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PREFACE

Practical exposure in the field of management is extremely important as it gives a close

view of the real business issues. It helps to cover all part that remained uncovered in the

classroom. It helps to gain experience. Just theoretical knowledge is not sufficient for the

success of any business student. So one should have practical knowledge about each

aspect of life.

I learnt lot of new things from this project, which could never have been learnt from

theory classes.

If any findings & recommendations go in any way to prove some new ground in helping

the commodity future sector, I shall deem my efforts have duly served the purpose. In the

forthcoming pages an attempt has been made to present report covering different aspects

of my project.



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ACKNOWLEDGEMENT

It is my pleasure to be indebted to various people, most of which were experts in their

respective fields, who influenced my thinking, behavior, and acts during the course of

study.

I am greatly thankful to of

GLAIBM Mathura for giving me a platform to have this wonderful opportunity and

being able to get glimpses of corporate world.

As a fresher for the corporate, I was not having any idea about corporate culture. But I

would like to give special thanks to my project guide. Who on behalf of his opulent

experience, told me about the basic of corporate and guided me which helped me to

complete the project efficiently and showed me the right path to reach the final

destination with minimum hiccups and was always there with a helping hand in times of

need throughout my project.

I am thankful to him for his support, cooperation, and motivation provided to me during

the completion of project.

Last but not the least; I would like to thank Top Management and all the respondents for

giving their precious time, relevant information and experience.

Lastly, I would like to be thankful my father for their moral and financial support and my

friend with whom I shared my day-to-day experience and received lots of suggestions

that improved my work quality.

POOJA JAIN



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DECLARATION

II POOJA JAIN student of MBA in GLA University, Mathura hereby declare that all the

information; facts and figures furnished in this report are based on my own findings and

experience. This information has been used for purely academic purpose.

I hereby declare the work was done by me and suitable information has been downloaded

from websites and other related resources of the company.

The project report is the result of my own hard work and self belief.

POOJA JAIN



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INDEX

Chapter 1 Introduction to the topic. 05

Chapter 2 Introduction to the Organization/Industry. 19

Chapter 3 Literature Review. 30

Chapter 4 Use & Importance of the Study. 52

a. Conceptual/ Theoretical Framework for analysis.b. Scope of the Study.

c. Aims & Objectives.

Chapter 5 Research Methodology. 54

a. Universe of the Study.

b. Sample Size.

c. Sampling Method.

d. Research Design. [Hypothesis]

e. Collection of Data [Primary Data & Secondary Data]

f. Data Analysis & Interpretation.

Chapter 6 Data Analysis & Interpretation. 58

Chapter 7 Conclusion, Recommendations, Suggestions and Scope for

further research. 74



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Chapter 1

Introduction to the topic

Performance Appraisal

INTRODUCTION TO PERFORMANCE APPRAISAL

Performance appraisal is a systematic evaluation of the individuals with regard

to his (or) her performance on the job and his potential for development. Performance

appraisal is the process of evaluating the performance and qualifications of the employees

in terms of the requirements of the job for which he is employed. For the purpose of

administration including placement, selection for promotion, providing financial rewards

and other actions which require differential treatment among the members of a group as

distinguished from actions affecting all members equally.

Appraisal should be future oriented activity that provides workers with useful

feedback and coaches them to higher levels of performance. In other instances they are an

informal and integral part of daily activities. Performance Appraisal is the most powerful

and least expensive for directing, managing and developing the performance and

potential of teams and individuals. Performance Appraisal is the systematic description of

an employee‘s job relevant strengths and weaknesses. Performance Appraisal is the

method of evaluating the work allotted to the employee in the work area. Performance

Appraisal is a process of summarizing, assessing and developing the work performance

of an employ. The basic purpose is the find out how; well the employee is performing the

job and establish a plan of improvement. Performance Appraisal can also provide data to



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determine promotion transfer and even demotions of the employee. It has direct bearing

an other personal decisions.

Performance Appraisal is a continuous process in every large scale organization. It may

involve goal setting, employee selection, placement and compensation, training and

development and carrier management. Performance Appraisal is creating a shared vision

of the purpose and aims of the organization, helping each individual employee to

understand and recognize their part in contributing to them there by managing and

enhancing the performance of both individuals and the organization.

A properly developed appraisal process can serve as contract between the team

numbers and the team. It informs people about what expected and how performance will

be appraised.

During the appraisal period, an effective appraisal tool and process can help

determine what the individual (or) team member must start doing, continue doing (or)

stop to be more effective. This serves and important development function that may

suggest training to improve the ability to perform. But suppose, an individual has the

skills to do the job but is still not performing. The issue is likely motivation (or) lack of

motivation. Since the elements of an effective motivation. Strategy includes feed back,

goal setting, team problem solving and incentives.

By using the techniques and apply the skills, individual and the team can

construct a meaningful appraisal tools and use a process that serves the purposes, you

want purposes like clarifying expected performance, focusing team work, reviewing

progress and developing performance and the team can use the tool for continuous



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improvement of performance and development of potential to perform more complex

tasks.

For ex. feedback given periodically help ensure that the team and individual know how

he (or) she is doing. Goals are set that specify what the team member (or) individual

should be doing. The team participates in problem solving barriers that impede

productivity. Finally, decisions about how to equitability allocate incentives are made

contingent on a fair appraisal of performance.

OBJECTIVES OF PERFORMANCE APPRAISAL:

Data relevant to performance assessment of employee are recorded, stored and used for

several purposes.

The main objectives of employee‘s performance appraisal are:

1. To effect promotions based on performance and competence.

2. To confirm the services of probationary employees, upon their completing the

probationary period satisfactorily.

3. To access the training and development need of the employees.

4. To decide upon a pay raise where (as in the unorganized sector) regular pay scales have

not been fixed.

5. To let the employees become aware about their performance level and to assist them with

constructive criticism and guidance for the purpose of their development.

6. To improve communication, performance appraisal provides a format of dialog between

superiors and the subordinates, there by bringing an understanding or personal goals and

concerns.



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IMPORTANCE OF PERFORMANCE APPRAISAL:

Performance appraisal is the systematic description of an employee‘s job relevant

strengths and weakness.

The basic purpose is to find out how well the employee is performing the job and

establish a plan of improvement.

Appraisal is arranged periodically according to a definite plan.

Performance appraisal is not job evaluation. Performance appraisal refers to how

well; someone is doing the assigned job. Job evaluation determines how much a

job is worth, to the organization and therefore, what range of pay should be

assigned to the job.



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PERFORMANCE APPRAISAL PROCESS:

Establishing the Performance appraisal standards

Communicating the standards to employee

Measuring the actual performance

Comparing the actual performance with standard performance

Discussing about appraisal

Taking corrective action



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ESTABLISHING THE PERFORMANCE APPRAISAL

STANDARDS:

The appraisal process begins with setting up of objective. To be used for

appraising the performance of employee. The criteria are specified with the help of job

analysis. The criteria should be clear objective and in written form.

COMMUNICATING THE STANDARDS TO EMPLOYEE:

The standard set for performance appraisal should be communicated to all

the employees. That standard must be explained to all employees. When the standards are

known to the employee they will try to put their affords for to achieve objectives without

communicating.

MEASURING THE ACTUAL PERFORMANCE:

Once, the performance standards are specified and accepted the next step is

evaluated the actual performance. The evaluation mainly depending upon some

techniques and methods and internal and external factors.

