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Submitted By

Submitted to Panjab University, Chandigarh

in partial fulfillment for the requirement
of the degree of


Submitted to: Submitted by:

Mrs. Monica Kanika Verma
BBA (3rd year)
Pupin No.14310000444



I certify that the project report “PERFORMANCE APPRAISAL ON AXIS BANK” has been
undertaken by me for the partial fulfillment of the requirement of degree of Bachelor of Business
Administration and is an original piece of work done by me and that no part of this project has
been submitted for any other degree, diploma, fellowship or similar title in university or in any
other university.

I express my sincere gratitude to my advisor Mrs. Monica for her valuable guidance support and
cooperation extended for completion of this project.




This is to certify project report entitled “PERFORMANCE APPRAISAL ON AXIS BANK”

submitted for the degree of BBA does carry out a bonafide research work under my guidance,
and no part of this project has submitted for any other degree.

Project advisor

Mrs. Monica


Managing human resources in today’s dynamic environment is becoming more and more
complex as well as important. Recognition of people as a valuable resource in the organization
has led to increases trends in employee maintenance, job security, etc

My research project deals with “Performance Appraisal as carried out at AXIS BANK LTD. In
this report, I have studied &evaluated the performance appraisal process as it is carried out in the


I hereby take this opportunity to put on record my sincere thanks to Mrs. Monica (Project Guide)
for her valuable suggestion and cooperation to achieve the task.

I would also like to express my sincere thanks and gratitude to my banks guide Paran Gupta
(customer service).He have been immensely contributive with his ideas which was the guiding
light during the entire tenure of this work

Kanika Verma


Sr no Contents Page no.

Company profile

Review of the literature

Research Methodology& Objective





Appendix & Questionnaire





Axis Bank Limited, formerly UTI Bank is a financial services firm that had begun
operations in 1994, after the Government of India allowed new private banks to be established.
The bank changed its name to Axis Bank in April 2007 to avoid confusion with other unrelated
entities with similar name. After the Retirement of Mr. P. J. Nayak, Shikha Sharma was named
as the bank's managing director and CEO on 20 April 2009.

The Bank's Registered Office is at Ahmedabad and its Central Office is located at Mumbai. At
the end of September 2010, The Bank has a very wide network of more than 1281 branches and
Extension Counters (as on 31st December, 2010). The Bank has a network of over 6270 ATMs
(as on 31st March, 2011). The Bank has loans now (as of June 2007) account for as much as 70
per cent of the bank’s total loan book of Rs 2,00,000 crore. For HDFC Bank, retail assets are
around 57 per cent (Rs 28,000 crore) of the total loans as of March 2007.

In the case of Axis Bank, retail loans have declined from 30 per cent of the total loan book of Rs
25,800 crore in June 2006 to around 23 per cent of loan book of Rs.41,280 crore (as of June
2007). Even over a longer period, while the overall asset growth for Axis Bank has been quite
high and has matched that of the other banks, retail exposures grew at a slower pace.

If the sharp decline in the retail asset book in the past year in the case of Axis Bank is part of a
deliberate business strategy, this could have significant implications (not necessarily negative)
for the overall future profitability of the business.

Despite the slower growth of the retail book over a period of time and the outright decline seen
in the past year, the bank’s fundamentals are quite resilient. With the high level of mid-corporate
and wholesale corporate lending the bank has been doing, one would have expected the net
interest margins to have been under greater pressure. The bank, though, appears to have insulated
such pressures. Interest margins, while they have declined from the 3.15 per cent seen in 2003-
04, are still hovering close to the 3 per cent mark. (The comparable margins for ICICI Bank and

HDFC Bank are around 2.60 per cent and 4 per cent respectively. The margins for ICICI Bank
are lower despite its much larger share of the higher margin retail business, since funding costs
also are higher).

The Bank today is capitalized to the extent of Rs. 409.90 crores with the public holding (other
than promoters and GDRs) at 53.63%. It is also listed in the top 100 most trusted brands of India
in the Brand trust report.

The Bank's Registered Office is at Ahmadabad and its Central Office is located at Mumbai. At
the end of September 2010, The Bank has a very wide network of more than 1281 branches and
Extension Counters (as on 31st December, 2010). The Bank has a network of over 6270 ATMs
(as on 31st March, 2011). The Bank has loans now (as of June 2007) account for as much as 70
per cent of the bank’s total loan book of Rs 2,00,000 crore. For HDFC Bank, retail assets are
around 57 per cent (Rs 28,000 crore) of the total loans as of March 2007.

In the case of Axis Bank, retail loans have declined from 30 per cent of the total loan book of Rs
25,800 crore in June 2006 to around 23 per cent of loan book of Rs.41,280 crore (as of June
2007). Even over a longer period, while the overall asset growth for Axis Bank has been quite
high and has matched that of the other banks, retail exposures grew at a slower pace.

If the sharp decline in the retail asset book in the past year in the case of Axis Bank is part of a
deliberate business strategy, this could have significant implications (not necessarily negative)
for the overall future profitability of the business.

Despite the slower growth of the retail book over a period of time and the outright decline seen
in the past year, the bank’s fundamentals are quite resilient. With the high level of mid-corporate
and wholesale corporate lending the bank has been doing, one would have expected the net
interest margins to have been under greater pressure. The bank, though, appears to have insulated
such pressures. Interest margins, while they have declined from the 3.15 per cent seen in 2003-
04, are still hovering close to the 3 per cent mark. (The comparable margins for ICICI Bank and
HDFC Bank are around 2.60 per cent and 4 per cent respectively. The margins for ICICI Bank
are lower despite its much larger share of the higher margin retail business, since funding costs
also are higher).

The Bank today is capitalized to the extent of Rs. 409.90 cores with the public holding (other
than promoters and GDRs) at 53.63%. It is also listed in the top 100 most trusted brands of India
in the Brand Trust Report.

Axis Bank operates the world’s highest ATM site at Taegu, Sikkim at 13,200 feet above sea



To be the preferred financial solutions provider excelling in customer delivery through insight,
empowered employees and smart use of technology


Customer Centricity














Agriculture & Rural Banking

Axis Bank one of the largest private sector financer in India for Agriculture loans wiz Retail
Agree & Corporate Agriculture.

Axis Remit Online

This is a convenient and secure portal for NRIs to remit money to India, generally required for
maintenance of their relatives. It is a growing revenue stream for the bank, with more and more
NRIs registering to avail of the highly competitive exchange rates and convenient online facility.


Revenue - rupees...198.26 billion (3.77 billion USD$) in 2011

Net income - rupees…33.88 billion (643.72 million USD$) in 2011

Number of Employees



Dr. Adders Kishore Chairman

Smt. Shikha Sharma Managing Director & CEO

Dr. R.H. Patil Director

Smt. Rama Bijapurkar Director

Shri M.V. Subbiah Director

Shri K. N. Prithviraj Director

Shri V. R. Kaundinya Director

Shri S. B. Mathur Director

Shri Prasad R. Menon Director

Shri R. N. Bhattacharyya Director

Shri Samir K Barua Director

Shri A K Dasgupta Director

Shri Som Mittal Director



Easy Access Savings Account

Presenting, Axis Bank's Easy Access Savings Account. The account is an endeavor by the Bank
to understand the consumers' needs and redefine banking to suit your requirements for a truly
comfortable banking experience. Easy Access Savings Account gives you instant access to your
money anywhere, anytime. Possessing a range of unmatched features, it has been devised to
better suit the convenience of our eclectic client base.

