INTRODUCTION

The study, “Performance Appraisal” in Banking Sector”, highlights the

importance of “Performance Appraisal” in special reference of banking
industry. As we know the banking sector is one of the fastest growing sectors
of our country, the study highlights the perspective of HR in banking sector. In
this study we strive to find out the need of “Performance Appraisal” for banks,
and try to understand how the “Performance Appraisal” is done in banking
sector. In this study we take the case of one of the leading bank, Kotak
Mahindra Bank, as our sample and try to find out their techniques used for
“Performance Appraisal”. This study refers to the need of “Performance
Appraisal” for banking industry, importance and emerging trends in the field of
“Performance Appraisal”. For easy understanding of the study we have divided
the entire study in to several chapters that gives the specific nature of the
subject in question. We have highlighted several trends of banking industry,
growth and prospect of banking in India, history of Indian banking, Role of
RBI as regulatory bank and the industrial importance bank as an institute to
march the nation in economic growth. Further we highlighted the role of HR,
its need and importance and “Performance Appraisal” as its one of the major
tools. It signifies the role of HR in organizational perspective and highlight the
rationale of active HR polices in an organization , this reports takes the HR as 9
managerial function rather than the staff activities . In this report we try to
make the role and concept of HRM understood for our readers. The study is
manly conducted on the basis of secondary data rather than the primary data.
We managed to collect the secondary data from Kotak Mahindra Bank and got
the information about the HR policy and process of the bank. In our study we
highlighted the process of Kotak Mahindra Bank “Performance Appraisal”
mechanism and the manner in which “Performance Appraisal” takes place in
Kotak Mahindra Bank In special cases like the practical example of Kotak
Mahindra Bank ,the study highlights: a) techniques , b) approach, c) forms, d)
managerial approach, e) employees feedback, f) process and other real aspect

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of the “Performance Appraisal” that provides the realistic view of the
“Performance Appraisal” process that is carried out by the bank in actual work
environment . The study is conducted is a simple manner and most of the data
is collected through various sources. This study refers the “Performance
Appraisal” technique as an effective managerial tool to enhance the efficiency
and effectiveness to achieve the organizational and individual goals. This study
provides the theoretical knowledge about the “Performance Appraisal”s on the
issue like a)need , b)importance , c)features , d)techniques , e)approaches ,
f)model , g)trends and 10 other issues related to the banking industry . This
study refers to the role of “Performance Appraisal” in a wide and in a
systematic manner that takes place in a sequential way and covers almost all
the aspect of the appraisal from employees to organization under the universal
approach called “Performance Management

Scope of the study :

Following aspects are covered under this study:

A brief overview of the nature of the subject

An introduction to the HR as a managerial function in special reference

with“Performance Appraisal”

New dimensions, techniques, approaches and thoughts in “Performance

Appraisal”

Practical aspect of ““Performance Appraisal”” in Kotak Mahindra Bank

Modern techniques emerging in ““Performance Appraisal” Need and

importance of “Performance Appraisal” in banking industry brief
introduction of Indian banking industry Introduction to Kotak Mahindra
Bank Role of “Performance Appraisal” as managerial decision in banking
sector in policy making and organizational success Practical challenges,
opportunities in banking sector to implement the effective Performance
management system

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NEED OF STUDY:

The hard working professionals are often relegated to small back offices
where their activities, viewed as little more than administrative functions, are
carried out without much recognition. But in an increasingly aggressive
corporate world, where every competitive edge counts, leading organisations
would do well to recognise the human potential that can be unleashed by
adopting effective human resource management strategies that realise the
potential of employees and earn their respect and loyalty. Dealing with the
mundane personal matters of corporate life has traditionally been seen as the
sole purpose of the HR department. From hiring workers and providing
transportation and meals services, to processing housing, medical and
insurance benefits, the functions of HR professionals have been recognised as
essential, but have not always inspired respect for those involved in executing
them. Essentially, people remain the strongest and most competitive assets of a
business.

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 OBJECTIVES OF THE STUDY

 To find out recruitment trends of small and medium Banking in South

India.
 I am only focussing on online recruitment and other sources have not
been considered and have not focussed on consultancies.
 This would help make a study about the Banking sector and it’s
requirements, hence helping the company, the logic being that if they are
hiring, they would require secure, high speed connectivity solutions,
which is where kotak Mahindra bank Business Solutions can pitch in it’s
offering.

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RESEARCH METHODOLOGY:

The study seems to be the observation and a description of the project

where we try to find out the hidden aspect or bring out the concept for further
explanation, but some scientific method and techniques classified it as the
research, that’s why the following research methods, techniques and
components are used to facilitate the study .

RESEARCH DESIGN- DESCRIPTIVE RESEARCH DESIGN

Descriptive research design is a scientific method that is used in this

study which helps in observing and describing the behavior of a subject without
influencing it in any way to obtain a general overview of the subject. This
design allows observation without affecting normal behavior. It is also useful
because it is not possible to test and measure the large number of samples
needed for more quantitative types of experimentation These types of
experiments are often used by anthropologists, psychologists and social
scientists to observe natural behaviors without affecting them in any way. It is
also used by market researchers to judge the habits of customers, or by
companies wishing to judge the morale of staff. Though the results from a
descriptive research can in no way be used as a definitive answer or to
disapprove a hypothesis but, if the 14 imitations are understood, they can still
be a useful tool in many areas of scientific and normal study research such as
this project.

TYPE OF DATA – SECONDARY DATA:

Secondary data was used for this study as the research design is descriptive in
nature so we tried to collect the data available through other sources on the
subject. Some times, primary data is also collected through observation method
to facilitate the research work.

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SOURCES OF DATA:

The following sources are used for collecting the data for this study: Books
internet Journals News papers Personal sources

SAMPLING – JUDGMENTAL SAMPLING

Judgment sampling is a common no probability method. This sampling is

selected on the judgment. This is usually and extension of convenience
sampling. We have decided to draw the entire sample from one
"representative" bank even though the population includes all banks. When
using this method, we try to ensure that the chosen sample is truly
representative of the entire population

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LIMITATIONS

A few limitations and constraints came in way of conducting the present study,
under which the researcher had to work are as follows:

 Although all attempts were made to make this an objective study, biases
on the part of respondents might have resulted in some subjectivity.

 Though, no effort was spared to make the study most accurate and useful,
the “sample Size” selected for the same may not be the true
representative of the Company, resulting in biased results.

 This being the maiden experience of the researcher of conducting study

such as this, the possibility of better results, using deeper statistical
techniques in analyzing and interpreting data may not be ruled out.

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 INDUSTRY PROFILE

HISTORY OF BANKING
Banking is nearly as old as civilization. The history of banking could be
said to have started with the appearance of money. The first record of minted
metal coins was in Mesopotamia in about 2500B.C. the first European
banknotes, which was handwritten appeared in1661, in Sweden. cheque and
printed paper money appeared in the 1700’s and 1800’s, with many banks
created to deal with increasing trade.

The history of banking in each country runs in lines with the

development of trade and industry, and with the level of political confidence
and stability. The ancient Romans developed an advanced banking system to
serve their vast trade network, which extended throughout Europe, Asia and
Africa.

