SUMMER TRAINING PROJECT REPORT

ON
“A Study on Performance
Appraisal System at HDFC BANK
Lucknow”
Towards partial fulfilment of
Master of Business Administration (MBA)
(Affiliated to U. P. Technical University, Lucknow)

Industry Guide: Faculty Guide:

Mr. A. S. Yadav Ms. Meetu Pandey
(Manager) (Asst. Professor)
HDFC, Lucknow BBD NITM, Lucknow

Submitted by:
Jaya Rai
Roll no: 1505470023
M.B.A. 3rd Semester

SESSION 2016-2017
DEPARTMENT OF MANAGEMENT

Babu Banarasi Das

National Institute of Technology & Management
Sector 1, Akhilesh Das nagar, Faizabad Road, Lucknow (U. P.), India
 ACKNOWLEDGEMENT

The present work is an effort to throw some light on “A Study on Performance

Appraisal System at HDFC BANK Lucknow. The work would not have been

possible to come to the present shape without the able guidance, supervision and

help to me by number of people.

With deep sense of gratitude I acknowledge the encouragement and guidance

received by my Faculty Guide Ms. Meetu Pandey and other staff members.

I convey my heart full affection to all those people who helped and supported me

during the course, for completion of my Project Report.

(Jaya Rai)
 Preface

The Training project program is the integral part of MBA curriculum during the

course of management; the research is expected to use and apply their academic

knowledge and gain a valuable insight into corporate culture with all its

environment operational complexities.

The summer training offers a valuable opportunity to the researcher to meet their

academic knowledge to the real world situation. I have undertaken commercial

department to study about the various activities done in this department in the

details, as the result of that I came out with the project title “A Study on

Performance Appraisal System at HDFC BANK Lucknow”.

In this report I have put my finest efforts to compile the data with utmost

accuracy and hope this report will give complete satisfaction regarding the

various aspects of HR.

(Jaya Rai)
 Executive Summary

This project report is a review based on theory as well as the industry outlook of

performance appraisal system of the organization.

The report starts with the Introduction and Literature Review of performance

appraisal system that outlines its history, definitions, purposes, types, process,

methods, appraiser, parameters of evaluation and the essentials of an effective

appraisal system.

Further the performance appraisal system of HDFC Bank, collected through

various primary and secondary sources have been included in the report which

gives a fair idea of the kind of appraisal system being followed across various

corporate.

Last, the conclusions and references have been mentioned.

 Table of Content

Training Certificate ii

Certificate from the College iii

Acknowledgement iv

Preface v

Executive Summary vii

1. Introduction to the Topic 1-35

2. Company Profile 36-61

3. Research Methodology 62-65

4. Limitations 66-67

5. Data Interpretation & Analysis 68-90

6. Findings 91-93

7. SWOT Analysis 94-98

8. Suggestion & Recommendations 99-100

9. Conclusion 101-102

10. Bibliography 103-104

Annexure 105-109
Introduction to
the Topic

1
 INTRODUCTION TO THE TOPIC

Definition of performance appraisal

“Performance Appraisal is defined as the process of assessing the performance and

Progress of an employee or a group of employees on a given job and his / their

potential

for future development. It consists of all formal procedures used in working

organizations

and potential of employees. According to Flippo, “Performance Appraisal is the

systematic, periodic and an important rating of an employee‟s excellence in matters

pertaining to his present job and his potential for a better job.”

According to Dulewicz (1989),

"... A basic human tendency to make judgements about those one is working with, as

well as about oneself."

“Any system of determining how well an individual employee has performed during

a period of time, frequently used as a basis for determining merit increases.”

“Performance appraisal is a systematic review of a person’s work and achievements

over a recent period, usually leading to plans for the future. “

In its most basic form, performance appraisal (or review) activities include

documenting achieved results (hopefully, by also including use of examples to clarify

documentation) and indicating if standards were met or not. The appraisal usually

includes some form of a development plan to address insufficient performance.

2
In many organizations - but not all - appraisal results are used, either directly or

indirectly, to help determine reward outcomes. That is, the appraisal results are used

to identify the better performing employees who should get the majority of available

merit pay increases, bonuses, and promotions.

This concept have get the recognition the evaluation of work performance, appraisal

really dates from the time of the Second World War - not more than 60 years ago, as a

distinct and formal management procedure were used in the evaluation of the work

performance.

Later, the traditional emphasis on reward outcomes was progressively rejected as it

took only into consideration the material outcome but not the morale, enthusiasm,

attitude ability and self-esteem. In the 1950s in the United States, the potential

usefulness of appraisal as tool for motivation and development was gradually

recognized. The general model of performance appraisal, as it is known today, began

from that time.

Yearly performance reviews are critical. Organizations are hard pressed to find good

reasons why they can't dedicate an hour-long meeting once a year to ensure the

mutual needs of the employee and organization are being met. Performance reviews

help supervisors feel more honest in their relationships with their subordinates and

feel better about themselves in their supervisorial roles. Subordinates are assured clear

understanding of what's expected from them, their own personal strengths and areas

3
for development and a solid sense of their relationship with their supervisor. Avoiding

performance issues ultimately decreases morale, decreases credibility of management,

decreases the organization's overall effectiveness and wastes more of management's

time to do what isn't being done properly.

Few issues in management stir up more controversy than performance appraisal.

There are many reputable sources - researchers, management commentators, and

psychometricians - who have expressed doubts about the validity and reliability of the

performance appraisal process. Some have even suggested that the process is so

inherently flawed that it may be impossible to perfect it.

It is deemed as the critical tool for banking sector as for the banking sector the
performance indicators are quit different and the overall structure of the banking
sector is bit complex thus to use this concept effectively and efficiently is quit
difficult for this sector.

Thus, through this report the researcher had tried to find the problem emerging and to
provide them suggestion so as for effective working.

4
Techniques of performance Appraisal
1-Rating scale

2-Check list

3-Force distribution

4-Forced choice method

5-Critical incident method

6-Essay method

7-360 degree performance appraisal method

Characteristics

1. Performance Appraisal is a process.

2. It is the systematic examination of the strengths and weakness of an employee in

terms of his job.

3. It is scientific and objective study. Formal procedures are used in the study.

4. It is an ongoing and continuous process wherein the evaluations are arranged

periodically according to a definite plan.

5. The main purpose of Performance Appraisal is to secure information necessary

for making objective and correct decision of the employees.

5
 CONCEPT OF PERFORMANCE APPRAISAL

Performance appraisal may be defined as a structured formal interaction between a

subordinate and supervisor, that usually takes the form of a periodic interview (annual

or semi-annual), in which the work performance of the subordinate is examined and

discussed, with a view to identifying weaknesses and strengths as well as

opportunities for improvement and skills development.

In many organizations - but not all - appraisal results are used, either directly or

indirectly, to help determine reward outcomes. That is, the appraisal results are used

to identify the better performing employees who should get the majority of available

merit pay increases, bonuses, and promotions.

By the same token, appraisal results are used to identify the poorer performers who

may require some form of counseling, or in extreme cases, demotion, dismissal or

decreases in pay. (Organizations need to be aware of laws in their country that might

restrict their capacity to dismiss employees or decrease pay.)

Whether this is an appropriate use of performance appraisal - the assignment and

justification of rewards and penalties - is a very uncertain and contentious matter.

