A Study On Effectiveness of Performance Appraisal

System In The ICICI Bank.

By
Tania Majumder
Date of Submission:- 27-04-2020

THE ICFAI UNIVERSITY, TRIPURA

 A Study On Effectiveness of Performance Appraisal
System In The ICICI Bank.

By
Tania Majumder
ID:19IUT0160023

A report submitted in partial fulfilment of the requirements of

The MBA Program (The Class of 2019-2021)

THE ICFAI UNIVERSITY, TRIPURA

 CONTENTS

Sr.no Topic

1 Introduction

2 Objective

3 Company Profile

4 Methodology

5 Data Analysis

6 Findings

7 Conclusion

8 Conceptual Relevance

9 Reference

10 Appendix
 Acknowledgement

I would like to express my sincere gratitude to my project supervisor, Dr

Prasanjit Dasgupta(Asst. Professor, FMS) for providing his
invaluable guidance, comments and suggestions in completing my
project on “A Study On Effectiveness of Performance Appraisal
System In The ICICI Bank”
I would also like to extend my gratitude to Head of the Department Dr.
Dhananjoy Datta for providing me with all the facility that was
required.

DATE: 27/04/2020 Tania Majumder

MBA (Gen Mgmt) 1st Year
 INTRODUCTION
Appraising the performance of the individual, groups and organizations is a
common practice of all societies. While in some instance these appraisal
processes are structured and formally sanctioned, in other instances these
appraisal processes are part of daily activities. The teacher evaluates the
performance of the students, the banker evaluates the performance of the
creditor, parent evaluates the performance of their children and all of us
evaluates our own action from time to time. In social interaction, performance
evaluation is done in a haphazard an often in unsystematic way. But in
organization formal programs of evaluating employee and managerial-
performance is conducted in a systematic and planned manner have achieved
popularity in recent years.

Private Banking is one sector where a great degree of attention is being paid to
performance appraisal system. A fair, transparent and objective mechanism for
Performance Management is a must for all private banks because an effective
Performance Management system is the key to talent management and
succession planning. Economy of a country can grow only when it has a sound and
effective banking system.
 OBJECTIVE
To identify the effectiveness of Performance Appraisal System for employees in
ICICI Bank, Agartala.
 COMPANY PROFILE

Founded:- 5 January,1995

Headquarter:- Mumbai, Maharashtra, India

MD & CEO:- Sandeep Bakshi

Tagline:- “ Hum Hain Na Kheyal Apka”

ICICI Bank Limited is an Indian multinational banking and financial services

company headquartered in Mumbai, Maharashtra with its registered office in
Vadodara, Gujarat. As of 2018, ICICI Bank is the second largest bank in India in
terms of assets and market capitalisation. It offers a wide range of banking
products and financial services for corporate and retail customers through a
variety of delivery channels and specialised subsidiaries in the areas of investment
banking, life, non-life insurance, venture capital and asset management. The bank
has a network of 5,275 branches and 15,589 ATMs across India and has a
presence in 17 countries including India.
ICICI Bank is one of the Big Four banks of India. The bank has subsidiaries in the
United Kingdom and Canada; branches in United States, Singapore, Bahrain, Hong
Kong, Qatar, Oman, Dubai International Finance Centre, Chinaand South Africa;
and representative offices in United Arab Emirates, Bangladesh, Malaysia and
Indonesia. The company's UK subsidiary has also established branches in Belgium
and Germany.

ICICI Bank was established by the Industrial Credit and Investment Corporation of
India (ICICI), an Indian financial institution, as a wholly-owned subsidiary in 1994.
The parent company was formed in 1955 as a joint-venture of the World Bank,
India's public-sector banks and public-sector insurance companies to provide
project financing to Indian industry.The bank was founded as the Industrial Credit
and Investment Corporation of India Bank, before it changed its name to the
abbreviated ICICI Bank. The parent company was later merged with the bank.

ICICI Bank launched internet banking operations in 1998.

In October 2001, the Boards of Directors of ICICI and ICICI Bank approved the
merger of ICICI and two of its wholly owned retail finance subsidiaries, ICICI
Personal Financial Services Limited and ICICI Capital Services Limited, with ICICI
Bank. The merger was approved by shareholders of ICICI and ICICI Bank in January
2002, by the High Court of Gujarat at Ahmedabad in March 2002 and by the High
Court of Judicature at Mumbai and the Reserve Bank of India in April 2002.

In 2008, following the 2008 financial crisis, customers rushed to ICICI ATMs and
branches in some locations due to rumors of an adverse financial position of ICICI
Bank. The Reserve Bank of India issued a clarification on the financial strength of
ICICI Bank to dispel the rumors.