Modern banking began in Venice. The word bank comes from the
Italian word “ban co”, meaning bench, because moneylenders worked on
benches in market places. The bank of Venice was established in 1171 to help
the government raise finance for a war.

At the same time, in England merchant started to ask goldsmiths to hold

gold and silver in their safes in return for a fee. Receipts given to the Merchant
were sometimes used to buy or sell, with the metal itself staying under lock and
key. The goldsmith realized that they could lend out some of the gold and
silver that they had and charge interest, as not all of the merchants would ask
for the gold and silver back at the same time. Eventually, instead of charging
the merchants, the goldsmiths paid them to deposit their gold and silver.

The bank of England was formed in 1694 to borrow money from the
public for the government to finance the war of Augsburg against France. By
1709, goldsmith were using bank of England notes of their own receipts.

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New technology transformed the banking industry in the 1900’s round the
world, banks merged into larger and fewer groups and expanded into other
country.

BANKING STRUCTURE IN INDIA:

In today’s dynamic world banks are inevitable for the development of a

country. Banks play a pivotal role in enhancing each and every sector. They
have helped bring a draw of development on the world’s horizon and
developing country like India is no exception.

Banks fulfills the role of a financial intermediary. This means that it acts
as a vehicle for moving finance from those who have surplus money to
(however temporarily) those who have deficit. In everyday branch terms the
banks channel funds from depositors whose accounts are in credit to borrowers
who are in debit.

Without the intermediary of the banks both their depositors and their
borrowers would have to contact each other directly. This can and does happen
of course. This is what has lead to the very foundation of financial institution
like banks.

Before few decades there existed some influential people who used to
land money. But a substantially high rate of interest was charged which made
borrowing of money out of the reach of the majority of the people so there
arose a need for a financial intermediate.

The Bank have developed their roles to such an extent that a direct
contact between the depositors and borrowers in now known as
disintermediation. Banking industry has always revolved around the traditional
function of taking deposits, money transfer and making advances. Those three
are closely related to each other, the objective being to lend money, which is
the profitable activity of the three. Taking deposits generates funds for lending
and money transfer services are necessary for the attention of deposits. The

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 Bank have introduced progressively more sophisticated versions of these
services and have diversified introduction in numerable areas of activity not
directly relating to this traditional trinity

Reserve Bank of India

Schedule Banks
Non-Schedule Banks

Central co-op
State co-op Commercial Banks Commercial Banks
Banks and Primary
Banks
Cr. Societies

Indian Foreign

Public Sector
Private Sector Banks HDFC,
Banks
ICICI etc.

State Bank of India Other Nationalized Banks Regional Rural

and its Subsidiaries Banks

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INDIAN BANKING INDUSTRY ANALYSIS:
The banking scenario in India has been changing at fast pace from being just
the borrowers and lenders traditionally, the focus has shifted to more
differentiated and customized product/service provider from regulation to
liberalization in the year 1991, from planned economy to market.

Economy, from licensing to integration with Global Economics, the changes

have been swift. All most all the sector operating in the economy was affected
and banking sector is no exception to this. Thus the whole of the banking
system in the country has undergone a radical change. Let us see how banking
has evolved in the past 57 years of independence.

After independence in 1947 and proclamation in 1950 the country set about
drawing its road map for the future public ownership of banks was seen
inevitable and SBI was created in 1955 to spearhead the expansion of banking
into rural India and speed up the process of magnetization.

Political compulsion’s brought about nationalization of bank in 1969 and

lobbying by bank employees and their unions added to the list of nationalized
banks a few years later.

Slowly the unions grew in strength, while bank management stagnated. The
casualty was to the customer service declined, complaints increased and bank
management was unable to item the rot.

In the meantime, technology was becoming a global phenomenon lacking a

vision of the future and the banks erred badly in opposing the technology up
gradation of banks. They mistakenly believed the technology would lead to
retrenchment and eventually the marginalization of unions.

The problem faced by the banking industry soon surfaced in their balance
sheets. But the prevailing accounting practices unable banks to dodge the issue.

The rules of the game under which banks operated changed in 1993. Norms or
income Recognition, Assets classification and loan loss provisioning were put

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in place and capital adequacy ratio become mandatory. The cumulative impact
of all these changes has been on the concept of state ownership in banks. It is
increasingly becoming clear that the state ownership in bank is no longer
sustainable.

The amendment of banking regulation act in 1993 saw the entry of new private
sector banks and foreign banks.

MAJOR PLAYER IN INDIA

1. HDFC BANK LTD

2. ICICI BANK LTD

3. STATE BANK OF INDIA LTD

4. PUNJAB NATOINAL BANK LTD

5. BANK OF BARODA LTD

6. FEDERAL BANK LTD

7. AXIS BANK LTD

8. ING VYSYA BANK LTD

9. IDBI BANK LTD

10. INDUSIND BANK LTD

11. YES BANK LTD

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 COMPANY’S PROFILE

Established in 1984, The Kotak Mahindra Group has long been one of India’s
most reputed financial organizations. In Feb 2003, Kotak Mahindra Finance
Ltd., the group’s flagship company was given the license to carry on banking
business by the Reserve Bank of India (RBI).This approval creates banking
history since Kotak Mahindra Finance Ltd is the first company in India to
convert to a bank. The license authorizing the bank to carry on banking
business has been obtained from the RBI in tune with Section 22 ofthe Banking
Regulation Act 1949.

KMBL was promoted by Mr. Uday.S.Kotak, Kotak and Company Ltd and Mr.
Sidney &A.A.Pinto under the name of Kotak Capital Management Finance Ltd
on 21st Nov 1985 and obtained a Certificate of Commencement of Business on
11th Feb 1986.

The bank customers have access to entire VISA network of 4500 ATM’S in
India and 800000ATM’S worldwide accepted in more than 56000

establishments across India and 10 million worldwide. The customer also has
access to over 800 ATM’s with sharing arrangements with UTI BANK,of these
125 are in the NCR.

Key group companies and their businesses

Kotak Mahindra Bank

The Kotak Mahindra Group's flagship company, Kotak Mahindra Finance Ltd
which was established in 1985, was converted into a bank- Kotak Mahindra
Bank Ltd in March 2003 becoming the first Indian company to convert into a
Bank. Its banking operations offer a central platform for customer relationships
across the group's various businesses. The bank has presence in Commercial
Vehicles, Retail Finance, Corporate Banking,Treasury and Housing Finance.

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Kotak Mahindra Capital Company

Kotak Mahindra Capital Company Limited (KMCC) is India's premier

Investment Bank. KMCC's core business areas include Equity

Issuances,Mergers & Acquisitions, Structured Finance and Advisory Services.

Kotak Securities

Kotak Securities Ltd. is one of India's largest brokerage and securities

distribution houses. Over the years, Kotak Securities has been one of the
leading investment broking houses catering to the needs of both institutional
and non-institutional investor categories with presence all over the country
through franchisees and coordinators. Kotak Securities Ltd. offers online and
offline services based on well-researched expertise and financial products
tonon-institutional investors.

Kotak Mahindra Prime

Kotak Mahindra Prime Limited (KMP) (formerly known as Kotak Mahindra

Primus Limited) has been formed with the objective of financing the retail and
wholesale trade of passenger and multi utility vehicles in India. KMP offers
customers retail finance for both new as well as used cars and wholesale
finance to dealers in the automobile trade. KMP continues to be among the
leading car finance companies in India.