Performance appraisals are essential for the effective management and evaluation of

staff. Appraisals help develop individuals, improve organizational performance, and

feed into business planning. Formal performance appraisals are generally conducted

annually for all staff in the organization. Each staff member is appraised by his or her

line manager (Directors are appraised by the CEO, who is appraised by the chairman

or company owners, depending on the size and structure of the organization). Annual

6
performance appraisals enable management and monitoring of standards, agreeing

expectations and objectives, and delegation of responsibilities and tasks. Staff

performance appraisals also establish individual training needs and enable

organizational training needs analysis and planning. Performance appraisals data

feeds into organizational annual pay and grading reviews, and coincides with the

business planning for the next trading year.

Performance appraisals generally review each individual's performance against

objectives and standards for the trading year, agreed at the previous appraisal meeting.

Performance appraisals are also essential for career and succession planning.

Performance appraisals are important for staff motivation, attitude and behavior

development, communicating organizational aims, and fostering positive relationships

between management and staff. Performance appraisals provide a formal, recorded,

regular review of an individual's performance, and a plan for future development.

7
 INTRODUCTION TO HUMAN RESOURCE MANAGEMENT

Human Resource (or personnel) management, in the sense of getting things

done through people, is an essential part of every manager‟s responsibility, but many
organizations find it advantageous to establish a specialist division to provide an
expert service dedicated to ensuring that the human resource function is performed
efficiently.

“People are our most valuable asset” is a cliché, which no member of any
senior management team would disagree with. Yet, the reality for many organizations
are that their people remain undervalued, under trained and underutilized.

The market place for talented, skilled people is competitive and expensive.
Taking on new staff can be disruptive to existing employees. Also, it takes time to
develop „cultural awareness‟, product / process / organization knowledge and
experience for new staff members.

FUNCTIONS OF HUMAN RESOURCE MANAGEMENT

Following are the various functions of Human Resource Management that are
essential for the effective functioning of the organization:

1. Recruitment

2. Selection

3. Induction

4. Performance Appraisal

5. Training & Development

8
RECRUITMENT

The process of recruitment begins after manpower requirements are determined in

terms of quality through job analysis and quantity through forecasting and planning.

SELECTION

The selection is the process of ascertaining whether or not candidates possess the
requisite qualifications, training and experience required.

INDUCTION

Induction is the technique by which a new employee is rehabilitated into the changed
surroundings and introduced to the practices, policies and purposes of the
organization.

WHAT IS “PERFORMANCE APPRAISAL”?

Performance Appraisal is defined as the process of assessing the performance

and progress of an employee or a group of employees on a given job and his / their
potential for future development. It consists of all formal procedures used in working
organizations and potential of employees. According to Flippo, “Performance
Appraisal is the systematic, periodic and an important rating of an employee‟s
excellence in matters pertaining to his present job and his potential for a better job.”

CHARACTERISTICS

1. Performance Appraisal is a process.

2. It is the systematic examination of the strengths and weakness of an employee

in terms of his job.

3. It is scientific and objective study. Formal procedures are used in the study.

4. It is an ongoing and continuous process wherein the evaluations are arranged

periodically according to a definite plan.

5. The main purpose of Performance Appraisal is to secure information

necessary for making objective and correct decision an employee.

PROCESS

The process of performance appraisal:

9
 1. Establishing performance standards

2. Communicating the Standards

3. Measuring Performance

4. Comparing the actual with the standards

5. Discussing the appraisal

6. 6.Taking Corrective Action

LIMITATIONS

1. Errors in Rating

2. Lack of reliability

3. Negative approach

4. Multiple objectives

5. Lack of knowledge

METHODS OF PERFORMANCE APPRAISAL

The foregoing list of major program pitfalls represents a formidable challenge,

even considering the available battery of appraisal techniques. But attempting to avoid

these pitfalls by doing away with appraisals themselves is like trying to solve the

problems of life by committing suicide. The more logical task is to identify those

appraisal practices that are (a) most likely to achieve a particular objective and (b)

least vulnerable to the obstacles already discussed.

Before relating the specific techniques to the goals of performance appraisal

stated at the outset of the article, I shall briefly review each, taking them more or less
in an order of increasing complexity. The best-known techniques will be treated most
briefly.

ESSAY APPRAISAL

In its simplest form, this technique asks the rater to write a paragraph or more

covering an individual's strengths, weaknesses, potential, and so on. In most selection

10
situations, particularly those involving professional, sales, or managerial positions,

essay appraisals from former employers, teachers, or associates carry significant

weight.

GRAPHIC RATING SCALE

This technique may not yield the depth of an essay appraisal, but it is more

consistent and reliable. Typically, a graphic scale assesses a person on the quality and

quantity of his work (is he outstanding, above average, average, or unsatisfactory?)

and on a variety of other factors that vary with the job but usually include personal

traits like reliability and cooperation. It may also include specific performance items

like oral and written communication.

FIELD REVIEW

The field review is one of several techniques for doing this. A member of the

personnel or central administrative staff meets with small groups of raters from each

supervisory unit and goes over each employee's rating with them to (a) identify areas

of inter-rater disagreement, (b) help the group arrive at a consensus, and (c) determine

that each rater conceives the standards similarly.

FORCED-CHOICE RATING

Like the field review, this technique was developed to reduce bias and

establish objective standards of comparison between individuals, but it does not

involve the intervention of a third party.

11
MANAGEMENT BY OBJECTIVES

To avoid, or to deal with, the feeling that they are being judged by unfairly

high standards, employees in some organizations are being asked to set - or help set -

their own performance goals. Within the past five or six years, MBO has become

something of a fad and is so familiar to most managers that I will not dwell on it here.

RANKING METHODS

For comparative purposes, particularly when it is necessary to compare people

who work for different supervisors, individual statements, ratings, or appraisal forms

are not particularly useful. Instead, it is necessary to recognize that comparisons

involve an overall subjective judgment to which a host of additional facts and

impressions must somehow be added. There is no single form or way to do this.

The best approach appears to be a ranking technique involving pooled judgment.

The two most effective methods are alternation ranking and paired comparison

ranking.

12
1. “Alternation ranking”:

Ranking of employees from best to worst on a trait or traits is another method for

evaluating employees. Since it is usually easier to distinguish between the worst and

the best employees than to rank them, an alternation ranking method is most popular.

Here subordinates to be rated are listed and the names of those not well enough to

rank are crossed. Then on a form as shown below, the employee who is highest on the

characteristic being measured and the one who is the lowest are indicated. Then chose

the next highest and the next lowest, alternating between highest and lowest until all

the employees to be rated have been ranked.

2. “Paired-comparison ranking”:

This technique is probably just as accurate as alternation ranking and might be

more so. But with large numbers of employees it becomes extremely time consuming

and cumbersome.

Both ranking techniques, particularly when combined with multiple rankings

(i.e., when two or more people are asked to make independent rankings of the same

work group and their lists are averaged), are among the best available for generating

valid order-of-merit rankings for salary administration purposes.

ASSESSMENT CENTERS

So far, we have been talking about assessing past performance. What about the

assessment of future performance or potential? In any placement decision and even

more so in promotion decisions, some prediction of future performance is necessary.

How can this kind of prediction be made most validly and most fairly?

13
360 DEGREE FEEDBACK

Many firms have expanded the idea of upward feedback into what the call

360-degree feedback. The feedback is generally used for training and development,

rather than for pay increases.

