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REPORT
ON
Performance Appraisal
system in
Submitted by:-
Mrs.Nivedita Verma
Ragini Singh
Faculty of management
MBA (1142870038)
DECLARATION
I
Ragini Singh, a s t u d e n t o f M . B . A . 4 t h
s e m e s t e r, K a s h i
I n s ti t u t e o f Techn o lo g y,
Mirzamurad
varanasi.
Batch
2011-13
hereby declare that the research report titled
Performance Appraisal System in CENTRAL
BANK OF INDIA IN VARANASI is my own work
and effort .
The research report has been submitted to
Kashi Institute
o f T e c h n o l o g y , M i r z a m u r a d , varanasi for
the
fulfillment
of
the
requirement
of
University to obtain the degree of Master of
Business Administration in HR & marketing
Date:
RAGINI SINGH
Roll No
TABLE OF CONTENTS
1. Preface
2. Acknowledgement
3. Introduction
4. Company Profile(Central Bank of India)
5. Research Objectives.
6. Research Methodology
7. Human Resource approach
8. Introduction to performance appraisal system.
9. Data analysis and interpretation
10. Findings
11. Suggestion
12. Limitations
13.
Appendices (Questionnaire)
14. Bibliography
PREFACE
ACKNOWLEDGEMENT
Not a single gram can be breaking the whole vessel. This is a
common saying and it is correct. A project is not an outcome of a
single participation but it is a team work. So, I take this opportunity
to thank all those people who have helped me throughout my
project.
Last, but not least, I would like to thank God, without whom none of
this would have ever happened
RAGINI SINGH
INTRODUCTION
Appraisal
indicates
the
level
the
to
process
acquire
and
of
HRD
helps
development
the
technical,
individuals
goals
directly
determines the
T h e s t u d y h i g h l i g h t e d t h e Performance Appraisal:
a) Techniques
b) Approach,
c) Forms
d) Managerial approach,
e) Employees feedback
,f) process and
other real aspect of
of
the
d ata
is
effective
managerial
tool
to
enhance
the
study
refers
to
the
role
of
Performance
aspect
organization
of
the
under
appraisal
the
Performance Management .
from
universal
employees
approach
to
called
RESEARCH OBJECTIVES
To understand the concept of HR in special reference of
performance appraisal.
To study the Performance Appraisal systems in Central
Bank of India.
To assess the degree of awareness among employers
and employees on performance appraisal in Central
Bank of India.
To know the satisfactory level and comfortable level
between the employers and employees.
To assess whether the appraisal done without any bias
the employees.
To know and identify merits and demerits of
performance appraisal system in Central Bank of India.
RESEARCH METHODOLOGY
RESEARCH METHODOLOGY
The word research is derived from the Latin word meaning
the
results.
It
disseminates
the
findings
to
so
procedures
can
be
duplicated
or
understood by others
Empirical, so decisions are based on data collected
Reductive, so it investigates a small sample which
can be generalized to a larger population
Replicable, so others may test the findings by
repeating it.
Discovering new facts or verify and test old facts.
RESEARCH DESIGN
Research Design specifies the methods and procedures for
conducting a particular study. A Research Design is the
arrangement of conditions for collection and analysis of the
data in a manner that aims to combine relevance to the
research purpose with economy in procedure. Research
Design is broadly classified into three types as:
with
describing
the
characteristics
of
SAMPLE DESIGN
It is needless to say that no investigator can study the entire
Sampling Unit
2.
Sample Size
3. Sampling Procedure
4. Collection of Data
SAMPLING UNIT
A
sampling
framework
i.e.
developed
for
the
target
1 . P o p u l a t i o n : T h e p o p u l ati o n for t h e p r e s e n t
s t u d y c o n s i s ts o f a l l t h e employees of Central Bank
of India working at Lanka, Varanasi Branch.
QUESTIONNAIRES
A Questionnaire is by far the most common instrument in
collecting Primary Data. It consists of a set of Questions
presented to respondent for his or her answers.