Kotak Mahindra Asset Management Company

Kotak Mahindra Asset Management Company Kotak Mahindra Asset

Management Company (KMAMC), a subsidiary of Kotak Mahindra Bank,is

the asset manager for Kotak Mahindra Mutual Fund (KMMF). KMMF
manages funds in excess of Rs 20,800 crore and offers schemes catering to
investors with varying risk-return profiles.It was the first fund house in the

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country to launch a dedicated gilt scheme investing only in government
securities.

Kotak Mahindra Old Mutual Life Insurance Limited

Kotak Mahindra Old Mutual Life Insurance Limited is a joint venture

between Kotak Mahindra Bank Ltd. and Old Mutual plc. Kotak Life

Insurance helps customers to take important financial decisions at everystage in

life by offering them a wide range of innovative life insurance products, to
make them financially independent.

BOARD OF DIRECTORS

Mr. K.M.Gherda – Executive Chairman

Mr. Uday Kotak –Executive Vice Chairman and Managing Director

Mr. Anand Mahindra –Co Promoter of Kotak Mahindra Bank and

Vice Chairman and Managing Director of Mahindra and Mahindra

Mr. Cyril Shroff –Co Promoter

Mr. Pradeep N Kotak –Agri Division of Kotak and Company Limited

Dr. Shanker Acharya

Mr. Shivaji Dam –Managing Director Kotak Mahindra Old Mutual

Life Insurance Limited

Mr. C.Jayaram –Executive Director

Mr. Dipak Gupta –Executive Director

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Product Detail

Kotak Mahindra Bank is one of the prominent subs idiaries of

Kotak Mahindra group. The activities of the company being

parallel to its objective are very wide and cover all the

components of a Bank. The Basic area of Operations is the

Banking bus ines s , other products are meant for the regular

revenue generation. Being a Banking hous e, the company is

in regular touch with Banking Accounts , Inves tment

Servi ces , Convenience Banking and Other Servi ces .

They offer complete solutions that address all your financial

requirements,whether you're an individual or a firm. From everyday banking to
long term investments — their offering covers it all. This wide range of
products is delivered to you with a genuine understanding of your specific need
and warm, personalised service.

Kotak Mahindra Bank, it's not about selling you many different products — it's
about working out a holistic, pragmatic solution that addresses your financial
needs. Through their varied products,they commit themselves to becoming
“banker” to the customer rather than being “asset financier” to our Customers.

Banking Accounts

There are three types of banking account:

Savings Account

Current Account

Term Deposit

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SAVINGS ACCOUNT

“Choose from our range of Savings Accounts”

KOTAK MAHINDRA has got a variety of options of savings accounts to

choose from for its customers according to their convenience and requirements
.These savings accounts offer attractive returns along with personalized
banking services at three convenient average quarterly balances(AQB)levels of
Rs. 10000 (KOTAK EDGE SAVINGS ACCOUNT),Rs. 20000 (KOTAK PRO
SAVINGS ACCOUNT) and at Rs75000(KOTAK ACE SAVINGS
ACCOUNT).The average quarterly balance levels as well the corresponding
services and benefits try to ensure the various customer needs and
requirements.

Thus the three account opening options in savings account are as mentioned

above:

EDGE SAVINGS ACCOUNT: Kotak Mahindra Bank´s Edge Savings

Account is a complete financial package customized to suit individual banking
needs. Its constant endeavour is to enable regular financial transactions through
online platform so that most of payments can be made directly through your
account or card.

Features & Benefits Wide ATM access through the Kotak Mahindra Bank
Debit Card One can walk into any KOTAK or HDFC Bank ATMs to
withdraw cash or enquire balance at no extra charge!

Multiple Access Channels Access

An account through phone, mobile phone or internet to get information about

account balance or track transactions. One can even transfer funds through
Phone Banking or Net Banking.

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Financial payments facilitated through the savings account

Use the free Payment Gateway to make online payments for utility bills,credit
cards, online trading of shares or even online shopping.

Quick and easy funds transfer

Quick funds transfer to a third party account with another Bank is available
across 15 locations through Net Banking. Also get a multi-city cheque book so
that money from account is received by the beneficiary in the fastest possible
time.

Free investment account

One can open an investment account, and use the Net Banking facility to
purchase/redeem mutual funds online while directly debiting / crediting your
Bank Account. Besides this you get a consolidated view of all your mutual
fund investments across schemes with updated returns status, latest NAV
information and research reports.

Attractive returns

Earn better returns in your savings account, with our 2-Way Sweep facility that
automatically sweeps out idle funds, above a threshold, from your account into
Term Deposits. These Term Deposits sweep back into your account to meet
fund requirements when your withdrawals exceed the balance available in your
account, thereby providing you maximum Liquidity.

PRO SAVINGS ACCOUNT:

Kotak Mahindra Bank´s Pro Savings Account is an account packed with

powerful features to provide a superior banking experience at a very
comfortable balance requirement. They provide a relationship manager who
will specifically take care of banking and investment needs.

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Features & Benefits

Free ATM access all domestic VISA ATM network

Walk into any VISA ATM in India to check balance or withdraw cash

absolutely free. no longer have to worry about locating your Bank or Partner
Bank ATM – Use the first VISA ATM that you spot, for cash withdrawal or
balance enquiry transactions.

Multiple access channels

Access your account through phone, mobile phone or internet to get

information on your account balance or track your transactions. You can even
transfer funds through Phone Banking or Net Banking.

Free investment account

One can open an investment account, and use the Net Banking facility to
purchase/redeem mutual funds online while directly debiting / crediting bank
account. Besides this get a consolidated view of all the mutual fund
investments across schemes with updated returns status, latest NAV
information and research reports.

Financial payments facilitated through the savings account

Use our free Payment Gateway to make online payments for utility bills,credit
cards, online trading of shares or even online shopping.

Quick and easy funds transfer Quick funds transfer to a third party account
with another Bank is available across 15 locations through Net Banking. Also
get a multi-city cheque book so that money from account is received by the
beneficiary in the fastest possible time Attractive returns Earn better returns in
your savings account, with our 2-Way Sweep facility that automatically sweeps
out idle funds, above a threshold, from your account into Term Deposits. These
Term Deposits sweep back into your account to meet fund requirements when

19
your withdrawals exceed the balance available in your account, thereby
providing you maximum Liquidity.

Dedicated relationship manager You get a one point contact for all your
banking related queries and transactions. Your relationship manager will
also help you with financial planning and sound investment decisions.

Free banking transactions You can issue demand drafts or send cheques
for collection on branch locations without any charge to your account.

ACE SAVINGS ACOUNT:

Kotak Mahindra Bank's Ace Savings Account has been designed as a gateway
to a world of financial benefits and privileged banking transactions. The
account carries benefits ranging from personal investment advisory services to
concierge services to free banking transactions. Onewill find that this package
of services and privileges is unmatched by any other savings account in the
market.

Features & Benefits Free access at all domestic and international VISA
ATMs

No longer have to worry about locating your Bank or Partner Bank ATM - Use
the first VISA ATM that you spot, for free cash withdrawal or balance enquiry
transactions. So walk into any VISA ATM in India or abroad to withdraw cash
or for balance enquiry.

