Performance Appraisal ______________________________________________________________________

Human Resource is an very important part of any organization. They are the resource that majorly contribute towards attainment of organizational goals and these goals can be achieved only when people put in their best efforts. Performance Appraisal is one of the methods which ascertain whether an employee has shown his or her best performance on a given job.

Performance Appraisal is one of the most important tools used by the Human Resource Development in analyzing and evaluating its employees. It also gives the employees a chance to look back on what they have been doing.Performance appraisal is the process of obtaining, analyzing and recording information about the relative worth of an employee. The focus of the performance appraisal is measuring and improving the actual performance of the employee and also the future potential of the employee. Its aim is to measure what an employee does. This project is based on Performance Appraisal.It goes in depth into what Performance Appraisal is, what it stands for and why it is done. It tries to explain the basic purpose and need of Performance Appraisal in the organization. It contains different types of approaches that can be used in different set of conditions. The project also tries to throw light on how theory can be put to practice.


Performance Appraisal ______________________________________________________________________ INDEX SR NO: Topic Page 1 2 3 4 5 6 7 8 Methodology Introduction to Company Introduction to Performance Appraisal Performance Aprraisal at Union Bank Of India Highlights of Annually Performance Appraisal Form Findings and Analysis Recommendations Conclusion 5 6 8 13 15 17 19 20 ANNEXURE: • Bibliography. 20 .

Performance Appraisal ______________________________________________________________________ METHODOLOGY To study the topic it is important to understand first how the Performance Appraisal works in an organisation. Here I met Mr. After taking their answers/ feedback by asking questions we can come to the conclusion when we analyse the findings.the questions where formed to collect all the data and the information regarding the process and impact of Performance Appraisal in an organization. Very friendly and helpful in nature. Venkatesh Amin the Senior Manager of Union Bank of India. Mr. 20 . what are the practical difficulties in the implementation and how they have managed to overcome these difficulties successfully. Thus to study and analyse various aspects of Performance Appraisal Interview Method was followed. For carrying out all this study a visit to Union bank of India was of great help in my project. The participants from the organisation where from different departments for the best results. Venkatesh Amin helped me a lot to understand how performance appraisal system is meant to work. who told me about the process and impact of Performance Appraisal they are using in Union Bank of India. Further. Union Bank of India is one of the organizations that are using Self Performance Appraisal system in their organizations.

Since then. boasting of 20 . trade and commerce. Until 1947. Union Bank of India also changed its style. Catering to all the sectors of the society. 457 Semi-urban. this time with the Miraj State Bank. including union territories. As on 31st March 2004. Union Bank is a Public Sector Unit with 55. Tech-Savvy With the age of global banking. Marzban Road. individuals and others. on November 11. housing and trade sector.e. Mahatama Gandhi. Apart from this. then. Another merger was on cards in 1985. be it agriculture. the bank has also played a major role in rendering services to the financial needs of every section. 2002 and Follow on Public Offer in February 2006. industry. it was one of the few Financial Commercial banks in India.57 % of Share Capital is presently held by institutions. June 1969. the bank also extended financial support to educational. Started as a limited company with its registered office at 7. Bank has network 2020 branches 794 Rural. all concentrated in key trade centres. a private sector bank. Mumbai.Performance Appraisal ______________________________________________________________________ INTRODUCTION TO COMPANY Once a Year Overview Union Bank of India was inaugurated by the Father of the Nation. that it merged with the Belgaum Bank. Union Bank of India undertook the task of establishment of village knowledge centers and self-employment training centers. It was in 1975. The Bank came out with its Initial Public Offer (IPO) in August 20. 1919. UBI had only 4 branches . Presently 44. 426 Urban and 343 Metropolitan branches. it had 240 branches.3 in Mumbai and 1 in Saurashtra. It was.43% Share Capital held by the Government of India. Branch Network At the time Nationalization i. services or infrastructure. that the Union Bank of India was nationalized. the branch network had grown substantially across the country with presence in 28 states.

The Bank has launched multiple Electronic Delivery Channels and has installed nearly 423 networked ATMs. A front runner among public sector banks in modern-day banking. coupon and tenor of bonds will be decided at the time of placement. Exact amount to be raised. more than 670 branches/extension counters of Bank are networked under Core Banking Solution. As of September 2005. 20 . it has all the facilities that a modern bank should have internet banking and centrally computerized branches. which launched Core Banking Solution in 2002.Performance Appraisal ______________________________________________________________________ urbanized and computerized core banking systems. Recent Development Union Bank of India (UBI) has informed the Bombay Stock Exchange (BSE) that the bank intends to raise additional funds up to Rs 400 crore in one or more tranches by issue of bonds on private placement basis for its Tier II capital requirement to shore up the capital to risk assets ratio subject approvals from the Ministry of Finance and Reserve Bank of India. UBI was one of the pioneer public sector banks.

