STAFF PERFORMANCE OF AXIS BANK

A
Project Report
Submitted
in partial fulfillment
for the award of the Degree of
BUSSINESS OF BACHELOR ADMINISTRARTOR

Session 2016-2020

University of Engineering & Management (UEM), Jaipur

(BBA)

SUBMITTED BY;
DEEPIKA CHOUDHARY
Enrollment Number – 12017003008003
BBA 3RD YEAR

SUBMITTED TO:
DR. LATA RANI MUTTI
(Associate Professor School of Management)

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 DECLARATION

I hereby declare that the project entitled “STAFF PERFORMANCE OF AXIS BANK” submitted in partial
fulfillment of the requirements for award of the degree of BBA at University of Engineering and Management,
Jaipur and an original work done by me under the guidance of Dr. Lata Rani Mutti

Signature of Student

DEEPIKA CHOUDHARY
12017003008003
BBA 3 YEAR
rd

Signature of Student
Dr. LATA RANI MUTTI
Associate Prof
School of Management

2
 PREFACE

Managing human resources in today’s dynamic environment is becoming more and more complex as well as
important. Recognition of people as a valuable resource in the organization has led to increases trends in
employee maintenance, job security, etc

My research project deals with “Performance AND Appraisal as carried out at AXIS BANK LTD”. In this
report, I have also studied &evaluated the performance appraisal process as it is carried out in the company.

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 ACKNOWLEDGEMENT

Any activity big or small is a result of collective effort of several individuals. From the very beginning of
human civilization to this complex, we are dependent on each other for accomplishment of our goals. The
project reports of such magnitude could not be accomplished without the assistance of several people who
participated directly or indirectly.

Exchange of ideas generates a new object to work in a better way. So whenever a person is helped and co-
operated by others, his heart is bound to pay gratitude and obligation to them.
Acknowledgement is not merely a formality but an expression of deep sense of gratitude and cumulative
appreciation.

We would like to sincerely thank Dr. Lata Rani Mutti who gave us a free hand as far as going about the
project work concerned.

We are obliged by University of Engineering and Management, Jaipur for allowing us for writing this thesis.

Thank you all for everything you did for me.

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 INDEX

Sr no Contents Page no.

1 Company profile

2 Review of the literature

3 Research Methodology& Objective

4 Limitation

5 Conclusion

6 Suggestions

7 Bibliography

8 Appendix & Questionnaire

5
COMPANY PROFILE

AXIS BANKS LTD

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 HISTORY OF THE COMPANY

AXIS BANK LTD.

Axis Bank Limited, formerly UTI Bank is a financial services firm that had begun operations in 1994,
after the Government of India allowed new private banks to be established. The bank changed its name to Axis
Bank in April 2007 to avoid confusion with other unrelated entities with similar name. After the Retirement of
Mr. P. J. Nayak, Shikha Sharma was named as the bank's managing director and CEO on 20 April 2009.

The Bank's Registered Office is at Ahmedabad and its Central Office is located at Mumbai. At the end of
September 2010, The Bank has a very wide network of more than 1281 branches and Extension Counters (as on
31st December, 2010). The Bank has a network of over 6270 ATMs (as on 31st March, 2011). The Bank has
loans now (as of June 2007) account for as much as 70 per cent of the bank’s total loan book of Rs 2,00,000
crore. For HDFC Bank, retail assets are around 57 per cent (Rs 28,000 crore) of the total loans as of March
2007.

In the case of Axis Bank, retail loans have declined from 30 per cent of the total loan book of Rs 25,800 crore in
June 2006 to around 23 per cent of loan book of Rs.41,280 crore (as of June 2007). Even over a longer period,
while the overall asset growth for Axis Bank has been quite high and has matched that of the other banks, retail
exposures grew at a slower pace.

If the sharp decline in the retail asset book in the past year in the case of Axis Bank is part of a deliberate
business strategy, this could have significant implications (not necessarily negative) for the overall future
profitability of the business.Despite the slower growth of the retail book over a period of time and the outright
decline seen in the past year, the bank’s fundamentals are quite resilient. With the high level of mid-corporate
and wholesale corporate lending the bank has been doing, one would have expected the net interest margins to
have been under greater pressure. The bank, though, appears to have insulated such pressures. Interest margins,
while they have declined from the 3.15 per cent seen in 2003-04, are still hovering close to the 3 per cent mark.
(The comparable margins for ICICI Bank and HDFC Bank are around 2.60 per cent and 4 per cent respectively.
The margins for ICICI Bank are lower despite its much larger share of the higher margin retail business, since
funding costs also are higher).

The Bank today is capitalized to the extent of Rs. 409.90 crores with the public holding (other than promoters
and GDRs) at 53.63%. It is also listed in the top 100 most trusted brands of India in the Brand trust report.

The Bank's Registered Office is at Ahmadabad and its Central Office is located at Mumbai. At the end of
September 2010, The Bank has a very wide network of more than 1281 branches and Extension Counters (as on
31st December, 2010). The Bank has a network of over 6270 ATMs (as on 31st March, 2011). The Bank has
loans now (as of June 2007) account for as much as 70 per cent of the bank’s total loan book of Rs 2,00,000
crore. For HDFC Bank, retail assets are around 57 per cent (Rs 28,000 crore) of the total loans as of March
2007.