Multiple access channels

Access the account anytime through land line, mobile phone or internet to get
information on account balance or track transactions. One can even transfer
funds through Phone Banking or Net Banking.

Financial payments facilitated through the savings account

Use the free Kotak Payment Gateway to make online payments for utility bills,

20
credit cards, online trading of shares or even online shopping. All this at the
click of a mouse!

Quick and easy funds transfer

Transfer funds easily and with speed, to a beneficiary account at another bank.
One can avail of this facility by walking into any of branches or by simple
logging on to Net Banking. Also get a free multi-city cheque book so that
money from your account is transferred to the beneficiary's account at any of
branch locations, in the fastest possible time.

Free banking transactions

One can issue demand drafts or send cheques for collection at all branches for
no extra charge.

Attractive returns

Earn better returns in your savings account, with our 2-Way Sweep facility that
automatically sweeps out idle funds, above a threshold, from your account into
Term Deposits. These Term Deposits sweep back into account to meet fund
requirements when withdrawals exceed the balance available in the account,
thereby providing maximum liquidity.

CURRENT ACCOUNT

Kotak Mahindra Bank offers unparalleled advantages with its three Current
Account offerings. Whether small/ mid size business or an enterprise spread
across multiple locations in the country, would find a Current Account that's
just designed for you. These Current accounts offer attractive returns along
with personalized banking services at three convenient average quarterly
balances(AQB)levels of Rs. 25000 (KOTAK EDGE SAVINGS
ACCOUNT),Rs. 50000 (KOTAK PRO SAVINGS ACCOUNT) and at
Rs250000(KOTAK ACE SAVINGS ACCOUNT).The average quarterly
balance levels as well the corresponding services and benefits try to ensure the

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various customer needs and requirements. With features ranging from Free
DDs, Free Cheque Collection, Free At -Par Cheque facility to Free Trading
Account & free Demat Account, and more!

Thus the three account opening options in savings account are as mentioned
above:

Edge Current Account In need of a well equipped bank account to keep pace in
all the business endeavors. They offer the Kotak Edge Current Account, armed
with Kotak

2-Way Sweep and the entire gamut of Banking Privileges, providing that extra
edge to get ahead. The feature rich Kotak Edge Current Account is the ideal
way to make money work harder.

Features & Benefits Multi City Banking

Current account/s with Kotak Mahindra Bank will be recognized in every other
branch. One can just walk into a Kotak Mahindra Bank branch in any of our
branches across country to satisfy all the banking needs.

2 - Way Sweep* : Term Deposit linked Current Account

Kotak 2-Way Sweep ensures that money never stops working for you. Daily
balances, above a threshold level, in Current Account are automatically swept
out into Term Deposits (TD). This 'swept out amount' is brought back into
account to meet fund requirements when withdrawals exceed the balance
available in the account (or when the account balance goes below the specified
threshold level.) With Kotak 2-Way Sweep you enjoy the twin advantages of
attractive returns & maximum liquidity.

Free Demand Drafts and Pay Orders

Enjoy the benefit of our free Demand Drafts, payable at Kotak Mahindra Bank
Branch location in India.

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At-par Cheques

Get free At-par Cheques that are treated as 'local clearing' cheques across all
branch locations. All these at nominal costs.

Cheque Collection

All Outstation cheques, drawn on any of branch locations, are collected 'at
nominal charge' for you. The strong network of correspondent banks enables us
to collect cheques from 1600 locations across India at faster speed and minimal
cost

Mobile Banking and Alerts

Our Mobile Banking & Alerts service enables to access bank account on
Mobile Phone. One can access all your standing instructions (SI), any large
credits or debits, available balance, balance below AQB, any SI failure and SIs
successfully executed will be intimated to you via SMS

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 THEORITICAL FRAME WORK
PERFORMANCE APPRAISAL:

Management Performance appraisal is a method of evaluating the

evaluating the behavior of employees.Performance appraisal or merit rating
is one of the oldest and most universal practices of in the work spot,
Normally including both the quantitative and qualitative aspects of job
Performance. Performance appraisal can be an effective instrument for
helping people grow and develop in organizational setting. Through a Well
organized appraisal system. An employee can create learning spaces for
himself in an organization.

Effectively practiced and development oriented Performance appraisal &

Review system, substantially contribute to the organization health.
Organization cannot do away with Performance appraisal. Some form of
assessment of Performance on a continuing basis is essential for survival as
well as growth of an organization. If and develop yardsticks to measure it, if
you want to improve Performance. The performer has to be able to understand
it.

Performance appraisal is a systematic appraisal of the employee’s personality

traits and Performance on the job and is designed to determine his contribution
and relative worth to the firm.

A formal definition of Performance appraisal is that, it is the systematic

evolution of the individual with respect to his or her Performance on the job
and his or her potential for development

“Performance appraisal is a formal structured system of measuring and

evaluating an employee’s job, related behaviors and out comes to discover
how and why the employee is presently performing on the job an how the
employee can perform effectively in the future so that the employee,
organization and society all benefit.”

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Under Performance appraisal, we evaluate not only the Performance of a
worker but also his potential for development.

COMPONENTS OF APPRAISAL EVALUATION

As we have seen Performance evolutions can be made a verity of reasons-

counseling, promotion, research, salary, administration or a combinations of
these therefore it is necessary to begin by stating very clearly the objectives of
the evolution program. Having done this, the personal evolution system should
address the questions, who, what, when, where, how? Of Performance
appraisal

“WHO”

The appraisal can be accomplished by one or more individuals involving a

combination of the immediate supervisor, a higher level manager, a personal
manager, the assessee’s peers, the assessee himself and the assessee’s
subordinates.

Usually the immediate supervisor must be interested with the task of rating the
assessee because he his most familiar with his work, and because he is also
responsible for recommending or approving personal action based on the
Performance appraisal. The staff specialists, i.e. the personal officer also do
appraisal.

They may advise the supervisor while evaluating their subordinates stressing
the need for evidence for making specific appraisal judgments and comparing a
particular subordinate’s evolution with those of others.

The appraisal of an individual may also be done by his peers such appraisal
proves effective in predicting future management success.

This approach has its disadvantage that the individual may rate himself
excessively high then it would be if his superior rated him. Many companies

25
use rating committees to evaluate employees. These committees consist of
supervisors, peers, and subordinates.

“WHAT”

The “what” of the Performance appraisal consists in appraising non supervisory

employees for their current Performance and managers for potential? It also
includes evaluation of human trades.

“WHY”

The “why” of an appraisal is concerned with –

a) Creating and maintaining a satisfactory level of Performance of

employees in there present jobs.
b) Highlighting employee needs and opportunities for personal growth and
development.
c) Promoting understanding between the supervisor and his subordinates.
d) Providing a useful criterion for determining the validity of selection and
training methods and techniques and forming concrete measures for
attracting individual of higher caliber to the enterprise.

“WHEN”

The ‘when’ answers the query about the frequency of appraisal? It has been
suggested in formal counseling should occur continuously. The manager should
discuss an employee’s work as soon as possible after he has judged it.

“WHERE”

The where indicates the location where an employee may be evaluated. It is

usually done at the place of work or office of the supervisor.

