Professional Documents
Culture Documents
Bank Performance Appraisal System
Bank Performance Appraisal System
CAB CALLING
July-September, 2008
Developing Performance
Appraisal System for
Performance Leadership
in Banks
Dr. Shambhu Nath Chowdhury*
*Senior Manager, Personnel Administration and HRD, Paschim Banga Gramin Bank, Howrah
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CAB CALLING
the organizational goals. In short, appraisals frequently fail
to deliver a dependable measure of the value and
contribution of employees who are assessed.
Many appraisal systems examine performance on traits
exhibited by individuals. Examples of such
traits might be oral communication, leadership, awareness
of social environment, initiative, organization and planning.
Review of performance on trait criteria can be justified if the
traits relate to the individual's job. However, trait appraisal
can cause misunderstanding and disagreement between
the manager and his subordinates. If a manager tells his
subordinate that he needs to demonstrate more leadership
qualities and show more initiative on projects, it is not much
helpful because it does not focus on exactly how the
individual has been deficient and specifically what can be
done by him to improve his performance.
PAS is traditionally used as a mechanism of controlling
employee through salary administration, reward
administration, promotion, and disciplinary actions. Another
feature of traditional PAS is its confidentiality. This traditional
PAS results in unawareness of employees of their strengths
and weaknesses in relation to their capabilities in different
positions in the organization throughout their career. The
traditional PAS fails to identify the potentialities of employees
in performing the new roles in new positions. This is basically
because of the confidential nature of the appraisal. Due to
these drawbacks, traditional PAS fail to develop employees
and organizations.
July-September, 2008
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July-September, 2008
The
Job
Accountabilities
i.e. outputs
Review performance
against the key
objectives
Job
Accountability
The Job
Customer
Expectation
+
Define asset of behavioural
objectives against key
competencies
Key competencies
Key Objectives
+
Performance
Contract
Performance
Contract
Key Competencies
Define how
results have to
be achieved
Customer
Review performance
Feedback against key
objectives and key
competencies
i.e- inputs
Review performance against key
objectives and key
competencies
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Guidelines for Building a Model Performance
Appraisal System
Performance is concerned with means as well as ends,
inputs (competence) as well as outputs (results).
Performance is about everyday actions and behaviours
which, as individuals, we take to reach planned objectives.
Performance Elements and Performance Standards :
Performance elements tell us what we have to do and
performance standards tell us how well we have to do. There
are three performance elements.
Critical Elements (CE) : CE is an assignment or
responsibility of such critical importance that unacceptable
performance in these elements would make our
(appraisees) performance altogether unacceptable. The
number of CEs ranges from a minimum of three (3) and a
maximum of eight (8).
Non Critical Elements (NCE) : NCE is an assignment or
responsibility of such importance that unacceptable
performance in these elements would make our (Group or
Unit) performance altogether unacceptable. This is non
critical at individual level but critical at group level.
Additional Performance Elements (APE) : An APE is a
dimension or aspect of an individual, team, or organizational
performance that is not critical element for individual or
group performance evaluation but successful performance
may earn credit at individual and group performance level.
Example of APE: an employee/officer volunteered to work in
a new project that requires new skills, such assignments are
non-threatening and an intelligent failure would not be minus
mark on performance.
Activity Trap : Many employees/officers remain busy and
active but the ultimate outcome seldom adds to any value
addition to the organization. The people who are entrapped
in activities without understanding the purpose of business
are said to be in activity trap.
Concept of Ideal Performance Plan (IPA) : An ideal
performance plan should have a proper blend of critical, noncritical, and additional performance elements. Such plans
should have provisions of apprising employee performance
against planned agreement on elements at five levels based
on (elements to be weighted) according to specific needs of
the organization:
July-September, 2008
Total
Marks
Marks Allotted by
Remarks for
extreme
points in
quality fields
Education
a) Academic
10
b) Professional
05
Experience
10
Intelligence
05
Leadership
05
Communication
05
Team Building
05
Computer Savvy
05
Ethics
05
Willingness
10
10
Conflict Mgt.
05
11
Decision making
10
12
Cooperativeness
05
13
Innovation
05
14
Tenacity
05
15
Industry Knowledge
Total
05
100
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July-September, 2008
Reference :
1.
2.
3.
4.
5.
T.V.Rao: Human Resources Development in Banks Performance Appraisal Systems in Banks, Oxford &
IBH Publishing Co. Pvt. Ltd.(1988), pp 268-271
Conclusion
The typical traditional Performance Appraisal Process of the
1990s focused almost entirely on defining what is to be
achieved. However, today competency based Performance
Management Schemes are plentiful and becoming the
model for the future. These mixed models assess and
reward both results and demonstration of competencies;
both what employees actually deliver and how they do it. The
mixed model represents a more powerful and long lasting
approach to performance management than just an
objective based approach. Competency-based approach
brings a different perspective to performance management.
It uses a wider, more comprehensive language to describe
the performance expected from an employee. Performance
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