COMPARING THE ACTUAL PERFORMANCE WITH STANDARD

PERFORMANCE:

The actual performance compared with the pre determined performance

standards. When, the actual performance is exceed than standard performance the result



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is positive. The actual performance is less than standard performance the result is

negative.

DISCUSSING ABOUT APPRAISAL:

The results of the appraisals are communicated to the employees and discussed

with the employee about performance such decisions enable the employee to know his

weaknesses and strengths.

TAKING CORRECTIVE ACTION:

Appraisal process will be useful only when corrective action is taken on the basis

of results. The corrective action may be the form of advice (or) warning. It may be in the

form of additional training, refresher training, and management development programs,

coaching, etc,



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CHARACTERISTICS OF PERFORMANCE APPERAISAL:

(1). RELIABILITY AND VALIDITY:

Appraisal system should provide consistent reliable and valid information and

data, which can be used to defend the organization even in large challenges.

(2). JOB RELATEDNESS:

The appraisal technique should measure the performance and information in

job related areas.

(3). STANDARDIZATION:

Appraisal forms, procedures, administration of techniques, rating, etc., should be

standardized as appraisal decisions affect all employees of the group.

(4). PRACTICAL VIABILITY:

The techniques should be practically viable to administrator, possible to

implement and economical regarding cost aspect.

(5). LEGAL SANCTION:

It should have compliance with the legal provisions concerned of the counter.

(6). TRAINING AND APPRAISERS:

Appraisal is important and sometimes difficult. It would be useful to provide

training to appraisers.

(7). OPEN COMMUNICATION:

A good appraisal system provides the needed feedback on a continuing basis.



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(8). EMPLOYEE ASSESS TO RESULTS:

The employees should receive adequate feedback on their performance. If

performance appraisal is meant for im proving employee‘s performance, then with

holding appraisal results would not serve any purpose

CONTENTS OF PERFORMANCE APPRAISAL:

Every organization has to decide upon the content to be appraised before the

programmer is approved. Content to be appraisal may be in the form of contribution to

organizational objectives. Like, production, cost saving, return of capital, etc.

Other measures are based on

Regularity of attendance.

Self expression.

Ability to work with others.

Leadership styles and abilities.

Initiative.

Technical skills.

Ability to insert.

Originality and resourcefulness.

Creative skills.

Area of insert.

Area of suitability.



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Judgment skills.

Honesty and sincerity.

Organizational knowledge.

PURPOSE OF PERFORMANCE APPRAISAL:

In general these can be classified as either Administrative or developmental.

ADMINISTRATIVE:

From standpoint of administration, an appraisal program provides inputs that can be used

for entire range of HRM activities.

Performance Appraisal is also directly related to a member of other major HR functions:

Such as promotion, transfer and lay off decisions.

PURPOSE OF PERFORMANCE APPRAISAL AT

ADMINISTRATION:

Document personnel decisions

Determine promotion candidates

Determine transfers and assignment

Identify poor performance

Decide retention or termination

Decide on lay offs

Validate selection criteria



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Meet legal requirements

Evaluate training programs/progress

Personnel planning

Make reward / compensation decisions.

DEVELOPMENTAL PURPOSE

From the standpoint of development, appraisal provides the feedback essential

for discussing strengths weakness as well as improving performance. Regardless of the

employee‘s level of performance, the appraisal process provides an opportunity to

identify issues for discussion, eliminate any potential problems, and set new goals for

achieving high performance.

PURPOSE OF PERFORMANCE APPRAISAL AT DEVELOPMENT:

Provide performance feedback

Identify individual strengths/ weaknesses

Recognize individual performance

Assist in goal identification

Evaluate goal achievement

Identify individual training needs

Determine organizational training needs

Reinforce authority structure

Allow employees to discuss concerns



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Improve communication

Provide a forum for leaders to help

REASONS WHY APPRAISAL PROGRAMS FAILS SOMETIMES:

Employee is not given clear objectives at the beginning of performance period.

Manager may not be able to observe performance or have all the information.

Performance standards may not be clear.

Inconsistency in ratings among supervisors or other raters.

Rating personality rather than performance.

The halo effect, contrast effect, or some other perceptual bias.

Inappropriate time span (either too short or too long).

Overemphasis on uncharacteristic performance.

Inflated ratings because managers do not want to deal with ―bad news‖

Subjective or vague language in written appraisals.



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Organizational politics or personal relationships cloud judgments.

No through discussion of causes of performance problems.

Manager may not be trained at evaluation or giving feedback.

No follow-up and coaching after the evaluation.



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Chapter- 2

Introduction to the Organization/Industry.

YES BANK

Type- Public (BSE: 532648)

Industry- Banking & financial services

Founded- 2003-04

Founder(s) - Ashok Kapur and Rana Kapoor

Headquarters- Mumbai, India

Products - Corporate and Institutional Banking, Financial Markets, Investment Banking,

Corporate Finance, Branch Banking, Business and Transaction Banking, and Wealth

Management business lines

Revenue - 4,665.01 crore (US$1.04 billion) (2010-11) [1]

Operating income - 1,190.38 crore (US$265.45 million) (2010-11)

Profit - 727.13 crore (US$162.15 million) (2010-11)

Total assets - Rs. 363.8 billion at March 31, 2010

Total equity - Rs. 30.7 billion at March 31, 2010

Employees -3,034

Website - www.yesbank.in

YES Bank Limited (BSE: 532648) is an Indian Bank, engaged in providing a range of

banking and financial services. The Bank‘s business segments include Treasury,

Corporate/Wholesale Banking, Retail Banking, Corporate Finance, Transaction Banking

http://en.wikipedia.org/wiki/Bombay_Stock_Exchange

http://www.bseindia.com/bseplus/StockReach/AdvanceStockReach.aspx?scripcode=532648

http://www.bseindia.com/bseplus/StockReach/AdvanceStockReach.aspx?scripcode=532648

http://en.wikipedia.org/wiki/Bombay_Stock_Exchange



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and a host of other Banking services. It was founded by Rana Kapoor and his partner

(Late) Ashok Kapoor, with the duo holding a collective financial stake of 27.16%

Yes Bank , India‘s new age private sector Bank is the outcome of the professional

commitment of its founder Mr. Rana Kapoor supported by his highly competent top

management team to establish a high quality, customer centric, service driven, private

Indian Bank catering to the ―Future Industries of India‖.

Yes Bank has adopted international best practices, the highest standards of service quality

and operational excellence, and offers comprehensive banking and financial solutions to

all its valued customers. A key strength and differentiating feature of Yes Bank is its

knowledge driven approach to banking and an unprecedented customer experience for its

retail and wealth management clients.

Yes Bank is steadily building corporate and institutional banking, financial markets,

investment banking, corporate finance, business (Small &Medium Enterprises) and

transaction banking, international banking, retail banking and wealth management

business lines across the country. The Bank‘s constant endeavour is to provide a

delightful banking experience expressed with simplicity, empathy, and totality.

Yes Bank understands the financial needs of the Government of India, in its progress and

development role of a ‗Growing India‘ through Yes Bank‘s Knowledge Banking

approach and the objective of being the ―Bank for an Emerging India‖. Yes Bank remains

committed to serving this s pecialized segment. Yes Bank‘s knowledge Banker‘s deliver

http://en.wikipedia.org/wiki/Rana_Kapoor

http://en.wikipedia.org/w/index.php?title=Ashok_Kapur&action=edit&redlink=1

http://en.wikipedia.org/w/index.php?title=Ashok_Kapur&action=edit&redlink=1

http://en.wikipedia.org/wiki/Rana_Kapoor



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innovative, structured and comprehensive solutions through a ―Money Doctor‖ approach

focusing on diagnostic and prescriptive attention to detail. This is facilitated through Yes

Bank‘s Technology leadership – delivering proven, easy-to-use solutions for Government

Undertakings and agencies. Yes Bank has provided financial and advisory services to

Ministries of the Union Government, State Governments, Central and State Public Sector

Undertakings (PSU‘s) and Agencies.