“HOW”

Under how the company must decide what different methods are available and
which of these may be used for Performance appraisal. Based on the

26
comparative advantages and disadvantages it is decided which method suit the
propose best.

PURPOSE OF PERFORMANCE APPRAISAL

 To create and maintain a satisfactory level of Performance.

 To provide information making decision for rewardingly of
retrenchment etc.
 To guide the job changes with the help to continuous ranking.
 To contribute to the employee growth and development through
training, self and management development program.
 To facilitate for testing and validating selection tests, interview
techniques through compeering there scores with Performance appraisal
ranks.
 To facilitate fair and equitable compensation based on Performance.
 To help the superiors to have proper understanding about there
subordinates.

WHAT SHOULD BE RATED

The seven criteria for assessing Performance are:

1. Quality: the degree to which the process or result of carrying out an

activity approach perfection
2. Quantity: the amount produce expressed in monetary terms number of
units, or number of completed activity cycles
3. Timeliness: the degree to which an activity or an result produced
4. Cost effectiveness: the degree to which the use of the organizations
resources (e.g. human, monetary, technological, material) is maximized
in the séance of waiting the highest gain
5. Need for supervision: the degree to which a job performer can carry out
job function without supervisory assistance

27
 6. Interpersonal impact: the degree to which performer promotes feeling
of self – esteem, goodwill and cooperation among co- workers and sub-
ordinates.
7. Training: need for training of improving his skills knowledge.

OBJECTIVE OF PERFORMANCE APPRAISAL

 A good Performance appraisal has following objectives:-

 Help employee to Krishak Bharti Coperative Ltd. His weaknesses, and
improve his strengths, and thus enable him to improve his Performance and
that of the department.
 Generate adequate feedback and guidelines from the reporting officers
to the employee.
 Contribution to the growth and development of the employee thru
helping in realistic goal setting
 Help identifying employees for the porpoise of motivating, training and
developing them.
 Generate significant relevant, free and valid information about
employees thus good Performance appraisal and review system should
primarily focus on employee development

METHODS OF APPRAISAL

Broadly all the approaches to appraisal can be classified into:-

 Past-oriented:
 Rating scales
 Checklist
 Forced choice method
 Forced distribution
 Critical incident method
 Behaviorally anchored’ scales

28
  Field review method
 Annual confidential report
 Essay method
 Cost accounting approaches
 Comparative evolution approach
 Ranking method
 Paired – comparison method

 Future – oriented:
 Management by objectives
 Psychological appraisals
 Assessment center

METODS OF PERFORMANCE APPRAISALS

Past Oriented Methods

 Rating scales:
This is the simplest and the most popular technique for employee
Performance. The typical rating – scales system consists of several
numerical scales, each representing job related Performance criterion
such as dependability, initiative output, attendance, attitude, co-
operation and the like. Each scales ranges from excellent to poor. The
rater checks the appropriate Performance level on each criterion, and
then computes the employees total numerical scores.

29
 Checklist:

In this method, the raters don’t evolutes employee Performance, he

supplies reports about it and the personal department does the final
rating a series of question are presented concerning and employee to his
behavior. The rater, then, to indicate if the answer to a question about an
employee in positive or negative. Generally , the questions are on yes/no
pattern.

 Forced choice method:

In this the rater is given a series of statements about employee. These
statements are arranged in block of two or more, and the rater indicates
which statements is most or least disruptive of the employee

 Critical incident method

The, approaches focus on certain critical behaviors of an employee that
makes all the difference between effective and non effective
Performance of a job. Such incidents are recorded by the superiors as
and when they occur.

 Behaviorally Anchored Rating Scales

Sometimes this is called behavioral expectation scales, are rating scales
whose scale point are determined by statements of effective and
ineffective behaviors. A rater must indicates which behavior on each
scale best describes an employee’s Performance.

 Field review method

This is an appraisal by someone outside the assesses on department
usually someone from the corporate office or H.R department. The
outsider review employee records and holds interviews with the rate and

30
 his or her superior . the method is primarily used for make promotional
decision at the managerial level.

 Annual confidential report method

In this method each employee is rated confidentially by one or more
senior officers for his Performance. The report deals with the years work
and general opinion of the rater towards the employee. The main
problem with his method is that it is not data based and the appraisal is
done the bases of impression.

 Easy method
In the essay method, the rater must describe the employee with in a
number of broad categories such as-
a) The rater’s overall impression of the employee’s Performance
b) The promotability of the employee
c) The jobs that the employee is now able or qualified to perform
d) The strength and weaknesses of the employee and the traning and the
development assistant required the employee.

 Comparative Evolution Approaches

These are a collection of a different methods that compare one worker’s
Performance with that his / her co-workers. Supervisors usually conduct
comparative appraisals. As these appraisals can results in a ranking from
best to worst they are useful on deciding merits-pay increases
promotions and organizational rewards.

a) Ranking method
In this, the superior his or her subordinates in the order of there merits
starting from the best to the worst,. This method is subject to the hallo
and Recency effects, although ranking by two or more raters can be

31
 averaged to help reduce biases. It advantages include ease of
administration and explanation.
b) Paired – Comparison method :-
Under this method the appraiser compares each employee with every
other employee, one at a time. The number of comparisons may be
calculated with the help of formula, which reads thus-:
N (N-1)/2

PERFORMANCE APPRAISAL
Typical appraisers are: supervisors, peers, subordinates employees
themselves users of service and consultants. Performance appraisal by
all these parties is called” PERFORMANCE APPRAISAL”
1. Supervisors:
Supervisors include superiors of the employee other superiors having
knowledge about the work of the employee and department head or
manager. General practices is that immediate superiors appraise the
Performance, hitch in turn reviewed by the departmental head /manager.

2. Peers:-
Peer appraisal may be reliable if the work group is stable over a
reasonably long period of time and perform tasks that require
integration.

3. Subordinates:-
The concept of having superiors rated by
subordinates is being used in most organizations today especially in
developed countries. Such a novel method can be useful in other
organizational settings too provided the relationship between superiors
and subordinates are coordinal.

32
 4. Self-Appraisal:-
In individuals understand the objective they are expected to achieve
and the standard by which they are to be evaluated, they are to a great
extend in the best position to appraise their own Performance.

5. Users of Service Customers:-

Employee Performance in service organization relating to behaviors,
promptness, speed in doing the job and accuracy, can be better judged
by the customers or users of services.

6. Consultants:-
Sometimes consultants may be engaged for appraisal when
employees or employers not trust supervisor and management does not
trust the self-appraisal a peer appraisal or subordinate appraisal.

THE POST APPRAISAL INTERVIEW

This interview provides the employee the feedback information, and an
opportunity to the appraiser to employee his rating, the trail and behavior he
has taken into consideration etc.
Further it helps both the parties to review standards, set new standards based
on the reality factors and helps the appraisal to offer his suggestion, help,
guide and coach the employee for his advancement .
Thus, the post appraisal interview is designed to achieve the following the
objectives.
 To let employee know where stand
 To help employee do better job by clarifying what is expected of them
 To plan opportunities for development and growth
 To provide an opportunity for employees to express themselves on
Performance related issue.
Thus, post appraisal interview is most helpful to the employee as well as
his superior.

