SYNOPSIS

Title:-

“A STUDY REPORT ON PERFORMANCE APPRAISAL SYSTEM

IN HDFC BANK.”

INTRODUCTION:-

Performance appraisal is an integral part of HRM and HRM deals with personnel is
people. “People” is the important and valuable resource that every organization or
institution has in the form of its employees. Dynamic people can build dynamic
organization. Effective employees can contribute to the effectiveness of the
organization. HRM has multiple goals, which include employee’s competency
development, employee motivation development and organization development.
Employees require a variety of competencies, knowledge, attitude, skills in
technical area; Managerial areas, behavioral and human relations areas and
conceptual area to perform different tasks or functions required by their jobs.

OBJECTIVES OF THE STUDY:-

 To understand the concept of HR in special reference of “Performance

Appraisal”

 To study the application of “Performance Appraisal” in HDFC Bank.

 To understand the management approach towards “Performance Appraisal”.

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  To highlight the effectiveness of “Performance Appraisal” in the
organization.

 To give suitable Suggestions for improvement.

PROBLEM STATEMENT:-

Factors that are considered as problems in Performance appraisal are:

1. Failure of the superiors in conducting performance appraisal and post-

performance appraisal interview.
2. Most part of the appraisal is based on subjectivity.
3. Less reliability and validity of the performance appraisal techniques.
4. Negative ratings affect interpersonal relations and industrial relations
system.
5. Influence of external environmental factors and uncontrollable internal
factors.
6. Feedback and post appraisal interview may have a setback on production.
7. Management emphasizes on punishment rather than development of
anemployee in performance appraisal.
8. Some ratings particularly about the potential appraisal are purely based on
guess work.

LITERATURE REVIEW:-

Review of literature is a systematic survey on the facts and figures of previous

researches on a particular topic. It is a collection of major findings of past
researches.

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ALFORD AND BEATTY says, "It is the evaluation or appraisal of the relative
worth to the company of a man's service on the job". FLIPPER says,
"Performance Appraisal is a systematic, periodic and so far as humanly possible
and impartial rating of employee's excellence of matters pertaining to his
potentialities for a better job". Performance appraisal has been defined in many
ways. The simplest way to understand the meaning of performance appraisal is as
follows: “A regular and continuous evaluation of the quality, quantity and style of
the performance along with the assessment of the factors influencing the
performance and behavior of an individual’s called performance appraisal”.
Cleveland, Murphy, and Williams (1989) argued that there is a relationship
between organizational characteristics and the uses of a performance appraisal
system. Stonich (1984) also argued that performance measurement in an
organization should be in tune with its structure and culture. Since the nature of the
enterprises in which each industry is engaged varies, its organizational type,
business policy, internal and external environment are also usually different. The
purpose of this study is to conduct a direct comparative analysis of performance
appraisal system in the service and manufacturing industries. Apart from
organizational control, Ilgen, Barnes-Farrell, and McKellin (1993) concluded,
from their extensive review of the literature since the 1980s about performance
appraisal, that there are four aspects that need to be considered. In practice
performance appraisal systems cover a wide range of these aspects, and seldom
have exactly the same nature and functions. In order to integrate findings in the
area, Chu (2002) proposed a comprehensive framework including six categories,
namely, appraisal purposes, appraises personnel, appraisal criteria, appraisal
methods, appraisal timings, and appraisal feedback. This study will adopt this
framework to compare performance appraisal systems in the service and
manufacturing industries

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 METHODOLOGY:-

RESEARCH DESIGN

This study will be exploratory and descriptive in nature.

VARIABLES

(1). Independent: Sex, age, income

(2). Dependent: Employee motivation.

TOOLS OF DATA COLLECTION

Primary tool: Interview schedule

Secondary tool: library, books, journals, internet, newspaper, magazines

The study will be covered based on the following steps:
A) DATA COLLECTION: The data to be collected from the two main sources
namely:
 Primary Source of data
 Secondary Source of data

PRIMARY SOURCE
Primary source includes the data that is to be collected from HDFC Bank and selected
respondents. The required information is to be collected in the following ways:
 Administered a structured questionnaire.
 On the basis of observation.
 By interacting with the concerned employees.

Tools used for data collection are as follows:

 Discussions (Unstructured Discussions)
 Questionnaire (Structured Questionnaire)
Unstructured Discussion:
Under this method of data collection I am going to personally interview the
respondents to gather the information. The respondents will be asked to present their
views and opinions about the topic under discussion. The opinions of the respondents
will be used as the primary source of information for preparing the study report.

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Structured Questionnaire:
It is usually associated with the self-administered tools with items of the closed or
fixed alternative type. The respondents feel greater confidence in the anonymity of
questionnaire than in that of any interview. It places less pressure on the subject of
immediate response. These are the reasons for choosing questionnaire as one of the
tools for data collection.
The questionnaire consists of two types of questions:
Close-ended questions: The close-ended questions will be consisting of multiple
choices, which will have a choice of specific answers.
Open-ended questions: An open-ended question is a question where no choices of
answer are given the respondent and the respondent will be given freedom to respond
according to his wish.
SECONDARY SOURCE
Secondary source is that information that is obtained from those sources other than
direct sources and the information is collected through the mentioned ways.
 Company’s Website.
 Magazines and Journals.
 Text books published on Human Resource Management.
 Websites and Search engines.
 Other records.
SAMPLE SELECTION:
A sample is known as the sub-unit of population which shares the similar features.
The number of units in the sample is known as the sample size.

SAMPLING METHOD

I will select respondents randomly that is why simple random sampling method will
be used.

SAMPLE SIZE

Sample of present study will consist of 100 respondents of various departments of

HDFC Bank.

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 REFERENCES:-

BOOKS

 Radha. “Human Resource Management “.

 Arora P.N and Arora. S Statistics for Management.

 Kothari C.R. Research Methodology.

Website:-

 www.hdfcbank.com

 www.wikipedia.com

 www.google.com

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