A

FIELD PROJECT REPORT ON

“A Study on Performance Appraisal Techniques in HDFC

BANK”

Subimited in partial fulfilment of the requirement for the

award of degree

of

MASTER OF COMMERCE

SESSION (2023-2024)

SUBMITTED TO:- SUBMITTED BY:-

Dr. Aarti Garg Vishal singh

M.Com II Semester MCOM

23025035

A
 STUDENT’S DECLARATION

I Vishal Singh Roll no. 23025035 am a full-time bona fide student of Master
of commerce II semester of IFTM University, Moradabad. I hereby certify
that this field project work carried out by me and the report submitted in
partial fulfilment of the requirements of the programme is an original work of
mine under the guidance of the class coordinator Dr. Aarti Garg and is not
based or reproduced from any existing, work of any other person or on any
earlier work undertaken at any other time or for any other purpose, and has
not been submitted anywhere else at any time.

(Student signature)

Date: .

(Class Coordinator’s Signature)

Date: .

B
 IFTM UNIVERSITY
Established under UP Govt. Act No. 24 of 2010 and approved under section 22 of UGC Act 1956)

Lodhipur Rajput, Delhi Road, Moradabad- 244102, U.P.

Telephone:0591-2360817,2360818 Email: info@iftmuniversity.ac.in Website: www.iftmuniversity.ac.in

CERTIFICATE

This is to certify that Mr. Vishal Singh , a student of “MCOM” School of Business
Management, IFTM University, has successfully completed the field project work
entitled “A Study on Performance Appraisal Techniques in HDFC BANK ” in partial
fulfilment of requirement for the completion of MCOM programme.

This project report is the record of authentic work carried by him/her.

Prof. (Dr.) Nisha Agarwal

Director,

School of Business Management, IFTM

University.

Date: .

C
 TABLE OF CONTENTS

Sr. CONTENT PAGE

1 INTRODUCTION 01-05
2 OBJECTIVES OF STUDY 06-06
3 RESEARCH METHODOLOGY 07-07
4 DATA ANALYSIS 02-15
5 FINDINGS & CONCLUSION 16-16
6 BIBLOGRAPHY 17-17
INTRODUCTION

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The process of Human Resource Development h e l p s t h e e m p l o y e e ’ s t o
a c q u i r e a n d d e v e l o p technical, managerial and behavioural knowledge,
s k i l l s & a b i l i t i e s a n d t h e v a l u e s , b e l i e f s & attitudes necessary to
perform present and future roles. The process of Performance Appraisal helps
the employees and management to know the level of employees Performance
compared to the standard or predetermined level.

Performance Appraisal is important to understand and improve the employee’s

performance through HRD. In fact, Performance Appraisal is the basis of HRD.
It was viewed that Performance Appraisal was useful decide employee’s
promotion or transfer, salary determination. But the recent developments in
HRD indicate that Performance Appraisal is the basis for employee
development. Performance Appraisal indicates the level of desired
performance level and actual performance and the gape between these two.
This gap should be bridged through training, counselling and motivation etc.

In every organization, the process of HRD helps the employee’s to acquire and
development technical, managerial and behavioural knowledge, skill, and
abilities, belief and attitudes necessary exists to achieve goals; the degree of
success obtained by the individual employee in achieving individuals
goals directly determine the organization a effectiveness. The assessment
of the degree of success of an individual employee is an important p a r t o f
H R M t h a t l e a d s t o t h e P e r f o r m a n c e Appraisal.

In American business, the Performance Appraisal is d o n e t o d e t e r m i n e w a g e

i n c r e a s e , p r o m o t i o n , transfer, regarding the emphasis for the feedback
to the employee’s and assessing the need for their training is very less or we can
say it’s little. In contrast, Indian companies use Performance Appraisal for
training and development, providing feedback to the employee’s and personal
research.
They also use it in determining wages and transfers as they do it in the American
companies. The purpose of Performance Appraisal to make a distinction
between performer and non performer on the job.