(2)SECONDARY DATA COLLECTION
A Research usually starts with the investigation by
examining Secondary data to see whether the problem can
be partly or wholly solved without collecting costly Primary
Data. It can be collected through Internal Sources (Company
Profit and Loss Statement, Sales Figures, Sales Call
COMPANY PROFILE
Key Attributes
Presence in India
Mr. Kalianji
Directors
Directors of Central Bank of India & their address:
Shri . M.V.Tanksale
Chairman & Managing Director
Corporate Vision
Corporate Mission
The pan-India spread of branches across all the state of the country
will be utilized to further the socio economic objective of the
Government of India with emphasis on Financial Inclusion.
On March 15, 1912 the share list was closed and the Bank's
capital of Rs. 20 lakhs was fully subscribed. An old directory
of that time states, "This banking institution was
commenced at Bombay in December 1911 with an
authorized capital of Rs.50,00,000 divided into 1,00,000
shares of Rs.50 each while its subscribed capital amounted
to Rs.20,00,000 one half of which was paid up. The Bank
very quickly secured the confidence of the public owing to
the sound financial position of its directors and the
business-like manner in which its officials conducted its
affairs."
was
of
cautious
conservatism
allied
to
sound
to
rumours
that
the
Bank
had
sufferedlarge,
public
relations
person
to
publicise
the
strength,
magnificent
premises
designed
by
George
Wittet
Rehman
Street,
Sandhurst
Road,
Kalbadevi
and
Bhuleshwar.
The Bank's first branch outside of Mumbai was opened in
Karachi in August 1913. In Kolkata the Bank began its
operations in 1916. The Chairman, A. J. Billimoria, at the
time of opening the branch said, "It seemed to the directors
that the increasing economic contiguity between the two
great provinces of the Empire, namely Bengal and Bombay,
may be accelerated by banking facilities especially suited to
Indian requirements which are of so much importance to the
preservation and development of economic solidarity among
of
that
the
Bank
was
stable.
Two
incidents
portion
of
its
bad
debts
and
streamlined
its
management. This was the first time one bank had taken
over the management of another.
The other was the merger of Tata Industrial Bank with the
Central Bank of India - the first merger in Indian banking
history. The Tata Industrial Bank had been established in
December 1917 with an authorised capital of Rs. 12 crores
and was managed by Europeans.
The Bank suffered exchange losses and was badly affected
by the failure of the Alliance Bank of Simla. Its investments
began to depreciate rapidly. There was a rapid decline in its
deposits from Rs. 6 crores at the end of March 1923 to a
little over Rs. 2 crores at the end of August that year. Even
These included:
1923 - 6 percent debentures of Bombay Steam
Navigation Company
1926 - 8 percent debentures of Tata Hydro
1932 - 6 percent debentures of Andhra
1935 - Swadeshi Mills' preference shares
subsidiary was closed in1943. Until 1923, the Bank had only
19 branches. This grew gradually to 23 by 1929 and 29 by
1932. However, there was a spurt and in 1933, 34 branches
were opened. This grew 88 branches by 1937 when there
were more branches opened and by 1943, the Bank had 217
branches.
had
Jamsaheb
monopoly
based
on
in
the
Nawanagar
confidence
granted
he
had
by
the
on
Mr.
Governments
of
Travancore
and
Bhopal.
Pre-
India,
this
was
breakthrough
for
the
Swadeshi
movement in banking.
His being knighted was remarkable as it was the first time
that a banker European or Indian other than the head of
Imperial Bank of India had been knighted. In order to ensure
being
businessmen
and
highly
local
respected
leaders.
and
These
experienced
boards
were
Silver Jubilee
In 1936 the Bank celebrated its Silver Jubilee. The Bank was
clearly the largest Bank in the country and its reputation
was unassailable. Its directors were eminent businessmen
and respected public figures.
