PERFORMANCE APPRAISAL PRACTICES IN AXIS BANK

A TRAINING REPORT

Submitted By

BACHELOR OF BUSINESS ADMINISTRATION

DOTWAY,FEROZPOUR ROAD,OPP.SBI BRANCH NEAR AARTI CHOWK LUDHIANA

Punjab Technical University,Jalandhar

PREFACE

Managing human resources in todays 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 company.

ACKNOWLEDGEMENT

I hereby take this opportunity to put on record my sincere thanks to Mrs. Ramandeep Kaur (Head of the centre) Mr. Deepak Gupta Miss Reetika for their 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

With sincere thanks

BBA 5th Sem.

INDEX

Sr no

Contents

Page no. 34-71 7-30 31-33 79 80 81 82 83-85

Company profile Review of the literature Research Methodology& Objective Limitation Conclusion Suggestions Bibliography Appendix & Questionnaire

COMPANY PROFILE

AXIS BANKS LTD

HISTORY OF THE COMPANY AXIS BANK LTD.

Axis Bank Limited, formerly UTI Bank s 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 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 banks 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 banks 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 200304, are still hovering close to the 3 per cent mark. (The comparable margins for ICICI Bank and
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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 banks 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 banks 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 200304, 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).
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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. Axis Bank operates the worlds highest ATM site at Thegu, Sikkim at 13,200 feet above sea level.

THE VISION AND THE CORE VALUES OF AIXS BANK

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

ACTIVITIES FROM AXIS BANK

CREDIT CARD CONSUMER BANKING CORPORATE BANKING FINANCE & INSURANCE INVESTMENT BANKING MORTGAGE LOAN PRIVATE BANKING PRIVATE EQUITY WEALTH MANAGEMENT

Agri & Rural Banking

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

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.

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REVENUE AND NET INCOME IN 2011 Revenue - rupees...198.26 billion (3.77 billion USD$) in 2011 Net income - rupees33.88 billion (643.72 million USD$) in 2011

Number of Employees 21,640

BOARD OF DIRECTORS Dr. Adarsh Kishore Smt. Shikha Sharma Dr. R.H. Patil Smt. Rama Bijapurkar Shri M.V. Subbiah Shri K. N. Prithviraj Shri V. R. Kaundinya Shri S. B. Mathur Shri Prasad R. Menon Shri R. N. Bhattacharyya Shri Samir K Barua Shri A K Dasgupta Shri Som Mittal Chairman Managing Director & CEO Director Director Director Director Director Director Director Director Director Director Director

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PRODUCTS/SERVICES OFFERED BY AXIS BANK

PERSON ACCOUNT 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:

Prive 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.9,000/12

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 o o

Multi-city at par chequebooks Electronic Fund Transfer facility across all banks in India Internet Banking with secure fund transfer facility (with 2-factor authentication) to self and third party accounts

o o

24x7 convenience at no charges with Axis Mobile 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 require special consideration. Benefits

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 Centralised Pension Disbursement Module wherein the Pensioner records are credited centrally through its Centralised 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
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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.

LOANS
HOME LOAN

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.

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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 car. 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 India.

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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 crunch.
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.

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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.

Margin: No margin for loans upto Rs 4 lacs. For loans above Rs 4 lacs, 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.

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ATM CARDS SERVICES

CREDIT CARD

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
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without divulging your credit card details.

All you need is your Axis Bank Credit Card and an Internet connection!
How?

Just follow these simple steps to start secure online shopping.

Register 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.

Generate Simply specify the amount you want to shop for with your eShop Card. It should be within the available limit on your Axis Bank Credit Card.

eShop! Now you are all set to shop online.

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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.

DEBIT CARD 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.

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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.

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SAFEDEPOSITELOCKER

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.
Advantages

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 cheques. Extended banking hours to operate lockers. Competitive rentals.

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TAX E PAYMENT

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.

INSURANCE

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.

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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.

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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. Advantages:

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.

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INTERNRT BANKING

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. Features

Account Details: View your bank account details, account balance, download statements and more. Also view your Demat, Loan & Credit Card Account Details too all in one place.

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.

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MOBILE BANKING

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.

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PRACTISE PERFORMANCE APPRAISAL IN AXIS BANK

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 persons performance we get an appropriate figure for calculation and the

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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 employees overall performance in the organization. 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 employees 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.

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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 performance.

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 unhappy.

Personal Development Plans (as a performance review output) are based on current competency shortfalls as well as new role challenges and employee career goals.
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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.

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REVIEW OF THE LITERATURE

PERFORMANCE APPRAISAL

Human Resource (or personnel) management, in the sense of getting things done through people, is an essential part of every managers 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 clich, 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 worlds 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 oneself."
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 32

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

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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.

