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Transcript of Performance Apprasial Project
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7/30/2019 Performance Apprasial Project
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A STUDY OF PERFORMANCE
APPRAISAL AT UNION BANK
OF INDIA.
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SYPONSIS
Human Resource is an very important part of any organization. They are the resource
that majorly contribute towards attainment of organizational goals and these goals can
be achieved only when people put in their best efforts. Performance Appraisal is one of
the methods which ascertain whether an employee has shown his or her best
performance on a given job.
Performance Appraisal is one of the most important tools used by the Human Resource
Development in analyzing and evaluating its employees. It also gives the employees a
chance to look back on what they have been doing.Performance appraisal is the process
of obtaining, analyzing and recording information about the relative worth of an
employee. The focus of the performance appraisal is measuring and improving the
actual performance of the employee and also the future potential of the employee. Its
aim is to measure what an employee does.
This project is based on Performance Appraisal.It goes in depth into what Performance
Appraisal is, what it stands for and why it is done. It tries to explain the basic purpose
and need of Performance Appraisal in the organization. It contains different types of
approaches that can be used in different set of conditions. The project also tries to
throw light on how theory can be put to practice.
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INDEX
SR NO: Topic Page
1 Methodology 5
2 Introduction to Company 6
3 Introduction to Performance Appraisal 8
4 Performance Aprraisal at Union Bank Of India 13
5 Highlights of Annually Performance Appraisal
Form
15
6 Findings and Analysis 17
7 Recommendations 19
8 Conclusion 20
ANNEXURE:
Bibliography.
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METHODOLOGY
To study the topic it is important to understand first how the Performance Appraisal
works in an organisation. Thus to study and analyse various aspects of Performance
Appraisal Interview Method was followed. Further,the questions where formed to
collect all the data and the information regarding the process and impact of
Performance Appraisal in an organization. The participants from the organisation where
from different departments for the best results. After taking their answers/ feedback by
asking questions we can come to the conclusion when we analyse the findings.
For carrying out all this study a visit to Union bank of India was of great help in my
project. Union Bank of India is one of the organizations that are using Self Performance
Appraisal system in their organizations. Here I met Mr. Venkatesh Amin the Senior
Manager of Union Bank of India, who told me about the process and impact of
Performance Appraisal they are using in Union Bank of India.
Very friendly and helpful in nature, Mr. Venkatesh Amin helped me a lot to understand
how performance appraisal system is meant to work, what are the practical difficulties
in the implementation and how they have managed to overcome these difficulties
successfully.
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INTRODUCTION TO COMPANY
Once a Year Overview
Union Bank of India was inaugurated by the Father of the Nation, Mahatama Gandhi,
on November 11, 1919. Started as a limited company with its registered office at 7,
Marzban Road, Mumbai, it was one of the few Financial Commercial banks in India.
Until 1947, UBI had only 4 branches - 3 in Mumbai and 1 in Saurashtra, all
concentrated in key trade centres. Catering to all the sectors of the society, be it
agriculture, industry, trade and commerce, services or infrastructure, the bank has also
played a major role in rendering services to the financial needs of every section. Apart
from this, the bank also extended financial support to educational, housing and trade
sector.
Union Bank of India undertook the task of establishment of village knowledge centers
and self-employment training centers. It was in 1975, that the Union Bank of India was
nationalized. It was, then, that it merged with the Belgaum Bank, a private sector bank.
Another merger was on cards in 1985, this time with the Miraj State Bank. Union Bank
is a Public Sector Unit with 55.43% Share Capital held by the Government of India.
The Bank came out with its Initial Public Offer (IPO) in August 20, 2002 and Follow
on Public Offer in February 2006. Presently 44.57 % of Share Capital is presently held
by institutions, individuals and others.
Branch Network
At the time Nationalization i.e. June 1969, it had 240 branches. Since then, the
branch network had grown substantially across the country with presence in 28 states,
including union territories. As on 31st March 2004, Bank has network 2020 branches -
794 Rural, 457 Semi-urban, 426 Urban and 343 Metropolitan branches.
Tech-Savvy
With the age of global banking, Union Bank of India also changed its style, boasting of
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urbanized and computerized core banking systems. A front runner among public sector
banks in modern-day banking, it has all the facilities that a modern bank should have -
internet banking and centrally computerized branches. UBI was one of the pioneer
public sector banks, which launched Core Banking Solution in 2002. As of September
2005, more than 670 branches/extension counters of Bank are networked under Core
Banking Solution. The Bank has launched multiple Electronic Delivery Channels and
has installed nearly 423 networked ATMs.