In March 2020, The board of ICICI Bank Ltd. approved an investment of Rs 1,000
crore in Yes Bank Ltd. ICICI Bank confirmed that it purchased 100 crore equity
shares of Yes Bank at Rs 10 apiece. This investment resulted in ICICI Bank Limited
holding in excess of 5 percent shareholding in Yes Bank Limited.

Approaches and Techniques in “Performance Appraisal” Used By the Bank

“Performance Appraisal” is a multistage process involving several activities,
which can be administered using a variety of approaches. Some of these
approaches are being used by the banks for “Performance Appraisal”
• Intuitive Approach: In this approach, a supervisor or manager judges the
employee based on their perception of the employee's behavior.
• Self-Appraisal Approach: Employees evaluate their own performance using
a common format.
• Group Approach: The employee is evaluated by a group of persons.
• Trait Approach: This is the conventional approach. The manager or
supervisor evaluates the employee on the basis of observable dimensions
of personality, such as integrity, honesty, dependability, punctuality, etc.
• Appraisal Based on Achieved Results: In this type of approach, appraisal is
based on concrete, measurable, work achievements judged against fixed
targets or goals set mutually by the subject and the assessor.
• Behavioral Method: This method focuses on observed behavior and
observable critical incidents.
 METHODOLOGY

Research Design: For this study descriptive research design is used.

Sampling Technique: Simple Random Sampling is used.

Sample Size: 50

Statistical Tool: Pie-Chart, Column Graph and Bar Graph have been used.

Percentage Analysis has also been used in the project.

Data Type: Primary Data and Secondary Data

Primary Data Collection Technique: Structured Questionnaire were distributed

through google form to the employees of various branches of ICICI Bank, Agartala.

Secondary Data Collection Technique: Secondary Data were collected through

Internet, Journals, newspapers related to specific industry.
 DATA ANALYSIS
TABLE 1
Gender Of Respondents
Sr. No. Gender No of Respondents Percentage(%)
1. Male 28 56
2. Female 22 24

CHART SHOWING GENDER OF THE RESPONDENTS

No Of Respondents

22

28 Male
Female

Data Interpretation: Out Of 50 respondents 28 were male and 22 were female.

 TABLE 2
Performance Appraisal Is Very Important For Improvement
Sr. No. Degree No Of Percentage (%)
Respondents
1. Strongly Agree 24 48
2. Agree 10 20
3. Moderate 11 22
4. Disagree 03 06
5. Strongly Disagree 02 04

Chart showing the degree of response of the employees

25

20

15
24
10
No Of Respondents
5 10 11
3 2
0

Data Interpretation: Out of 50 Respondents 48% respondents strongly agreed

that performance appraisal is important for improvement, 20% agreed, 22% are
moderate, 06% disagreed, and 04% strongly disagreed.
 TABLE 3
Performance Appraisal Rating Influences Personal Relationships,
Likes, Dislikes etc.
Sr. No. Degree No Of Percentage (%)
Respondents
1. Strongly Agree 05 10
2. Agree 09 18
3. Moderate 08 16
4. Disagree 12 24
5. Strongly Disagree 16 32

Chart showing responses about influence of performance appraisal rating on

personal relationships.

Degree Of Responses (%)

10%
32%
18% Strongly Agree
Agree
Moderate
16%
24% Disagree
Strongly Disagree

Data Interpretation: Out of 50 Respondents 10% respondents strongly agreed

that performance appraisal rating influences personal relationship, likes, dislikes
etc., 18% agreed, 16% are moderate, 24% disagreed, and 32% strongly disagreed.
 TABLE 4
Performance Appraisal Rating Is Helpful In Reducing Grievance
among the employees.
Sr. No. Degree No Of Percentage (%)
Respondents
1. Strongly Agree 11 22
2. Agree 27 54
3. Moderate 08 16
4. Disagree 04 08
5. Strongly Disagree 0 00

Chart showing responses about helpfulness of performance appraisal

In reducing grievances among employees

Degree Of Responses (%)

0
8 22
16 Strongly Agree
Agree
Moderate

54 Disagree
Strongly Disagree

Data Interpretation: Out of 50 Respondents 22% respondents strongly agreed

that performance appraisal rating is helpful in reducing grievances, 54% agreed,
16% are moderate, 08% disagreed, and no one disagreed strongly.
 TABLE 5
Transfer, Promotion, Demotion, Suspension, Termination etc are
based on Performance Appraisal.
Sr. No. Degree No Of Percentage (%)
Respondents
1. Strongly Agree 09 18
2. Agree 23 46
3. Moderate 09 18
4. Disagree 05 10
5. Strongly Disagree 04 08