In a short span of over three and a half years the Government Relationship Management

(GRM) team has developed robust relationships with over 100 entities. The GRM team is

committed to the core values of client orientation, innovation and superior service

experience that exemplify all Businesses at Yes Bank. GRM team is providing the

Knowledge Advisory, Liquidity Management and Investment Products, Transaction

Banking, trade finances, cash management services, Treasury services, Forex

Remittances, debt capital markets, investment managements, corporate salary accounts,

Advisory structured transactions, term loans, and cash credit limits to various government

operations like IFFCO, SAIL, Airport Authority of India, IOCL, NDPL, HPCL, Bridge &

Roof co. (India) ltd and many more

Business Strategy

Knowledge Banking: - One of the strengths and differentiating features of Yes Bank is

its knowledge banking approach that is the essence of all offerings to its customers.

Knowledge has been institutionalized as a key ingredient in all internal and external

processes and utilized to create customized solutions for the clients‘ specific

requirements.



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Technology and Operations: - As a new generation Bank, Yes Bank has the advantage

of accessing the latest available technology. The Bank has taken a calibrated decision to

invest in the best IT system and practices in order to make its technology platform a

strategic business tool for building a competitive advantage.

Responsible Banking: -Yes Bank has a vision to champion ‗Responsible Banking‘ in

India, where the concepts of Cor porate Social Responsibility (‗CSR‘) and sustainability

are integrated in its Business focus.

Business Lines: -Yes Bank has four distinct business segments to effectively service the

differentiated needs of its targeted customers.

Corporate and Institutional Banking (C&IB): -To cater to the needs of large corporate &

institutional clients, MNC‘s, government companies and PSU‘s. Bank targets C&IB

customers through its multifunctional branches in the key metropolitican cities.

Emerging Corporate Banking (ECB): -It is dedicated to partner with growth-focused,

fast-paced enterprises, which are emerging as a leader in their respective business areas.

Business Banking: -To cater to the needs of the small and medium

enterprises (SME), Yes Bank has set up a dedicated business unit to

focus on delivering superior banking solutions specially designed to

meet the varying and dynamic needs of its SME clients.



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Retail Banking and Wealth Management: -The Bank intends to develop Retail

Banking into a key value driver. Yes Bank offers its customers choice

& convenience, reflected in its branch layout & design, product feature

/design, options of distribution channels and superior technology

enabled service quality. Yes Bank predominantly offers value added

retail liability and third party wealth management products as well as retail asset

offerings through its sales and service network linked to its branches.

Private Banking: - Yes Bank is focusing on personalized relationship banking for its top

end High Net worth customers, supported by structured financial solutions tailor-made to

suit the needs of such customers.

Product lines: - Yes Bank offers a wide range of fee-based products to corporate and

business banking customers to ensure a high degree of cross-sell to clients.

Financial Markets: -Yes Bank financial markets was ranked second

in the ‗Best for currency strategy‘ and ‗best for technical analysis‘

categories at the Asia Money 2005 foreign exchange poll for India.

Transaction Banking: -Yes Bank Transaction banking group has adopted a consultative

approach and focus on knowledge and relationship banking to enable customers to

address strategic financial and operating needs in the domain of:



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Working capital and liquidity management

Asset management

Treasury integration

Exposure and risk management

Yes Bank proposes to apply industry knowledge and superior technology for offering

innovative structured solutions integral to a company‘s financial supply chain.

Yes International Banking: - It offers a complete suite of international banking products

and services, driven by state-of-the art technology, which includes Debt, Trade finance,

corporate finance, Investment banking and business advisory services, treasury and

global Indian banking. The Bank also plans to leverage its international presence, for its

capital raising activities. These services will initially be through partnerships with

international banks and financial institutions followed by the establishments of branches

and representative offices, as per regulatory approvals.

Brand Creation: - The Bank believes that its differentiation begins with its service and

trust mark ‘YES‘. ‗YES‘ represents the bank true spirit of being service-oriented. The

‗YES‘ brand creation effort is supported by ‗Triton Communications‘, the principal

advertising agency and ‗Ad factors PR‘, the Bank‘s public relation consultant.



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KEY Highlights & Milestones of Yes Bank.

Nov 2003 Incorporation of YES BANK Limited

May 2003 RBI License to commence banking business

Dec 2004 Ranked No.3 in the Business World Survey of India’s Best listed Banks

Mar 2005 Ranked No.2 among New Private Sector Banks in the Financial Express

survey

Dec 2006 Won ‘Best CSR practice award 2007’

Dec 2007 Won ‘IT people award 2007’

Jan 2008 60 operational branches across India

Mar 2009 Ranked No.3 among New Private Sector Banks in the Financial Express-

E&Y survey & overall #1 on credit quality & #2 on Growth

Apr 2010 67 operational branches across India



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INDUSTRY PROFILE

The oldest bank in Indian Banking industry is the ―State Bank of India‖ being established

as the ―Bank of Bengal‖ in Calcutta in June 1806. The first fully Indian owned Bank was

the ―Allahabad Bank‖, which was established in 1865. By the 1900s, the market

expanded with the establishment of Banks such as ―Punjab National Bank‖, in 1895 in

Lahore and Bank of India, in 1906, in Mumbai. The ―Reserve Bank of India‖ formally

took on the responsibility of regulating the Indian banking sector from 1935. After

India‘s independence in 1947, the Reserve Bank was nationalized and given broader

powers. In the early 1990‘s the then Narsimha Rao government embarked on a policy of

liberalization and gave licenses to a small number of private Banks, which came to be

known as New Generation tech-savvy banks, which included banks such as Global Trust

Bank (the first of such generation banks to be set up) which later amalgamated with

Oriental Bank of Commerce, UTI Bank (Now re named as Axis Bank), ICICI Bank and

HDFC Bank. This move, along with the rapid growth in the economy of India, kick

started the Banking sector in India, which has seen rapid growth with strong contribution

from all the three sectors of Banks, namely

Government Banks, Private Banks, and Foreign Banks

The next stage for the Indian Banking has been set up with the proposed relaxation in the

norms for Foreign Direct Investment (F.D.I.), where all foreign investors in banks may be

given voting rights which could exceed the present cap of 10%, at present it has gone up

to 49% with some restrictions. The new policy shocks the banking sector in India

completely. Bankers, till this time, were used to the 4-6-4 method (borrowing at 4%; lend

at 6%; go home at 4) of functioning. The new wave ushered in a modern outlook and



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tech-savvy methods of working for traditional Banks. All this led to boom in India.

People just not demanded more from their Banks but also received more.

In March 2006, the Reserve Bank of India allowed Warburg Pincus to increase its stake

in Kotak Mahindra Bank (a private sector bank) to 10%. This is the first time an investor

has been allowed to hold more than 5% in the private sector Bank since the RBI

announced norms in 2005 that any stake exceeding 5% in the private sector banks would

need to be vetted by them. In (2007), banking in India is generally fairly mature in terms

of supply, product range and reach-even, though reach in rural India still remains a

challenge for the private sector and foreign Banks. In terms of quality of assets and

capital adequacy, Indian Banks are considered to have clean, strong and transparent

balance sheets relative to other Banks in comparable economies in its region. The

Reserve Bank of India is an autonomous body, with minimal pressure from the

government. The stated policy of the Bank on the Indian Rupee is to manage volatility

but without any fixed exchange rate and this has mostly been true.

