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Final Project Performance Appraisal
Final Project Performance Appraisal
INTRODUCTION
The process of Human Resource Development (HRD) helps the employees
to acquire and develop technical, managerial and behavioral knowledge, skills &
abilities and the values , beliefs &attitudes necessary to perform present and future
roles. The process of Performance Appraisal helps the employees and management to
know the level of employees Performance compared to the standard or predetermined
level. Performance Appraisal is important to understand and improve the employees
performance through HRD. In fact, Performance Appraisal is the basis of HRD. It
was viewed that Performance Appraisal was useful decide employees promotion or
transfer, salary determination. But the recent developments in HRD indicate that
Performance Appraisal is the basis for employee development. Performance
Appraisal indicates the level of desired performance level and actual performance
and the gap between these two. This gap should be bridged through training,
counseling and motivation etc. In every organization, the process of HRD helps the
employees to acquire and development technical, managerial and behavioral
knowledge, skill, and abilities, belief and attitudes necessary exists to achieve goals;
the degree of success obtained by the individual employee in achieving individuals
goals directly determines the organizational effectiveness. The assessment of the
degree of success of an individual employee is an important part of HRM
that leads to the Performance Appraisal.
In American business, the Performance Appraisal is done to determine wage increase,
promotion, transfer, regarding the emphasis for the feedback to the employees and
assessing the need for their training is very less or we can say its little.
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SBI PROFILE
The State Bank of India, the countrys oldest Bank and a premier in terms of Balance
sheet size, number of branches, market capitalization and profits is today going
through a momentous phase of Change and Transformation the two hundred year old
Public sector behemoth is today stirring out of its Public Sector legacy and moving
with an ability to give the Private and Foreign Banks a run for their money. The bank
is entering into many new businesses with strategic tie ups
Pension Funds, General Insurance, Custodial Services, Private Equity, Mobile
Banking, Point of Sale Merchant Acquisition, Advisory Services, structured products
etc. each one of these initiatives having a huge potential for growth. The Bank is
forging ahead with cutting edge technology and innovative new banking models, to
expand its Rural Banking base, looking at the vast untapped potential in the
hinterland and proposes to cover 100,000 villages in the next two years. It is also
focusing at the top end of the market, on whole sale banking capabilities to provide
Indias growing mid large Corporate with a complete array Of products and services.
It is consolidating its global treasury operations and entering into structured products
and derivative instruments. Today, the Bank is the largest provider of infrastructure
debt and the largest arranger of external commercial borrowings in the country. It is
the only Indian bank to feature in the Fortune 500 list.
The Bank is changing outdated front and back end processes to modern customer
friendly processes to help improve the total customer experience. With about 8500 of
its own 10000 branches and another 5100 branches of its Associate Banks already
networked, today it offers the largest banking network to the Indian customer.
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The
CNN
IBN,
Network
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recognized
this
momentous
transformation journey, the State Bank of India is undertaking, and has awarded the
prestigious Indian of the Year Business, to its Chairman, Mr. O. P. Bhatt in January
2008.The elephant has indeed started to dance.
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HISTORY OF SBI
The roots of the State Bank of India lie in the first decade of 19th century, when the
Bank of Calcutta, later renamed the Bank of Bengal, was established on 2 June 1806.
The Bank of Bengal was one of three Presidency banks, the other two being the Bank
of Bombay (incorporated on 15 April 1840) and the Bank of Madras (incorporated on
1 July 1843). All three Presidency banks were incorporated as joint stock companies
and were the result of the royal charters. These three banks received the exclusive
right to issue paper currency till 1861 when with the Paper Currency Act; the right
was taken over by the Government of India. The Presidency banks amalgamated on
27 January 1921, and the re-organized banking entity took as its name Imperial Bank
of India. The Imperial Bank of India remained a joint stock company but without
Government participation.
Pursuant to the provisions of the State Bank of India Act of 1955, the Reserve Bank
of India, which is India's central bank, acquired a controlling interest in the Imperial
Bank of India. On 1 July 1955, the Imperial Bank of India became the State Bank of
India. The government of India recently acquired the Reserve Bank of India's stake in
SBI so as to remove any conflict of interest because the RBI is the country's banking
regulatory authority.
In 1959, the government passed the State Bank of India (Subsidiary Banks) Act,
which made eight state banks associates of SBI. A process of consolidation began on
13 September 2008, when the State Bank of Saurashtra merged with SBI.
SBI has acquired local banks in rescues. The first was the Bank of Behar (est. 1911),
which SBI acquired in 1969, together with its 28 branches. The next year SBI
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1. Performance Feedback:
Most employees are very interested in knowing how well they are doing at present
and how they can do better in a future. They want this information to improve their
performance in order to get promotions and merit pay. Proper performance feedback
can improve the employee's future performance. It also gives him satisfaction and
motivation.