The Bank completed 25 years of service to the nation in
1936 and its Silver Jubilee was celebrated all over the
country. At that period its paid-up capital and reserves stood
at Rs. 2.5 crores. Deposits amounted to over Rs. 31 crores
and the Bank has as many as 84 branches. On the occasion
of the Jubilee tributes came pouring in from official and nonofficial quarters praising the Bank's competence, its strict
adherence to the canons of financial rectitude and the
judicial blending in its policies of
A year after Sir Sorabji's death, Sir Feroze Sethna who had
been Chairman from 1921 onwards died. He was succeeded
by Sir Homi Mody who continued as Chairman from 1938 to
1966 but with two breaks in 1941 and from 1949 to 1951.
During this time Mr. Haridas Madhavdas and Mr. Dinshaw
Romer respectively were Chairmen.
The Bank was extremely employee focused and was keen to
encourage them. Sir Pochkhanawala believed that the Bank
would grow only if its employees were competent and well
trained. To enable the staff to acquire a sound knowledge of
banking and economic theory, the Bank established, in 1922,
a well-equipped library containing hundreds of books and
journals. This was an initiative to create a sense of career
among staff members. In addition, the Bank organised
regular training courses for staff. This was usually after
banking hours from 8 pm to 9 pm.
Every member of the staff was encouraged to join. Books
were provided free and the staff was advised to appear for
the examination of the British Institute of Bankers (the
Indian Institute of Bankers was not in existence then).
Almost
every
month
seminars
were
held
on
banking,
financial
merchants.
and
currency
experts
and
bullion
and
made
them
profitable.
He
thus
disproved
Human
resource
maximize
the
management's
return
on
objective
i nves t m e n t
is
from
to
the
Human
Resources
(HR)
function
provides
be
well
understood
as
model
mangagement.
of
personnel
That
fo c u s e s o n t h e i n d i v i d u a l r a th e r t h a n t a k i n g a c o l l e
c t i ve a p p r o a ch.
Responsibility for human resource management is often
devolved
to
l i n e m a n a g e m e n t . I t i s cha r a c t e r i z ed b y a n e m p h a s
i s o n s t r a t e g i c integration,
employee
commitment,
most
streamlining
efficient
work
and
productive
force
methods
management
of
policy.
maintenance
HRM activities
perceptions
but
it
of
becomes
the
the
HR
or
outcome
the
of
General
strategic
consensus.
H u m a n Res o u r c e s M a n a g e m e n t t r a i n s a n d m o t i v a t e
s the employees by
communicating ethical policies and
socially
HRM.
dynamic,
Modern
competitive environment
of t o d a y
only
if
they
capitalize
on
the
full
potential
of
each
o p e r a ti o n s .
The
recruitment
and
s e l e c t i o n o f t h e b e s t e m p l oyee s i s a ver y d i f f i c u l t
o b l i g ati o n .
Even c o m p a n i e s
ten
places
to
that
work
are
at,
voted
in
often
the
top-
endure long
an
organization
challenges
and it is
arise
should
even
now
care
for
about.
New
the organization,
to emerge.
Therefore, the use of
techniques
is
proper
really
Human
Resources
powerful
way
for
goals
their
but also
qualitative,
cognitive aspects.
INTRODUCTION
SYSTEM
TO PERFORMANCE
APPRAISAL
as
it
is
only
appraisal system
openness,
fairness;
should
recognize
address
clarity,
productivity
through
decisions
on
performance
utilise
several
given group.
Performance appraisal can be either formal or informal.
Usage of former systems
schedule regular sessions in which to discuss an employees
performance.
Informal
appraisals
are
unplanned,
often
just
chance
Timelineness,
Cost effectiveness,
To
effect
promotion
based on
competence
and
performance.
To
assess
the training
&development
needs
of
the employees.
To bri dge the ga p between the exis ting perf
o r m a n c e & d e s i r e d performance.
To help each employee to understand his own strengths
&weakness.
They
can
be
mechanism
of
increasing
It
provides
promotion,
legally
transfer,
defensible
and
reasons
reward
and
for
making
discharge
decisions.