With the growth in the Indian economy expected to be strong for quite some time

especially in its service sector-the demand for banking services, especially retail banking,

mortgages and investment services are expected to be strong. One may also expect

M&A‘s, takeovers, and asset sales.

Currently, India has 88 scheduled commercial banks (SCBs)

- 28 public sector banks (that is with the government of India holding a stake),

- 29 private banks (these do not have government stake; they may be publicly listed

and traded on stock exchanges)



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- And 31 foreign banks.

They have a combined network of over 53,000 branches and 17,000 ATM‘s.

According to a report by ICRA limited, a rating agency, the public sector banks hold 75%

of total assets of the banking industry, with the private and foreign banks holding 18.2%

and 6.5% respectively. The annual growth in bank credit to the commercial sector is at

25.4% as on March 31, 2007 and was lower than 27.2% against previous year. Till 2010,

retail banking is expected to grow at a CAGR (compounded average growth rate) of 28%

to touch a figure of INR 9,700 billion. This requires expansion and diversification of

retail product portfolio, better penetration and faster service mechanism.

The report on Retail Banking industry in India covers industry segments like housing

loan, auto loan, personal loan, education loan, consumer durable loan, credit card and

regulatory frame work for retail Banks is also discussed. The report gives retail banking

industry‘s current performance and future outlook. Total 22 major retail Banks in India

are covered in terms of their performance, strategy and outlook. In absolute terms, India‘s

banking sector enjoyed reasonable growth through the year to December 31 2007. In

local currency terms, total assets, total loans and total deposits increased by 23%, 21%,

and 26%, respectively. The loan/deposit, loan/asset ratio fell while the loan/GDP ratio

rose.



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Chapter- 3

REVIEW OF LITERATURE

MEANING:

Performance appraisal may be understood as the assessment of an

individual‘s performance in a systematic way, the performance being measured against

such factors as job knowledge, quality of output, initiative, leadership abilities, potential

dependability, co-operative, judgment versatility and health.

Assessment should not be conformed to past performance alone. Potentials of

employees for future performance must also be assessed.

Performance appraisal or merit rating or performance evaluation is one of the

most important functions of personnel management that area of management deals with

human beings and their behavior. The need of performance appraisal also arises due to

the fact that every person has a different personality-situational, social and psychological.

Once the employees are hired, they are inducted trained and developed with the help of

various development programs.

DEFINITION:

Performance appraisal is a systematic judgment of the subordinate by the superior

authority to access the standard of work and overall performance.

Performance appraisal is a formal structured system of measuring and

evaluating an employee‘s job related behaviors and outcomes to discover how and why



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employee is presently performing on the job and how the employee can perform more

effectively in the future so that employee, organization and society all benefit

Performance appraisal may be understood as the assessment of an

individual‘s performance in a systematic way, the performance being measured against such

factors as job knowledge, quality and quantity of output, initiative, leadership abilities,

supervisors, dependability, co-operation, judgment, versatility, health etc.

BENEFITS OF A SYSTEMATIC APPROACH TO PERFORMANCE

APPRAISAL:

1. Help to establish the current level of performance in the job and seek ways of

improving it.

2. Helps to identify potential for the development and to aid manpower planning ‗Right

man for the right job at right time can be aimed‘.

3. Helps to ink salary realistically to performance.

4. Helps to maintain good employee-employer relationship for promoting motivation,

communication and equality.

5. Helps in promoting group cohesiveness and establish fair relationship with in the

work groups.



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METHODS OF APPRAISAL

Broadly all the approaches to appraisal can be classified in to following:

1. Past-oriented methods

2. Future oriented method.

1. PAST ORIENTED

Rating Scale

Check Lists

Forced Choice Method

Forced Distribution Method

Critical Incident Method

Behaviorally Anchored Scale

Field Review Method

Performance Tests And Observations

Annual Confidential Report

Essay Method

Cost Accounting Approach

Comparative Evaluation



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2. FUTURE ORIENTED

Management By Objectives

360 Degree Appraisal

Psychological Appraisal

Assessment Centers

PAST-ORIENTED METHODS:

RATING SCALE:

This is the simplest and most popular technique of appraising employee‘s

performance. The typical rating scale system consists of several numerical scales, each

representing a job related performance criterion such as dependability, initiation, output,

attendance, attitude, co-operation and the like. Each scale ranges from excellent to poor.

The rater checks the appropriate performance level on each criterion, and then computes

the employee‘s to total numerical score. The number of points scored may be linked

salary increases, where by so many points equal a rise of some percentage. Rating scaled

offers the advantages of adaptability, relatively easy use and low cost.

The disadvantages of this method are several. The rater‘s biases are likely to

influence evaluation, and the biases are particularly pronounced on subjective criteria

such as co-operation, attitude and initiative.



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CHECK LIST METHOD

Under this method, a check list of statements on the traits of the employee

and his /her job is prepared in 2 columns-vise, a ‗Yes‘ column and a ‗No‘ column. All

that the rater should do is to tick the ‗Yes‘ column if the answer to the statement is

positive and in the column ‘No‘ if the answer is negative.

FORCED CHOICE METHOD:

In this the rate is given a series of statements about an employee. These

statements are arranged in a block of two or more, and rather indicate, which statement is

more or least descriptive of the employee.

FORCED DISTRIBUTION METHOD:

The forced distribution method seeks to overcome the problems by compelling

the rates on all points on the rating scale. The method operates under an assumption that

employee performance level conforms to a normal statistical distribution. Generally it is

assumed that the employee performance levels conform to a bell shaped curve.

CRITICAL INCIDENTS METHOD:

The critical incident method of employee assessment has generated a lot of

interest these days. The approach focuses on behavior of employees that makes all the

difference between effective and non-effective performance of job. Such incidences are

recorded by superiors as and when they occur.

BEHAVIOURALLY ANCHORED RATING SCALE (BAR):



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Behaviorally anchored scales, sometimes called behavioral expectation scales,

are rating scales whose scale points are determined by statements of effective and in-

effective behaviors. They are said to be behaviorally anchored in that the scale represent

a range of descriptive statements of behavior varying from least to most effective. BAR

has following features:

1. Areas of performance to be evaluated are identified and defined by the people who will

use the scale.

2. The scales are anchored by descriptions of actual job behavior that, supervisors agree,

represent specific level of performance. The result is a set of rating scale in which both

dimensions and anchors are precisely defined.

3. All dimensions of performance to be evaluated are based on observable behaviors and are

relevant to the job being evaluated since BARS are tailor-made for the job.

4. Since the raters who will actually scale are actively involved in the development process,

they are more likely to be committed to final product.

FIELD REVIEW METHOD:



36

This is an appraisal by someone outside the access‘s own department, usually

someone from the corporate office or the HR department. The outsider reviews

employee records and holds interviews with the rate and his or her superior. The method

is primarily used for making promotional decision at the managerial level; field reviews

are also useful when comparable information is needed from employees in different units

or locations.

PERFORMANCE TEST AND OBSERVATIONS:

With a limited number of jobs, employee assessment may be based upon a

test of knowledge or skills. The test may be of the paper and pencil variety or an actual

demonstration of skills. The test must be reliable and validated to be useful.