A more comprehensive definition of Performance appraisal may be defined as“Performance appraisal is a structured formal interaction between a subordinate and supervisor. future job goals and job aspirations. training and development needs. in which the work performance of the subordinate is examined and discussed. This may be done unconsciously. It helps to analyze his achievements and evaluate his contribution towards the achievements of the overall organizational goals. refine and reward the performance of the employee. Its roots in the early 20th century can be traced to Taylor's pioneering Time and Motion studies. appraisal really dates from the time of the Second World War . face-to-face discussion of an employee’s work performance. reliable and conscientious. performance appraisal goes to the heart of personnel management and reflects the management’s interest in the progress of the employees. Managers also evaluate employees often also unconsciously. is a method by which the job performance of an employee is evaluated (generally in terms of quality. For a variety of reasons many organizations ask managers to make conscious formal evaluations of employees too.not more than 60 years ago. quantity. with a view to identifying weaknesses and strengths as well as opportunities for improvement and skills development. reviewing the employee’s performance during the period under review and forwards. cost and time). also known as employee appraisal. Performance appraisal. build on strengths and plan to strengthen weakness.Performance Appraisal ______________________________________________________________________ INTRODUCTION TO PERFORMANCE APPRAISAL The practice of appraisal is a very ancient art. It may be as part of the organization's normal annual or biannual Performance Appraisal System. which gives everyone a chance to clarify aims and objectives. that usually takes the form of a periodic interview (annual or semi-annual). As a distinct and formal management procedure used in the evaluation of work performance. It looks backwards. It is a powerful tool to calibrate. helping the employee prepare and set goals for the upcoming review period. By focusing the attention on performance. 20 . They know whether they are “good worker”.” Performance Appraisal consists of a systematic. Managers evaluate things everyday.

to help determine reward outcomes also it leads to the identification of the training and development needs of the employee. appraisal results are used to identify the poorer performers who may require some form of counseling. By the same token. Employee Viewpoint : From the employee viewpoint. bonuses. Provide information to assist in the other personal decisions in the organization. To judge the gap between the actual and the desired performance. To judge the effectiveness of the other human resource functions of the organization such as recruitment.) OBJECTIVES OF PERFORMANCE APPRAISAL: The main purpose of an employee assessment are: • • • • • • • • • • To review the performance of the employees over a given period of time. training and development. To provide feedback to the employees regarding their past performance. demotion.appraisal results are used. To help the management in exercising organizational control. To diagnose the strengths and weaknesses of the individuals so as to identify the training and development needs of the future. To reduce the grievances of the employees. or in extreme cases.Performance Appraisal ______________________________________________________________________ In many organizations . selection. Provide clarity of the expectations and responsibilities of the functions to be performed by the employees. dismissal or decreases in pay. BASIC PURPOSE: Effective performance appraisal systems contain two basic systems operating in conjunction: an evaluation system and a feedback system.That is. Helps to strengthen the relationship and communication between superior – subordinates and management – employees. the appraisal results are used to identify the better performing employees who should get the majority of available merit pay increases. and promotions. the purpose of performance appraisal is four-fold: (1) Tell me what you want me to do 20 . (Organizations need to be aware of laws in their country that might restrict their capacity to dismiss employees or decrease pay. either directly or indirectly.

Performance Appraisal ______________________________________________________________________ (2) Tell me how well I have done it (3) Help me improve my performance (4) Reward me for doing well. Thus the performance of the whole organization is enhanced. to identify and correct existing problems.perhaps the best that will ever occur . it offers a rare chance for a supervisor and subordinate to have "time out" for a one-on-one discussion of important work issues that might not otherwise be addressed. Recruitment and Induction Appraisal data can be used to monitor the success of the organization's recruitment and induction practices. Training and Development Performance appraisal offers an excellent opportunity . evaluation is a legitimate and major objective of performance appraisal. Employee Evaluation Though often understated or even denied.for a supervisor and subordinate to recognize and agree upon individual training and development needs. one of the most important reasons for having a system of performance appraisal is to establish and uphold the principle of accountability BENEFITS OF APPRAISAL : Perhaps the most significant benefit of appraisal is that. Appraisal offers a valuable opportunity to focus on work activities and goals. Organizational Viewpoint : From the organization's viewpoint. Motivation and Satisfaction Performance appraisal can have a profound effect on levels of employee motivation and satisfaction .for better as well as for worse. 20 . and to encourage better future performance. in the rush and bustle of daily working life.