Salary Account

We, at Axis Bank, believe in providing total financial solutions to the employer as well as the
employee, through the salary relationship. We understand that each employee in an organization
is at a different station of life having different financial and banking needs.

Customized solutions

One solution may not fit all. Therefore, each employee in an organization is offered a zero
balance salary account and associated privileges commensurate with her/his net monthly salary.
Our Salary Account offering has six variants, as follows:

 Private Salary - For employees with net monthly salary of Rs.5,00,000/- or more
 Wealth Salary - For employees with net monthly salary of Rs.2,00,000/- or more
 Priority Salary - For employees with net monthly salary of Rs.60,000/- or more
 Prime Salary - For employees with net monthly salary of Rs.25,000/- or more
 Easy Access Salary - For employees with net monthly salary of Rs.9,000/- or more
 Salary Plus - For employees with net monthly salary of Rs.9,000/- or more. Currently
being offered only to existing relationships
 Smart Pay Card - For employees with net monthly salary less than Rs.9,000/-

Benefits for the employees

 Convenience in banking:
o Anywhere Banking at any of our over 1400 branches and a network of over 6800
ATMs spread across more than 900 centers
o Multi-city at par cheque books
o Electronic Fund Transfer facility across all banks in India
o Internet Banking with secure fund transfer facility (with 2-factor authentication)
to self and third party accounts
o 24x7 convenience at no charges with Axis Mobile
o Free SMS Banking with features such as alerts on debits / credits over Rs.5,000/-
balance enquiry, enquiry on last 3 transactions and status of cheque clearance etc

Pension Savings Account

Are you a Pensioner seeking banking solutions tailored to your needs?

Pension Savings Bank Account, from Axis Bank is specifically, designed for Pensioner's
(Existing & Prospective) of Central Govt. Civil Ministries/ Departments & Defence Ministry
keeping in mind the fact that a Pensioner's banking requirements are wholly different and
requires special consideration.


 Timely communication to the customer on receipt of the PPO

 No delays in commencement of pension disbursals - The Bank is handling the
disbursement of Pension under a Centralized Pension Disbursement Module wherein the
Pensioner records are credited centrally through its Centralized Pension Payment Hub
(CCPH) at Mumbai.
 Timely issue of Form- 16A for tax deducted at source in the immediately previous
financial year
 Timely revisions based on changes in rates of Pension or Dearness Allowance, done
centrally from the CCPH

Women's Savings Account

For the woman of today

Presenting, Axis Bank's Women's Savings Account. The account is an endeavor by the Bank to
understand the consumers' needs and redefine banking to suit your requirements for a truly
comfortable banking experience. Women's Savings Account gives you instant access to your
money anywhere, anytime. With the Women's Savings Account, you can manage your money
and your life and Furthermore Axis Bank's Women's Savings Account ensures that you have
enough time for all the important things in life.



Quick and easy home loans

Need help buying a home?

Axis Bank offers affordable and flexible housing loans that can turn your dream of owning a
home into reality.

If rising real estate prices have pushed the house you coveted beyond your budget, Axis Bank's
unmatched home loans will put it within reach. The attractive interest rates and minimal
processing fees make our home finance products a first choice for savvy buyers. In addition,
features such as flexible tenures, transparent processing and quick service have made our
products stand out among the best home loans in India.

We have products to suit every budget, taste and need. Whether you are self-employed or
salaried, want a floating or fixed rate, Axis Bank will offer a loan that is just right for you.

Car Loan

Car Loans in India - Axis Bank Car Loans

Axis Bank offers uniquely tailored car loan products that take the pain and hassle out of buying a
car. Flexible, transparent, quick, and cost-effective, our car loans put the joy back into owning a

At Axis Bank, we realize that owning a car has increasingly become a necessity. But we also
realize that the price tag of your dream car may be just outside your immediate grasp. Axis
Bank's Auto Loans are just what you need to bridge the gap.

Designed specifically to meet the needs of a modern-day car buyer, our car loans offer attractive
interest rates and worry-free procedures. What's more, our streamlined car finance processes
ensure that you can drive away in your dream vehicle in quick time.

The Indian car buyer is spoilt for choice from top-of-the-line sedans to no-frills family
hatchbacks, there's a car for every taste and budget. Regardless of your choice or budget, Axis
Bank can help you with an attractive car loan.

So, don't put a brake on your desires. Get your dream vehicle with one of the best car loans in

Personal Loan

Quick and easy personal loans

Are you in need of some quick cash?

Presenting Axis Bank's Personal Loans. Go on your dream holiday, buy the latest lifestyle
gizmo, gift your wife a lovely diamond ring, renovate your house or just squash a temporary cash

Let us give you a helping hand. Our personal loans will meet all your personal requirements.

 Loans available for salaried individuals

 Special loans for Doctors, Chartered Accountants, Engineers, Architects and CS
 Loans are available from Rs 1 lack to Rs 20 lacks
 Repayment tenures from 12 to 60 months
 Best in Class Rate of Interest
 Loans at higher rates can be transferred to Axis Bank with our Balance transfer facility.
 Simplified documentation.

Education Loan

Higher education within your reach

Axis Bank's Study Power aims to provide financial support to deserving students for pursuing
higher professional or technical education in India and abroad. The loan would be provided to
students who have obtained admission to career-oriented courses e.g., medicine, engineering,
management etc., either at the graduate or post-graduate level.

Quantum of Loan
The quantum of finance under the scheme is capped at Rs 10.00 lacs for studies in India and
Rs 20.00 lacs for studies abroad, which would cover tuition fees, hostel charges (if any), cost of
books, etc. The minimum amount of loan would be Rs 50,000.

No margin for loans upto Rs 4 laces. For loans above Rs 4 laces, 5% margin for studies within
India and 15% for higher studies overseas.

Role of the Guardian:

The parent(s) or guardian of the student would be treated as a co-applicant of the loan. His or her
role would be, necessarily, like the primary debtor.



Gold Credit Card

Axis Bank presents an exclusive credit card for exclusive people - Gold Credit Card. With it you
can access special features and avail the best benefits.

Silver Credit Card

Sheer Surprises coming your way

Presenting, Axis Bank's Silver Credit Card. Now, you can experience freedom like never before.
Freedom from cash, long queues and all other hassles.

EShop Card
Making your online shopping more secure

Worried about revealing your credit card details on the Internet?

Axis Bank presents the eShop Card. A virtual credit card that allows you to shop online securely

without divulging your credit card details.
All you need is your Axis Bank Credit Card and an Internet connection!


Just follow these simple steps to start secure online shopping.

Register once with your Axis Bank Credit Card details. Accept the terms and conditions and add
personal details to get your unique login and password.
Simply specify the amount you want to shop for with your e - shop Card. It should be within the
available limit on your Axis Bank Credit Card.
E -Shop!
Now you are all set to shop online.

Platinum Credit Card

Axis Bank presents an exclusive credit card for exclusive people. With it you can access special features
and avail the best benefits.


Gold Plus Debit Card

The Gold plus Debit Card is an effort from Axis Bank to offer our customers the best value
possible through a debit card. Available only to our most privileged Savings Bank account
holders, the Gold plus Debit Card mirrors your success and needs with a host of privileges,
benefits and exclusive value deals.