COFIDENTIAL RECORDS:

Confidential records are maintained only in government departments, though

its application in the industry is not ruled out. The system is highly secretive and

confidential. Feedback to the assesses was given only in case of an adverse entry.

ESSAY METHOD:

In the essay method, the rater must describe the employee within a number of

board categories such as

The rater‘s overall impression of the employee‘s performance,

The promo ability of the employee,



37

The jobs that the employee is now able or qualified to perform,

The strengths and weakness of employee

and the development assistance required by the employee. Although

this method is being used independently, it is most frequently found is

combination with others. It is extremely useful for filling information gaps about

the employees that often occur in the best structured checklist method.

This is the traditional method in which appraises the rate in an open-ended

manner and uses a free-form in his own words and puts down his impressions about the

employee.

They take note about these factors:

a) Job knowledge and potentials.

b) Employee‘s characteristics and attitude.

c) General organization and planning attitude.

d) Production or quantity, quality and cost control.

e) Physical conditions.

f) Development needs of future.

COST ACCOUNTING METHOD:

This method evaluates performance from the monitory returns the employee

yields to his or her organization. A relationship established between the cost included in

keeping the employees and the benefits the organization derives from him or her.



38

Performance of the employee is then evaluated based on the established relationship

between the cost and the benefits.

COMPARITIVE EVALUATION APPROACHS:

This method evaluates performance from the monetary returns the employee

yields to his or her organization. A relationship is established between the cost included

in keeping the employee and the benefit the organization derives from his or her.

Performance of the employee is then evaluated based on the established relationship

between the cost and the benefit.

FUTURE ORIENTED APPRAISAL:

The commonly used future oriented technique is MBO, psychological appraisal

&assessment centers.

MANAGEMENT BY OBJECTIVES:

Management by objectives is a technique used by managers in some

organizations to motivate employees to perform well by using the goal-setting technique.

OBJECTIVES OF MBO:

1). to identify the problems and opportunities in the business.

2). to convert identified opportunities in to clear goals.

3). to set up a system to convert these goals into achievements.

4). to set a standard of performance.



39

5). to raise a standard of performance

6). to set a new target where the existing ones have proved unrealistic.

.

PSYCHOLOGICAL APPRAISAL:

Large organizations employ full time industrial psychologist, when

psychologists are used for evaluations; they assess an individual‘s future potential and not

performance. The appraisal normally consists of in depth interviews, psychological tests,

discussions with supervisors and a review of other evaluations. The psychologist may be

for a specific job opening for which the person is being considered, or it may be a global

assessment of his or her future potential.

ASSESSMENT CENTER:

Mainly used for executive hiring, assessment centers are now beginning used

for evaluating executive or supervisory potential. An Assessment centers are a central

location where managers may come together to have their participation in job-related

exercises evaluated by trained observers. The principal idea is to evaluate managers over

a period of time, say one to three days, by observing(and later evaluating) their behavior

across a series of select exercises or work samples.



40

360-DEGREE FEEDBACK:

The performance evaluation technique by multiple raters is called 360-degree

appraisal. The 360-degree technique is understood as systematic collection of

performance data on an individual or group, derived from a number of stakeholders- the

stakeholders being the immediate supervisors, team members, customers, peers, and self.

In fact, anyone who has useful information on ‗how an employee does the job‘ may be

one of the appraisers.

The 360-degree appraisal provides a broader perspective about an

employee‘s performance. In addition, the technique facilitates greater self -development

of the employees.



41

PERFORMANCE APPRASIAL AT YES BANK BY:

Superior

Peers

Customers

Subordinates

Self

Team members

MANAGER / SUPERIOR APPRAISAL

Performance Appraisal done by an employee‘s manager and often reviewed by

a manager one level higher.

Manager and/or Superior appraisal has been the traditional approach to evaluating an

employee‘s performance. In most instances supervisors are in the best position to perform

this function, although it may not always be possible for them to do so. Managers often

complain that they do not have the time to fully observe the performance of employees.

These managers must then rely on performance records to evaluate an employee‘s

performance. If reliable and valid measures are not available, the appraisal May be less

than accurate.

SELF-APPRAISAL

Performance appraisal done by the employee being evaluated, generally on an

appraisal form completed by the employee prior to the performance interview.



42

Sometimes employees are asked to evaluate themselves on a self-appraisal

form. The self-appraisal is beneficial when managers seek to increase an employee‘s

involvement in the review process. A self-appraisal system requires an employee to

complete the appraisal from prior to the performance interview. At a minimum, this gets

the employee thinking about his or her strengths and weaknesses and may lead to

discussions about barriers to effective performance. During the performance interview,

the manager and the employee discuss job performance and agree on a final appraisal.

Critics of self-appraisal argue that self-raters are more lenient than managers in their

assessments and tend to present themselves in a highly favorable light.

SUBORDINATE APPRAISAL

Performance appraisal of a superior by an employee, which is more

appropriate for developmental than for administrative purposes.

Subordinate appraisal has been used by both large organizations (such as

Xerox and Honeywell) and small organizations (such as Hyde Manufacturing and

Alliance funding) to give managers feedback on how their subordinates view them.

Subordinates are I in a good position to evaluate their managers since they are in frequent

contact with their superiors and occupy a unique position from which to observe many

performance related behaviors. Those performance dimensions judged most appropriate

for subordinate appraisals include leadership, oral communication, delegation of

authority, coordination of team efforts, and interest in subordinates.



44

3. Those receiving low ratings might retaliate against their peers‘

4. Peers rely on stereotypes in ratings

TEAM APPRAISAL

Performance appraisal, based on TQM concepts, that recognizes team

accomplishment rather than individual performance.

An extension of the peer appraisal is the team appraisal. While peers are on equal

standing with one another, they may not work closely together. In a team setting, it may

be nearly impossible to separate out an individual‘s contribution. Advocates of team

appraisal argue that, in such cases, individual appraisal can be dysfunctional since it

detracts from the critical issues of the team.

A company‘s interest in team appraisals is frequently driven by its commitment to TQM

principles and practices. At its root, TQM is a control system that involves settings

standards (based on customer requirements), measuring performance against those

standards and identifying opportunities for continuous improvement.

CUSTOMER APPRAISAL

Performance appraisal, which, like team appraisal, is based on TQM concepts

and seeks evaluation from both internal and external customers. Also driven by TQM

concerns, an increasing number of organizations use internal and external customer

appraisal as a source of performance appraisal information. External customer‘s

evaluations, of course, have been used for some time to appraise restaurant personal.



45

Managers establish customer service measure (CSMs) and set goals for

employees (linked to company goals).Often the CSM goals are linked to employee pay

through incentive programs. Customer survey data are then incorporated into the

performance evaluation. By including CSMs in their performance reviews, managers

hope to produce more objective evaluations, more effective employees, more satisfied

customers, and better business performance.

PERFORMANCE MANAGEMENT AT YES BANK:

The Performance Management System assesses performance based on

targets set in sync with the Annual Business Plan. An extensive database housing the

performance of every manager in the country provides a ready tracking system for

employee performance.

The Performance Management System is linked to compensation,

development and career moves. Also in a super-charged work environment, the key to

success is delivery- incentive schemes that add significantly to the overall compensation

packages are a seasonal feature.