Most 360 Degree Feedback system contains several common features. Appropriate

parties – peers, supervisors, subordinates and customers, for instance – complete

survey, questionnaires on an individual. 360 degree feedback is also known as the

multi-rater feedback, whereby ratings are not given just by the next manager up in the

organizational hierarchy, but also by peers and subordinates. Appropriates customer

ratings are also included, along with the element of self appraisal. Once gathered in,

the assessment from the various quarters are compared with one another and the

results communicated to the manager concerned.

Another technique that is useful for coaching purposes is, of course, MBO. Like the

critical incident method, it focuses on actual behavior and actual

results, which can be discussed objectively and constructively, with little or no need

for a supervisor to "play God."

ADVANTAGES

Instead of assuming traits, the MBO method concentrates on actual outcomes.

If the employee meets or exceeds the set objectives, then he or she has demonstrated

an acceptable level of job performance. Employees are judged according to real

outcomes, and not on their potential for success, or on someone's subjective opinion

of their abilities.

14
The guiding principle of the MBO approach is that direct results can be observed

easily. The MBO method recognizes the fact that it is difficult to neatly dissect all the

complex and varied elements that go to make up employee performance.

MBO advocates claim that the performance of employees cannot be broken up into so

many constituent parts, but to put all the parts together and the performance may be

directly observed and measured.

DISADVANTAGES

This approach can lead to unrealistic expectations about what can and cannot

be reasonably accomplished. Supervisors and subordinates must have very good

"Reality Checking" skills to use MBO appraisal methods. They will need these

skills during the initial stage of objective setting, and for the purposes of self-auditing

and self-monitoring.

Variable objectives may cause employee confusion. It is also possible that

fluid objectives may be distorted to disguise or justify failures in performance.

BENEFITS OF PERFORMANCE APPRAISALS

 Measures an employee‟s performance.

 Helps in clarifying, defining, redefining priorities and objectives.

 Motivates the employee through achievement and feedback.

 Facilitates assessment and agreement of training needs.

 Helps in identification of personal strengths and weaknesses.

15
  Plays an important role in Personal career and succession planning.

 Clarifies team roles and facilitates team building.

 Plays major role in organizational training needs assessment and analysis.

 Improves understanding and relationship between the employee and the

reporting manager and also helps in resolving confusions and

misunderstandings.

 Plays an important tool for communicating the organization‟s philosophies,

values, aims, strategies, priorities, etc among its employees.

 Helps in counseling and feedback.

RATING ERRORS IN PERFORMANCE APPRAISALS

Performance Appraisals are subject to a wide variety of inaccuracies and

biases referred to as 'rating errors'. These errors can seriously affect assessment

results. Some of the most common rating errors are: -

LENIENCY OR SEVERITY: - Leniency or severity on the part of the rater makes

the assessment subjective. Subjective assessment defeats the very purpose of

performance appraisal. Ratings are lenient for the following reasons:

a) The rater may feel that anyone under his or her jurisdiction who is

rated unfavorably will reflect poorly on his or her own worthiness.

b) He/She may feel that a derogatory rating will be revealed to the rate to

detriment the relations between the rater and the ratee.

16
 c) He/She may rate leniently in order to win promotions for the

subordinates and therefore, indirectly increase his/her hold over him.

CENTRAL TENDENCY: - This occurs when employees are incorrectly rated near

the average or middle of the scale. The attitude of the rater is to play safe. This safe

playing attitude stems from certain doubts and anxieties, which the raters have been

assessing the rates.

HALO ERROR: - A halo error takes place when one aspect of an individual's

performance influences the evaluation of the entire performance of the individual. The

halo error occurs when an employee who works late constantly might be rated high on

productivity and quality of output as well ax on motivation. Similarly, an attractive or

popular personality might be given a high overall rating. Rating employees separately

on each of the performance measures and encouraging raters to guard against the halo

effect are the two ways to reduce the halo effect.

RATER EFFECT: -This includes favoritism, stereotyping, and hostility. Extensively

high or low score are given only to certain individuals or groups based on the rater's

attitude towards them and not on actual outcomes or behaviors; sex, age, race and

friendship biases are examples of this type of error.

PRIMACY AND REGENCY EFFECTS: - The rater's rating is heavily influenced

either by behavior exhibited by the ratee during his early stage of the review period

(primacy) or by the outcomes, or behavior exhibited by the ratee near the end of the

review period (regency). For example, if a salesperson captures an important

17
contract/sale just before the completion of the appraisal, the timing of the incident

may inflate his or her standing, even though the overall performance of the sales

person may not have been encouraging. One way of guarding against such an error is

to ask the rater to consider the composite performance of the rate and not to be

influenced by one incident or an achievement.

PERFORMANCE DIMENSION ORDER: - Two or more dimensions on a

performance instrument follow each other and both describe or rotate to a similar

quality. The rater rates the first dimensions accurately and then rates the second

dimension to the first because of the proximity. If the dimensions had been arranged

in a significantly different order, the ratings might have been different.

SPILLOVER EFFECT: - This refers lo allowing past performance appraisal rating

lo unjustifiably influence current ratings. Past ratings, good or bad, result in similar

rating for current period although the demonstrated behavior docs not deserve the

rating, good or bad.

ROLES IN THE PERFORMANCE APPRAISAL PROCESS

a) REPORTING MANAGER

Ø Provide feedback to the reviewer / HOD on the employees‟ behavioral

traits indicated in the PMS Policy Manual

Ø Ensures that employee is aware of the normalization / performance

appraisal process

18
 Ø Address employee concerns / queries on performance rating, in

consultation with the reviewer

b) REVIEWER (Reporting Manager’s reporting Manager)

Ø Discuss with the reporting managers on the behavioral traits of all the

employees for whom he / she is the reviewer

Ø Where required, independently assess employees for the said behavioral

traits; such assessments might require collecting data directly from other

relevant employees

c) HOD (In some cases, a reviewer may not be a HOD)

Ø Presents the proposed Performance Rating for every employee of his /

her function to the Normalization committee.

Ø HOD also plays the role of a normalization committee member.

d) HR HEAD

Ø Secretary to the normalization committee

Ø Assists HOD‟s / Reporting Managers in communicating the

performance rating of all the employees

e) NORMALIZATION COMMITTEE

Ø Decides on the final bell curve for each function in the respective

Business Unit / Circle

19
 Ø Reviews the performance ratings proposed by the HOD‟s,

specifically on the upward / downward shift in ratings, to ensure an

unbiased relative ranking of employees on overall performance,

and thus finalize the performance rating of each employee

KEY CONCEPTS IN PMS

In order to understand the Performance Management System, some concepts need

to be explained which play a very important role in using the PMS successfully. They

are:

Ø KRA’S (KEY RESULT AREAS): The performance of an employee is

largely dependent on the KRA score achieved by the employee during that

particular year. Thus, it is necessary to answer a few basic questions i.e.

 What are the guidelines for setting the KRA‟s for an employee?

 How does an employee write down his KRA‟s for a particular financial

year?

 KRA‟s: The Four Perspectives.

 How is the KRA score calculated for an employee on the basis of the

targets sets and targets achieved?

Ø BEHAVIORAL TRAITS: Some of the qualitative aspects of an

employees‟ performance combined with the general behavioral traits displayed

by the employee during a year constitutes his behavior traits. An employee is

assigned the rating on the basis of the intensity

20
of the behavior displayed by him. They play a very important role in the deciding the

final performance rating for an employee as is even capable of shifting the rating one

level upwards/downwards.