Gold Debit Card

Earn while you shop

Axis Bank's Gold Debit Card is more than just a debit card. It comes with a host of enhanced
benefits and reward program. It is exclusively issued to our Premium Salary account customers,
it is a result of our constant Endeavour to understand your requirements and design products and
services keeping you in mind

Classic Debit Card

Easy access to your account, no matter where you are

Modern times necessitate that you need to have access to your money anytime and any where.
The Axis Bank International Debit Card addresses this need.

A deposit access program, the Debit Card redefines convenience. Apart from being an ATM
(Automated Teller Machine) Card used for withdrawing cash, it also enables you to shop and
make cashless purchases. You can use the card to make payments at shops, department stores,
restaurants, petrol pumps and many more outlets in India and overseas.

The Axis Bank Debit Card is a VISA Electron Card and is accepted at VISA and VISA Plus
ATMs worldwide and all merchant establishments using electronic terminals and displaying the
VISA Electron sign.


Unmatched protection for your valuables

Looking for a safe storage place for your valuables?

A Safe Deposit Locker with Axis Bank is the solution to your concern. Located at select
branches in cities all over the country, our lockers ensure the safe keeping of your valuables.


 Wide Availability: As on November 30, 2010 lockers are available at 944 branches and
extension counters.
 Lockers available in various sizes.
 Direct debits for locker rentals from your account rid you of the hassles in writing out


Axis Bank is authorized by Reserve Bank of India (RBI) and Govt. of India for collecting
Income/ other Direct Taxes and Central Excise & Service Tax since August 2003 through its
authorized Braches and through e-Payments.

You can pay your Income / Other Direct Taxes, as well as Central Excise & Service Tax*
through connect from your account online and get on-line acknowledgement of the payment by
way of a Cyber Receipt, including Chillan Identification Number (CIN) immediately after
making the payment.


Motor Insurance

Your car insurance policy is the most important document in your vehicle. No wonder millions
of car owners across India trust Bajaj Allianz to insure their car. Along with comprehensive
coverage against physical damage, bodily injury and cover against third-party liability, your car
insurance brings to you confidence and peace of mind. All this is backed by our superior claims
servicing capability and fast settlement record.

Safe Guard

Axis Bank and Bajaj Allianz General Insurance present you the 'Safe Guard' personal Accident
Insurance cover. A unique policy that offers you insurance coverage at premiums that is
extremely competitive and exclusively meant for Axis Bank customers.

Safe Home

Your home is your most valued possession, a haven of safety. But is it really as safe as you
would like to believe?

We at Axis Bank realize your need to make your home as secure in reality, as it is in your mind,
which is why we, in association with Bajaj Allianz General Insurance bring you - Safe Home, an
insurance policy exclusively designed for Axis Bank customers, which provides protection for
your property and valuables at your home.

Family Health

Only Axis Bank offers you the advantage of insuring not just yourself but your entire family with
one policy. Our Family Health insurance programme provides a comprehensive health insurance
that covers you, your spouse and 3 dependent children up to the age of 18 years. Thanks to our
association with Bajaj Allianz General Insurance, now you don't have to pay multiple premiums
to insure all the members in your family.

Family Health Insurance Programmed provides you and your family members,

 Hospital Reimbursement:
Reimbursement of your hospital expenses in case of sudden illness, accidents or
emergency surgeries and
 Hospital Cash Payout:
Additional cash benefit for each and every completed day of hospitalization.

Travel Companion

Whether you travel for business or pleasure, international travel involves risk. Medical treatment
abroad can be expensive and one never knows when one would require it. Having to spend for
medical bills in foreign currency can be expensive proposition. There are other difficult
situations also, that one might face like loss of passport or baggage. Bajaj Allianz's Travel
Companion is specially designed to help you deal with such situations while overseas travel.

Business Advantage

You have built your business by investing so much hard work, time, energy and money. You
could face heavy losses if your business premises are burgled or if machinery breaks down.
Therefore it's essential to safeguard your investment with an insurance cover that protects against
losses due to unforeseen calamities.


 Complete risk cover for your business needs

 Cover against loss due to terrorism*
 Competitive rates
 Simple documentation
 Easy payment options

Safe Home Plus

Home is a dream, which you have turned into reality with your sweat, pain, happiness, energy
and time. Axis Bank helps you to protect this dream against unforeseen calamities.


Get control over your account anytime, anywhere at your comfort with Axis Bank Internet
Banking - a one stop solution for all your banking needs. View all your accounts detail, submit
requests and undertake a wide range of transactions.


 Account Details: View your bank account details, account balance, download statements
and more. Also view your Demand, Loan & Credit Card Account Details too all in one
 Fund Transfer: Transfer fund to your own accounts, other Axis Bank accounts or Other
Bank account seamlessly.
 Request Services: Give a request for Cheque book, Demand Draft, Stop Cheque
Payment, Debit Card Loyalty point Redemption etc.
 Investment Services: View your complete Portfolio with the bank, Create Fixed
Deposit, Apply for IPO etc.
 Value Added Services: Pay Utility bills for more than 160 billers, Recharge Mobile,
Create Virtual Cards, Pay any Visa Credit Card bills, Register for statement and sms
banking etc.


Keep a watch on your account with our round the clock SMS Banking service. Every debit or
credit in your account is intimated to you by an SMS as soon as it happens. Be in a smart
position to detect any unauthorized access to your account.

Missing debit cards, unauthorized card usage or compromised passwords are no longer a threat
to you. Axis Bank's SMS Banking service provides you with the ability to detect and prevent
misuse of your bank account.


Performance Appraisal is the process of assessing the performance of an employee within a

given time period by a Manager or supervisor. It helps in measuring the exact performance of the
employee, his strengths and weaknesses and the required improvements.

Performance Appraisal is very important aspect for reviewing. Nowadays almost each and every
company follows it.

The Manager or supervisor who is going to perform appraisal should be well aware of the
working conditions of the organization, organizational goals and the employees whose
performance needs to be reviewed. New managers should not be given this task. Every company
has a set of norms and conditions which should be followed. The person who is going to do
Performance Appraisal should know the rules and regulations. He should bear in mind that it is
being done for improving the performance of employees and in turn the overall performance of
the organization. Individual data of employees is collected over a period of one year. Employees
performance is reviewed every two to three months. The supervisor talks to the employees and
lets him know how close he is to his goal and in what areas he needs improvements. Training
sessions are conducted for employees who lack some knowledge or for those whose
performances are not up to the mark.

Managers ask various questions to the employees for reviewing their performance. They should
try to keep the employee cool and calm and conduct a bit informal meeting rather than a formal
one. Until and unless the employee opens up its useless performing an appraisal and expecting
him to better his performance. Managers should try and find out reasons for employees bad
performance. Merely reviewing a problem will not help but the problem needs to be addressed at
the grass root level or its useless. Employees performance can change over a period of time so
past data should be reviewed but should not be given much consideration.

Most effective appraisal system is 360 degrees approach in which data is collected from
employees himself, his peers, customers and seniors. This is the best method because when
everyone reviews a person’s performance we get an appropriate figure for calculation and the
spectrum for review increases. Managers should review the performance and give feed backs.