They can be instruments to provide an opportunity for
employees
for s e l f r e f l e c t i o n a n d g o a l s e t t i n g s o t h at i n d i v
idually plan
and
monitored
development
takes
place.
EVALUATION TECHNIQUES:
The six steps in performing evaluations
1. Establish performance standards for each
position and criteria for evaluation:
In setting
2.ESTABLISH
POLICIES
ON
RATE, WHO
PERFORMANCE
WHEN
SHOULD
TO
E VALUATI O N
RATE ,OFTEN
RATE
&
WHEN
TO
TO
RATE:
When to rate:
Usually, all employee are rated on/ near the same
date in a Company.
How often rate:
TRADITIONAL METHODS:
Individual evaluation methods:
Individual evaluation methods are those techniques
when the standards of performance are defined
individually, without references to other person(s).
Advantages:
1. It is easy to understand, use & permits a statistical
tabulation of scores
2. The scores indicate the worth of every individual.
3. its the most common evaluation tools in use today.
Disadvantage:
1. Its arbitrary & rating is generally subjective.
2. It assumes that each characteristic is equally
important for all jobs
3.The
ments
person
is
who
freed
is
making
from
the
judg
d i r e c t quantitative
person
can
whom
makes
is
as
making
the
jud
f i n e discrimination of
merit as he chooses.
For c e d c h o i c e :
Is technique when rater must choose from a
s e t o f descriptive statement about an
e m p l o y e e . T h e m e t h o d w a s d e v e l o p e d t o substitute
graphic rating scales, as graphic rating scales permits to
evaluate all the employees high.
Essay evaluation:
In wh ich the rater is asked to describe the
strong & week aspects of the employees
behavior by a super v isor
Usually, this method is used in
combination with other methods.
Advantages:
If
the
rather believers
that
the
score
number of
from the
checklist
equals
the
case
when
the
superior
is
asked
to
rank
the
Advantages:
Easy to use
The relative position of each man is tested in terms of
his numerical ranks.
used
in
subordinates
case
where
to
there
are
be
several
ranked.
Eache m p l o y e e i s p a i r e d w i t h e v e r y p e r s o n t o
b e c o m p a r e d w i t h . T h e r a t e r chooses
as
the
Advantages :
It results are tabulated and a rank is assigned to each
individual to he/she show stands in relation to others.
Disadvantages:
When number of group is large, number o
f
j u d g m e n t s b e c o m e s excessively large.
Forced distribution method:
Its the method similar to grading on a curve. This
rater is asked to rate the employees in some fixed
Assessment center:
resources
to
the
organization cost of
manpower
recruitment,
planning,
placement, training
etc.
employee
employee
induction,
contribution
service,
selection,
which
can
is
the
be
money
measured
value of
by
labor
M a n a g e m e n t b y Objectives (MBO):
MBO is more than just an evaluation program &
process it is viewed as a philosophy of managerial
practices a method by which managers plan,
organize, control, communicate and debate. By
setting
objective through participation or by assign
m e n t f r o m a s u p e r i o r , t h e subordinate is provided
with a course to follow & a target to shoot for,
while performing the job.
B e n e fi t s o f M B O :
An MBO system provides the following benefits to the
organizations:
1). It establishes linkage between the performance of
the individual & the organizations hence both more in the
achievements of the same objective.
2) It becomes easy to implement because those who carry
out the plans also participate in setting up these plans
3) The communication chain between & among employees &
or units are clearly established facilitating information
sharing.
4) It identifies performance deficiencies.
Depends mainly
employee.
The
performance
include:
evaluation
discussions should
a )Revie w of over a ll pr o g r e s s .
b)Discussions of problems encountered
c)Agreement
about
improvement possibilities.
potential
performance
Key
performance
areas,
self
appraisal,
performance
analysis,
performancea n a l y s i s , p e r f o r m a n c e r a t i
ng & uncounseling are the most imp
o r t a n t components of a development oriented
performance appraisal system.
identifying
possible
direction
of
growth,
significant
initial
step
for
performance
development.