33
KEY ELEMENTS OF PA SYSTEMS

1) Performance Improvement:-
Performance feedback allows the employee, manager, and
personnel specialists to interview with appropriate action to improve
Performance.
2) Compensation Adjustments:-
Performance evaluations help decision – makers determine
who should receive pay raises.
Many firms grants part or all of their pay increase and bonuses
based upon merit, which is determine mostly through Performance
appraisal.
3) Placement Decisions:-
Promotions, transfers, and demotions are usually based on past
on anticipated Performance.
4) Training and Development Needs:-
Poor Performance may indicate the need for retraining.
Likewise, good Performance indicate untapped potential that should
be developed.

5) Career Planning And Development:-

Performance feedback guides career decisions about specific
career paths.

6) Information Inaccuracies:-

Poor Performance indicate errors in job analysis information’s

human resource plan, or other parts, or the personal management
information’s systems.

34
 Job Decision Errors:-
Poor Performance may be a system of ill-conceived job
designs. Appraisals help diagnose these others.
7) Equal Employment opportunity:-
Accurate Performance appraisals that actually measure job-
related Performance ensure that internal placement decisions are not
discriminatory.
8) Feedback to human resource:-
Good/bad Performance throughout the organization indicate
how well the human resource function is performing.

STAGES OF PERFORMANCE APPRAISAL PROCESS

Performance appraisal is a Nine-Step Process:-

 At the First stage, Performance standards are established based on job

description and job specification. The standard should be clear, objective
and incorporate all the factors.
 The Second stage, is to inform these standards to all the employees
including appraisers.
 The Third stage is following the instruction given for appraisal
measurement of employee Performance by the appraisers through
observations interview, records and reports
 The Fourth stage is finding out the influence of various internal and
external factors on actual Performance.
 The Fifth stage is comparing Performance with that of other employee
and previous Performance .
 The Sixth stage is comparing the actual Performance with the standards
and finding out deviations.
 The Seventh stage is communicating, the actual Performance of the
employee and other employees doing the same job and discuss with him

35
 the reasons for positive or negative deviations from the preset standards
as the case may be.
 The Eighth stage is suggesting necessary changes in standards, job
analysis internal and external environment.
 The Ninth stage is fallow up Performance appraisal report. This stage
includes guiding, counseling coaching and directing the employee or
making arrangements for the training and development of the employee.

PROBLEMS OF PERFORMANCE APPRAISAL

The major problem in Performance appraisal :-

1) Rating Biases:-
The problem subjective measure (is that rating which is not
verifiable by others) has the opportunity for biases include:-

a) Halo effect
b) The error of central tendency
c) The leniency and strictness biases
d) Personal prejudice
e) The Recency effect

 Halo Effect:-
It is the tendency of the raters to defend excessively on the rating of
one trait or behavioral consideration in rating all other traits or behavioral
consideration. One way of minimizing the halo effect is appraising all the
employee by one trait before going to rate basis of another trait.

 The Error Central Tendency:-

Some raters fallow play safe policy in-rating-by-rating all the
employee on the middle point of the rating scale and they avoid rating the
people at both the extremes of the scale. They fallow play safe policy

36
 because of a answerability to management or lack of knowledge about the
job and person he is rating or least interest in his job.

 The leniency and Strictness:-

The leniency bias crops when some raters have an tendency to be

liberal in their rating by assigning higher rates consistently such rating do
not several any purpose equally damaging one is assigning consistently
low rates.

d)Personal Prejudice : -

If the rater dislike any employee or any group, he may rate them at
the lower them which may distort the rating purpose affect the career of
these employee.

 The Recency Effect:-

The raters generally remember the recent actions of the employee at the
time of rating and rate on the basis of this recent action.

1) Favorable or unfavorable rather than on the whole activities.

2) Failure of the superior in conducting Performance appraisal and post
Performance appraisal interview.
3) Most part of the appraisal is based on subjectivity.
4) Less reliability and validity of the Performance appraisal technique.
5) Negative ratings affect interpersonal relations system.

37
WHY APPRAISAL TECHNIQUES PROVE FAILURE

Performance appraisal techniques techniques have often failed to give a correct

assessment of the employee. The causes of such failure are:-

1) The supervisor plays dual and conflicting role of the both the judge and
the helper.
2) Too many objectives often cause confusion.
3) The supervisor feels that subordinate appraisal is not rewarding.
4) A considerable time gap exist between two appraisal programs.
5) The skills required for daily administration and employee development
are in conflict.
6) Poor communication keeps employees in the dark about what is
expected of them.
7) There is the difference of opinion between a supervisor and a
subordinate concerning the liter’s Performance.
8) Feedback on appraisal is generally unpleasant for both supervisor and
subordinate.
9) Unwillingness on the part of supervisor to tell employee plainly how to
improve their Performance.

About Employee:-

 Safe and Friendly Work Environment-:

What sort of environment are you providing your employees.
 Use of Employees-:
Is the business maximizing it’s use of employee to best suit the
business needs?
 Employee Knowledge-:
How familiar (what knowledge) are your employee with the
running of machine/equipments, products of the companies? Does
employee require training?

38
  Employee Happiness-:
Are the employees happy with their wages, rewards and hours of
work given?

PERFORMANCE MATRIX

In principle the individual Performance matrix (IPM) can be notionally divided

into two parts-:
 Team matrix
 Individual Matrix

KRA 1 to 5

 For achievement of the set targets, the prescribed credit points would accrue to
all team members for the team Performance and to an individual for the individual
Performance.
 Any drop / deviation from the targets will lead to ‘ Debit ’ to while the overall
debit points for the negative variance vis-à-vis has been prescribed for the team
the individual will be liable to the lose additional points bin case of direct
responsibility for deviation.
 These ‘debit’ points will be determine depending on gravity of error, quantum of
loss, extraneous/ inhibiting factors, etc. as a part of
appraisal process.

KRA 6

It is intended to cover every individual distinguishing contribution/ efforts made

in respect of either assigned projects or innovations, cost saving measures value
additions etc. this has been specifically design to acknowledgement and reward
individual excellence.

39
KRA 7

(Health. Safety/fire, Environment) “Debit” will apply to an individual and his

superiors but his not peers / others who may not be connected with the safety
incident. Similarly there is scope to earn separate credit points for an individual
through safety suggestion and reporting of “near misses ” and unsafe acts/
conditions/

KRA 8

(Training and HR) this is intended to cover self training, training of subordinates,
for the training programs organized by learning centre are HR based on individual
need assessment of self & subordinates.

These also include quarterly review, counseling and maintaining of Performance

diary.

KRA 9

(Quality System & Documentation) this include proper maintenance of each and
every documents of ISO 9000 and 14001 for surveillance audits, also revision of
SOPs / SOCs decided by the plant.

KRA 10

(Industrial Relations ) there is a scope for a team to earn separate credit points
based on the number of implement suggestions. In this case the team means the
concern immediate supervisor, production / department manager and plant
manager.

Disciplinary Action

It will be deemed to be complete when the matter is brought to logical Conclusion

resulting in either appropriate punishment or withdrawal of Charge sheet.
However no debit will be accrued in the event of Prolonged enquiry beyond the

40
control of the employee. Further for the Discipline violations not reported and
discovered.

Tier - II

The appraisal for managerial key dimension determined carder wise

With 20% weightage.