The feedback should not be negative. It should be positive and encouraging. The reason behind
appraisal is to enhance the performance of an employee and not to lower his morale. Managers
should consider every point from the start and not a particular negative behavior or incident
while writing review. He should also not hold any personal grudges with the employee. He
should give an unbiased report concentrating totally on an employee’s overall performance in the

Performance appraisal is carried out so that an employee works with full devotion and is
committed to his work. He does not show a laid back attitude and get irregular. It should increase
employee’s efficiency and his commitment towards work. Regular review of performance is very
useful because it makes the organization aware of employees who are poor or non performers
and are not improving. These employees need to be fired or should not be given a pay hike.
Good performers move up the ladder and acquire respectable positions in the organization thus
leading to the profitability in the long run.

Key Features followed by Axis Bank in Practicing Performance Appraisal

 Performance Goals are linked to the Corporate Strategy and Goals logically cascaded
down organization units to individual level.
 Written Performance Agreements/Plans are drawn up via one-on-one goal-setting
sessions between line managers and direct reports, as early as possible at the start of a
new performance year.
 Individual Performance Agreements include performance measures that are derived from
a position's job/role description, as well as relevant corporate cascaded-down goals.
 Line managers ensure that employees have sufficient resources and tools to get the job
done, and that systems, processes and policies facilitate (and not hinder) optimal
 Both line managers and their direct reports are keeping a record of the letters'
performance to refer to during performance reviews.
 Performance Agreements are adapted as and when priorities and the situation on the
ground change.
 Performance feedback (positive and/or 'negative' - constructive), and related coaching,
are given to employees on an ongoing basis, so that there are no unpleasant surprises at
performance review time.
 In addition to the formal performance reviews, line managers and their direct reports
should meet at least monthly (1-1) to discuss performance progress and challenges.
 Employees are given adequate warning (at least 14 days) of performance reviews (date
and time mutually agreed).
 Performance reviews are facilitated by line managers in a way that involves the employee
and asks for their input first on how they have fared on each measure and what ratings
they think best reflects their performance. Line managers add their own view, and
facilitate agreement. Second-level line managers are brought in with disputes, and have
the final say. A grievance policy and procedure exists as employee last resort when still
 Personal Development Plans (as a performance review output) are based on current
competency shortfalls as well as new role challenges and employee career goals.

 Performance is linked to remuneration in a way that sends a clear message to both good
and poor performers. Sufficient reward differentiation is made so that top performers are
lifted out materially and psychologically for their efforts.
 Employees experience the entire process as positive, motivating and career-enhancing.



Human Resource (or personnel) management, in the sense of getting things done through people,
is an essential part of every manager’s responsibility, but many organizations find it
advantageous to establish a specialist division to provide an expert service dedicated to ensuring
that the human resource function is performed efficiently.

“People are our most valuable asset” is a cliché, which no member of any senior management
team would disagree with. Yet, the reality for many organizations is that their people remain
undervalued, under trained and underutilized.

Performance Appraisal is the process of assessing the performance and progress of an employee
or a group of employees on a given job and his / their potential for future development. It
consists of all formal procedures used in the working organizations to evaluate personalities,
contributions and potentials of employees.
The history of performance appraisal is quite brief. Its roots in the early 20th century.
But this is not very helpful, for the same may be said about almost everything in the field
of modern human resources management. As a distinct and formal management procedure used
in the evaluation of work performance, appraisal really dates from the time of the Second World
War - not more than 60 years ago. Yet in a broader sense, the practice of appraisal is a very
ancient art. In the scale of things historical, it might well lay claim to being the world’s second
oldest profession! There is, says Dulewicz (1989),
".. a basic human tendency to make judgments about those one is working with, as well as about

Appraisal, it seems, is both inevitable and universal. In the absence of a carefully structured
system of appraisal, people will tend to judge the work performance of others, including
subordinates, naturally, informally and arbitrarily. The human inclination to judge can create
serious motivational, ethical and legal problems in the workplace. Without a structured appraisal
system, there is little chance of ensuring that the judgments made will be lawful, fair, defensible
and accurate. Performance appraisal systems began as simple methods of income justification.
That is, appraisal was used to decide whether or not the salary or wage of an individual employee

was justified. The process was firmly linked to material outcomes. If an employee's performance
was found to be less than ideal, a cut in pay would follow. On the other hand, if
their performance was better than the supervisor expected, a pay rise was in order. Little
consideration, if any, was given to the developmental early motivational researchers were aware
that different people with roughly equal work abilities could be paid the same amount of money
and yet have quite different levels of motivation possibilities of appraisal. It was felt that cut in
pay, or a rise, should provide the only required impetus for an employee to either improve or
continue to perform well. Sometimes this basic system succeeded in getting the results that were
intended; but more often than not, it failed. For example, early motivational researchers were
aware that different people with roughly equal work abilities could be paid the same amount of
money and yet have quite different levels of motivation and performance. These observations
were confirmed in empirical studies. Pay rates were important, yes; but they were not the only
element that had an impact on employee performance. It was found that other issues, such as
morale and self-esteem, could also have a major influence. As a result, the traditional emphasis
on reward outcomes was progressively rejected. In the 1950s in the United States, the potential
usefulness of appraisal as tool for motivation and development was gradually recognized. The
general model of performance appraisal, asset is known today, began from that time. Most
persons share a desire to know the answer to the question, "How am I doing?"They want to know
what is expected of them, how well they are meeting the expectations, how they can improve,
and some want to know how they might qualify for higher responsibilities. The process of
performance appraisal should provide the opportunity for discussion of these concerns. The
process should also provide the basis for enhanced communication among college personnel.
The feedback is one of the most important tools provided by Human Resources to managers as
the motivational tool. The feedback by Human Resources is organized usually in the process of
the Performance Appraisal.

When speaking with HRM Professionals, you can hear a lot about the performance
management process and the forms used to formalize the whole process of the performance
appraisals. Generally, the manager should give feedback and the quality of the feedback provides
the performance appraisals to the individual employee. But as the HRM Function wants to have a
control over the whole performance management process, the main stress is put on the formal
record of the whole performance appraisal discussion. The performance appraisals can have a

huge impact on the future of the employee in the company. When the feedback is provided
correctly and the manager makes a follow up of all the agreements done during the performance
appraisal interview, the performance appraisals can work without any formal documents. As the
HRM Function is responsible for the performance management process, it brings new and better
performance appraisal forms every single year. And the result usually fails every year. The
managers and the employees do not see the benefits of participating in the performance review
process as they take it as an activity driven by Human Resources for Human Resources.


Typically, performance appraisal has been limited to a feedback process between employees and
supervisors. However, with the increased focus on teamwork, employee development, and
customer service, the emphasis has shifted to employee feedback from the full circle of sources
depicted in the diagram below. This multiple-input approach to performance feedback is
sometimes called “360-degreeassessment” to connote that full circle. There arena prohibitions in
law or regulation against using a variety of rating sources, in addition to the employee
’supervisor, for assessing performance. Researches shown assessment approaches with multiple
rating sources provide more accurate, reliable, and credible information. For this reason, the U.S.
Office of Personnel Management supports the use of multiple rating sources as an effective
method of assessing performance for formal appraisal and other evaluative and developmental
purposes. The circle, or perhaps more accurately the sphere, of feedback sources consists of
supervisors, peers, subordinates, customers, and one’s self. It is not necessary, or always
appropriate, to include all of the feedback sources in a particular appraisal program. The
organizational culture and mission must be considered, and the purpose of feedback will differ
with each source. For example, subordinate assessments of a supervisor’s Performance can
provide valuable developmental guidance, peer feedback can be the heart of Excellence in
teamwork, and customer service feedback focuses on the quality of the team’s or agency’s
results. The objectives of performance appraisal and the particular aspects of performance that
are to be assessed must be established before determining which sources are appropriate.