4. Promotions:
Performance appraisal is a way of finding out which employee should be given a
promotion. Past appraisals, together with other background data, will enable
management to select proper persons for promotion.
5. Transfers:
Performance appraisal is also useful for taking transfer decisions. Transfers often
involve changes in job responsibilities, and it is important to find out the employees
who can take these responsibilities. Such identification of employees who can be
transferred is possible through the performance appraisal.
6. Layoff Decisions:
Performance appraisal is a good way of taking layoff decisions. Employees may be
asked to lay off, if the need arises. The weakest performers are the first to be laid off.
If there is no performance appraisal, then there are chances that the best men in the
department may be laid off.
7. Compensation Decisions:
Performance appraisal can be used to compensate the employees by increasing their
pay and other incentives. This is truer in the case of managerial jobs and also in the
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9. Career Development:
Performance appraisal also enables managers to coach and counsel employees in
their career development.
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1. PERFORMANCE IMPROVEMENT:
Performance feedback allows the employee, manager and personnel specialists to
intervene
with
appropriate
actions
to
improve
performance.
2. COMPENSATION ADJUSTMENTS:
Performance evaluations help decision-makers determine who should receive pay
raises. Many firms grant part or all pay increases and bonuses based upon merit,
which is determined mostly through performance appraisals.
3. PLACEMENT DECISIONS:
Promotions, transfers and demotions are usually based on past or anticipated
performance.
Often
promotions
are
reward
for
past
performance.
human
resource
department
may
be
able
to
provide
assistance.
5. Essay Evaluation:
This method asked managers / supervisors to describe strengths and weaknesses
of an employees behavior. Essay evaluation is a non-quantitative technique. This
method usually use with the graphic rating scale method.
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RESEARCH METHODOLOGY
Methodology is said to be the procedure or way in which the project work has been
done. In the project work, the methodology adopted i s data collection and sample
plan.
Source of data:
The data for the study has been collected from various primary and secondary
sources.
Primary data:
Primary data is collected of facts on the subject of the study by the researcher. It can
be collected through questionnaires.
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Questionnaire:
It is formalized set of question, with are logically and systematically arranged to
collect the information useful for the proposed study. The questionnaire in this study
is structured containing a limited number of questions which are easy and to
understand. The layout of their questionnaire is farmed in such a way that confusing
and rerecording error are minimized.
Secondary data:
Secondary data reface to the use of information already collected and published or
unpublished. The sources are books, journals, reports etc.
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YES
B) NO
OPINION
YES
NO
TOTAL
NO.OF RESPOND
50
0
50
PERCENTAGE
100
0
100
NO. OF RESPOND
YES
NO
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YES
B) NO
OPINION
YES
NO
TOTAL
NO.OF RESPOND
48
2
50
PERCENTAGE
96
4
100
NO.OF RESPOND
YES
NO
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NO.OF RESPOND
50
0
0
0
50
PERCENTAGE
100
0
0
0
100
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YES
B) NO
OPINION
YES
NO
TOTAL
NO.OF RESPOND
42
8
50
PERCENTAGE
84
16
100
NO.OF RESPOND
YES
NO
From the above data it shows that 84% of employees feel that organization facilitate
growth & learning due to performance appraisal, where as 16% of employees feel
that organization does not provides growth & learning of employees.
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YES
B) NO
OPINION
YES
NO
TOTAL
NO.OF RESPOND
46
4
50
PERCENTAGE
92
8
100
NO.OF RESPOND
1st Qtr
2nd Qtr
From the above data it is evident that 92% of the employees feel that
the performance appraisal system really assesses the quality of an employee, where
as 85 feel that it does not assesses the quality of an employee.
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NO.OF RESPOND
8
12
30
50
PERCENTAGE
8
12
60
100
NO.OF RESPOND
A
B
C
From the above data it is evident that 60%of the employees feel that performance ap
praisal should be done on annual basis & 24% of the employees feel should be in
done on half yearly basis 8 % of the employees feel should be done in quarterly basis.
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NO.OF RESPOND
5
37
8
0
50
PERCENTAGE
10
74
16
0
100
NO.OF RESPOND
1st Qtr
2nd Qtr
3rd Qtr
4th Qtr
From the above data it is evident that 74% of the employees agree
that performance appraisal system of the organization distinguishes performs & n o n
performers, where as 105 strongly agree and 16% disagree doesnt distinguishes
performers & non-performers.