Performance Diary
The Performance diary is a meant to track / capture the significant
Performance events whether positive or negative (Credit or Debit). This is also
the tool for recording the personal contribution in terms of innovative ideas,
suggestions, cost saving efforts etc.

The filling up the Performance diary is most critical and important aspect on
which the entire system rests. Each and every individual has responsibility to
highlight ‘event’ in the Performance diary, timely and properly.

While for an individual on the other hand, it may mean establishing clear
responsibility for a fault/formal operation / misjudgment etc. on the other hand
it will mean recording of credits worthy efforts / contribution which may
otherwise go unnoticed.

It is also essential to mention the impact of the incident in the terms of

beneficial and detrimental consequences as the case may be. Where ever
possible, the consequence needs to be quantified. Two important factors which
is likely to be recorded in the Performance diary are as follows-:

41
Facilitating Factor:

Are those factors that are beyond the control of the appraise that have led to
better Performance. Example: Availability of resources in time .

Inhibiting Factor:
Are those factors that are beyond the control of the appraise they have led to
poor Performance. EXAMPLE: power failure that has led to loss of output.

Whom it will be Available:

The Performance diary will remain in custody of the immediate superior and
it will be the joint responsibility of the appraise to maintain the sanctity of
this instrument through timely and meticulous recording. Infect, maintenance
of “Performance diary” has been kept as the important parameter for
Performance assessment.

Who will be The Appraiser:

The appraiser will be the sectional head / departmental head.

42
 RESEARCH METHODOLOGY

RESEARCH
The research design of this project is exploratory. Though each research
study has its own specific purpose but the research design of this project on
KOTAK MAHINDRA BANK is exploratory in nature as the objective is the
development of the hypothesis rather than their testing. The research designs
methods of financial analysis. Through of comparative balance sheet in
comparative statement, I am studying on balance sheet of KOTAK
MAHINDRA BANK of five year. So taking comparative statement, I am
going to analyzed of five years balance sheet of KOTAK MAHINDRA
BANK

METHODOLOGY
Every project work is based on certain methodology, which is a way to
systematically solve the problem or attain its objectives. It is a very important
guideline and lead to completion of any project work through observation, data
collection and data analysis.
“Research Methodology comprises of defining & redefining problems,
collecting, organizing & evaluating data, making deductions & researching to
conclusions.”

- Clifford Woody

RESEARCH DESIGN

Research Design refers to "framework or plan for a study that guides the
collection and analysis of data". A typical research design of a company
basically tries to resolve the following issues:

a) Determining Data Collection Design

b) Determining Data Methods

c) Determining Data Sources

43
 d) Determining Primary Data Collection Methods

e) Developing Questionnaires

f) Determining Sampling Plan

(1) EXPLORATIVE RESEARCH DESIGN:

Explorative studies are undertaken with a view to know more about the
problem. These studies help in a proper definition of the problem, and
development of specific hypothesis is to be tested later by more conclusive
research designs. Its basic purpose is to identify factors underlying a problem
and to determine which one of them need to be further researched by using
rigorous conclusive research designs.

(2) CONCLUSIVE RESEARCH DESIGN:

Conclusive Research Studies are more formal in nature and are conducted with
a view to eliciting more precise information for purpose of making marketing
decisions.

These studies can be either:

a) Descriptive or

b) Experimental

Thus, it was mix of both the tools of Research Design that is, Explorative as
well as Conclusive.

SAMPLING PLAN:

Sample Size = 50 Employees

Sample Area = KOTAK MAHINDRA BANKHYDERABAD

Duration = 6 weeks

44
RESEARCH PROBLEM

I have selected that Performance APPRAISER as research problem for my

summer training project.

As a research problem is the situation that causes the researcher to feel

apprehensive, confused and ill at ease. It is the demarcation of a problem area
within a certain involving the WHO or WHAT the WHERE the WHEN and the
WHY of the problem situation.

RESEARCH OBJECTIVE

How productivity relates with Performance appraisal. In addition, the major

factors of Performance appraisal, which have taken a part in increasing
productivity of the organization.

RESEARCH INSTRUMENT USED

 QUESTIONNAIRE:

The term questionnaire usually refers to a self administered processes

whereby he respondent himself read the question and records without the
assistance of an interviewer.

 INTERVIEW:
The interview method of collection data involves presentation of oral-
verbal stimuli and reply in terms of oral-verbal response.

EXPLORATORY RESEARCH

Exploratory research studies are also termed as formulating studies. The main
purpose of such studies that of formulating of the problem for more precise
investigation or of developing the working hypotheses from an operational

45
 point of view. An exploratory research focuses on the discovery of ideas and is
generally based on secondary data. It consists:

 Search of secondary data and literature

 Survey

SEARCH OF SECONDARY DATA AND LITERATURE :

The quickest and most economical way is to find possible hypotheses from the
available literature. The past research may be suitable may suitable sources of
information to develop new hypotheses. The researcher can search them for
his research purpose.

SURVEY REPORT:

Survey means the survey of people who have had practical experience with the
problem to be study. These individual can be top executives, sales manager,
wholesaler and retailer processing valuable knowledge and information about
the problem environment.

RESEARCH INSTRUMENTS USED:

I have used the following research instrument in my project :-

 QUESTIONNAIRE-:

The term questionnaire usually refers to a self – administered process

whereby the respondent himself read the question and records without the
assistance of an interviewer.

46
  INTERVIEW-:
The interview method of collection data involves presentation of oral-
verbal stimuli and reply in terms of oral- verbal response.

SAMPLING TECHNIQUE USED

When field studies are under are under taken in practical life, consideration
of time cost and some other factors almost invariably lead to selection of
respondents. The selected respondents constitutes a sample and the
selection process is called sampling technique.

A sample design is define plan determined before any data are actually
collected for obtaining a sample from a given population. Sample can be
either probability sample or non probability sample.

I have selected simple random sampling in my project.

SIMPLE RANDOM SAMPLING:
This type of sampling is also known as chance sampling or probability
sampling where each item in the population has an equal chance of being
selected in the sample.

SAMPLE SIZE:
When a survey is undertaken and when it is not possible to cover the entire
population the researcher has to answer the basic question – how large
should be sample be ? the sample size decision is related directly to research
cost.
The intended sample size is the number of participants planned to be included
in the trial, usually determined by using a statistical power calculation. The
achieved sample size is the number of participants enrolled, treated , or
analyzed in the study.

47
I have taken 50 people in my sample size as the sample size should be neither
so small nor so large.

METHOD USED FOR DATA COLLECTION

The task of data collection begins after a research after a research problem
has been defined and research design chalked out. While deciding about the
method of data collection to be used for the study the researcher should
keep in mind two types of data-:

1) Primary Data
2) Secondary Data

1. PRIMARY DATA
Those data that have been observed and recorded by the researcher for
the first time in their knowledge.

Sources:
 Questionnaire
 Interview method
2. SECONDARY DATA:
Those data that have been compile by some agency other than user.

Sources:
 Company profile
 Magazine
 Internet
 Books
 Previous report

48
ANALYTICAL TOOLS USED

The term analysis refers to the computation of certain measures along with
searching for pattern of relationship that exists among data group. Analysis is
essential for a scientific study and for ensuring that we have all relevant data
for making contemplated comparison. Therefore , I have used Tabulation,
Graphs &chartsin my project.