Recent Development
Union Bank of India (UBI) has informed the Bombay Stock Exchange (BSE)
that the bank intends to raise additional funds up to Rs 400 crore in one or more
tranches by issue of bonds on private placement basis for its Tier II capital requirement
to shore up the capital to risk assets ratio subject approvals from the Ministry of
Finance and Reserve Bank of India. Exact amount to be raised, coupon and tenor of
bonds will be decided at the time of placement.
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INTRODUCTION TO PERFORMANCE APPRAISAL
The practice of appraisal is a very ancient art. Its roots in the early 20th century can be
traced to Taylor's pioneering Time and Motion studies. 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.
Performance appraisal, also known as employee appraisal, is a method by which the job
performance of an employee is evaluated (generally in terms ofquality,quantity, cost
and time). A more comprehensive definition of Performance appraisal may be defined
as-
Performance appraisal is a structured formal interaction between a subordinate
and supervisor, that usually takes the form of a periodic interview (annual or
semi-annual), in which the work performance of the subordinate is examined and
discussed, with a view to identifying weaknesses and strengths as well as
opportunities for improvement and skills development.
Performance Appraisal consists of a systematic, face-to-face discussion of an
employees work performance, training and development needs, future job goals and
job aspirations. It looks backwards, reviewing the employees performance during theperiod under review and forwards, helping the employee prepare and set goals for the
upcoming review period. Managers evaluate things everyday. This may be done
unconsciously. Managers also evaluate employees often also unconsciously. They
know whether they are good worker, reliable and conscientious. For a variety of
reasons many organizations ask managers to make conscious formal evaluations of
employees too. It may be as part of the organization's normal annual or biannual
Performance Appraisal System, which gives everyone a chance to clarify aims and
objectives, build on strengths and plan to strengthen weakness.
It is a powerful tool to calibrate, refine and reward the performance of the employee. Ithelps to analyze his achievements and evaluate his contribution towards the
achievements of the overall organizational goals.
By focusing the attention on performance, performance appraisal goes to the heart of
personnel management and reflects the managements interest in the progress of the
employees.
http://en.wikipedia.org/wiki/Job_performancehttp://en.wikipedia.org/wiki/Job_performancehttp://en.wikipedia.org/wiki/Employeehttp://en.wikipedia.org/wiki/Qualityhttp://en.wikipedia.org/wiki/Quantityhttp://en.wikipedia.org/wiki/Quantityhttp://en.wikipedia.org/wiki/Costhttp://en.wikipedia.org/wiki/Costhttp://en.wikipedia.org/wiki/Timehttp://en.wikipedia.org/wiki/Employeehttp://en.wikipedia.org/wiki/Qualityhttp://en.wikipedia.org/wiki/Quantityhttp://en.wikipedia.org/wiki/Costhttp://en.wikipedia.org/wiki/Timehttp://en.wikipedia.org/wiki/Job_performancehttp://en.wikipedia.org/wiki/Job_performance -
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In many organizations - appraisal results are used, either directly or indirectly, to help
determine reward outcomes also it leads to the identification of the training and
development needs of the employee.That is, the appraisal results are used to identify thebetter performing employees who should get the majority of available merit pay
increases, bonuses, and promotions. By the same token, appraisal results are used to
identify the poorer performers who may require some form of counseling, or in extreme
cases, demotion, dismissal or decreases in pay. (Organizations need to be aware of laws
in their country that might restrict their capacity to dismiss employees or decrease pay.)
OBJECTIVES OF PERFORMANCE APPRAISAL: The main purpose of an
employee assessment are:
To review the performance of the employees over a given period of time.
To judge the gap between the actual and the desired performance.
To help the management in exercising organizational control.
Helps to strengthen the relationship and communication between superior
subordinates and management employees.
To diagnose the strengths and weaknesses of the individuals so as to identify the
training and development needs of the future.
To provide feedback to the employees regarding their past performance.
Provide information to assist in the other personal decisions in the organization. Provide clarity of the expectations and responsibilities of the functions to be
performed by the employees.
To judge the effectiveness of the other human resource functions of the
organization such as recruitment, selection, training and development.
To reduce the grievances of the employees.
BASIC PURPOSE:
Effective performance appraisal systems contain two basic systems operating in
conjunction: an evaluation system and afeedback system.
Employee Viewpoint :
From the employee viewpoint, the purpose of performance appraisal is four-fold:
(1) Tell me what you want me to do
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(2) Tell me how well I have done it
(3) Help me improve my performance
(4) Reward me for doing well.