T h e a i m o f t h e p r o j e c t i s t o f o c u s o n t h e Performance Appraisal
system undergone in HDFC S t a n d a r d L i f e I n s u r a n c e C o L t d ( H D F C
S L I C ) . This project aim to study the need for Performance Appraisal; how i t
he l ps the employees of the Organization to improve their abilities so as to
meet both the personal and organizational present and future requirements.
Whether the organization is reaching its standards by Performance Appraisal
resulting in increase in quality and productivity of the employees observed. The
overriding purpose of Performance Appraisal is t o h e l p HDFC Standard Life
Insurance Company Limited employees to improve and thus to improve

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organizational effectiveness. Performance Appraisal therefore institutional
needs as well as staff member needs, abilities, motivation and expectancies.
Definition of performance appraisal

A person's performance may be evaluated by an examination of their work. How well

an individual or group does on a certain activity, and how that could affect their career
prospects. It includes all of the formal processes that already-established firms and
job-seekers follow. In order to assess an employee's worth in their current position and
future opportunities, performance evaluations are said to be essential by Flippo.
According to Dulewicz, people are always judging how well they and others around
them are doing (1989). "Any method used to assess a worker's-* growth over time,
often in support of salary increases." Goals for the future can only be established after
a comprehensive analysis of past performance. Performance assessment (or review)
consists mostly of two steps: recording the results achieved (preferably with examples
to illustrate documentation) and checking to see whether the requirements were met.
Evaluations often provide suggestions on how to improve underwhelming results.
Indirectly or directly, assessment outcomes are used into award selections by many
organisations. In other words, the assessments are used to figure out which employees
should get promotions, pay hikes, and incentives.

The notion of using ratings to evaluate workers' performance has gained popularity
since it was first used as a novel and formal management tool during World War II.
The traditional focus on incentive outcomes was discarded as it was realised that it
failed to boost workers' morale, enthusiasm, attitude, competence, or self-esteem.
Appraisal as a tool for motivation and growth gained popularity in the United States
in the 1950s. The present, comprehensive paradigm of performance evaluation had its
beginnings at that same time.

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 Description of HDFC Bank
HDFC Bank is a major financial institution in India with headquarters in the city of
Mumbai in the state of Maharashtra. It employs 76,286 employees throughout its
branches in Bahrain, Hong Kong, and Dubai; 12,680 of them are women. When
considering total assets, HDFC Bank is the biggest private bank in India. According to
the value of its shares on the market as of February 2016, this bank is India's biggest.
According to the 2015 Brand Trust Study, it ranked 58th among the most trusted
brands in India.

One of the first organisations to get "in principle" clearance from the RBI to construct
a private sector bank as part of the RBI's 1994 liberalisation of the Indian Banking
Sector was the Housing Development Finance Corporation Ltd. (HDFC). The bank's
original name, "HDFC Bank Ltd.", dates back to its founding in August of 1994. The
bank's headquarters were located in the Indian city of Mumbai. From its inception in
January 1995, HDFC Bank has been a Scheduled Commercial Bank.

HDFC is the most trusted name in house loans in India, and its reputation extends
well beyond the country's borders. The Firm has been around since 1977, and it has
grown consistently and healthily since then. This has allowed it to retain its dominant
position in the mortgage industry. It has well over a million homes in its loan portfolio
that are now active. HDFC not only has a huge clientele of enterprises for its housing-
related credit facilities, but it has also amassed considerable competence in retail
mortgage loans to a wide variety of market segments. HDFC has the financial
expertise, market dominance, large shareholder base, and unique consumer brand
necessary to back a bank in India's competitive market.

HDFC Bank strives to be one of India's premier financial institutions. Our mission is
to expand profitably in line with the bank's risk tolerance by establishing ourselves as
the bank of choice for our target retail and wholesale clientele across a wide range of
sectors via the development of strong customer franchises. The bank will always
adhere to the strictest ethical, professional, social, and legal guidelines. The
foundation of HDFC Bank's business strategy is its people, followed by its operational
excellence, its customer focus, its product leadership, and finally its people again.

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HDFC Bank has an authorised share capital of Rs. 550 crore as of March 31, 2009. As
of the date specified, the paid-in-full capital was $425,38,41,090 (42,53,84,109 equity
shares at a value of $10 apiece). Around 17.70% of the bank's equity is held by the
ADS Depository, while the HDFC Group controls 19.38% of the capital in the
American Depository Shares (ADS) Issue. Around 5,48,774 people are listed as
shareholders in the Bank, with FIIs (foreign institutional investors) holding 27.69% of
the shares.