Summer Thunder is one such performance incentive, which rewards team performance

and is directly linked to delivery of business results. The competition is tough, the targets

challenging, but the adrenaline charge is definitely worth it! With lakes on the line and

the whole country competing one can feel the energy.



46

A program called Pegasus (The word ‗Pegasus‘ is derived from the winged horse from

Greek mythology and symbolizes characteristics such as action-orientation, goal-driving,

speed and power) is a 4-day off-site program built over a series of outbound activities,

indoor games, classroom discussions and business group-work where the company‘s key

contributors participate.

THE PROGRAM HAS BEEN CONCEPTUALIZED TO PROVIDE:

Recognition for the identified key performers in the company

An opportunity to these key contributors to fraternize /bond and have fun

A forum to focus on 2 or 3 organizational challenges leveraging the collective

knowledge, experience and expertise of the group to find solutions which are

―better - faster - cheaper‖

Personal recognition and first hand rapport with the Division President

The business themes identified are in the nature of problems, issues, systems or

processes that may be posing challenges to the business. As part of the super-

group, employees should present recommendations to the Division President to

resolve the system or process challenge and develop a blue print for

implementation. The team with the best presentation is given an opportunity to

present its findings and recommendations to the entire Leadership council and

relevant aspects are then adopted for execution.



47

PERFORMANCE APPRAISAL

It accounts lot to the performance of the organization. The performance of

employees is measured on the basis of their work accomplishment and skill. Each and

every individual performance is observed. By the end of the year if the employees

performance does not meet the standards required for the work to be done appropriate

training is given to the employee in the field he is not doing good. During these training

programs all employees are not subjected to training programs at same time. Half the

people are sent for training and others are sent afterwards so that work doesn‘t get

hampered.

SUPERIOR-SUBORDINATE RELATIONSHIPS

This is one of the major aspects an organization must concentrate on. Without

employee healthy relations organization development cannot be possible. YES BANK

concentrates in peer relationships i.e. among superiors and subordinates.

Company organizes weekly meetings, individual meets with employees so that superior

and subordinates communicate well to improve their relations. Superiors are free to allow

employees suggestions and advices and if the advice really fit the situation to solve

problem superiors implement the advice for better results.



48

PPERFORMANCE APPERAISAL AT ATMAKURU UNIT:

PURPOSE OF PERFORMANCE APPRAISAL

To provide employees and manager with an opportunity to discuss and establish

objectives and expectations, measure results and accomplishments and evaluate

overall performance.

To communicate the importance of individuals and team contributions to the

department and the division‘s business plan and objectives.

To facilitate employee development.

To provide an objective basis for compensation progression recommendation.

GUIDELINES FOR PERFORMANCE APPRAISAL:

Key result area is a combination of WHAT AND HOW

Identify 5 to 8 major components of your job, i.e. KRA and detail each of them.

Identify a HOW for achieving an each WHAT by referring to the compensation

director for performance management.



49

Identify the HOW based on critically for success of WHAT and development need

of the associate.

Detail each HOW with key actions to be demonized/carried out by the associate.

Ideally identify only one HOW for each WHAT

Each of the objectives of a KRA and key actions of HOW must necessarily have ‗

defined tracking sources.‘

Employee performance development process includes 3 stages

Performance planning — what and how

Development plan

Performance review (continuous feedback both formal and informal

PERFORMANCE PLANNING

What and how process includes the set up of

Key result areas,

Setting up of objectives

Test the competence .skills and knowledge



50

THE PERFORMANCE APPRAISAL PROCESS:

KRA IDENTIFICATION

KRA‘s should number between 5 to 7

A KRA should be within the scope of Ur job and be similar for similar jobs.

GOAL SETTING

Set smart goals

Arrive at performance standards for the set goals

Discuss the ratings for the goals with the correspondent standards of performance.

MID-YEAR REVIEW

Share your thoughts and feelings with your superior

Use data to support your performance and mutual draw up the action plan for the

balance of the year.

Identify training needs for the balance of the year.

FEEDBACK

Be specific

Keep accurate data

Check expectations



51

Look for missed opportunities

Clarify expectations.

ANNUAL REVIEW

Share your thoughts and feelings with your superior

Use data to support your performance and mutual draw up the action plan for the

balance of the year.

Identify areas for training and development and provide these for HR Once the

performance is reviewed the employees are given performance rating as bellow.

CE - Consistently Exceeds

ME - Meets and Exceeds

SM - Successfully Meets

MS - Meets Some

FM - Fails to Meet

After the rating is given to the employee performance based on this rating salary

increment is given to the employee.

Only when the employee is recommended for promotion by the department head the

employee is eligible for promotion along with salary increment based on his

performance.



52

Chapter 4

Use & Importance of the Study.

OBJECTIVES OF THE STUDY

Appraisal System of YES BANK. The Proposed study of the Performance Appraisal

System and practices followed in Hindustan YES BANK Beverage Private Limited has

various objectives such as..,

1. To study the present appraisal systems followed in YES BANK.

2. To identify any gaps, loopholes in the performance appraisal.

3. To identify feasibilities of improving existing system of performance appraisal

system of YES BANK

4. To assess the perception of employees and of existing Performance Appraisal

system

SCOPE OF THE STUDY

Performance is the product of one‘s attitude, skill and knowledge. Hence it requires

periodical evaluation with continuity and time. The proposed this study is primarily

concerned with the performance appraisal system, this enables employees to have a sense

of fulfillment and help in achieving the goals of the organizations by improving their

knowledge, skills and competency and provide opportunities for occupying higher

positions etc., and will also hope in assessing the effective utilization of manpower.



53

LIMITATIONS OF THE STUDY

The first and foremost limitation of the study is the sample size.

The study is restricted to. YES BANK.

Time had also been a major limitation as the period of project work in only three

months.

The data given by the employee are based on the individual perception, so matter

is not reliable.

The data collected from the questionnaire is limited.

NEED FOR THE STUDY:

The efficiency and effectiveness of performance depend to a great extent on

how human resources are viewed and treated in the organization. If the organization

believes that the people do not work unless they are closely supervised and controlled, it

may tend to have a confidential report form instead of appraisal. If the organization

believes that every individual has potential and strengths and that human capabilities can

be honed, developed and utilized better by providing a healthy climate, then the

organization would have appraisal system that attempts to identify, hone, develop and

utilize the potential capabilities of employees.



54

Chapter 5

Research Methodology.

RESEARCH METHODOLOGY

Research Methodology is a systematic and objective process of

identifying and formulating the problem by setting objective and methods and the

methods for collecting, editing, tabulating, evaluating, analyzing, interpreting and

presenting data in order to find justified solution.

RESEARCH DESIGN

A Research Design is a purely and simply the framework or plan for a study that

guides the collection and analysis of data. It is a blue print that is followed in completing

a study.

The research design undertaken by the researcher is descriptive research design. The

methodology involved in this design is mostly qualitative in nature. Descriptive research

design is concerned with the research studies with a focus on the portrayal of the

characteristics of a group or individual or a situation. The main objective of such studies

is to acquire knowledge. Similarly, such studies are used to examine the characteristics of

the corporate sector or consumer behavior etc., the descriptive study is typically

concerned with determining frequency with which something occurs or how two

variables vary together.



55

SOURCES OF DATA COLLECTION

Data refers to the information or facts. Often researchers understand by data only

numerical figures. It also includes descriptive facts, non-numerical information,

qualitative and qualitative information. The source of data can be from primary and

secondary.