Organizational Viewpoint :
From the organization's viewpoint, one of the most important reasons for having a
system of performance appraisal is to establish and uphold theprinciple of
accountability
BENEFITS OF APPRAISAL :
Perhaps the most significant benefit of appraisal is that, in the rush and bustle of daily
working life, it offers a rare chance for a supervisor and subordinate to have "time out"
for a one-on-one discussion of important work issues that might not otherwise be
addressed.
Appraisal offers a valuable opportunity to focus on work activities and goals, to
identify and correct existing problems, and to encourage better future performance.
Thus the performance of the whole organization is enhanced.
Motivation and Satisfaction
Performance appraisal can have a profound effect on levels of employee motivation and
satisfaction - for better as well as for worse.
Training and Development
Performance appraisal offers an excellent opportunity - perhaps the best that will ever
occur - for a supervisor and subordinate to recognize and agree upon individual training
and development needs.
Recruitment and InductionAppraisal data can be used to monitor the success of the organization's recruitment and
induction practices.
Employee Evaluation
Though often understated or even denied, evaluation is a legitimate and major objective
of performance appraisal.
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The Link to Rewards
Research has reported that appraisees seem to have greater acceptance of the appraisal
process, and feel more satisfied with it, when the process is directly linked to rewards.
PROCESS: Each step in the process is crucial and is arranged logically. The process
shown down is somewhat idealized
METHODS: There are various methods of performance appraisal.An organizationselects the most appropriate method which suits its business.Following are few of
them:
-Rating Scale
-Checklist
Obectives of Performance
Appraisal
Establish Job Expectation
Design an Appraisal
Pro ramme
Appraise Performance
Performance Interview
Use Appraisal Data for
Appropriate Purpose
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-Critical incidents Method
-Essay Method
-Confidential Records
-Self Appraisal
-Ranking Method
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PERFORMANCE APPRAISAL AT UNION BANK OF INDIA
The Performance Appraisal method followed in Union Bank of India is Self
Appraisal System. Self appraisal is an important part of thePerformance appraisal
process.
Self appraisal system is undertaken at officer level (for non-operational and operational
assignments) in Union Bank of India every year on 31st March, where the employee
himself gives the feedback or his views and highlights regarding his performance.The
Appraisee highlight his best performances and also lists the areas where he feels he is
not upto the mark. The Appraisee is also asked to highlight problems he faced and
opportunities for which he is required to improve his performance. He is also asked to
mention any outstanding performance hes done outside the bank but for the
bank.Based on this form he rates himself on various parameters. This is done by filling
Performance Appraisal Form (Highlights of Performance Appraisal Form is given
ahead.)
After completion of this, the Appraiser (generally the immediate superior of the
appraisee) comments on the Key Responsibility Areas, i.e., analyzing various businessdimensions related to financial aspects and it also includes qualitative aspects of
business such as attitude, customer service, etc. There is certain difference in business
dimensions and managerial dimensions expected differently from non-operational and
operational assignments. And then accordingly the Appraiser rates him. If there is any
deviation in the scores the Appraiser gives reasons for the same.
The final appraisal is done by the Reviewing Authority (generally superior or
immediate superior to the Appraiser), which includes remarks and comments
on the appraisal done. He also rates the Appraisee and provides the reasons
for any deviation in the score.
The overall assessment of performance is done for Operational and Non-
operational assignments. This performance is done on the basis of marks. The
assessment is done by both appraiser and reviewing authority.
http://appraisals.naukrihub.com/http://appraisals.naukrihub.com/http://appraisals.naukrihub.com/http://appraisals.naukrihub.com/ -
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From the above scores given by the appraiser and reviewing authority for
various attributes, Performance is rated on the scale of:
Outstanding (80 100)
Good (60 - 79 )
Average (40 59)
Below Average (Below 40)
After the information so obtained from the assessment of performance, the
bank is able to provide training needs and is able to find out the potentiality of
the employees.