Evaluations by superiors are the most traditional source of employee feedback. This form of
evaluation includes both the ratings of individuals by supervisors on elements in an employee’s
performance plan and the evaluation of programs and teams by senior managers.

This form of performance information is actually quite common but usually used only as
informal parts of the supervisor-employee appraisal feedback session. Supervisors frequently
open the discussion with: “How do you feel you have performed?” In a somewhat more formal
approach, supervisors ask employees to identify the key accomplishments they feel best
represent their performance in critical and non-critical performance elements. In a 360-degree
approach, if self-ratings are going to be included, structured forms and formal procedures are

With downsizing and reduced hierarchies in organizations, as well as the increasing use of teams
and group accountability, peers are often the most relevant evaluators of their colleagues’
performance. Peers have a unique perspective on a co-worker’s job performance and employees
are generally very receptive to the concept of rating each other. Peer ratings can be used when
the employee’s expertise is known or the performance and results can be observed. There are
both significant contributions and serious pitfalls that must be carefully considered before
including this type of feedback in a multifaceted appraisal program.

An upward-appraisal process or feedback survey (sometimes referred to as a SAM, for
“Subordinates Appraising Managers”) is among the most significant and yet controversial
features of a “full circle” performance evaluation program. Both managers being appraised and
their own superiors agree that subordinates have unique, often essential, perspective. The
subordinate ratings provide particularly valuable data on performance elements concerning
managerial and supervisory behaviors. However, there is usually great reluctance, even fear,

concerning implementation of this rating dimension. On balance, the contributions can outweigh
the concerns if the precautions noted below are addressed.

Executive Order 12862, Setting Customer Service Standards, requires agencies to survey internal
and external customers publish customer service standards, admeasure agency performance
against these standards. Internal customers are defined as users of products or services supplied
by another employee or group within the agency or organization. External customers are outside
the organization and include, but are not limited to, the general public.


“Appraisal is a process that provides an analysis of a Person’s overall capabilities and potential,
allowing informed decisions to be made for particular purposes”. An Important part of the
process is assessment, whereby data on an individual’s past and current work behavior and
Performance are collected and reviewed

Performance Appraisal is defined as the process of assessing the performance and progress of an
employee or a group of employees on a given job and his / their potential for future development.
It consists of all formal procedures used in working organizations and potential of employees.
According to Flippo, “Performance Appraisal is the systematic, periodic and an important rating
of an employee’s excellence in matters pertaining to his present job and his potential for a better


1. Performance Appraisal is a process.

2. It is the systematic examination of the strengths and weakness of an employee in terms

of his job.

3. It is scientific and objective study. Formal procedures are used in the study.

4. It is an ongoing and continuous process wherein the evaluations are arranged

periodically according to a definite plan.

5. The main purpose of Performance Appraisal is to secure information necessary for

making objective and correct decision of an employee.


The process of performance appraisal:

1. Establishing performance standards

2. Communicating the Standards

3. Measuring Performance

4. Comparing the actual with the standards

5. Discussing the appraisal

6. Taking Corrective Action


1. Errors in Rating

2. Lack of reliability

3. Negative approach

4. Multiple objectives

5. Lack of knowledge


The foregoing list of major program pitfalls represents a formidable challenge, even considering
the available battery of appraisal techniques. But attempting to avoid these pitfalls by doing
away with appraisals themselves is like trying to solve the problems of life by committing
suicide. The more logical task is to identify those appraisal practices that are (a) most likely to
achieve a particular objective and (b) least vulnerable to the obstacles already discussed.

Before relating the specific techniques to the goals of performance appraisal stated at the outset
of the article, I shall briefly review each, taking them more or less in an order of increasing

The best-known techniques will be treated most briefly.


In its simplest form, this technique asks the rater to write a paragraph or more covering an
individual's strengths, weaknesses, potential, and so on. In most selection situations, particularly
those involving professional, sales, or managerial positions, essay appraisals from former
employers, teachers, or associates carry significant weight.


This technique may not yield the depth of an essay appraisal, but it is more consistent and
reliable. Typically, a graphic scale assesses a person on the quality and quantity of his work (is
he outstanding, above average, average, or unsatisfactory?) and on a variety of other factors that
vary with the job but usually include personal traits like reliability and cooperation. It may also
include specific performance items like oral and written communication.


The field review is one of several techniques for doing this. A member of the personnel or
central administrative staff meets with small groups of raters from each supervisory unit and
goes over each employee's rating with them to (a) identify areas of inter-rater disagreement, (b)
help the group arrive at a consensus, and (c) determine that each rater conceives the standards


Like the field review, this technique was developed to reduce bias and establish objective
standards of comparison between individuals, but it does not involve the intervention of a third


To avoid, or to deal with, the feeling that they are being judged by unfairly high standards,
employees in some organizations are being asked to set - or help set - their own performance
goals. Within the past five or six years, MBO has become something of a fad and is so familiar
to most managers that I will not dwell on it here.


For comparative purposes, particularly when it is necessary to compare people who work for
different supervisors, individual statements, ratings, or appraisal forms are not particularly
useful. Instead, it is necessary to recognize that comparisons involve an overall subjective
judgment to which a host of additional facts and impressions must somehow be added. There is
no single form or way to do this.

The best approach appears to be a ranking technique involving pooled judgment.

The two most effective methods are alternation ranking and paired comparison ranking.

1. “Alternation ranking”:

Ranking of employees from best to worst on a trait or traits is another method for evaluating
employees. Since it is usually easier to distinguish between the worst and the best employees
than to rank them, an alternation ranking method is most popular. Here subordinates to be rated
are listed and the names of those not well enough to rank are crossed. Then on a form as shown
below, the employee who is highest on the characteristic being measured and the one who is the
lowest are indicated. Then chose the next highest and the next lowest, alternating between
highest and lowest until all the employees to be rated have been ranked.

2. “Paired-comparison ranking”:

This technique is probably just as accurate as alternation ranking and might be more so. But
with large numbers of employees it becomes extremely time consuming and cumbersome.

Both ranking techniques, particularly when combined with multiple rankings (i.e., when two or
more people are asked to make independent rankings of the same work group and their lists are
averaged), are among the best available for generating valid order-of-merit rankings for salary
administration purposes.


So far, we have been talking about assessing past performance. What about the assessment of
future performance or potential? In any placement decision and even more so in promotion
decisions, some prediction of future performance is necessary. How can this kind of prediction
be made most validly and most fairly?


Many firms have expanded the idea of upward feedback into what the call 360-degree feedback.
The feedback is generally used for training and development, rather than for pay increases.

Most 360 Degree Feedback system contains several common features. Appropriate parties –
peers, supervisors, subordinates and customers, for instance – complete survey, questionnaires
on an individual. 360 degree feedback is also known as the multi-rater feedback, whereby ratings
are not given just by the next manager up in the organizational hierarchy, but also by peers and
subordinates. Appropriates customer ratings are also included, along with the element of self
appraisal. Once gathered in, the assessment from the various quarters are compared with one
another and the results communicated to the manager concerned.