The process shown down is somewhat idealized Obectives of Performance Appraisal Establish Job Expectation Design an Appraisal Programme Appraise Performance Performance Interview Use Appraisal Data for Appropriate Purpose METHODS: There are various methods of performance appraisal.Performance Appraisal ______________________________________________________________________ The Link to Rewards Research has reported that appraisees seem to have greater acceptance of the appraisal process.Following are few of them: -Rating Scale -Checklist 20 .An organization selects the most appropriate method which suits its business. PROCESS: Each step in the process is crucial and is arranged logically. when the process is directly linked to rewards. and feel more satisfied with it.

Performance Appraisal ______________________________________________________________________ -Critical incidents Method -Essay Method -Confidential Records -Self Appraisal -Ranking Method 20 .

And then accordingly the Appraiser rates him.) After completion of this. This performance is done on the basis of marks. which includes remarks and comments on the appraisal done.e. etc. The final appraisal is done by the Reviewing Authority (generally superior or immediate superior to the Appraiser). analyzing various business dimensions related to financial aspects and it also includes qualitative aspects of business such as attitude.Performance Appraisal ______________________________________________________________________ PERFORMANCE APPRAISAL AT UNION BANK OF INDIA The Performance Appraisal method followed in Union Bank of India is “Self Appraisal System”.. There is certain difference in business dimensions and managerial dimensions expected differently from non-operational and operational assignments. The overall assessment of performance is done for Operational and Nonoperational assignments.The Appraisee highlight his best performances and also lists the areas where he feels he is not upto the mark.Based on this form he rates himself on various parameters. customer service. The assessment is done by both appraiser and reviewing authority. Self appraisal system is undertaken at officer level (for non-operational and operational assignments) in Union Bank of India every year on 31st March. 20 . i. This is done by filling “Performance Appraisal Form” (Highlights of “Performance Appraisal Form” is given ahead. He is also asked to mention any outstanding performance he’s done outside the bank but for the bank. where the employee himself gives the feedback or his views and highlights regarding his performance. Self appraisal is an important part of the Performance appraisal process. If there is any deviation in the scores the Appraiser gives reasons for the same. The Appraisee is also asked to highlight problems he faced and opportunities for which he is required to improve his performance. the Appraiser (generally the immediate superior of the appraisee) comments on the Key Responsibility Areas. He also rates the Appraisee and provides the reasons for any deviation in the score.

Performance is rated on the scale of : • • • • Outstanding Good Average Below Average (80 – 100) (60 . 20 .79 ) (40 – 59) (Below 40) After the information so obtained from the assessment of performance.Performance Appraisal ______________________________________________________________________ From the above scores given by the appraiser and reviewing authority for various attributes. the bank is able to provide training needs and is able to find out the potentiality of the employees.

Performance Appraisal ______________________________________________________________________ HIGHLIGHTS OF ANNUAL PERFORMANCE APPRAISAL FORM  BIO DATA: (A)Personal Data (B)Previous Assignments (C)Training Programmes Attended (Seminars/Workshops to be excluded)  SELF APPRAISAL (By appraisee): (A)Highlights of my performance during the year are as under (B)Areas in which I feel I have not done well as under (C)Constraints faced (D)What according to me would enable me to perform better (E)Any outstanding performance outside the Bank (Assigned by the Bank)  KEY RESPONSIBILITY AREAS : (A)For non-operational assignments (B)For operational assignments  QUALITATIVE ASPECTS OF BUSINESS (by appraiser): • For non-operational assignments: (A) House Keeping (B) Inspection & Audit (C) Customer Service (D) Submission of Periodical Returns (E) Recovery Performance (F) Aptitude for Poverty Alleviation Programmes • For operational assignments: (A) Job Knowledge 20 .