Ø BHARTI 2010 LEADERSHIP COMPETENCY FRAMEWORK: This

competency framework is a simple and structured way to describe the elements of

behaviors required to perform a role effectively. This framework also tries to

assess the performance of an employee objectively.

Ø THE PERFORMANCE RATING PROCESS: The rating process tries to explain

the four different types of rating that an employee can achieve i.e. EC, SC, C and

PC. It also explains the criteria, which is considered for awarding any of these

ratings to the employee.

Ø PROMOTION AND RATING DISRTRIBUTION GUIDELINES: The

promotion and normal distribution guidelines provide the framework within which

the performance appraisal process has to work. It is very important that the HR

department pays due attention to these guidelines while preparing the bell curves

for various functions and the consolidated bell curve for all the functions. These

guidelines also help in deciding upon the promotion cases in a year.

21
PERFORMANCE RATING PROCESS

EXCEPTIONAL CONTRIBUTOR (EC) SIGNIFICANT CONTRIBUTOR

 Performs consistently and (SC)

substantially above expectations in all  Performs above expectations in all
areas areas

 Achieves a final score greater than or  Achieves final score between 100-
equal to 115% 114%

 Consistently delivers on stretch  Versatile in his/ her area of

targets operation
 Develops creative solutions and
 Is proactive
require little / minimal supervision
 Spots and anticipates problems,
 Sets examples for others
implements solutions
 Take ownership of own
 Sees and exploits opportunities development

 Delivers ahead of time  Coaches others

 Demonstrates business initiative
 Sees the wider picture-impacts across
 Is self motivated
business
 Supportive team player
 Focuses on what‟s good for the  Leads own team very effectively
business  Demonstrate functional initiative
 Seen as role model by others
·
 Recognized as exceptional by other
functions as well

 Motivates others to solve problems

 Develops others

 Provides open and honest

22
 Human Resource (or personnel) management, in the sense of getting things

done through people, is an essential part of every manager‟s responsibility, but many

organizations find it advantageous to establish a specialist division to provide an

expert service dedicated to ensuring that the human resource function is performed

efficiently.

“People are our most valuable asset” is a cliché, which no member of any

senior management team would disagree with. Yet, the reality for many organizations

are that their people remain under valued, under trained and under utilized.

Following are the various functions of Human Resource Management that are

essential for the effective functioning of the organization:

1. Recruitment

2. Selection

3. Induction

4. Performance Appraisal

5. Training & Development

Performance appraisal is necessary to measure the performance of the employees and

the organization to check the progress towards the desired goals and aims.

The latest mantra being followed by organizations across the world being –

"get paid according to what you contribute" – the focus of the organizations is

turning to performance management and specifically to individual performance.

Performance appraisal helps to rate the performance of the employees and evaluate

23
their contribution towards the organizational goals. If the process of performance

appraisals is formal and properly structured, it helps the employees to clearly

understand their roles and responsibilities and give direction to the individual‟s

performance. It helps to align the individual performances with the organizational

goals and also review their performance.

Performance appraisal takes into account the past performance of the

employees and focuses on the improvement of the future performance of the
employees.

PART OF SELF APPRAISAL

Performance appraisal feedback

Performance Review - Preparation
Performance Consulting: Moving
Performance Review – The Meeting Beyond Training

How to Complete a Performance Writing performance appraisal

Appraisal Form
Performance Appraisal Training
Analysis for Improving Performance
How to Measure Employee
Active performance appraisal Performance
conversation

24
SELF APPRAISAL

Self appraisal is an important part of the Performance appraisal process where the

employee himself gives the feedback or his views and points regarding his

performance. Usually this is done with the help of a self appraisal form where the

employee rates himself on various parameters, tells about his training needs, if any,

talks about his accomplishments, strengths, weaknesses, problems faced etc.

TIPS FOR SELF – APPRAISAL

 BE HONEST

Always be truthful and honest while telling your accomplishments or failures.

Don‟t exaggerate your strengths and don‟t hide your weaknesses. Don‟t make
personal judgments for anybody.

 DO THE PREPARATION

It‟s always better to prepare yourself before the meeting. Get all the lists in

place; prepare all the evidences and references.

 BE OBJECTIVE

Objectivity is important in self – appraisal. Don‟t exaggerate or downplay your

achievements or failures. Be specific and concise in your statements and if

possible support them with examples or references or evidences with dates. For

example: "I responded to all queries within 48 hours" is better than just saying

"My customer service was good."

 POSITIVE ATTITUDE

Have a positive attitude towards the whole appraisal process. Be co-operative.

Don‟t hesitate from taking the responsibility of your failures as well as the

25
 achievements. Demonstrate enthusiasm to improve in future and take all his

suggestions calmly. Don‟t complain or demonstrate a negative attitude.

 Cover all the aspects

Apart from your strengths, weaknesses, accomplishments and failures, express

the opportunities you would like have for your development and improvement.

Suggest ways to overcome the problems faced. Assess your capabilities,

behaviors‟ and skills and competence.

SEEK FUTURE RESPONSIBILITIES

According to the assessment of the KSA‟s according to your job description,

plan the short term and long term for the next year. Try to look for tasks beyond your

current job responsibilities. This will help in personal development as well as

contributing to the organizational productivity.

Self appraisal should ideally include the accomplishments, the goals achieved,

the failures, and the personal growth (i.e. new skills acquired, preparation for the

future etc.), the obstacles faced during the period, the efforts for removing them, the

suggestions, and the areas of training and development felt by the employee.

PERFORMANCE APPRAISAL FEEDBACK

Performance appraisal process is incomplete without the feedback given to the

employee about his appraisal and his performance. But the way of giving as well as

receiving the feedback differs from person to person and their way of handling and

their outlook towards the issue.

According to a popular saying:

26
"A SUCCESSFUL MAN IS ONE WHO CAN LAY A FIRM FOUNDATION

WITH THE BRICKS OTHERS HAVE THROWN AT HIM."

Therefore, On the part of the person receiving the feedback, the following points are

important to be taken care of:

o The employee should have a positive attitude towards the feedback process

 He should listen to the suggestions of the appraiser calmly and try to

incorporate them in his plans.

 He should not hesitate to ask for the help of his superiors.

 Should have a co-operative attitude during the feedback meeting.

 Don‟t judge the appraiser as a person.

 Should take the feedback objectively.

 Should not judge the appraiser as a person on the basis of the feedback.

On the part of the appraiser or the manager / person giving the feedback, the

following points are to be taken care of:

 The appraiser should make the receiver feel comfortable during the feedback

meeting.

 The appraiser should make it a two – way conversation i.e. let the employee

speak.

 Listen to the employee and note his points, suggestions, problems etc.

27
  The appraiser should not adopt a confrontational approach towards the meeting.

The goal is not to criticize the employee.

 Provide a constructive feedback to the employee i.e. in a way which will

motivate him to perform better.

 Have a positive attitude towards the process

 Try to understand the reasons of his failure.

Make the appraisal feedback meeting useful and productive for the organization and

the employee.

PERFORMANCE REVIEW MEETING

Today, Performance Review Meetings are regarded as conversation with a

purpose. They are considered extremely important for the development and health of

the organization. The purpose of the performance review meetings is to reach

mutually agreed conclusions about the development of the individual and his

performance and if applicable, any areas for improvement, including how such

improvements are to be achieved.