Another technique that is useful for coaching purposes is, of course, MBO. Like the critical
incident method, it focuses on actual behavior and actual results, which can be discussed
objectively and constructively, with little or no need for a supervisor to "play God.


Instead of assuming traits, the MBO method concentrates on actual outcomes. If the employee
meets or exceeds the set objectives, then he or she has demonstrated an acceptable level of job
performance. Employees are judged according to real outcomes, and not on their potential for
success, or on someone's subjective opinion of their abilities.

The guiding principle of the MBO approach is that direct results can be observed easily. The
MBO method recognizes the fact that it is difficult to neatly dissect all the complex and varied
elements that go to make up employee performance.

MBO advocates claim that the performance of employees cannot be broken up into so many
constituent parts, but to put all the parts together and the performance may be directly observed
and measured.


This approach can lead to unrealistic expectations about what can and cannot be reasonably
accomplished. Supervisors and subordinates must have very good "reality checking" skills to use
MBO appraisal methods. They will need these skills during the initial stage of objective setting,
and for the purposes of self-auditing and self-monitoring.

Variable objectives may cause employee confusion. It is also possible that fluid objectives may
be distorted to disguise or justify failures in performance.


 Measures an employee’s performance.

 Helps in clarifying, defining, redefining priorities and objectives.
 Motivates the employee through achievement and feedback.
 Facilitates assessment and agreement of training needs.
 Helps in identification of personal strengths and weaknesses.
 Plays an important role in Personal career and succession planning.
 Clarifies team roles and facilitates team building.
 Plays major role in organizational training needs assessment and analysis.
 Improves understanding and relationship between the employee and the reporting
manager and also helps in resolving confusions and misunderstandings.
 Plays an important tool for communicating the organization’s philosophies, values, aims,
strategies, priorities, etc among its employees.
 Helps in counseling and feedback.

Rating Errors in Performance Appraisals

 Performance appraisals are subject to a wide variety of inaccuracies and biases referred to
as 'rating errors'. These errors can seriously affect assessment results. Some of the most
common rating errors are: -
 Leniency or severity: - Leniency or severity on the part of the rater makes the
assessment subjective. Subjective assessment defeats the very purpose of performance
appraisal. Ratings are lenient for the following reasons:
 a) The rater may feel that anyone under his or her jurisdiction who is rated unfavorably
will reflect poorly on his or her own worthiness.
 b) She/he may feel that a derogatory rating will be revealed to the rate to detriment the
relations between the rater and the rate.
 c) He /she may rate leniently in order to win promotions for the subordinates and
therefore, indirectly increase his/her hold over him.

 Central tendency: - This occurs when employees are incorrectly rated near the average
or middle of the scale. The attitude of the rater is to play safe. This safe playing attitude
stems from certain doubts and anxieties, which the raters have been assessing the rates.
 Halo error: - A halo error takes place when one aspect of an individual's performance
influences the evaluation of the entire performance of the individual. The halo error
occurs when an employee who works late constantly might be rated high on productivity
and quality of output as well as on motivation. Similarly, an attractive or popular
personality might be given a high overall rating. Rating employees separately on each of
the performance measures and encouraging raters to guard against the halo effect are the
two ways to reduce the halo effect.
 Rater effect: -This includes favoritism, stereotyping, and hostility. Extensively high or
low score are given only to certain individuals or groups based on the rater's attitude
towards them and not on actual outcomes or behaviors; sex, age, race and friendship
biases are examples of this type of error.
 Primacy and Regency effects: - The rater's rating is heavily influenced either by
behavior exhibited by the rate during his early stage of the review period (primacy) or by
the outcomes, or behavior exhibited by the rate near the end of the review period
(regency). For example, if a salesperson captures an important contract/sale just before
the completion of the appraisal, the timing of the incident may inflate his or her standing,
even though the overall performance of the sales person may not have been encouraging.
One way of guarding against such an error is to ask the rater to consider the composite
performance of the rate and not to be influenced by one incident or an achievement.
 Performance dimension order: - Two or more dimensions on a performance instrument
follow each other and both describe or rotate to a similar quality. The rater rates the first
dimensions accurately and then rates the second dimension to the first because of the
proximity. If the dimensions had been arranged in a significantly different order, the
ratings might have been different.

 Spillover effect: - This refers lo allowing past performance appraisal rating lo
unjustifiably influence current ratings. Past ratings, good or bad, result in similar rating
for current period although the demonstrated behavior does not deserve the rating, good
or bad.


a) Reporting Manager

-Provide feedback to the reviewer / HOD on the employees’ behavioral traits indicated in
the PMS Policy Manual

-Ensures that employee is aware of the normalization / performance appraisal process

- Address employee concerns / queries on performance rating, in consultation with the


b) Reviewer (Reporting Manager’s reporting Manager)

-Discuss with the reporting managers on the behavioral traits of all the employees for
whom he / she is the reviewer

-Where required, independently assess employees for the said behavioral traits; such
assessments might require collecting data directly from other relevant employees

c) HOD (In some cases, a reviewer may not be a HOD)

-Presents the proposed Performance Rating for every employee of his / her function to
the Normalization committee.
-HOD also plays the role of a normalization committee member
-Owns the performance rating of every employee in the department

d) HR Head

-Secretary to the normalization committee

-Assists HOD’s / Reporting Managers in communicating the performance rating of all the

e) Normalization Committee

-Decides on the final bell curve for each function in the respective Business Unit / Circle

-Reviews the performance ratings proposed by the HOD’s, specifically on the upward /
downward shift in ratings, to ensure an unbiased relative ranking of employees on
overall performance, and thus finalize the performance rating of each employee


In order to understand the Performance Management System at AXIS BANK, some concepts
need to be explained which play a very important role in using the PMS successfully. They are:

- KRA’S (KEY RESULT AREAS): The performance of an employee is largely dependent

on the KRA score achieved by the employee during that particular year. Thus, it is
necessary to answer a few basic questions i.e.

-What are the guidelines for setting the KRA’s for an employee?

-How does an employee write down his KRA’s for a particular financial year?

-KRA’s: The Four Perspectives.

-How is the KRA score calculated for an employee on the basis of the targets sets
and targets achieved?

-BEHAVIORAL TRAITS: Some of the qualitative aspects of an employees’ performance

combined with the general behavioral traits displayed by the employee during a year
constitutes his behavior traits. An employee is assigned the rating on the basis of the
intensity of the behavior displayed by him. They play a very important role in the
deciding the final performance rating for an employee as is even capable of shifting the
rating one level upwards/downwards.


competency framework is a simple and structured way to describe the elements of
behaviors required to perform a role effectively. This framework also tries to assess the
performance of an employee objectively.

-THE PERFORMANCE RATING PROCESS: The rating process tries to explain the
four different types of rating that an employee can achieve i.e. EC, SC, C and PC. It also
explains the criteria, which is considered for awarding any of these ratings to the

and normal distribution guidelines provide the framework within which the performance
appraisal process has to work. It is very important that the HR department pays due
attention to these guidelines while preparing the bell curves for various functions and the
consolidated bell curve for all the functions. These guidelines also help in deciding upon
the promotion cases in a year.