DATA COLLECTION

Data can be collected by using two well known methods: Primary & Secondary. In

primary data collection, you collect the data yourself using methods such as interviews

and questionnaires. The key point here is that the data you collect is unique to you and

your research and, until you publish, no one else has access to it. There are many

methods of collecting primary data and the main methods include:

Questionnaires

One-to-one interviews

Group interviews

Observation

Case-studies

Diaries

Critical incidents

Portfolios

Secondary data is data that has already been collected by someone else for a different

purpose to yours. For example, this could mean using:



56

Data collected by a hotel on its customers through its guest history system

Data supplied by a marketing organization

Annual company reports

Government statistics.

PRIMARY DATA

Primary data are those data, which are collected as fresh and for the just time

and thus happen to be original primary data for this study was collected by preparing a

well-structured questionnaire.

SECONDARY DATA

Secondary data are those data, which are collected from the already existing

information through reference. The secondary data collected by analyzing various

materials like Company profiles, Magazines, Journals, Past records and reports and

Websites, etc.,

The Sample constituted of 60 employees from different department of the organization.

Method of Sampling

There are many sample methods to collect data. The sampling method used is simple

random sampling.



57

Sample Size:

The Sample constituted of 60 workers from different department of the organizations.

Survey Design:

The survey is based on the primary source of data. Three methods of

primary data were selected to conduct the study i.e., Questionnaire, Observation and

Personal Interviews methods. Since the statements in the Questionnaire and Schedule

were qualitative, they are quantified on a five-point Scale using Linker type technique.

Respondents are asked to tick mark the appropriate scope on a five-point continuum.



58

Chapter 6

Data Analysis & Interpretation.

Q1. COMPANY HAVING PERFORMANCE APPRAISAL SYSTEM

TABLE 4.1

TABLE SHOWINGTHE COMPANY HAVING PERFORMANCE APPRAISAL

SYSTEM

ATTRIBUTES NO OF RESPONDENTS % OF RESPONDENTS

YES 48 80

NO 12 20

TOTAL 60 100

INFERENCE: From the above table, 80% of respondent felt that company should have a

performance appraisal system and 20% felt that no need of performance appraisal system.

80%

20%

Yes

No



59

TABLE 4.2

THE TABLE SHOWING THAT EMPLOYEES SATISFACTION AND

DISSATISFACTION LEVEL OF PERFORMANCE APPRAISAL

ATTRIBUTES NO OF

RESPONDENTS

% OF

RESPONDENTS

SATISFIED 32 53

DISSATISFIED 28 47

CANNOT 0 0

TOTAL 60 100

GRAPH

INFERENCE: The above table shows that, most of the people satisfied with current

performance appraisal system53% and 47% people dissatisfied.

0

10

20

30

40

50

60

SATISFIED DISSATISFIED CANNOT

Series1

Series2



60

TABLE 4.3

THE TABLE SHOWING THAT WHO IS APPRAISE EMPLOYEE PERFORMANCE

ATTRIBUTES NO OF

RESPONDENTS

%OF

RESPNDENTS

SUPERVISOR 32 53

SUBORDINATES 28 47

OTHERS 0 0

TOTAL 60 100

GRAPH

INFERENCE: From the above table shows that 53% of the people agree that superiors

and 47% with subordinates and 0% with others.

53

47

0

0

10

20

30

40

50

60

SUPERIORS SUBORDINATES OTHERS

%OF RESPONDENTS



61

TABLE 4.4

TABLE SHOWING THE BENEFIT OF PERFORMANCE APPRAISAL SYSTEM

ATTRIBUTES NO OF

RESPONDENTS

%OF RESPONDENTS

GROWTH 24 40

REWARDS 0 0

MOTIVATION 28 47

MISTAKES ARE CORRECTED 8 13

TOTAL 60 100

GRAPH

INFERENCE: The above table shows that, 47% of the employees feel that motivation is

the only benefit of performance appraisal and 40% of employees feel growth and 13%

with mistakes

40%

0%

47%

13%GROWTH

REWARDS

MOTIVATION

MISTAKES ARE

CORRECTED



62

TABLE 4.5

THE TABLE SHOWING THATPROMOTIONS ARE GIVEN BASED ON

PERFORMANCE

GRAPH

INFERENCE: From the above table shows that 53% of respondents are agreed with

promotions made on performance and remaining 47% is not needed

53%

47% Yes

No

ATTRIBUTES NO OF

RESPONDENTS

% OF

RESPONDENTS

YES 32 53

NO 28 47

TOTAL 60 100



63

TABLE 4.6

TABLE SHOWING THE PURPOSE OF PERFORMANCE APPRAISAL

ATTRIBUTES NO OF

RESPONDENTS

%OF

RESPONDENTS

ORGANIZATIONAL 24 40

PERSONAL 16 27

T&D 16 27

REWARDS 4 6

TOTAL 60 100

GRAPH

INFERENCE: From the above table shows that, 40% respondents says that performance

appraisal means to improve organizational effectiveness where as 27% of the respondents

says that performance appraisal is to improve personal effectiveness and recommended

for training and development needs and 6% says help in pay adjustments/rewards.

40%

27%

27%

6%Organizational

Personal

T&D

Rewards



64

TABLE 4.7

TABLE SHOWING OBJECTIVE OF PERFORMANCE APPRAISAL SYSTEM

ATTRIBUTES NO OF

RESPONDENTS

%OF

RESPONDENTS

NEEDS 24 40

ROTATION 16 27

PROMOTIONA; 20 33

PUNISHMENT 0 0

TOTAL 60 100

GRAPH

INFERENCE: The above table shows that, majority of respondents i.e.; 40% feels

objective of performance appraisal system is to identify the training needs and 33% of

respondents says to determine promotional opportunity and 27% says that the objectives

is to be effect job rotation

0

5

10

15

20

25

30

35

40

Series1

Series2



65

TABLE 4.8

ETABLE SHOWING PERFORMANCE APPRAISAL TO CHANGE THE BEHAVIOR

OF EMPLOYEE

ATTRIBUTES NO OF

RESPONDENTS

%OF

RESPONDENTS

YES 48 80

NO 12 20

TOTAL 60 100

GRAPH

INFERENCE: From the above table shows that, 80% of respondents said that current

appraisal system is Yes.20% of respondents said no.

80%

20%

Yes

No



66

TABLE 4.9

TABLE SHOWING THAT APPRAISAL SYSTEM USEFUL TO IDENTIFYING

EMPLOYEE ABILITIES

ATTRIBUTES NO OF

RESPONDENTS

%OF

RESPONDENTS

YES 36 60

NO 24 40

TOTAL 60 100

INFERENCE: From the above table shows that, 60% of the respondents said yes

because the company is providing constructive feedback to the employees. By this

employees can identify their abilities. And 40% of employees are said no.

60%

40%

Yes

No



67

TABLE 4.10

TABLE SHOWING WHAT BASIS COCA COLA EVALUATING PERFORMANCE

APPRAISAL

ATTRIBUTES NO OF

RESPONDENTS

%OF RESPONDENTS

BASED ON WORK 28 47

BASED ON QUALITY OF

WORK

32 53

TOTAL 60 100

GRAPH

INFERENCE: From the above table shows that, 53% respondents feels based on work,

47% respondents feels based on quality of work

47%

53%

Yes

No



68

TABLE 4.11

TABLE SHOWING WHAT EMPLOYEE THINKS NEED WHILE WORKING

ATTREBUTES NO OF

RESPONDENTS

%OF

RESPONDENTS

CLOSE 24 40

ALONE 36 60

TOTAL 60 100

GRAPH

INFERENCE: From the above table shows that, 60% of respondents prefer to work

alone to do work while 40% respondents requires close supervision while doing work.