The purpose of Performance and Development reviews is to enable the

employees to engage in a dialogue and get the support of the manager about the

individual‟s performance and development. They should be more like free- flowing,

open meetings in which views are exchanged so that agreed conclusions can be

reached. The three key elements of performance review meetings are:

1. Feedback - Providing information on how a person has been doing.

2. Measurement – assessing results against agreed targets and standards.

28
 3. Exchange of views - Ensuring that the discussion involves a full, free and

frank exchange of views about what has been achieved, what needs to be done

to achieve more and what employees think about their work the way they are

managed and their aspirations.

Performance Appraisal review is the meeting when the employee can be

motivated to perform better in future or reinforce his desirable behaviour. Review

discussion meetings ideally should include the following:

 Review of progress on tasks and activities in relation to the employee‟s

performance plan,

 The developmental initiatives taken by the employee himself and those

planned by the management for the employee.

 Identification of variances in terms of delays, requisite quality and shortfall in

help planned for the employee, if any

 Analyzing the causes of the delay, the problems faced and the solutions

adopted.

 Preparation of action steps for solving identified problems and contingency

plans for anticipated problems.

Periodic review meetings become meaningful only when they help pause, reflect, take

stock and strategize in an otherwise active relationship.

29
How to Complete Performance Appraisal Form

Performance Appraisal form provides the basis for the performance review,

providing the feedback to the employees and the final rating of the employee. It also

facilitates various other HR decisions and career development plans and decisions of

the employees. Therefore, performance appraisal from should be filled with utmost

care and objectivity.

The Performance appraisal form should be filled by the immediate supervisor or

manager of the employee in order to ensure that the appraiser if fully acquainted with

the performance, responsibilities, targets and standards of the employee. All the

instructions and guidelines on the appraisal form should be read and followed

carefully.

 Be prepared with all the details of the performance, the standards, job

description and the past appraisals of the employee.

 Clear and unambiguous description of the employee performance should be

given in terms of average, above average, good and excellent performance.

 The focus should be on the employees‟ behaviour throughout the year and not

just his recent performance.

 Quantify the ratings, wherever possible, to ensure easy comparability.

 Substantiate and support your rating, and attach all the necessary documents

(if required).

30
  Apart from the defined performance objectives and results, discuss the related

issues as well covering all the aspects of the performance.

When filling the appraisal form, be honest and objective.

ANALYSIS FOR IMPROVING PERFORMANCE

Any performance review process is incomplete without the feedback to the

employees. The feedback could be given in the review discussion. Review discussions

are semi formal, scheduled, periodic interactions – usually bimonthly or quarterly –

between a manager and his employee. The basic purpose of the review discussion is

to analyze the performance of the employee in the past to improve the performance

of the employee in future.

A review discussion is an opportunity to coach, mentor, learn and understand.

The manager encourages his/her employees to critically reflect over progress made on

the Performance appraisal plan and to develop creative, yet feasible alternatives for

problem areas.The manager uses this opportunity to:

 Review the performance of the each employee individually.

 Discuss the problems faced by the employees during the course of action.

 The solutions tried, and the degree of success achieved in solving the

problems faced.

 Revisit with the employee, his/ her annual plan for the remaining time period

and develop revised action plans, if necessary.

Review discussions reassure the employees that each one of them has

structured opportunities for one to one interaction with the manager once every two or

31
three months during the year. These opportunities are important as they provide an

important chance for performance monitoring or development mentoring. The aim of

the performance review discussions is to share perceptions, solve the problem faced

during the course of the action, decide on the new goals jointly and provide a

feedback to the employee for the past performance i.e. to look at his strengths and

weaknesses and also help to chart out a career plan for the employee. The focus of

these performance review discussions should not bet o judge the employees‟ past

performance; rather it should be to motivate the employee to improve his future

performance and reinforce his good behaviour.

Active Performance Appraisal Conversation

1. Active conversation plays an important part in the performance review

meeting. The appraiser should ensure that the meeting has a two way

conversation and that the employee should get a fair chance

To speak. The "manner" of giving the feedback of the performance of the

employee is very important. The conversation should have an optimistic and

motivating tone.

Some important points that should be taken care of in the active

Performance Appraisal Conversation are:

Make it a two-way conversation. An effective Performance appraisal review

requires an interactive discussion with an open agenda. Try to formulate

questions that seek the employee‟s ideas and input. This will help the

employee feel you value his or her opinions. Give the employee a fair

chance to put forward his ideas; let him speak.

32
 2. Be a good listener. Remember to be an active listener and to pick up on your

employee‟s verbal and nonverbal cues. Listen to his ideas and problems.

3. Address what‟s important to the employee. Since job satisfaction is the most

important factor affecting an employee‟s attitude (and therefore his or her

level of performance and value to your company), an effective review

should delve into areas that include issues most important to that employee.

4. Lead with the positive. It‟s important to reaffirm the employee‟s strengths at

the beginning of the review. Since job security is the number one concern of

most people, the performance review is a good time to tell an employee how

much you value their contributions to your business.

5. Don‟t be confrontational. It‟s important not to criticize the employee in

general terms. The goal is to evaluate job performance and not the person. A

performance review that turns into a gripe session misses the opportunity to

raise employee morale.

6. Positive reinforcement – emphasizing what has been done well so that it will

be done even better in the future and making only constructive criticisms

(i.e. those that point the way to improvement).

7. Exchange of views - Ensuring that the discussion involves a full, free and

frank exchange of views about what has been achieved, what needs to be

done to achieve more and what the appraiser think about their work the way

they are managed and their aspirations.

Agreement - jointly coming to an understanding about what has to be done by both

parties to improve performance, knowledge and skills and overcome any work

problems raised during the discussion

33
Performance Appraisal Feedback

Performance appraisal process is incomplete without the feedback given to the

employee about his appraisal and his performance. But the way of giving as well as

receiving the feedback differs from person to person and their way of handling and

their outlook towards the issue.

According to a popular saying:

"A SUCCESSFUL MAN IS ONE WHO CAN LAY A FIRM FOUNDATION

WITH THE BRICKS OTHERS HAVE THROWN AT HIM."

Therefore, On the part of the person receiving the feedback, the following points are

important to be taken care of:

o The employee should have a positive attitude towards the feedback process

o He should listen to the suggestions of the appraiser calmly and try to

incorporate them in his plans.

o He should not hesitate to ask for the help of his superiors.

o Should have a co-operative attitude during the feedback meeting.

o Don‟t judge the appraiser as a person.

o Should take the feedback objectively.

o Should not judge the appraiser as a person on the basis of the feedback.

On the part of the appraiser or the manager / person giving the feedback, the

following points are to be taken care of:

34
o The appraiser should make the receiver feel comfortable during the feedback

meeting.

o The appraiser should make it a two – way conversation i.e. let the employee

speak.

o Listen to the employee and note his points, suggestions, problems etc.

o The appraiser should not adopt a confrontational approach towards the

meeting. The goal is not to criticize the employee.

o Provide a constructive feedback to the employee i.e. in a way which will

motivate him to perform better.

o Have a positive attitude towards the process

o Try to understand the reasons of his failure.

o Be fair and objective

o Prepare yourself for what to say and how to say.