· Performs consistently and · Performs above expectations in all

substantially above expectations in all areas
areas · Achieves final score between 100-
· Achieves a final score greater than or 114%
equal to 115%
 Versatile in his/ her area of
· Consistently delivers on stretch
targets operation
 Develops creative solutions and
· Is proactive require little / minimal supervision
· Spots and anticipates problems,  Sets examples for others
implements solutions  Take ownership of own
· Sees and exploits opportunities  Coaches others
· Delivers ahead of time  Demonstrates business initiative
 Is self motivated
· Sees the wider picture-impacts across  Supportive team player
business  Leads own team very effectively
· Focuses on what’s good for the  Demonstrate functional initiative
· Seen as role model by others
· Recognized as exceptional by other
functions as well
· Motivates others to solve problems
· Develops others
· Provides open and honest feedback
· Able to establish and lead cross-
functional teams

Face the facts: Creating a new employee performance appraisal system is a difficult undertaking.
It’s even more difficult if the organization doesn’t have a logical, well-tested, step-by-step
process to follow in developing their new procedure.

Get top management actively involved. Without top management’s commitment and visible
support, no program can succeed. Top management must establish strategic plans, identify
values and core competencies, appoint an appropriate Implementation Team, demonstrate the
importance of performance management by being active participants in the process, and use
appraisal results in management decisions.

Establish the criteria for an ideal system. Consider the needs of the four stakeholder groups of
any appraisal system: Appraisers who must evaluate performance; Appraises whose performance
is being assessed; Human Resources professionals who must administer the system; and the
Senior Management group that must lead the organization into the future. Identifying their
expectations at the start helps assure their support once the system is finally designed. Ask each
group: "What will it take for you to consider this system a smashing success?" Don’t settle for

Appoint an Implementation Team. This task force should be a diagonal slice of both appraisers
and appraises from different levels and functions in the organization. The implementation team is
responsible for accomplishing the two major requirements for a successful system. First,
developing appropriate appraisal forms, policies and procedures. Second (and the task too often
overlooked) assuring a successful deployment.
Design the form first. The appraisal form is a lightning rod that will attract everyone’s attention.
Design the form early and get lots of feedback on it. Don’t believe anybody who tells you that

the form isn’t important. They’re wrong. If you’re designing a new form internally, make sure it
assesses both behaviors and results.
Build your mission, vision, values, and core competencies into the form. Performance appraisal
is a means, not an end. The real objective of any performance management systems to make sure
that the company’s strategic plan and vision and values are communicated and achieved. Core
competencies expected of all organization members should be included, described and assessed.
If your mission statement isn’t clearly visible in the performance appraisal system, cynicism will
likely result. Values become real only when people are held accountable for living up to them.

Assure on-going communication. Circulate drafts and invite users to make recommendations.
Keep the development process visible through announcements and regular updates. Use surveys,
float trial balloons, request suggestions and remember the cardinal principle — "People support
what they help create."
Train all appraisers. Performance appraisal requires a multitude of skills — behavioral
observation and discrimination, goal-setting, developing people, confronting
unacceptable performance, persuading, problem-solving, planning, etc. Unless appraiser training
is universal and comprehensive, the program won’t produce much. And don’t ignore the most
important requirement of all: the need for courage.

Orient all appraises. The program’s purposes and procedures must be explained in advance —
and explained enthusiastically — to everyone who will be affected by it. Specific skills training
should be provided if the new performance management procedure requires self-appraisal, multi-
rater feed-back, upward appraisal, or individual development planning.

Use the results. If the results of the performance appraisal are not visibly used in
making promotion, salary, development, transfer, training and termination decisions, people will
realize that it’s merely an exercise.

Monitor and revise the program. Audit the quality of appraisals, the extent to which the system is
being used, and the extent to which the original objectives have been met. (One of the great
advantages of an online performance appraisal system is that all of these data are available

Provide feedback to management, appraisers and appraises. Train new appraisers as they are
appointed to supervisory positions. Actively seek and incorporate suggestions for improvement.

A company’s performance appraisal process is critically important. It answers the two questions
that every member of an organization wants to know: 1) what do you expect of me? And 2) how
am I doing at meeting your expectations? Using these ten tips will help you develop or select a
system to will give accurate and complete answers to everyone.


To carry out the study of AXIS BANK, we framed the following objectives

1. Identification of the technique of performance appraisal followed in AXIS BANK.

2. Employee attitude towards the present appraisal system.

3. Review of the current appraisal system in order to

1. Enhance productivity

2. Attain global standards

4. To provide suggestions & recommendations from the study conducted


Is a way to systematically solve the research problem? When we talk of research methodology
we not only talk of research methods but also consider the logic behind it. We use in the context
of our research studies and explain why we are not using the other method so that research result
is capable of being evaluated either by the researcher himself or by the other. The purpose of this
section is to describe the methodology carried out to complete the work. the effectiveness of any
research work depend upon the correctness and effectiveness of the research methodology.


Data is defined as raw facts that need to be processed so that information is produced. For
achieving useful result it is necessary to collect accurate data. If the data collected is incorrect, on
the basis of which we are conducting the survey then will be worthless.

Kind of data collection

Primary Data
Secondary Data

Primary Data
Primary data is collected very first time for a specific purpose directly from the field of study.
Primary data relating to the training has to be collected through:

# Questionnaires
# Interviews
# Observation

Secondary Data
Secondary data means the information related to past period. Secondary data has to be collected
# Internet
# Newspaper
# Books
# Bank sites


Sample Size = 25 Employees



Duration = Two (1) Months.



There are two seasons of performance appraisal in Axis bank which are

1) Mid Year Appraisal

2) Annual Appraisal

There is some point in appraisal area which is 100%.This 100% it’s obtain through the following
areas of performance appraisal.

Two areas of performance appraisal.

Services – 80% e.g. customer care, internet banking

Sales – 20% e.g. saving Account, general life insurance


Awareness of technique of Performance Appraisal being followed at AXIS BANK among


Options Response in (%)

Yes 97

No 3





In the above graph it is observed that 97% of the respondents are in favour of yes that
awareness of performance appraisal is being practiced in their company whereas 3% respondents
are in favour of no.

Number of Employees being appraised during their service period

Options Response in (%)

4 employees 40

5 employees 30

6 employees 30

40% 4 employees
5 employees
6 employees


40 employees being appraised during the service period


This graph shows that When 4 employees are employed ,their response is 40% where as 5
employees are employed , their response is 30% and where more than 6 employees are
employed ,their response is 30%.

Employees Opinion as to the Purpose of Performance Appraisal

Options Response in (%)

Yes 90

No 10





In the above graph it is observed that 90% of respondents said yes that they understand the
purpose of performance appraisal whereas 10% they answered no.

Employees’ opinion as to the present appraisal system

Options Responses (in %)

Fully Satisfied 34

Satisfied 44

Can’t Say 12

Dissatisfied 10

15 12
Fully Satisfied Can’t Say Dissatisfied


In the above graph it is concluded that 34% of employees are fully satisfied, 44% are satisfied,
and 12% can’t give their opinion whereas 10% are being dissatisfied with their present
performance appraisal.