0

20

40

60

80

100

1 2

Chart Title

ALONE



69

TABLE 4.12

TABLE SHOWING COMPANY SHOULD CONDUCTED APPRAISAL IN

PRACTICE

ATTREBUTES NO OF

RESPONDENTS

%OF

RESPONDENTS

3MONTHS 0 0

6MONTHS 4 7

12MONTHS 56 93

TOTAL 60 100

GRAPH

INFERENCE: From the above table shows that, 93% of the respondents feel that the

appraisal should be conducted for every 12 months and 7% of the respondents feel that it

should be conducted for every 6months.

0

10

20

30

40

50

60

70

80

90

100

3MONTHS 6MONTHS 12MONTHS

Series1

Series2



70

TABLE 4.13

TABLE SHOWING EMPLOYEE FEELING ABOUT PRESENT JOB

ATTREBUTES NO OF

RESPONDENTS

% OF

RESPONDENTS

HOBBY 4 7

INTERESTING 12 20

SATISFIED 44 73

TOTAL 60 100

GRAPH

INFERENCE: From the above table shows that, 73% of employees are satisfied with

their present job and 20% feel that their job is interesting and rest of the employees feel

their job as hobby.

HOBBY

7%

INTERESTING

20%

SATISFIED

73%

Chart Title



71

TABLE 4.14

TABLE SHOWING EMPLOYEES RECEIVE ANY INCREMENT-REWARDS

BASED ON APPRAISAL

ATTRIBUTES NO OF

RESPONDENTS

%OF

RESPONDENTS

YES 48 80

NO 12 20

TOTAL 60 100

GRAPH

INFERENCE: From the above table shows that, 80% of employees are said yes 20%

said that no.

1

37%

2

63%

YES



72

TABLE 4.15

TABLE SHOWING THAT HOW TO APPRECIATE THE CURRENT APPRAISAL

SYSTEM

ATTREBUTES NO OF RESPONDENTS % OF RESPONDENTS

BETTER 20 33

BETTERWAY 0 0

CLEAR 12 20

SATISFACTION 28 47

TOTAL 60 100

.

INFERENCE: From the above table shows that, 47% of respondents appreciate the

current appraisal system by increasing job satisfaction. Whereas 20% of respondents

appreciate it provides a clear communication of employee‘s expectation.

BETTER

33%

BETTERWAY

0%

CLEAR

20%

SATISFACTION47%

Chart Title



73

FINDINGS

It is found that employees are satisfied with the organizations performance

appraisal system.

Observed that employees in the organization receive correct information about

their work to perform well.

Observed that complaints of employees are handled immediately up to maximum

extent.

The study reveals that the training programs are conducted on the basis of

performance appraisal.

Monetary rewards and responsibilities are the most motivating factor for the

employees in the organization.

Observed that employees are satisfies with motivational techniques followed by

the organization.

Observed that employees here work with team spirit and helpful to each other.

From the study it is clear that management inform to their employees about the

change, which are planned.

Observed that creative new ideas are been invited and given preference. Also the

performance appraisal system is helpful in generating new ideas.

It is found that employees in the organization definitely get an opportunity to

develop their skills.

Observed that healthy relationships among employees are been maintained in the

organization.



74

Chapter – 7

SUGGESTIONS

The employees feel that even after the appraisal growth to the higher-grade

employees is not taken into consideration.

Some employees feel that practical discussions should be there in order to make

the appraisal process more effective.

The company should quickly respond to the complaints and problems of

employees to improve its relationships and provide confidence among employees.

More training programs should be conducted to produce trained associates for

better performance.

For motivating programs, a balance should be maintained between financial

incentives and non-financial incentives.

Arranging individual meetings, cultural programs frequently may lead employees

to communicate well within themselves that helps them to work as a team spirit.

The main problem faced by employees is that they sometimes get bored with their

routine work. It is recommended to make them busy with creative and challenging

work.

In official meetings or formal meetings superiors should give employees chance

to express their views, ideas and suggestions for better performance.



75

CONCLUSION

The performance appraisal in YES BANK is to be done for determining the promotion,

identifying areas of non performance and for improving the performance of an employee.

The system is effective and the appraisal system is satisfied by most of the employees.

There is no training session is conducted in YES BANK employees want to that before

the evaluating process. And they also want performance appraisal should be done

quarterly. The management has to inform and well communicate to the employees

regarding various factors which are used for their performance evaluation .And feedback

has to be given to the employee regarding their performance.

The superiors has to be identify employees non performance areas regularly Then they

have the chance to improve their skills and knowledge.

The superiors has to be identify employees non performance areas regularly Then they

have the chance to improve their skills and knowledge



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QUESTIONNAIRE

1. Whether the company should have a performance appraisal system?

a. Yes

b. No

2. Are you satisfied with current performance appraisal system?

a. Satisfied

b. Dissatisfied

c. Can not

3. According to you who should appraise employee performance?

a. Supervisor

b. Subordinates

c. Others

4. What is the main benefit of performance appraisal system?

a. Growth

b. Rewards

c. Motivation

d. Mistakes are corrected

5. Do you feel that promotions are given based on performance?

a. Yes

b. No

6. According to you, what is the purpose of performance appraisal?

a. To improve organizational effectiveness.

b. To improve personal effectiveness.



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c. Recommended for training and development needs.

d. Helps in pay adjustments/rewards.

7. What is the objective of performance appraisal system?

a. To identify training needs.

b. To effect job rotation.

c. To determine promotional opportunity.

d. To evolve reward and punishment system.

8. Whether performance appraisal will change the behavior of the employee?

a.

Yes

b. No

9. Is performance appraisal system useful in identifying your abilities?

a. Yes

b. No

10. on what basis YES BANK evaluating performance appraisal?

a. Based on work

b. Based on quality of work

11. What do you think you need while working?

a. Require close supervisor

b. Prefer to work alone

12. How often appraisal should be conducted in practice?

a. 3 months

b. 6 months

C. 12 months



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13. How do you feel about present job?

a. My job is like a hobby to me.

b. My job is interesting to me

c. I am satisfied with my present job

14. Have you receive any increment / rewards based on appraisal?

a. Yes

b. No

15. How do you appreciate the current appraisal system?

a. Opportunities to perform better

b. Task setting will induce people in better way

c. It provides a clear communication of employee‘s expectation.

d. It increases job satisfaction



BIOBLOGRAPHY

1.

KOTLER, PHILIP; Marketing Management, ―11

th

Edition‖ New Delhi, Prentice

Hall of India, 2002.

2. RAMASWAMY, VS & NAMAKUMARI, S; Marketing Management: Planning,

Implementation & Control, ―3rd Edition‖ New Delhi, Macmillan.

3. ZIKMUND, G WILLIAM, Marketing, ―7th

Edition‖, Thomson learning, Mumbai.

4. COOPER & SCHINDLER, Research Methodology Method, TMH,‖6 th Edition‖.

5. KOTHARI, C.R; Research Methodology, Wishawa Parkashan, ―2nd Edition‖.

6. SALKIND, NEIL, Exploring Research, 3rd Edition, Prentice Hall, NJ, 1997.

7. RAJMOHAN, R; Image Retail, ―2nd Edition‖, 2007.

8. www.yesbank.in

9. www.mha.nic.in

http://www.yesbank.in/



pooja gla ibm

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