35
Company
Profile

36
 Company Profile

HDFC Bank

Type Public

BSE: 500180

NSE: HDFCBANK

Traded as NYSE: HDB

BSE SENSEX Constituent

CNX Nifty Constituent

Industry Banking, Financial services

Founded August 1994

Headquarters Mumbai, Maharashtra, India

Area served Worldwide

Key people Aditya Puri (MD)

Investment Banking

Investment Management

Wealth Management
Products
Private Banking

Corporate Banking

Private Equity

37
 Finance and Insurance

Consumer Banking

Mortgages

Credit Cards

Revenue 743.7322 billion (US$11 billion) (2016)

Profit 128.1733 billion (US$1.9 billion) (2016)

Total assets 6.87892 trillion (US$100 billion) (2015)

Total equity 5.0564 billion (US$75 million)

Number of employees 76,286 (March 2015)

Website HDFCBank.com

HDFC Bank is an Indian banking and financial services company headquartered in

Mumbai, Maharashtra. It has about 76,286 employees including 12,680 women and

has a presence in Bahrain, Hong Kong and Dubai. HDFC Bank is the second largest

private bank in India as measured by assets. It is the largest bank in India by market

capitalization as of February 2016. It was ranked 58th among India‟s most trusted

brands according to Brand Trust Report, 2015.

38
FORMATION OF THE COMPANY

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 the RBI's 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.

PROMOTER

HDFC is India's premier housing finance company and enjoys an impeccable track

record in India as well as in international markets. Since its inception in 1977, the

Corporation has maintained a consistent and healthy growth in its operations to

remain the market leader in mortgages. Its outstanding loan portfolio covers well over

a million dwelling units. HDFC has developed significant expertise in retail mortgage

loans to different market segments and also has a large corporate client base for its

housing related credit facilities. With its experience in the financial markets, a strong

market reputation, large shareholder base and unique consumer franchise, HDFC was

ideally positioned to promote a bank in the Indian environment.

39
BUSINESS FOCUS

HDFC Bank's 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 bank's risk appetite. The bank is

committed to maintain the highest level of ethical standards, professional integrity,

corporate governance and regulatory compliance. HDFC Bank's business philosophy

is based on four core values – Operational Excellence, Customer Focus, Product

Leadership and People.

CAPITAL STRUCTURE

As on 31st March, 2009 the authorised share capital of HDFC Bank is Rs. 550 crore.

The paid-up capital as on the said date is Rs. 425,38,41,090/- ( 42,53,84,109 equity

shares of Rs 10/- each). The HDFC Group holds 19.38% of the Bank's equity and

about 17.70 % of the equity is held by the ADS Depository (in respect of the bank's

American Depository Shares (ADS) Issue). 27.69 % of the equity is held by Foreign

Institutional Investors (FIIs) and the Bank has about 5,48,774 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.

40
TIMES BANK AMALGAMATION

In a milestone transaction in the Indian banking industry, Times Bank Limited

(another new private sector bank promoted by Bennett, Coleman & Co./Times Group)

was merged with HDFC Bank Ltd., effective February 26, 2000. As per the scheme of

amalgamation approved by the shareholders of both banks and the Reserve Bank of

India, shareholders of Times Bank received 1 share of HDFC Bank for every 5.75

shares of Times Bank. The acquisition added significant value to HDFC Bank in

terms of increased branch network, expanded geographic reach, enhanced customer

base, skilled manpower and the opportunity to cross-sell and leverage alternative

delivery channels.

DISTRIBUTION NETWORK

HDFC Bank is headquartered in Mumbai. The Bank at present has an enviable

network of over 1229 branches spread over 444 cities across India. All branches are

linked on an online real-time basis. Customers in over 120 locations are also serviced

through Telephone Banking. The Bank's 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 the centers where the NSE/BSE has a

strong and active member base. The Bank also has a network of about over 2526

networked ATMs across these cities. Moreover, HDFC Bank's ATM network can be

accessed by all domestic and international Visa/MasterCard, Visa Electron/Maestro,

Plus/Cirrus and American Express Credit/Charge cardholders.

41
 BOARD OF DIRECTORS

The Composition of the Board of Directors of the Bank is governed by the Companies

Act, 1956, the Banking Regulation Act, 1949 and the listing requirements of the

Indian Stock Exchanges where securities issued by the Bank are listed. The Board has

strength of 12 Directors as on March 31, 2008. All Directors other than Mr. Aditya

Puri, Mr. Harish Engineer and Mr. Paresh Sukthankar are non-executive directors.

The Bank has five independent directors and six non-independent directors. The

Board consists of eminent persons with considerable professional expertise and

experience in banking, finance, agriculture, small scale industries and other related

fields.

None of the Directors on the Board is a member of more than 10 Committees and

Chairman of more than 5 Committees across all the companies in which he/she is a

Director. All the Directors have made necessary disclosures regarding Committee

positions occupied by them in other companies.

 Mr. Jagdish Capoor, Mr. Keki Mistry, Mrs. Renu Karnad, Mr. Aditya Puri, Mr.

Harish Engineer and Mr. Paresh Sukthankar are non-independent Directors on the

Board.

 Mr. Arvind Pande, Mr. Ashim Samanta, Mr. Gautam Divan, Mr. C. M. Vasudev

and Dr. Pandit Palande are independent directors on the Board.

 Mr. Keki Mistry and Mrs. Renu Karnad represent HDFC Limited on the Board of

the Bank.

42
 The Bank has not entered into any materially significant transactions during the

year, which could have a potential conflict of interest between the Bank and its

promoters, directors, management and/or their relatives, etc. other than the

transactions entered into in the normal course of business. The Senior Management

have made disclosures to the Board confirming that there are no material, financial

and/or commercial transactions between them and the Bank which could have

potential conflict of interest with the Bank at large.

TECHNOLOGY

HDFC Bank operates in a highly automated environment in terms of information

technology and communication systems. All the bank's branches have online

connectivity, which enables the bank to offer speedy funds transfer facilities to its

customers. Multi-branch access is also provided to retail customers through the

branch network and Automated Teller Machines (ATMs).

The Bank has made substantial efforts and investments in acquiring the best

technology available internationally, to build the infrastructure for a world class bank.

The Bank's business is supported by scalable and robust systems which ensure that

our clients always get the finest services we offer.

The Bank has prioritized its engagement in technology and the internet as one of its

key goals and has already made significant progress in web-enabling its core

businesses. In each of its businesses, the Bank has succeeded in leveraging its market

position, expertise and technology to create a competitive advantage and build market

share.

43
RATING

Credit rating

The Bank has its deposit programs rated by two rating agencies - Credit Analysis &

Research Limited (CARE) and Fitch Ratings India Private Limited. The Bank's Fixed

Deposit programme has been rated 'CARE AAA (FD)' [Triple A] by CARE, which

represents instruments considered to be "of the best quality, carrying negligible

investment risk". CARE has also rated the bank's Certificate of Deposit (CD)

programme "PR 1+" which represents "superior capacity for repayment of short term

promissory obligations". Fitch Ratings India Pvt. Ltd. (100% subsidiary of Fitch Inc.)

has assigned the "tAAA ( ind )" rating to the Bank's deposit programme, with the

outlook on the rating as "stable". This rating indicates "highest credit quality" where

"protection factors are very high".

The Bank also has its long term unsecured, subordinated (Tier II) Bonds rated by

CARE and Fitch Ratings India Private Limited and its Tier I perpetual Bonds and

Upper Tier II Bonds rated by CARE and CRISIL Ltd. CARE has assigned the rating

of "CARE AAA" for the subordinated Tier II Bonds while Fitch Ratings India Pvt.

Ltd. has assigned the rating "AAA (ind)" with the outlook on the rating as "stable".