The stock is traded on the National Stock Exchange of India Ltd. and the Bombay
Stock Exchange Ltd. The Bank's Global Depository Receipts (GDRs) are traded on
the Luxembourg Stock Exchange under the ISIN No. US40415F2002 and its
American Depository Shares (ADS) trade under the ticker "HDB" on the New York
Stock Exchange (NYSE).

HDFC Bank's headquarters are in Mumbai. There are now 1229 branches of the bank
in 444 different cities throughout India. Each location is linked in real time through
the internet. Customers may get telephone banking services from over 120 locations.
The Bank's expansion plans take into consideration the need for a strong retail client
base for deposits and loan products, in addition to the necessity of having a presence
in all significant industrial and commercial sectors where its corporate clients are
situated. The Bank acts as a clearing/settlement bank for the NSE/BSE and has
branches in areas with a high concentration of NSE/BSE members. The Bank also
maintains a network of over 2,526, interconnected ATMs in major urban centres. All
domestic and foreign Visa, Mastercard, Visa Electron, Maestro, Plus/Cirrus, and

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American Express Credit/Charge cards have access to the HDFC Bank's ATM
network.

OBJECTIVES
Performance Appraisal can be done with the following objectives :

1. To maintain records in order to determine compensation packages, wage

structure, salaries raises, etc.
2. To identify the strengths and weaknesses of employees to place right men on
right job.
3. To maintain and assess the potential present in a person for further growth and
development.
4. To provide a feedback to employees regarding their performance and related
status.
5. It serves as a basic for influencing working habits of the employees.
6. To review and retain the promotional and other training programmes.

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 RESEARCH METHODOLOGY
Research Design
I have used Descriptive research design for this study.
SAMPLING DESIGN
Descriptive Research Design
SAMPLE SIZE: A sample of minimum respondents was selected from HDFC Bank,
Lucknow. An effort was made to select respondents evenly. The survey was carried
out on 40 respondents.
SAMPLE UNIT: In this project sampling unit consisted of the employees of HDFC
Bank, Lucknow.
SAMPLE AREA: HDFC Bank, Lucknow.
SAMPLING TECHNIQUE: For the purpose of research convenient sampling
technique was used.
SAMPLING FRAME: It consisted of various sources from where information about
the respondent is extracted. Mainly personal links and employees of HDFC Bank,
Lucknow are used for getting information about the respondents.
DATA COLLECTION SOURCE: Two methods have been used to collect the
relevant data, which are essential for the study, they are:
Primary Data: data is collected to obtain desired information through structured
questionnaire.
Secondary Data: it is compiled through books, magazines, newspapers and internet
etc…

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 DATA ANALYSIS AND INTERPRETATION

Interpretation:
30% of the employees are working' with the organisation for less than 5 years and
40% of employees is working within 5-10 years. and the rest percentage of employees
is working for more than 1) years.

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Interpretation:

70% of the employees think that performance appraisal is the evaluation of the employees.

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 FINDINGS
1. 40% of the employees are working with the organization for more than five
years but less than ten years.

2. According to 70% of the employees, performance appraisal is the e4aluation

of employees.

3. 90% of the employees’ response was that 360 degree performance appraisal
system is followed in their organization.

4. 64% of the employees agree that performance appraisal system helps to

pro4ide an atmosphere. here all are encouraged to share one another’s burden.

5. 85% of the employees strongly agree that current performance appraisal

system helps people set and achie4e meaningful goals.

6. 60% of the employees agree that performance appraisal gives constructive

criticism in a friendly and positive manner.

7. 40% of the employees strongly agree that that their performance has been
impro4ed due to the current performance appraisal system.

8. 56% of the employees strongly agree that current performance appraisal

system creates a participative environment in the organization.

CONCLUSION
1. The existing technique of performance appraisal in HDFC Bank is
highly effective and motivating which leads to a higher satisfaction
level of the employees leading to higher retention ratio.

2. H D F C B a n k m u s t m a i n t a i n t h i s t e c h n i q u e t o c a r r y o u t t h e
o p e r a t i o n w i t h h i g h e r success.

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 Bibliography
Websites-
www.Wikipedia.com
www.studocu.com
www.micro2000.com
www.hdfc.com
www.proquest.com

Reference List
Books-
Human resource - V.S.P. Rao
Research methodology – C.R. Kothari
Human resource planning - Ashwathappa

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