Introduction

This study is done for fulfillment of the requirement of College of

Material Management, Jabalpur (M.P.) to obtain the degree of Master

of business management. In this study, we strive to find out the

implication of “Performance Appraisal” in banking sector.

Banking sector is one of the emerging sectors of India; we strive to

find out what is the importance of HR in banking industry in specific

with “Performance Appraisal”.

Banking can be defined in various ways as the definition of the bank

varies from country to country and keeps on changing on the basis of

the activities carried out by the banks. In present dynamic business

scenario, banking can be defined as the activities carried out with the

bank on individual or corporate level. We can understand the concept

of the banking by looking into the activities of the bank.

In this report we discuss the banking industry, HR overview, need of

“Performance Appraisal” in banks, Indian banking scenario, techniques

and approaches of “Performance Appraisal” pertaining to the banking

industry. As we know that in present scenario of cut throat competition

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in banking industry only the service is the factor that can make sense

in banking industry, we try to explore the importance of the

“Performance Appraisal” in banking to uplift the standard of

organization, individual and both as a mutual entity

Banking in India originated in the last decades of the 18th century.

The oldest bank in existence in India is the ‘State Bank of India’, a

government-owned bank that traces its origins back to June 1806 and

that is the largest commercial bank in the country. Central banking is

the responsibility of the Reserve Bank of India, which in 1935 formally

took over these responsibilities from the then Imperial Bank of India,

relegating it to commercial banking functions. After India's

independence in 1947, the Reserve Bank was nationalized and given

broader powers. In 1969 the government nationalized the 14 largest

commercial banks; the government nationalized the six next largest in

1980.

Currently, India has 88 scheduled commercial banks (SCBs) - 27

public sector banks (that is with the Government of India holding a

stake), 31 private banks (these do not have government stake; they

may be publicly listed and traded on stock exchanges) and 38 foreign

banks. They have a combined network of over 53,000 branches and

17,000 ATMs. According to a report by ICRA Limited, a rating agency,

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the public sector banks hold over 75 percent of total assets of the

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

and 6.5% respectively.

Human Resources Management Approach

(H.R M Approach)

“Human resource management's objective is to maximize the return

on investment from the organization's human capital and minimize

financial risk. It is the responsibility of human resource managers in a

corporate context to conduct these activities in an effective, legal, fair,

and consistent manner”

The Human Resources (HR) function provides significant support and

advice to line management. The attraction, preservation and

development of high caliber people are a source of competitive

advantage for our business, and are the responsibility of HR.

H.R can be well understood as a model of personnel management that

focuses on the individual rather than taking a collective approach.

Responsibility for human resource management is often devolved to

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line management. It is characterized by an emphasis on strategic

integration, employee commitment, workforce flexibility, and quality of

goods and services.

Human resource is an increasingly prominent field that is taking shape

throughout industries and workplaces world wide. Recognizing the fact

that people are a company’s greatest asset, business leaders across

the globe are coming to rely more and more upon an effective

management policy that applies specifically to the area of human

resources.

Aims & 0bjectives

 To understand the concept of HR in special reference of

“Performance Appraisal”

 To understand the application of “Performance Appraisal” in

banking sector

 To understand the practical aspect of “Performance Appraisal” in

banking scenario

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 To understand the modern trends emerging in “Performance

Appraisal”

 To understand the management approach towards “Performance

Appraisal”

 To understand the banking scenario of India

 To gain the knowledge of the practical process of the

“Performance Appraisal”

 To view the aspect of “Performance Appraisal” from managerial

perspective

 To highlight the effectiveness of “Performance Appraisal” in

banking sector

 To understand the need of “Performance Appraisal” for banking

industry

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Justification of the project

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 researcher 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 the case of one of

the leading bank, ICICI bank will be taken 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 researcher has divided

the entire study in to several chapters that gives the specific nature of

the subject in question.

Project highlights several trends of banking industry, growth and

prospect of banking in India, history of Indian banking, Role of RBI as

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regulatory bank and the industrial importance bank as an institute to

march the nation in economic growth.

Further the role of HR, its need and importance and “Performance

Appraisal” as its one of the major tools will also be considered as the

area of study in this project. 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 managerial function rather

than the staff activities . In this report we try to make the role and

concept of HRM understood for our readers.

Hypothesis
A Hypothesis consists either of a suggested explanation for an

observable phenomenon or of a reasoned proposal predicting a

possible causal correlation among multiple phenomena. The term

derives from theGreek, hypotithenai meaning "to put under" or "to

suppose." The scientific method requires that one can test a scientific

hypothesis. Researchers generally base such hypotheses on previous

observations or on extensions of scientific theories. Even though the

words "hypothesis" and "theory" are often used synonymously in

common and informal usage, a scientific hypothesis is not the same as

a scientific theory.

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Hypothesis may be defined as a proposition or a set of proposition set

forth as an explanation for the occurrence of some specified group

of phenomenon either asserted merely as a provisional conjecture to

guide some investigation or accepted as highly probable in the light of

established facts. Quite often a research hypothesis is a predictive

statement, capable of being tested by scientific methods, that relates

an independent variable to some dependent variable.

Null Hypothesis
A null hypothesis is a hypothesis (within the context of statistical hypothesistesting) that

might be falsified on the basis of observed data. The nullhypothesis typically proposes a

general or default position, such as that thereis no relationship between two quantities, or

that there is no difference between a treatment and the control. The term was originally

coined byEnglish geneticist and statistician Ronald Fisher.

The null hypothesis (often denoted by H0) formally describes some aspect of the

statistical "behaviour" of a set of data. The Null Hypothesis is of this project report is that

employees are highly satisfied with the performance appraisal policies of the company.

ALTERNATE HYPOTHESIS

Alternative hypothesis is the "hypothesis that the restriction or set of

restrictions to be tested does NOT hold." (Often denoted H1) . Synonym

for 'maintained hypothesis.' The Alternate Hypothesis of this project

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report is that employees are not satisfied with Performance appraisal

policies of the company.

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 ICICI bank

 Modern techniques emerging in ““Performance Appraisal””.

 Need and importance of “Performance Appraisal” in banking

industry

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  brief introduction of Indian banking industry

 Introduction to ICICI 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

Layout (Chapterisation)

 Chapter I : Introduction

 Chapter II : Aims and Objectives

 Chapter III : Company Profile

 Chapter IV : Research Methodology

 Chapter V : Analysis of Data & Interpretation

 Chapter VI : Finding Suggestions

recommendation & Conclusion

 Chapter VII : Bibliography

 Chapter VIII : Annexures

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Conclusion
To summarize our discussion we can say that the “Performance
Appraisal” is an integral part of performance management and has
become the important component of the HRM. Performance
management includes activities to ensure that goals are consistently
being met in an effective and efficient manner. Performance
management can focus on performance of the organization, banks, a
department, processes to build a product or service, employees, etc

Performance management reminds us that being busy is not the same

as producing results. It reminds us that training, strong commitment
and lots of hard works alone are not results. The major contribution of
performance management is its focus on achieving results -- useful
products and services for customers inside and outside the bank and
organization. Performance management redirects our efforts away
from busyness toward effectiveness.

Recently, organizations have been faced with challenges like never

before. Increasing competition from businesses across the world has
meant that all businesses must be much more careful about the
choice of strategies to remain competitive. Everyone (and everything)
in the organization must be doing what they're supposed to be doing
to ensure strategies are implemented effectively.

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