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CONCEPTS
Typically, performance appraisal has been limited to a feedback process betweenemployees 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 ones 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 supervisors 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 teams or agencys 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.

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SUPERIORS
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 employees performance plan and the evaluation of programs and teams by senior managers.

SELF-ASSESSMENT 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 recommended.

PEERS 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-workers job performance and employees are generally very receptive to the concept of rating each other. Peer ratings can be used when the employees 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.

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

CUSTOMERS 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.

DEFINITION OF PERFORMANCE APPRAISAL

Appraisal is a process that provides an analysis of a Persons overall capabilities and potential,
allowing informed decisions to be made for particular purposes. An Important part of the

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process is assessment, whereby data on an individuals 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 employees excellence in matters pertaining to his present job and his potential for a better job.

CHARACTERISTICS 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. 4. It is scientific and objective study. Formal procedures are used in the study. 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 an employee.

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PROCESS 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

LIMITATIONS 1. Errors in Rating 2. Lack of reliability

3. Negative approach 4. Multiple objectives 5. Lack of knowledge

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METHODS OF PERFORMANCE APPRAISAL

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 complexity. The best-known techniques will be treated most briefly.

ESSAY APPRAISAL 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.

GRAPHIC RATING SCALE 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.

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FIELD REVIEW 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 similarly. .

FORCED-CHOICE RATING 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 party.

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MANAGEMENT BY OBJECTIVES

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.

RANKING METHODS 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.

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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.

ASSESSMENT CENTERS
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?

360 DEGREE FEEDBACKS 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.

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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.

Advantages 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.

Disadvantages 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.

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BENEFITS OF PERFORMANCE APPRAISALS

Measures an employees 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 organizations 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.

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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.

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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.

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ROLES IN THE PERFORMANCE APPRAISAL PROCESS

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 reviewer b) Reviewer (Reporting Managers 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 HODs / Reporting Managers in communicating the performance rating of all the employees e) Normalization Committee -Decides on the final bell curve for each function in the respective Business Unit / Circle

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-Reviews the performance ratings proposed by the HODs, 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

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KEY CONCEPTS IN PMS

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: - KRAS (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 KRAs for an employee? -How does an employee write down his KRAs for a particular financial year? -KRAs: 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. -AXIS BANK 2012 LEADERSHIP COMPETENCY FRAMEWORK: This

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 employee.
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-PROMOTION AND RATING DISRTRIBUTION GUIDELINES: The promotion 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.

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PERFORMANCE RATING PROCESS

EXCEPTIONAL CONTRIBUTOR (EC) Performs consistently and substantially above expectations in all areas Achieves a final score greater than or equal to 115% Consistently targets Is proactive Spots and anticipates implements solutions Delivers ahead of time Sees the wider picture-impacts across business Focuses on whats good for the business 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 crossfunctional teams problems, delivers on stretch

SIGNIFICANT CONTRIBUTOR (SC) Performs above expectations in all areas

Achieves final score between 100114%

Sees and exploits opportunities

Versatile in his/ her area of operation Develops creative solutions and require little / minimal supervision Sets examples for others Take ownership of own development Coaches others Demonstrates business initiative Is self motivated Supportive team player Leads own team very effectively Demonstrate functional initiative

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TEN TIPS FOR CREATING A EMPLOYEE APPRAISAL SYSTEM

Face the facts: Creating a new employee performance appraisal system is a difficult undertaking. Its even more difficult if the organization doesnt have a logical, well-tested, step-by-step process to follow in developing their new procedure.

One Get top management actively involved. Without top managements 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.

Two 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?" Dont settle for less.

Three 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.

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Four Design the form first. The appraisal form is a lightning rod that will attract everyones attention. Design the form early and get lots of feedback on it. Dont believe anybody who tells you that the form isnt important. Theyre wrong. If youre designing a new form internally, make sure it assesses both behaviors and results.

Five 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 companys 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 isnt 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.

Six 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."

Seven 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 wont produce much. And dont ignore the most important requirement of all: the need for courage. .

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Eight Orient all appraises. The programs 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, multirater feed-back, upward appraisal, or individual development planning.

Nine 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 its merely an exercise.

Ten 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 instantaneously.)

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 companys 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.

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OBJECTIVES OF THE STUDY

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

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RESEARCH METHODOLOGY

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 COLLECTION
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

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

SAMPLING PLAN: Sample Size = 25 Employees Sample Area =AXIS BANK LTD, LUDHIANA [PB] FEROZPUR ROAD LUDHIANA. Duration = Two (1) Months.