Employee perception as to the frequency of appraisal

Options Response (in %)

Once During The 10

Service Period

Continuous 84

Never 0

Can’t Say 6

90 84
20 10
10 6
Once During Continuous Never Can’t Say
The Service


If continuous appraisal – what should be the gap between two appraisal period

Options Response (in %)

Quarterly 20

Half Yearly 50

Yearly 30

35 30
25 20
Quarterly Half Yearly Yearly


How Performance Appraisal affects the productivity of the employees

Options Motivated Indifferent Demotivated

+ Feedback 38 12 0

- Feedback 12 10 28

Neutral 24 21 5

30 28

25 24

12 - Feedback
10 Neutral

38 12 0

Motivated Indifferent Demotivated


From the graph it has been observed that 38 % of employees has been motivated whereas 12%
has been indifferent and 0% has been demotivated.

Who should do the appraisal?

Options Response ( in % )

Superior 4

Peer 0

Subordinate 0

Self Appraisal 8

Consultant 4

All of the above 68

Superior + Peer 16

70 68





20 16

10 8
4 4
0 0
Superior Peer Subordinate Self Consultant All of the Superior +
Appraisal above Peer


From the above graph it is observed that 4% are in favor of superior ,0% for peer and
subordinate, 8% self appraisal,4% in favor of consultant,68% agree on opinion all of above
whereas 16% agree on both superior and peer.

Does appraisal help in polishing skills and performance area

Options Response ( in % )

Yes 74

No 10

Somewhat 16


10 Yes


If the process of appraisal does not lead to the improvement of the skills and proficiency of the
employees, the very purpose of appraisal becomes illogical. In the survey conducted it was
observed that nearly 74 % of the respondents agree that Performance Appraisal does leads to
polishing the skills of the employees. Nearly 10 % of the respondents view that it does not serve
this purpose and around 16 % were not able to respond as to whether it serve any such purposes
or not.

Does personal bias creeps in while appraising an employee

Options Response ( in % )

Yes 82

No 18





In the process of appraising, both the parties are human being, that is, the one who is being
apprised and the other who is appraising. Thus, there bound to be subjectivity involved, be it an
objective way of appraising.

Thus, when asked from among the sample size of 25 respondents, as huge as 82 % respond
ended that personal bias do creep in while appraising an individual. Hence, it is inevitable to say
that personal likings do not come in the process of appraisal. It is the extent to which the
appraiser manages it so that it does not become very partial and bias.

If given a chance, would employees like to review the current appraisal technique?

Options Response ( in % )

Yes 72

No 4

Can’t Say 24

4% Can’t Say


In the survey conducted it is observed that 72% of employees would like to review the current
appraisal technique, whereas 4% doesn’t want, whereas 24% can’t give their opinion.

Appropriate method of conducting the performance appraisal

Options Response ( in % )

Ranking Method 12

Paired Comparison 0

Critical Incidents 20

MBO 58

Assessment Centre 4

360 degree 6

60 58



10 6
Ranking Paired Critical MBO Assessment 360 degree
Method Comparison Incidents Centre

From the above graph it is concluded that 58% of respondents considered MBO as an
appropriate method for conducting performance appraisal, 0% for paired comparison, 20% for
critical incident, 4% assessment centre, 6% 360 degree and 12% for ranking method.

Does performance appraisal leads to identification of hidden potential

Options Response ( in % )

Yes 96

No 4





From the survey conducted it is being observed that 96 % of respondents favors yes that it leads
to identification of hidden potential of the employees whereas 4% favors no.


In the survey of performance Appraisal practices in AXIS BANK of 25 employees, it was found
that the employees of the bank are satisfied with the performance appraisal followed in the bank.

The method and process of performance appraisal in the banks are satisfactory to the employees.

The performance appraisal also increase and polishing the skills of employees.

The performance appraisal is satisfactory to all the employees in the AXIS BANK


1. The information provided by the workers is not definitely true

2. The workers hesitate disclosing the true fact in order to secure their job.
3. There is no measure to check out whether the information provided by the employee was
correct or not.
4. Employees are busy so that they are not able to give their best response at a time
5. Only limited time was given which was not enough to bring out the real outcomes and
adequate to bring clear nature of behavior of people.


After having analyzed the data, it was observed that practically there was good appraisal in the
organization. According to number of employees being satisfied with the performance appraisal
and most of them there aware about performance appraisal practice in the company.

From survey we came to know that the proper method of performance appraisal and awareness
of performance appraisal practice in company. The performance appraisal is practiced and
followed in proper way and taken as serious by the company to increase the employees
performance, ability and skills.


1. The very concept of performance appraisal should be marketed throughout the

organization. Unless this is done, people would not accept it, be it how important to the
2. To market such a concept, it should not start at bottom; instead it should be started by the
initiative of the top management. This would help in percolating down the concept to the
advantage of all, which includes the top management as well as those below them. This
means that the top management has to take a welcoming and positive approach towards the
change that is intended to be brought.
3. Further, at the time of confirmation also, the appraisal form should not lead to duplication
of any information. Instead, detailed appraisal of the employee’s work must be done –
which must incorporates both the work related as well as the other personal attributes that
are important for work performance.
4. It should be noted that the appraisal form for each job position should be different as each
job has different knowledge and skill requirements. There should not be a common
appraisal form for every job position in the organization.


1. www.axisbank.com

2. Internet
3. Official site of AXIS BANK
4. Macmillon-Human resource management

Performance Appraisal Questionnaire

Name of the Employee ………………………..


1. Awareness of performance Appraisal being practiced in your company?

a) Yes b) No

2. Is there any number of employees being appraised in period of service, How many are

a) 4 employees b) 5 employees c) 6 employees

3. Do you understand what the purpose of performance appraisal is?

a) Yes b) No

4. What according to you should be the appropriate method for conducting performance

a) Rating the employee on number of traits along with the range of performance for
each by the supervisor. (Ranking method)

b) For every trait, each subordinate is paired with and compared to every
other Subordinate. (Pair comparison)

c) Reviewing employees on the basis of identified specific examples of good or poor

performance. (Critical incident)

d) Setting specific measurable goals with each employee and periodically reviewing the
progress made. (MBO)

e) Reviewing performance through case studies, presentations, role playing, etc. For
future performance. (Assessment center)

f) Receiving feedback from people whose views are considered helpful and relevant
including the appraise himself. (360)

5. What is your opinion to present Performance Appraisal?

a) Fully Satisfied b) Satisfied

c) Can’t Say d) Dissatisfied

6. Should the appraisal process be:

a) Once during the service period b) Continuous

c) Never d) Can’t Say

7. What in your opinion should be the time period of conducting continuous Appraisal?

a) Quarterly b) Half Yearly c) Yearly

Any specific reason………………………………

8. Does Performance Appraisal helps in improving the productivity of the employees?

Motivated Indifferent Demotivated

+ Feedback

- Feedback


9. Who in your opinion should appraise the employee?

a) Superior b) Peer

c) Subordinates d) Self Appraisal

e) Consultant f) All of the above

10. Does the appraisal system helps in polishing the skills or performance area?

a) Yes b) No c) Somewhat

11. Do you think personal bias creeps in while appraising an individual?

a) Yes b) No

12. If given a chance or an opportunity would you like that the current appraisal procedure
should be reviewed?

a) Yes b) No c) Can’t Say

13. Does Performance Appraisal leads to identification of hidden potential of the employees?

a) Yes b) No

14. Suggestions and views ….…………………………………...............................