Performance counseling
Performance counseling can be defined as the help provided
by a manager to his subordinates in analyzing their
performance
and
other
job
behaviors
in
order
to
of
the p e r f o r m a n c e o n t h e j o b a n d i d e n t i f i c a t i o n o f
t r a i n i n g n e e d f o r f u r t h e r improvement. It focuses on
the entire performance during a particular period rather
than on specific problem. Counseling is a dyadic
process.
Its
based
on
the
relation
between
two
Objective of counseling:
Counseling aims at development of the counselee. It
involves the following:
Encouraging
him
improvement.
Helping him
weakness.
to
set
goals
for the
understand
himself,
his
various
action
future
strengths
plans
&
for
understand
himself,
his
strengths
&
Clarity of objectives.
Public relation.
Data management.
Attitude.
Knowledge of job.
Acceptance of responsibility.
Development of subordinates.
Risk-Taking.
Delegating.
e m p l o y e e s
a r e
w a r y
o f
perfo
System design & operating problemIf the criteria of evaluation are poor, the technique used
cumbersome, or the system is more f r o m t h a n
substance, the design is blamed & the
e v a l u a t i o n i s worth nothing.
Rater problem- The rater problem such as:
Problem with standard of
ev a l u a ti o n - Which arises due to the
perceptual difference in the meaning
of the words use to evaluate
employees?
T h e H a l o E f f e c t - It occurs when the
rater
assigns
severald i m e n s i o n s
med
based
general
on
an
of
perfor
overall,
Raters
forget
employees
higher
&
those not
preferred lower.
E m p l oy e e s p r o b l e m w i t h p e r f o r m a
n c e ev a l u a t i o n The m o s t c o m m o n p r o b l e m i s t h a t
employees
may
feel
that
the
e v a l u a t i o n s a r e u n f a i r. I n o r d e r t o a v o i d t h i s p e r
ception, it
should
be
presented
how
difficult
is
the
evaluation
uation
of
achieving this
aim.
Central tendency error- The tendency of the raters
to assignaverage ratings for all the dimensions
The following questions can provide an assessment of
performance appraisal system:
1. What purposes does the organisation want its
performance appraisal system to
serve?
Option
YES
NO
Total
b) NO
No. of respondent
50
0
50
Percentage
100
0
100
the
employees feel that performance appraisal is quit essential
for any organization
Option
YES
NO
Total
b) NO
No. of Respondent
42
8
50
Percentage
84
16
100
Interpretation:
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 do not provides growth & learning
of employees.
Q.3. Periodicity
be on:
a) Quarterly basis
basis
Option
Quarterly
Half-yearly
Annual
Total
of
performance
appraisal
b) Half-yearly basis
No. of respondent
8
12
30
50
Percentage
16
24
60
100
should
c) Annual
Interpretation:
From the above data it is evident that 60%o
f the employees feel that performance appra
isal should be done on annual basis & 24% o
f t h e employees feel should be in done on half yearlbasis
16% of the employees feel should be done in quarterly basis.
Q.4. The present performance appraisal of your organization
distinguishes the performers & non performers?
a) Strongly agree
Option
Strongly agree
Agree
Disagree
Strongly disagree
Total
b) Agree
c) Disagree
No. of respondent
5
37
8
0
50
d) Strongly disagree
Percentage
10
74
16
0
100
Interpretation:
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 p e r f o r m e r s , w h e r e a s 1 0
s t r o n g l y a g r e e a n d 1 6 % d i s a g r e e d o e s n t distinguishes
performers & non-performers.
Q.5. T h e p e r i o d i c a l p e r f o r m a n c e a p p r a i s a l o f e m p l o y e e s
i s r e q u i r e d f o r maintaining efficiency of individual or organization?
a) YES
Option
Yes
No
Total
b) No
No. of Respondent
48
2
50
Percentage
96
4
100
Interpretation:
From the above it shows that 96% of the employees
f e e l t h a t p e r i o d i c performance appraisal of the employee is required
for maintaining efficiency of individual and organization and above 4% of
the employees feel that it is not required to maintained.