79 ) (40 – 59) (Below 40) 20 TOTAL 50 40 10 100 BY APPRAISER BY REVIEWING AUTHORITY .Performance Appraisal ______________________________________________________________________ (B) Leadership (C) Decision Making (D)Administrative Skill (E) Public Relations/Marketing Skills (F) Integrity and Honesty Cont… OVERALL ASSESSMENT OF PERFORMANCE Name of the Officer: ___________________________________________________ FOR OPERATIONAL ASSIGNMENTS: ATTRIBUTES Business Dimensions Qualitative Aspects of Business Managerial Dimensions Outstanding Performance TOTAL(100 MARKS) TOTAL 30 20 40 10 100 BY APPRAISER BY REVIEWING AUTHORITY NON-OPERATIONAL ASSIGNMENTS: ATTRIBUTES Key Responsibility Areas Managerial Dimensions Outstanding Performance TOTAL(100 MARKS) • • • • Outstanding Good Average Below Average (80 – 100) (60 .

Performance Appraisal ______________________________________________________________________ COMMENTS BY APPRAISER AND REVIEWING AUTHORITY: 20 .

• The appraisal is undertaken not mainly for deciding an increment but the main objective behind this is to evaluate the annual performance of the employee so that training can be provided and bank is able to find out the potentiality of 20 .Quantity of work.Team Spirit. Communication Skills. Attendance. At clerical level the superiors prepare “Confidential Report” and there is no part taken by the employees at this level. Creativity & Innovativeness. • It is observed that the review done by the Reviewing Committee gets delayed sometimes. Decision Making Ability. and Managerial Attributes like . for non-operational assignments and for operational assignments. The appraisal system followed is at officer level. Knowledge of job etc. • Apart from this the appraiser comments on Conceptual abilities. Planning and organizational effectiveness. Quality of work.e. Meeting job requirements on a timely basis.Performance Appraisal ______________________________________________________________________ FINDINGS AND ANALYSIS • • The Appraisal is undertaken every year on regular basis. Initiative and creativity etc.e.i. i. • The whole Performance Appraisal System is Designed in such a way that the appraisee can be evaluated on their Key Responsibilities Areas like . Responsiveness to corporate concerns. reliability and dependability. Effectiveness & Accuracy. Willingness to assume Responsibilities. Emotional Strength. apart from few criteria’s they are rated differently for different attributes depending on their job profile. Flexibility of mind.

managers need to be counselors. • In the whole appraisal system. helpers and teachers. in the beginning they had doubts in their minds about the issue of bias being a factor in the process of evaluation. • The employees showed eagerness to learn from their mistakes which they hoped to rectify and perform better.Performance Appraisal ______________________________________________________________________ the employees and also to maintain the records for the same for future reference so that it can be used for promoting the employee in future. In contrast the aim is to develop employees. 20 . • Employees were hopeful that after the performance appraisal is over. often superiors assume the role of judges. • Although the employees believe that performance appraisals are for their betterment. they will be properly rewarded for their work and that it was a way to ensure that their efforts don’t go unnoticed.

Performance Appraisal ______________________________________________________________________ 20 .

Performance Appraisal ______________________________________________________________________ RECOMMENDATIONS • The Performance Appraisal System is Designed in such a way that the employees can highlight their achievements and mention constraints but apart from this target should be set as goals such that people strive to attain goals to satisfy their emotions & desire. • Also the appraiser and the reviewer comments on various attributes of appraisee but there is no proper face-to-face feedback given to employees wherein the appraisee can personally discuss the problems faced by him and some solution can be arrived at. 20 . • Also major feedback is given by work itself. a personal feedback along with positive acknowledge would be welcomed by employees. • There can be sometimes some dissatisfaction on the part of the employee as the comments and review given by the superiors can be biased so care should be taken to avoid such an instance.

20 . Performance Appraisal is a very positive step taken by any organization to grow and also improve human resource quality. they will feel even more responsible and involved if the changes in their work (changes by client) are given taking their opinion. Hence.Performance Appraisal ______________________________________________________________________ CONCLUSION From the above study we can conclude that maximum employees in the agency see that the performance appraisal is a positive step taken by the organization to help them to improve their own performance. Employees feel highly responsible towards the job due to the freedom given for planning & completing their own objective. Thus it can be concluded that Performance Appraisal is one of the best methods to not only evaluate employees performance but also to motivate him and enhance his skills by providing him with proper training by knowing the constraints he faces at his work.

Human Resource and Personnel Management by Tata McGraw – Hill Publishing Company Limited. New Delhi. K Aswathappa . Third Edition.unionbankofindia.Performance Appraisal ______________________________________________________________________ BIBLIOGRAPHY Reference Books: • • K Aswathappa .com 20 . Website: • www.Organizational Behaviour.

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