49
 DATA ANALYSIS AND INTERPRETATION

1. Are you aware of the objective of the Performance appraisal system?

NO OF
RESPONDENT(SAMPLE
OPTIONS PERCENTAGE
SIZE 50)

VERY MUCH

42 84%

SOME WHAT

7 14%

DON’T KNOW

1 2%

INTERPRITATION- 84% Employees are aware of the object of the

Performance appraisal system.

50
 2. Performance appraisal helps the organization in achieving goal.

NOS OF
OPTIONS RESPONDENT(Sample PERCENTAGE
size 50)

YES 38 76%

NO 10 20%

DON’T KNOW 2 4%

INTERPRITATION - 76% Employees say yes that Performance

appraisal helps the organization in achieving goal.

51
 3. Hold meeting in the beginning of the year to explain & clarify
activity task & goals to be achieved.

NOS OF
OPTIONS RESPONDENT(Sample PERCENTAGE
size 50)

YES 39 78%

NO 11 22%

INTERPRITATION-: 78% Employees say that yes organized

meetings helps goal and task. While the other 22% employees that is
not very much helpful.

52
 4. Organization has to make a fixed duration for Performance appraisal.

NOS OF
OPTIONS RESPONDENT (Sample PERCENTAGE
size 50)

YES 40 80%

NO 10 20%

INTERPRITATION -: 80% Employees agree with that is organization

should have to make a fixed duration for Performance appraisal. While the
other 20% employees do not agree with this statement.

53
 5. Satisfied for point allocation on the basis of KRA’s & managerial
dimension.

NOS OF
OPTIONS RESPONDENT(Sample PERCENTAGE
size 50)

FULLY SATISFIED 20 40%

SATISFIED 26 52%

DISSATISFIED 2 4%

UNCERTAIN 2 4%

INTERPRITATION-: 40% Employees are fully satisfied for point

allocation on the basis of KRA’s and managerial dimension.

54
 6. Performance appraisal affects the working efficiency of employees.
NOS OF RESPONDENT(Sample
OPTIONS size 50) PERCENTAG
E

YES 42 84%

NO 8 16%

INTERPRITATION-: 84% Employees say that yes Performance appraisal

system affect the working efficiency of employee. While the other 16%
employees do not agree with this statement.

55
 7. Appraisal system is able to develop high result orientation approach.
NOS OF
OPTIONS RESPONDENT(Sample PERCENTAGE
size 50)

YES 47 94%

NO 3 6%

INTERPRITATION-: 94% Employees say that yes the appraisal system is

able to develop high result orientation approach. While the other 6%
employees do not agree with us.

56
 8. The systems will also contribution in potential appraisal.

NOS OF
OPTIONS RESPONDENT(Sample PERCENTAGE
size 50)
36 72%
YES
10 20%
NO
4 8%
DON’T KNOW

INTERPRITATION-: 72% employees think that the systems will also

Contribution in potential appraisal.

57
 9. Promotion process in the organization is based on –
NOS OF
OPTIONS RESPONDENT(Sample PERCENTAGE
size 50)

Performance 2 4%

EXPERIENCE 6 12%

BOTH 42 84%

INTERPRITATION-: 4% employees say that promotion says that

process in the organization is based on Performance, 12% employees
say that based on experience and 84% say both.

58
 10 .The present Performance appraisal system is transparent &
Free from bias.

NOS OF
OPTIONS RESPONDENT(Sample PERCENTAGE
size 50)

YES 42 84%

NO 8 16%

INTERPRITATION-: 84% Employees agree with this statement that the

present Performance appraisal system is transparent and free from bias.

59
 11 .Satisfied with the current Performance appraisal system.

NOS OF PERCENTAGE
OPTIONS RESPONDENT(Sample size
50)

HIGHLY SATISFIED 27 54%

SATISFIED 18 36%

DISSATISFIED 1 2%

JUST SATISFIED 4 8%

INTERPRITATION-:54% Employees are highly satisfied with the

current Performance appraisal system. While 36% employees are satisfied
with the current Performance appraisal system.

60
 SUGGESTIONS AND CONCLUSION

After having analyzed the data, it was observed that practically there was no
appraisal in the organization. To be an effective tool, it has to be on the
continuous basis. This is the thing that has been mentioned time and again in
the report, as, in the absence of continuity, it becomes a redundant exercise.
Before actually deciding drafting what should be the kind of appraisal the
following things should be taken care of:

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 employee’s
work must be done – which must incorporates both the work related as well as
the other personal attributes that are important for work Performance.

4. It should be noted that the appraisal form for each job position should be
different as each job has different knowledge and skill requirements. There
should not be a common appraisal form for every job position in the
organization.

5. The job and role expected from the employees should be decided well in
advance and that too with the consensus with them.

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6. A neutral panel of people should do the appraisal and to avoid subjectivity to
a marked extent, objective methods should be employed having quantifiable
data.

7. The time period for conducting the appraisal should be revised, so that the
exercise becomes a continuous phenomenon.

8. Transparency into the system should be ensured through the discussion about
the employee’s Performance with the employee concerned and trying to find
out the grey areas so that training can be implemented to improve on that.

Ideally in the present day scenario, appraisal should be done, taking the views
of all the concerned parties who have some bearing on the employee. But,
since a change in the system is required, it cannot be a drastic one. It ought to
be gradual and a change in the mindset of both the employees and the head is
required.

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 BIBLIOGRAPHY

BOOKS-

Human Resource - V.S.P Rao

Research Methodology - C. R. Kothari

Annual Report of Organization

 Internal Records of Organization

WEBSITES- www.kotakmahindrabank.net

www.kotakmahindrabank.co.in

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 QUESTIONNAIRE

(PERFORMANCE APPRAISAL AT KOTAK MAHINDRA BANK)

Name…………………………………………………………………..
Designation……………………………………………………………
Department……………………………………………………………

1) Are you aware of the objective of the Performance appraisal ?

a) Very much
b) Some what
c) Don’t know

2) Performance appraisal helps the organization in achieving goal?

a) Yes
b) No
c) Can’t say

3) Do you hold meeting in the beginning of the explain & clarify activity task &
goals to be achieved?

a) Yes
b) No

4) Should organization have to make a fixed duration for Performance appraisal?

a) Yes
b) No

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5) To what extent are you satisfied for point allocation on the basis of kotak
mahindra bank & managerial dimension?

a) Fully satisfied
b) Satisfied
c) Dissatisfied
d) Uncertain

6) Do Performance appraisal affect the working efficiency of employee?

a) Yes
b) No

7) Whether the appraisal system is able to able to develop high result

a) Yes
b) No

8) Do you think that the system wills also contribution in potential appraisal?

a) Yes
b) No
c) Can’t say

9) Promotion process in the organization is based on-

a) Performance
b) Experience
c) Both

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10) Do you think that the present that the present Performance appraisal system is
transparent & free bias?

a) Yes
b) No

11) Are you satisfied with the current Performance appraisal system?

a) Highly satisfied
b) Satisfied
c) Just satisfied
d) Dissatisfied

Give your suggestion for the Performance appraisal system .

………………………………………………………………………
………………………………………………………………………

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