Chart showing the relative performance

Of the responses of employees

Degree Of responses (%)

8 18
10
Strongly Agree
18 Agree
Moderate
46 Disagree
Strongly Disagree

Data Interpretation: Out of 50 Respondents 18% respondents strongly agreed

that Transfer, Promotion, Demotion, Suspension, Termination etc are based on
Performance Appraisal, 46% agreed, 18% are moderate, 10% disagreed, and 8%
disagreed strongly.
 TABLE 6
Receive Feedback On Performance From Supervisor On A Regular
Basis

Sr. No. Response No. Of Percentage (%)

Respondents
1. Yes 42 84%
2. No 08 16%

Chart Showing receiving Feedback On Performance From Supervisor On A

Regular Basis

Responses

No 8

No. Of Respondents

Yes 42

0 10 20 30 40 50

Data Interpretation: Out Of 50 respondents 84% said Yes They receive

performance feedback from the supervisor on regular basis and 16% said No.
 TABLE 7
Performance Appraisal Is Based On

Sr. No. Basis Of Performance No. Of Percentage (%)

Appraisal Respondents
1. Observation 28 56%
2. Job Or Skill related Test 22 44%

Chart Showing Basis Of Performance appraisal

Basis Of Performance Appraisal(%)

44%

56% Observation
Job Or Skill related Test

Data Interpretation: Out Of 50 respondents 56% said performance appraisal was

based on observation and 44% said it is based on Skill/job related test.
 TABLE 8
Performance Appraisal Affects The Productivity Of The Employees
Sr. No. Response No. Of Percentage (%)
Respondents
1. Positively 40 80%
2. Negetively 02 04%
3. Both 08 16%

Chart Showing effect Performance Appraisal on The Productivity Of The

Employees

Effect Of Performance Appraisal On

Productivity

40

30

20

10

Positively Negetively Both

No. Of Respondents 40 2 8

Data Interpretation: Out Of 50 respondents 80% said performance appraisal

affects the productivity of the employees positively, 04% said negatively and 16%
said both.
 TABLE 9
Present Performance Appraisal System is Transparent And Free
from Bias
Sr. No. Opinion No. Of Percentage (%)
Respondents
1. Yes 47 94%
2. No 03 06%

Opinion (%)

6%

Yes
No
94%

Data Interpretation: Out Of 50 respondents 94% said yes Present Performance

Appraisal System is Transparent and Free from Bias and 6% said No.
 TABLE 10

ICICI Bank Provides Opportunity For Growth And Development

After Performance Appraisal

Sr. No. Opinion No. Of Percentage (%)

Respondents
1. Yes 45 90%
2. No 05 10%

Opinion (%)

10%

Yes
No
90%

Data Interpretation: Out Of 50 respondents 90% said yes ICICI Bank gives
opportunity for Growth and Development and 10% said no.
 TABLE 11

Your Performance is Evaluated

Sr. No. Opinion No. Of Percentage (%)
Respondents
1. Individually 10 20%
2. In Team 05 10%
3. Both 35 70%

Evaluation Of Performance

Both 35

In Team 5 No. Of Respondents

Individually 10

0 10 20 30 40

Data Interpretation: Out Of 50 respondents 20% said Performance is appraised

on the basis of Individual Contribution, 10 % said on the basis of teamwork and
70% said both.
 FINDINGS
1. Majority of the Employees strongly agree that Performance
Appraisal Is Very Important For Improvement.

2. Majority of the Employees strongly disagree Performance

Appraisal Rating Influences Personal Relationships, Likes, Dislikes
etc.

3. Majority of the Employees agree that Performance Appraisal

Rating is Helpful in Reducing Grievance among the employees.

4. Majority of the Employees agree that Transfer, Promotion,

Demotion, Suspension, Termination etc are based on
Performance Appraisal.

5. Majority of the Employees say they Receive Feedback on

Performance From Supervisor On a Regular Basis.

6. Maximum Employees said Performance Appraisal Is Based on

Observation.

7. Maximum Employees say that Performance Appraisal Affects

Their Productivity Positively.
 8. Maximum Employees agree that Present Performance Appraisal
System is Transparent and Free from Bias.

9. Maximum Employees says that ICICI Bank Provides Opportunity

for Growth and Development after Performance Appraisal.

10. Maximum Employees say that Performance is evaluated on the

basis of both.

CONCLUSION
All the results observed and achieved during the project clearly indicate the
importance and need of performance appraisal in the organization.

The study reveals that the employees perform their duties well and performance
appraisal continuously, motivate the employees to achieve their goals indirectly
helping the organization to achieve its goals.