CARE has also assigned "CARE AAA [Triple A]" for the Banks Perpetual bond and

Upper Tier II bond issues. CRISIL has assigned the rating "AAAStable" for the

Bank's Perpetual Debt programme and Upper Tier II Bond issue. In each of the cases

referred to above, the ratings awarded were the highest assigned by the rating agency

for those instruments?

44
Corporate governance rating

The bank was one of the first four companies, which subjected itself to a Corporate

Governance and Value Creation (GVC) rating by the rating agency, The Credit Rating

Information Services of India Limited (CRISIL). The rating provides an independent

assessment of an entity's current performance and an expectation on its "balanced

value creation and corporate governance practices" in future. The bank has been

assigned a 'CRISIL GVC Level 1' rating which indicates that the bank's capability

with respect to wealth creation for all its stakeholders while adopting sound corporate

governance practices is the highest.

PRODUCT SCOPE

HDFC Bank offers a bunch of products and services to meet the every need of the

people. The company cares for both, individuals as well as corporate and small and

medium enterprises. For individuals, the company has a range accounts, investment,

and pension scheme, different types of loans and cards that assist the customers. The

customers can choose the suitable one from a range of products which will suit their

life-stage and needs.

For organizations the company has a host of customized solutions that range from

Funded services, Non-funded services, Value addition services, Mutual fund etc.

These affordable plans apart from providing long term value to the employees help in

enhancing goodwill of the company.

45
 The products of the company are categorized into various sections which are as

follows:

 Accounts and deposits.

 Loans.

 Investments and Insurance.

 Forex and payment services.

 Cards.

 Customer center.

BUSINESS SEGMENTS

HDFC Bank offers a wide range of commercial and transactional banking services

and treasury products to wholesale and retail customers. The bank has three key

business segments:

(i) Wholesale Banking Services

The Bank's target market ranges from large, blue-chip manufacturing companies in

the Indian corporate to small & mid-sized corporate and agro-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

46
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.

(ii) Retail Banking Services

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 the 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.

47
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 September 30,

2005, the bank had a total card base (debit and credit cards) of 5.2 million cards. The

Bank is also one of the leading players in the "merchant acquiring" business with over

50,000 Point-of-sale (POS) terminals for debit / credit cards acceptance at merchant

establishments.

(iii) 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 bank's 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.

48
The following tables summarizes the products and services and customer segments

offered by HDFC Bank:.

Table 1: Personal banking

Loan Product Investment &

Deposit Product
Insurance

 Auto Loan  Saving a/c  Mutual Fund

 Loan Against Security  Current a/c  Bonds

 Loan Against Property  Fixed deposit  Knowledge Centre

 Personal loan  Demat a/c  Insurance

 Credit card  Safe Deposit Lockers  General and Health

 2-wheeler loan Insurance

 Commercial vehicles finance  Equity and Derivatives

 Home loans  Mudra Gold Bar

 Retail business banking

 Tractor loan

 Working Capital Finance

 Construction Equipment Finance

 Health Care Finance

 Education Loan

 Gold Loan

49
 Cards Payment Services Access To Bank

 Credit Card  NetSafe  NetBanking

 Debit Card  Merchant  OneView

 Prepaid Card  Prepaid Refill  InstaAlert

 Billpay MobileBanking

 Visa Billpay
 ATM
 InstaPay
 Phone Banking
 DirectPay
 Email Statements
--------------------------------  VisaMoney Transfer
 Branch Network
 e–Monies Electronic
Forex Services
Funds Transfer
--------------------------------
 Online Payment of

 Product & Services Direct Tax

 Trade Services

 Forex service Branch Locater

 RBI Guidelines

Source: http://www.hdfcbank.com/personal/prd_glance.htm

50
 Table 2: Wholesale banking

Corporate Small and Medium Government Financial Institutions

Enterprises Sector and Trusts

Large Corporates  Funded Services  Tax Collection  Financial Institutions

 Non  E- Ticketing
Funded  Mutual Funds
 Funded Services
Services  Booking of L/C‟s Stock Brokers
 Non Funded
 Specialized Services Collection  Insurance
of
Services
 Value added Stamp Duty Companies
 Value Added
services  Disbursement  Commodities
of
Services
 Internet Banking Pension Business
 Internet Banking
 Electronic  Trusts
Collection of fees
 Collection of
property tax
Supply Chain
Partners

 Dealer Financing
 Vendor Financing

Agricultural
Lending

Source : http://www.hdfcbank.com/wholesale/prd_glance.htm

51
 Table 3: NRI services

Accounts & Deposits Remittances

 Rupee Saving a/c  North America

 Rupee Current a/c  UK

 Rupee Fixed Deposits  Europe

 Foreign Currency Deposits  South East Asia

 Accounts for Returning  Middle East

Indians  Africa

 Others

Quick remit

IndiaLink

Cheque LockBox

Telegraphic/ Wire Transfer

Funds Transfer Cheques/DDs/TCs

Investment & Insurances Loans

 Mutual Funds  Home Loans

 Private Banking  Loans Against Securities

  Loans Against Deposits

Portfolio Investment Scheme

52
  Gold Credit Card

Payment Services
Access To Bank

 NetSafe  NetBanking

 BillPay  OneView

 InstaPay  InstaAlert

 DirectPay  ATM

 Visa Money  PhoneBanking

 Online Donation  Email Statements

 Branch Network

Source: http://www.hdfcbank.com/nri/prd_glance.htm

BUSINESS STRATEGY

HDFC BANK mission is to be "a World Class Indian Bank", benchmarking

themselves against international standards 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 Bank's

risk appetite. Bank is committed to do this while ensuring the highest levels of ethical

53
 standards, professional integrity, corporate governance and regulatory compliance.

Continue to develop new product and technology is the main business strategy of the

bank. Maintain good relation with the customers is the main and prime objective of

the bank.

HDFC BANK business strategy emphasizes the following:

 Increase market share in India‟s expanding banking and financial services industry by

following a disciplined growth strategy focusing on quality and not on quantity and

delivering high quality customer service.

 Leverage our technology platform and open scaleable systems to deliver more

products to more customers and to control operating costs.

 Maintain current high standards for asset quality through disciplined credit risk

management.

 Develop innovative products and services that attract the targeted customers and

address inefficiencies in the Indian financial sector.

 Continue to develop products and services that reduce bank‟s cost of funds.

 Focus on high earnings growth with low volatility.

54
RECENT DEVELOPMENT

The Reserve Bank of India had approved the scheme of amalgamation of Centurion

Bank of Punjab Ltd. with HDFC Bank Ltd. with effect from May 23, 2008. All the

branches of Centurion Bank of Punjab will function as branches of HDFC Bank with

effect from May 23, 2008. With RBI‟s approval, all requisite statutory and regulatory

approvals for the merger have been obtained.

The combined entity would have a nationwide network of 1167 branches; a strong

deposit base of around Rs.1,22,000 crores and net advances of around Rs.89,000

crores. The balance sheet size of the combined entity would be over Rs.1, 63,000

crores.

On March 27, 2008, the shareholders of the Bank accorded their consent to a scheme

of amalgamation of Centurion Bank of Punjab Limited with HDFC Bank Limited.

The shareholders of the Bank approved the issuance of one equity share of Rs.10/-

each of HDFC Bank Limited for every 29 equity shares of Re. 1/- each held in

Centurion Bank of Punjab Limited. This is subject to receipt of Approvals from the

Reserve Bank of India, stock exchanges and other requisite statutory and regulatory

authorities. The shareholders also accorded their consent to issue equity shares

and/or warrants convertible into equity shares at the rate of Rs.1,530.13 each to

HDFC Limited and/or other promoter group companies on preferential basis, subject

to final regulatory approvals in this regard. The Shareholders of the Bank have also

approved an increase in the authorized capital from Rs.450 crores to Rs.550

crores.