No. of respondent
2
27
3
Percentage
4
54
9
Both a & b
Total
18
50
36
100
Interpretation:
From the above data it shows that 54% of the
e m p l o y e e s f e e l t h a t performance appraisal in railways is
based upon performance 36% feel that it based on both performance and
recommendation 7 trade union.
Q.7. T h e a p p r a i s a l s y s t e m i s h e l p i n g e a c h e m p l o y e e t o
d i s c o v e r h i s / h e r potential & make their short comings?
a) Agree
b) Disagree
c) Strongly Disagree
Option
Agree
Disagree
Strongly Agree
c) Strongly Agree
No. of respondent
38
6
5
Percentage
76
12
10
Strongly Disagree
Total
1
50
2
100
Interpretation:
From the above data it shows that 76% of the employees
feel that appraisal system discovers potential and make their short
comings and 12% employees feel that it does not discover potential.
Q . 8 . How often did you speak, or discuss about your performance with
your superiors?
a) Frequently
Option
Frequently
Sometimes
Rarely
b) Sometimes
c) Rarely
No. of respondent
16
19
9
d) Never
Percentage
32
38
18
Never
Total
6
50
12
100
Interpretation:
From the above data its evident that 38% of the employees
said that they sometimes and 32% frequently speak with their
superiors about performance.
No. of respondent
16
32
1
1
50
Percentage
32
64
2
2
100
Interpretation:
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.
Q.10. Which type of performance appraisal system do you think is appropriate for
your organization?
a) Traditional method b) Modern method
d) If any other.(specify)
Option
Traditional
Modern
No idea
Total
No. of respondent
15
20
15
50
c) No idea
Percentage
30
40
30
100
Interpretation:
From this, it is found that 30% of the employees feel that traditional method of
performance appraisal is better whereas 40% of them feel modern methods have its
own advantage and 30% among them have no idea about this that which method
will be best suited.
FINDINGS
FINDINGS
It has been found that most of the employee
s t h i n k t h a t t h e 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.
The appraisal system facilitates growth &
employees and it is used to distinguish performers.
learning
of
CONCLUSION
CONCLUSION
The performance appraisal system should facilitate
career growth &learning of employees.
The short coming of employees should be informed to
them after performance appraisal.
Promotion should be based on performance rather than
seniority or any other factors.
SUGGESTIONS
SUGGESTIONS
T h o u g h i t i s t h e b a s i c r u l e o f t h e r e p o r t w ri t i n g
t h at s u g g e s t i o n a n d recommendation should not be
given until its asked for but to keeping in the
mind the academic nature of the report we
w o u l d l i k e t o recommend the followings:
LIMITATION
LIMITATION
The study is limited to CENTRAL
INDIA, Lanka,Varanasi branch.
BANK
OF
LEARNINGS
BIBLIOGRAPHY
BIBLIOGRAPHY
BOOKS :
Kothari C.R. Research Methodology, Second edition,
Wishwa Publication, 2002
Kings Stephens- Applied Business Statistics
2 nd Edition.
Human Resource Management,VSP Rao,
IInd edition.
MAGAZINES:
Business word
Business standard
INTERNET:
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www.managementstudyguide.com
QUESTIONNAIRE
NAME
________________________________
AGE
:_________
Gender:
____________________
Designation
_________________________
Q.2.D o e s
Appraisal
b) No
System
of
your
b) No
b)Half-yearly basis
Q.4. The
present
organization
Performance Appraisal
distinguishes
the
of
your
performer
&
non performers?
a) Strongly agree
b) Agree
c) Disagree
d) Strongly disagree
required
for maintaining
efficiency
of
individual
& organization?
a) Yes
b) No
Performance
Appraisal
of
your organization
b) Disagree
d) Strongly Disagree
b) Sometimes
d) Never
b) Moderate extent
d) Not at all
b) Modern method
d) If any other.(specify)