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YES
B) NO
OPINION
YES
NO
TOTAL
NO.OF RESPOND
48
2
50
PERCENTAGE
96
4
100
NO.OF RESPOND
YES
NO
From them above data it shows that 82% of the employees are aware on which their
performance is appraised but 16% of the respondents feel that they are not
aware of the basis on which their performance is appraised.
B) NO
OPINION
YES
NO
TOTAL
NO.OF RESPOND
46
4
50
PERCENTAGE
92
8
100
NO.OF RESPOND
YES
NO
From the above data it shows that 92%of the employees feel that performance appraisal
is contributor to encourage better job, but 8% of the employees feel that it is not
a contributor for job.
10. Training & development programs improve the quality of the employees.
a) Strongly agree
b) Agree
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OPINION
A
B
C
D
TOTAL
NO.OF RESPOND
25
0
25
0
50
PERCENTAGE
50
0
50
0
100
NO.OF RESPOND
A
B
C
D
From the above data its evident that 50% of the employees are
stronglyagree and 50% agree that training & development the quality of the
employees in the organization.
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B) INFORMAL
OPINION
YES
NO
TOTAL
NO.OF RESPOND
29
21
50
PERCENTAGE
58
42
100
NO. OF RESPOND
FORMAL
INFORMAL
From the above data its evident that 58% feel of the employees feel that
counseling in an organization should be of formal kind and 42% of employees feel
counseling should of informal kind.
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12. How often did you speak, or discuss about your performance with
your superiors?
a) Frequently
b) Sometimes
c) Rarely
d) Never
OPINION
A
B
C
D
TOTAL
NO.OF RESPOND
16
19
9
6
50
PERCENTAGE
32
38
18
12
100
NO. OF RESPOND
FREQUENTLY
SOMETIMES
RARELY
NEVER
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NO.OF RESPOND
30
10
4
6
50
PERCENTAGE
60
20
8
12
100
NO. OF RESPOND
WRITTEN FORM
ORAL FORM
OPEN COMMUNICATION
NO NEED
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NO.OF RESPOND
16
32
1
1
50
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PERCENTAGE
32
64
2
2
100
NO. OF RESPOND
TO A LARGE EXTENT
MODERATE EXTENT
LESS EXTENT
NOT AT ALL
From the above data its evident that 64% of the employees are feel that to
moderate extent and 32% to large extent think that performance increased as a result
of performance appraisal system.
FINDING
1. It has been found that most of the employees think that the performance
appraisal is essential and they think it is used as a tool to improve
performance, to determine organization needs, and to basis for pay
increase, promotions, and transfer.
2. The appraisal system facilitates growth & learning of employees and it
is used to distinguish performers.
3. The
existing
appraisal
system
helps
the
management
to
RECOMMONDATION
1. The short coming of employees should be informed to them after performance
appraisal.
2. Performance appraisal should be appraised by granting awards/ merit
certificate.
3. New performance appraisal techniques such as 360 degree performance
appraisal system should be used.
4. The performance appraisal should not be assessed by biased mind and personal
grudge.
5. Feedback should not be given to the employees more frequently.
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CONCLUSION
Performance appraisals are one of the most effective supervisory tools to
communicate expectations, provide feedback, plan work, acknowledge
contributions, and help employees gain the skills to be successful. As SIBL is
committed to do away with disparity and establish justice in the economy, trade,
commerce and industry, build socio economic infrastructure and create
employment opportunities. So SIBL should do justice with the employees while
appraising them perfectly on the basis of their performance. The appraisal system
has to be reliable and consistent, and should include both objective and subjective
ratings. The appraisal format should be practical and simple. The process should be
participatory and open. It should be linked with rewards. Feedback is an important
part of appraisal, and has to be timely, impersonal and noticeable. It should be
noted that an appraisal system can be effective only if it is accepted by employees
and if management is fully committed.
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BIBLIOGRAPHY
WEBLINK
http://www.scribd.com/doc/99520995/Performance-Appraisal-of-Sbi
http://www.investopedia.com/articles/08/performance-measure.asp#axzz2NiaesRaZ
http://www.indianmba.com/Faculty_Column/FC1431/FC1431a/fc1431a.html
http://www.SBI.com/
http://www.investopedia.com/university/performance apprisal/
http://www.youtube.com/watch?v=S4Z0KJJ2UfE
http://www.managementparadise.com/forums/human-resources-management-hr/206357-uses-performance-appraisal.html.
http://www.jethr.com/magazine/human-resource-management/performance-appraisaladvantages-and-disadvantages/article.html.
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