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Promoted in 1995 by Housing Development Finance Corporation (HDFC), India's

leading housing finance company, HDFC Bank is one of India's premier banks

providing a wide range of financial products and services to its over 11 million

customers across hundreds of Indian cities using multiple distribution channels

including a pan-India network of branches, ATMs, phone banking, net banking and

mobile banking. Within a relatively short span of time, the bank has emerged as a

leading player in retail banking, wholesale banking, and treasury operations, its three

principal business segments. The bank's competitive strength clearly lies in the use of

technology and the ability to deliver world-class service with rapid response time.

Over the last 13 years, the bank has successfully gained market share in its target

customer franchises while maintaining healthy profitability and asset quality. As on

March 31, 2008, the Bank had a network of 761 branches and 1,977 ATMs in 327

cities. For the year ended March 31, 2008, the Bank reported a net profit of INR

15.90 billion (Rs.1590.2crore), up 39.3%, over the corresponding year ended

March 31, 2007. As of March 31, 2008 total deposits were INR 1007.69 billion,

(Rs.100,769 crore) up 47.5% over the corresponding year ended March 31, 2007.

Total balance sheet size too grew by 46.0% to INR 1,331.77 billion (133177 crore).

Leading Indian and international Publications have recognized the bank for its

performance and quality.

Centurion Bank of Punjab is one of the leading new generation private sector banks in

India. The bank serves individual consumers, small and medium businesses and large

corporations with a full range of financial products and services for investing, lending

and advice on financial planning. The bank offers its customers an array of wealth

management products such as mutual funds, life and general insurance and has

56
established a leadership 'position'. The bank is also a strong player in foreign

exchange services, personal loans, mortgages and agricultural loans. Additionally the

bank offers a full suite of NRI banking products to Overseas Indians. On 29th August

2007, Centurion Bank of Punjab merged with Lord Krishna Bank (LKB), post

obtaining all requisite statutory and regulator approvals. This merger has further

strengthened the geographical reach of the Bank in major towns and cities across the

country, especially in the State of Kerala, in addition to its existing dominance in

the northern part of the country. Centurion Bank of Punjab now operates on a

strong nationwide franchise of 404 branches and 452 ATMs in 190 locations across

the country, supported by employee base of over 7,500 employees. In addition

to being listed on the major Indian stock exchanges, the Bank‟s shares are also

listed on the Luxembourg Stock Exchange.

AWARDS AND ACHIEVEMENTS

HDFC Bank began operations in 1995 with a simple mission: to be a "World-class

Indian Bank". We realized that only a single-minded focus on product quality and

service excellence would help us get there. Today, we are proud to say that we are

well on our way towards that goal.

It is extremely gratifying that our efforts towards providing customer convenience

have been appreciated both nationally and internationally.

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Awards In 2009

Table 4: Awards in 2009

Euromoney Awards 2009 'Best Bank in India'

Economic Times Brand

Equity & Nielsen Research Most Trusted Brand - Runner Up

annual survey 2009

Asia Money 2009 Awards 'Best Domestic Bank in India'

IBA Banking Technology

'Best IT Governance Award - Runner up'
Awards 2009

Global Finance Award 'Best Trade Finance Bank in India for 2009

IDRBT Banking Technology

'Best IT Governance and Value Delivery'
Excellence Award 2008

Asian Banker Excellence in

'Asian Banker Best Retail Bank in India
Retail
Award 2009 '
Financial Services

Source: http://www.hdfcbank.com/aboutus/awards/default.htm

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Awards In 2008

Table 5: Awards in 2008

Finance Asia Country

Awards for Achievement 'Best Bank and Best Cash Management Bank'

2008

CNN-IBN 'Indian of the Year (Business)'

Nasscom IT User Award

'Best IT Adoption in the Banking Sector'
2008

Business India 'Best Bank 2008'

Forbes Asia Fab 50 companies in Asia Pacific

Asian Banker Excellence in

Best Retail Bank 2008
Retail Financial Services

Best local Cash Management Bank Award

Asiamoney
voted by Corporates

Microsoft & Indian Express

Security Strategist Award 2008
Group

World Trade Center Award For outstanding contribution to international

of honour trade services.

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 Business Today-Monitor
One of India's "Most Innovative Companies"
Group survey

Financial Express-Ernst & Best Bank Award in the Private Sector

Young Award category

Global HR Excellence
'Employer Brand of the Year 2007 -2008'
Awards - Asia Pacific HRM
Award - First Runner up, & many more
Congress:

Business Today 'Best Bank' Award

Source: http://www.hdfcbank.com/aboutus/awards/default.htm

60
 QUALITY POLICY OF HDFC BANK

 Security: The bank provides long term financial security to their policy. The bank

does this by offering life insurance and pension products.

 Trust: The bank appreciates the trust placed by their policy holders in the bank. Hence,

it will aim to manage their investments very carefully and live up to this trust.

 Innovation: Recognizing the different needs of our customers, the bank offers a range

of innovative products to meet these needs.

 Integrity

 Customer centric

 People care “one for all and all for one”

 Team work

 Joy and simplicity.

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 Research
Methodology

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 Research Objectives
 To study the existing appraisal system in the organization.

 To Study existing appraisal system in the organization exactly measures the

employee‟s performance

 To study that there is any opportunities provided for the employees to improve

their performance.

 To Study the appraisal system assists in the employee‟s training and

development.

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 RESEARCH METHODOLOGY
Research Design

I have used Descriptive research design for this study.

SAMPLING DESIGN

Descriptive Research Design

SAMPLE SIZE: A sample of minimum respondents was selected from HDFC Bank,

Lucknow. An effort was made to select respondents evenly. The survey was carried

out on 40 respondents.

SAMPLE UNIT: In this project sampling unit consisted of the employees of HDFC

Bank, Lucknow.

SAMPLE AREA: HDFC Bank, Lucknow.

SAMPLING TECHNIQUE: For the purpose of research convenient sampling

technique was used.

SAMPLING FRAME: It consisted of various sources from where information about

the respondent is extracted. Mainly personal links and employees of HDFC Bank,

Lucknow are used for getting information about the respondents.

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DATA COLLECTION SOURCE: Two methods have been used to collect the

relevant data, which are essential for the study, they are:

Primary Data: data is collected to obtain desired information through structured

questionnaire.

Secondary Data: it is compiled through books, magazines, newspapers and internet

etc…

TOOLS OF PRESENTATION:

STATISTICAL TOOLS TO BE USED: A structured questionnaires is used to

collect the data and data will be analyzed with the help of percentage table,

respective graph, bar graph and pie charts.

65
Limitations

66
 LIMITATIONS OF STUDY
 Time and resource were the major constraints during the execution of the

project. Therefore only a limited number of employees were included in the

project.

 The respondents were selected inside the organization only. So it cannot be

generalized as a whole.

 Some of the respondents were not even ready to spare time with the

researcher.

 There are many respondents who hesitated to answer the questionnaire.

 The human behaviour is dynamic and hence the results may not hold good for

a long time.

 The results of the survey are totally dependent on the accuracy and

authenticity of the information provided by the respondents.

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 Contact for more

Shrikrishna Computer Chinhat

Lucknow

Mo no- 9554444951

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