%
yes
no
99%
Interpretation:
360 degree performance appraisal system is followed in the organisation
46
360 degree PA
22%
3%4%
7%
64%
strongly
disagree
disagree
neither agree
nor disagree
agree
strongly agree
Interpretation:
Majority of employees considers performance appraisal provides an atmosphere where all are
encouraged to share one anothers burden.
5 .Do you think the current performance appraisal system helps people set and achieve
meaningful goals?
47
achievement of goal
1%2% 2%
10%
85%
strongly
disagree
disagree
neither agree
nor disagree
agree
strongly agree
Interpretation:
85% of the employees thinks that the current performance appraisal system helps people
achieve meaningful goals.
48
Feedback
1% 2% 10%
27%
60%
strongly
disagree
disagree
neither agree
nor disagree
agree
strongly agree
Interpretation:
Almost 80% of employees thinks that the current performance appraisal gives constructive
criticism in a friendly and positive manner.
49
performance
3% 3%
8%
50%
38%
strongly
disagree
disagree
neither agree
nor disagree
agree
strongly agree
Interpretation:
40% of employees strongly agree that the current performance appraisal improves their
performance. 30% of employees agree with the statement and 2% disagree with the
statement.
50
participative env.
4%
10%
10%
56%
20%
strongly
disgree
disagree
neither agree
nor disagree
agree
strongly agree
Interpretation:
56% strongly agrees with this statement and 4% strongly disagree with this statement
51
motivation
25%
5%
10%
20%
40%
strongly
disagree
disagree
neither agree
nor disagree
agree
strongly agree
Interpretation:
Almost 50 % of the employees think that current performance appraisal system improves
motivation & job satisfaction while almost 10% disagree with this statement.
10. Do you think current performance appraisal helps to change the attitude of the
employees?
52
behaviourial change
16% 2% 5%
11%
65%
strongly
disagree
disagree
neither agree
nor disagree
agree
strongly agree
Interpretation:
60 % of employees think that performance appraisal helps in behavioural change while
almost 7% disagrees with the statement
53
Sales
2% 3%
22%
11%
61%
highly
dissatisfied
neither
satisfied nor
dissatisfied
highly satisfied
dissatisfied
satisfied
Interpretation:
Majority of the employees working in the HDFC Bank are satisfied with the 360 degree
performance appraisal system.
54
Chapter 7
55
FINDINGS
40% of the employees are working with the organization for more than five years but less than
ten years.
According to 70%of the employees, performance appraisal is the evaluation of employees.
90% of the employees response was that 360 degree performance appraisal system is followed
in their organization.
64% of the employees agree that performance appraisal system helps to provide an atmosphere
where all are encouraged to share one anothers burden.
85% of the employees strongly agree that current performance appraisal system helps people
set and achieve meaningful goals.
60% of the employees agree that performance appraisal gives constructive criticism in a
friendly and positive manner.
40% of the employees strongly agree that that their performance has been improved due to the
current performance appraisal system.
56% of the employees strongly agree that current performance appraisal system creates a
participative environment in the organization.
40% of the employees agree with the statement that current performance appraisal system
improves motivation & job satisfaction.
60% employees agree that current performance appraisal system helps change the attitude of
the employees.
55% of the employees are satisfied with the current performance appraisal.
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CONCLUSION
The existing technique of performance appraisal in HDFC Bank is highly effective
and motivating which leads to a higher satisfaction level of the employees leading to
higher retention ratio.
HDFC Bank must maintain this technique to carry out the operation with higher
success.
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REFERCENCE
BOOKSHuman resource V.S.P. Rao
Research methodology- C.R. Kothari
Human resource planning- Ashwathappa
Websiteso www.hdfc.com
o www.proquest.com
o www.wikipedia.org
APPENDIX
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QUESTIONNAIRE
Name...........
Designation.
Department
1. For how many years are you working with this organization?
a. 0-5years
b. 5-10years
c. 10-15years
a. evaluation of employees
b. No
4. Do you think that the current performance appraisal system help to provide an atmosphere where all are
encouraged to share one anothers burden?
a. Strongly Agree
5. Do you think the current performance appraisal system helps employees set achieve meaningful goals?
a. Strongly Agree
6. Does current performance appraisal gives constructive criticism in a friendly and positive manner?
a. Strongly Agree
8. Does the current performance appraisal system create a participative environment in the organization?
a. Strongly Agree
9. Do you think the current performance appraisal system improves motivation & job satisfaction?
a. Strongly Agree
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10. Do you think the current performance appraisal helps to change the attitude of the employees?
a. Strongly Agree
11. Are you satisfied with the existing performance appraisal system?
a.Highly satisfied
b.Satisfied
d.Dissatisfied
e.Highly Dissatisfied
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