People differ in their abilities and their aptitudes. There is always some difference
between the quality and the quantity if the same work is done by different
people. Therefore, Performance Management and Performance Appraisal is
necessary to understand each employee’s abilities, competencies and relative
merit and worth for the organization.

Performance management includes activities to ensure that goals are consistently

being met in an effective and efficient manner. Performance management can
focus on performance of the organization, banks, a department, processes to
build a product or service, employees, etc.
Performance management reminds us that being busy is not the same as
producing results. It reminds us that training, strong commitment and lots of hard
works alone are not results. The major contribution of performance management
is its focus on achieving results – useful products and services for customers
inside and outside the bank and organization. Performance management
redirects our efforts away from business toward effectiveness.

CONCEPTUAL RELEVANCE
1. What is Performance?

 Performance means both behaviours and results. Behaviours emanate from

the performer and transform performance from abstraction to action. Not
just the instruments for results, behaviours are also outcomes in their own
right the product of mental and physical effort applied to tasks and can be
judged apart from results (Brumbrach, 1988).

2. What is Performance Appraisal and Performance Management?

 Performance appraisal can be defined as the formal assessment and rating

of individuals by their managers at usually an annual review meeting.

 Performance Management is a much broad, more comprehensive and

more natural process of management that aims to clarify mutual
expectations and emphasizes the support role of managers, who are
expected to act as coaches rather than judges and focuses on the future.

3. Objective of Performance Appraisal.

 Replaced Confidential Reporting (CR) System which remained unknown to

the employees;
  Traditionally Performance Appraisals undertaken to let an employee know
how his/her performance compared to supervisor’s expectations;
 To identify areas where employee needs training and development;
 To use it as a tool of assessment for increment, promotion.

4. Benefits Of Performance Appraisal System.

 Individuals are hired by the organization to perform work needed for

success of the organization, Performance Appraisal serves as organization’s
tool of assessment to find whether it is getting rightful dues from the
employee;
 Individual’s differ how well and how conscientiously they do their work;
appraisal is necessary to account for difference in expectations and
performance;
 In legal environment performance appraisal serves as a tool to defend
organizations’ action against an employee for non performance.

5. Methods Of Performance Appraisal.

The various methods that belong to two categories :

1.Ranking Method
Traditonal
2.Paired Comparison.
Performance
3.Grading Scale
Appraisal Methods
4.Forced Distribution Method
5.Forced Choice Method.
6.Checklist Method.
7.Critical Incidents Method
8.Graphic Scale Method
9.Essay Evolution Method
10.Confidential Method
Modern
Performance 1.Management By Objective (MBO)
Appraisal Methods

2.360 Degree Feedback

3.Assessment Centre Method

4.Behaviourly Anchored Rating Scales

(BARS)
5.Psychological Appraisals

REFERENCES
• www.scribd.com
Date and Time Of Viewing: 21 April,2020; 9:00 pm.

• www.slideshare.net
Date and Time Of Viewing:22 April,2020; 8:30 am.

• www.wikepedia.org
Date and Time Of Viewing:22 April,2020; 9:30 am.

• www.researchgate.net
Date and Time Of Viewing:22 April,2020; 7:30 pm.

• Human Resource Management, By ICFAI Press.

 APPENDIX
Questionnaire for the Survey On Effectiveness of Performance
Appraisal System In Different Branches Of ICICI Bank, Agartala.
Personal Details
Age:

Gender:

Branch:

1) Performance Appraisal Is Very Important For Improvement

A. Strongly Agree, B. Agree, C Moderate, D. Disagree ,E. Strongly

Disagree

2) Performance Appraisal Rating Influences Personal Relationships,

Likes, Dislikes etc.
A. Strongly Agree, B. Agree, C. Moderate, D. Disagree ,E. Strongly
Disagree

3) Performance Appraisal Rating Is Helpful In Reducing Grievance

among the employees.
A. Strongly Agree, B. Agree, C. Moderate, D. Disagree ,E. Strongly
Disagree

4) Transfer, Promotion, Demotion, Suspension, Termination etc are

based on Performance Appraisal.
A. Strongly Agree, B. Agree, C. Moderate, D. Disagree ,E. Strongly
Disagree

5) Receive Feedback On Performance From Supervisor On A Regular

Basis
A. Yes B. No
6) Performance Appraisal Is Based On-
A. Observation B. Skill Or Job Related Test

7) Performance Appraisal Affects The Productivity Of The Employees.

A. Positively, B. Negatively, C. Both

8) Present Performance Appraisal System is Transparent And Free from

Bias.
A.Yes B. No

9) Bank Provides Opportunity For Growth And Development After

Performance Appraisal.
A. Yes B. No

10) Evaluation Of Performance is based on:-

A. Individual Contribution, B. Teamwork, C. Both