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HIGHLIGHTS OF ANNUAL PERFORMANCE APPRAISAL FORM
BIO DATA:(A)Personal Data
(B)Previous Assignments
(C)Training Programmes Attended (Seminars/Workshops to be excluded)
SELF APPRAISAL (By appraisee):
(A)Highlights of my performance during the year are as under(B)Areas in which I feel I have not done well as under
(C)Constraints faced(D)What according to me would enable me to perform better
(E)Any outstanding performance outside the Bank (Assigned by the Bank)
KEY RESPONSIBILITY AREAS :
(A)For non-operational assignments
(B)For operational assignments
QUALITATIVE ASPECTS OF BUSINESS (by appraiser):
For non-operational assignments:
(A)House Keeping(B) Inspection & Audit
(C)Customer Service(D)Submission of Periodical Returns(E) Recovery Performance(F) Aptitude for Poverty Alleviation Programmes
For operational assignments:
(A) Job Knowledge
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(B)Leadership
(C)Decision Making
(D)Administrative Skill
(E) Public Relations/Marketing Skills
(F) Integrity and Honesty
Cont
OVERALL ASSESSMENT OF PERFORMANCE
Name of the Officer: ___________________________________________________
FOR OPERATIONAL ASSIGNMENTS:
ATTRIBUTESTOTAL
BY
APPRAISER
BY
REVIEWING
AUTHORITY
Business Dimensions 30
Qualitative Aspects of Business 20
Managerial Dimensions 40
Outstanding Performance 10
TOTAL(100 MARKS) 100
NON-OPERATIONAL ASSIGNMENTS:
ATTRIBUTESTOTAL
BY
APPRAISER
BY
REVIEWING
AUTHORITY
Key Responsibility Areas 50
Managerial Dimensions 40Outstanding Performance 10
TOTAL(100 MARKS) 100
Outstanding (80 100)
Good (60 - 79 )
Average (40 59)
Below Average (Below 40)
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COMMENTS BY APPRAISER AND REVIEWING AUTHORITY:
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FINDINGS AND ANALYSIS
The Appraisal is undertaken every year on regular basis.
The appraisal system followed is at officer level,i.e. for non-operational
assignments and for operational assignments, i.e. apart from few criterias they
are rated differently for different attributes depending on their job profile. At
clerical level the superiors prepare Confidential Reportand there is no part
taken by the employees at this level.
The whole Performance Appraisal System is Designed in such a way that the
appraisee can be evaluated on their Key Responsibilities Areas like - Quantity
of work, Meeting job requirements on a timely basis, Quality of work,
Effectiveness & Accuracy, Knowledge of job etc. and Managerial Attributes
like - Team Spirit, Decision Making Ability, Attendance, reliability and
dependability, Planning and organizational effectiveness, Initiative and
creativity etc.
Apart from this the appraiser comments on Conceptual abilities, Flexibility of
mind, Emotional Strength, Responsiveness to corporate concerns, Willingness
to assume Responsibilities, Creativity & Innovativeness, Communication Skills.
It is observed that the review done by the Reviewing Committee gets delayed
sometimes.
The appraisal is undertaken not mainly for deciding an increment but the main
objectivebehind this is to evaluate the annual performance of the employee so
that training can be provided and bank is able to find out the potentiality of
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the employees and also to maintain the records for the same for future
reference so that it can be used forpromoting the employee in future.
In the whole appraisal system, often superiors assume the role of judges. In
contrast the aim is to develop employees; managers need to be counselors,
helpers and teachers.
The employees showed eagerness to learn from their mistakes which they hoped
to rectify and perform better.
Employees were hopeful that after the performance appraisal is over, they will
be properly rewarded for their work and that it was a way to ensure that their
efforts dont go unnoticed.
Although the employees believe that performance appraisals are for their
betterment, in the beginning they had doubts in their minds about the issue of
bias being a factor in the process of evaluation.
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RECOMMENDATIONS
The Performance Appraisal System is Designed in such a way that the
employees can highlight their achievements and mention constraints but apart
from this target should be set as goals such that people strive to attain goals to
satisfy their emotions & desire.
Also the appraiser and the reviewer comments on various attributes of appraisee
but there is no proper face-to-face feedback given to employees wherein theappraisee can personally discuss the problems faced by him and some solution
can be arrived at.
Also major feedback is given by work itself, a personal feedback along with
positive acknowledge would be welcomed by employees.
There can be sometimes some dissatisfaction on the part of the employee as the
comments and review given by the superiors can be biased so care should be
taken to avoid such an instance.
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CONCLUSION
From the above study we can conclude that maximum employees in the agency see
that the performance appraisal is a positive step taken by the organization to help
them to improve their own performance. Employees feel highly responsible towards
the job due to the freedom given for planning & completing their own objective, they
will feel even more responsible and involved if the changes in their work (changes by
client) are given taking their opinion.
Thus it can be concluded that Performance Appraisal is one of the best methods to not
only evaluate employees performance but also to motivate him and enhance his skills
by providing him with proper training by knowing the constraints he faces at his
work.
Hence, Performance Appraisal is a very positive step taken by any organization to
grow and also improve human resource quality.
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BIBLIOGRAPHY
Reference Books: -
K Aswathappa - Human Resource and Personnel Management by Tata
McGraw Hill Publishing Company Limited, New Delhi, Third Edition.
K Aswathappa - Organizational Behaviour.
Website: -
www.unionbankofindia.com