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AREAS OF PRACTICISING PERFORMANCE APPRASAL IN AXIS BANK

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% its 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

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ANALYSIS AND INTERPRETATION

Employees Opinion as to the Purpose of Performance Appraisal

Options Yes No

Response in (%) 90 10

10% Yes No 90%

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

Options Yes No

Response in (%) 97 3

3% Yes No 97%

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Number of Employees being appraised during their service period Options Yes No Response in (%) 98 2

23 employees being appraised during the service period

2% Yes No 98%

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Employees opinion as to the present appraisal system

Options Fully Satisfied Satisfied Cant Say Dissatisfied

Responses (in %) 34 44 12 10

45 40 35 30 25 20 15 10 5 0 Fully Satisfied 34

44

12

10

Satisfied

Cant Say

Dissatisfied

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Employee perception as to the frequency of appraisal

Options Once During The Service Period Continuous Never Cant Say

Response (in %) 10 84 0 6

90 80 70 60 50 40 30 20 10 0 10

84

0 Once During Continuous The Service Period Never

6 Cant Say

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If continuous appraisal what should be the gap between two appraisal period Options Quarterly Half Yearly Yearly Response (in %) 20 50 30

50 50 45 40 35 30 25 20 15 10 5 0 Quarterly Half Yearly Yearly 20 30

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How Performance Appraisal affects the productivity of the employees

Options + Feedback - Feedback Neutral

Motivated 38 12 24

Indifferent 12 10 21

Demotivated 0 28 5

30 25 20 15 10 5 0 38 Motivated 12 Indifferent 12 10 24 21

28

- Feedback Neutral 5

0 Demotivated

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Who should do the appraisal?

Options Superior Peer Subordinate Self Appraisal Consultant All of the above Superior + Peer

Response ( in % ) 4 0 0 8 4 68 16

70 60 50 40 30 20 10 0
Superior

68

16 8 4 0
Peer

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

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.Does appraisal help in polishing skills and performance area

Options Yes No Somewhat

Response ( in % ) 74 10 16

16 10 Yes No Somewhat 74

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.
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Does personal bias creeps-in while appraising an employee

Options Yes No

Response ( in % ) 82 18

18% Yes No 82%

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.

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If given a chance, would employees like to review the current appraisal technique? Options Yes No Cant Say Response ( in % ) 72 4 24

24% Yes No 4% 72% Cant Say

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Appropriate method of conducting the performance appraisal

Options Ranking Method Paired Comparison Critical Incidents MBO Assessment Centre 360 degree

Response ( in % ) 12 0 20 58 4 6

60 50 40 30 20 12 10 0 0
Ranking Method Paired Comparison Critical Incidents

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20

4
MBO

Assessment 360 degree Centre

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Does performance appraisal leads to identification of hidden potential

Options Yes No

Response ( in % ) 96 4

4%

Yes No 96%

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INTERPRETATION

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

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LIMITATIONS OF THE STUDY

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.

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CONCLUSION

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.

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SUGGESTIONS

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 organization.

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 employees 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.

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BIBLIOGRAPHY

2. www.axisbank.com 3. Internet 4. Official site of AXIAS BANK 5. Macmillon-Human resource management

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APPENDIX

Performance Appraisal Questionnaire Name of the Employee ..

Questionnaire

1. Do you understand what the purpose of performance appraisal is? a) Yes b) No

2. Awareness of performance Appraisal being practice your company? a) Yes b) No

3. Its there any number of employees being apprised in period of service, How many are they? a) Yes b) No

4. What is your opinion to present Performance Appraisal? a) Fully Satisfied c) Cant Say b) Satisfied d) Dissatisfied

5.

Should the appraisal process be: a) Once during the service period c) Never b) Continuous d) Cant Say
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6.

What in your opinion should be the time period of conducting continuous a) Quarterly b) Half Yearly c) Yearly

Appraisal?

Any specific reason 7. Does Performance Appraisal helps in improving the productivity of the employees? Motivated + Feedback - Feedback Neutral Indifferent Demotivated

8.

Who in your opinion should appraise the employee? a) Superior c) Subordinates e) Consultant b) Peer d) Self Appraisal f) All of the above

9.

Does the appraisal system helps in polishing the skills or performance area? a) Yes b) No c) Somewhat

10.

Do you think personal bias creeps in while appraising an individual? a) Yes b) No

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11.

If given a chance or an opportunity would you like that the current appraisal procedure should be reviewed? a) Yes b) No c) Cant Say

12.

What according to you should be the appropriate method for conducting performance appraisal? 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)

13.

Does Performance Appraisal leads to identification of hidden potential of the employees? a) Yes b) No ................................ THANK YOU
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14. Suggestions and views