In the case of Axis Bank, retail loans have declined from 30 per cent of the total loan book of Rs 25,800 crore in
June 2006 to around 23 per cent of loan book of Rs.41,280 crore (as of June 2007). Even over a longer period,
7
while the overall asset growth for Axis Bank has been quite high and has matched that of the other banks, retail
exposures grew at a slower pace. If the sharp decline in the retail asset

book in the past year in the case of Axis Bank is part of a deliberate business strategy, this could have
significant implications (not necessarily negative) for the overall future profitability of the business.

Despite the slower growth of the retail book over a period of time and the outright decline seen in the past year,
the bank’s fundamentals are quite resilient. With the high level of mid-corporate and wholesale corporate
lending the bank has been doing, one would have expected the net interest margins to have been under greater
pressure. The bank, though, appears to have insulated such pressures. Interest margins, while they have declined
from the 3.15 per cent seen in 2003-04, are still hovering close to the 3 per cent mark. (The comparable margins
for ICICI Bank and HDFC Bank are around 2.60 per cent and 4 per cent respectively. The margins for ICICI
Bank are lower despite its much larger share of the higher margin retail business, since funding costs also are
higher).

The Bank today is capitalized to the extent of Rs. 409.90 cores with the public holding (other than promoters
and GDRs) at 53.63%. It is also listed in the top 100 most trusted brands of India in the Brand Trust Report.

Axis Bank operates the world’s highest ATM site at Taegu, Sikkim at 13,200 feet above sea level.

THE VISION AND THE CORE VALUES OF AIXS BANK

VISION-

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

CORE VALUES

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 ACTIVITIES FROM AXIS BANK

 CREDIT CARD

 CONSUMER BANKING

 CORPORATE BANKING

 FINANCE & INSURANCE

 INVESTMENT BANKING

 MORTGAGE LOAN

 PRIVATE BANKING

 PRIVATE EQUITY

 WEALTH MANAGEMENT

Agriculture & Rural Banking

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

Axis Remit Online

This is a convenient and secure portal for NRIs to remit money to India, generally required for maintenance of
their relatives. It is a growing revenue stream for the bank, with more and more NRIs registering to avail of the
highly competitive exchange rates and convenient online facility.

9
 REVENUE AND NET INCOME IN 2011

Revenue - rupees...198.26 billion (3.77 billion USD$) in 2011

Net income - rupees…33.88 billion (643.72 million USD$) in 2011

Number of Employees

21,640

BOARD OF DIRECTORS

Dr. Adders Kishore Chairman

Smt. Shikha Sharma Managing Director & CEO

Dr. R.H. Patil Director

Smt. Rama Bijapurkar Director

Shri M.V. Subbiah Director

Shri K. N. Prithviraj Director

Shri V. R. Kaundinya Director

Shri S. B. Mathur Director

Shri Prasad R. Menon Director

Shri R. N. Bhattacharyya Director

Shri Samir K Barua Director

Shri A K Dasgupta Director

Shri Som Mittal Director

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PRODUCTS/SERVICES OFFERED BY AXIS BANK

PERSON ACCOUNT

Easy Access Savings Account

Presenting, Axis Bank's Easy Access Savings Account. The account is an endeavor by the Bank to understand
the consumers' needs and redefine banking to suit your requirements for a truly comfortable banking
experience. Easy Access Savings Account gives you instant access to your money anywhere, anytime.
Possessing a range of unmatched features, it has been devised to better suit the convenience of our eclectic
client base.

Salary Account

We, at Axis Bank, believe in providing total financial solutions to the employer as well as the employee,
through the salary relationship. We understand that each employee in an organization is at a different station of
life having different financial and banking needs.

Customized solutions

One solution may not fit all. Therefore, each employee in an organization is offered a zero balance salary
account and associated privileges commensurate with her/his net monthly salary. Our Salary Account offering
has six variants, as follows:

 Private Salary - For employees with net monthly salary of Rs.5,00,000/- or more
 Wealth Salary - For employees with net monthly salary of Rs.2,00,000/- or more
 Priority Salary - For employees with net monthly salary of Rs.60,000/- or more
 Prime Salary - For employees with net monthly salary of Rs.25,000/- or more
 Easy Access Salary - For employees with net monthly salary of Rs.9,000/- or more
 Salary Plus - For employees with net monthly salary of Rs.9,000/- or more. Currently being offered only
to existing relationships
 Smart Pay Card - For employees with net monthly salary less than Rs.9,000/-

Benefits for the employees

Convenience in banking:

o Anywhere Banking at any of our over 1400 branches and a network of over 6800 ATMs spread
across more than 900 centers
o Multi-city at par cheque books
o Electronic Fund Transfer facility across all banks in India
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 o Internet Banking with secure fund transfer facility (with 2-factor authentication) to self and third
party accounts
o 24x7 convenience at no charges with Axis Mobile
o Free SMS Banking with features such as alerts on debits / credits over Rs.5,000/- balance enquiry,
enquiry on last 3 transactions and status of cheque clearance etc

Pension Savings Account

Are you a Pensioner seeking banking solutions tailored to your needs?

Pension Savings Bank Account, from Axis Bank is specifically, designed for Pensioner's (Existing &
Prospective) of Central Govt. Civil Ministries/ Departments & Defence Ministry keeping in mind the fact that a
Pensioner's banking requirements are wholly different and requires special consideration.

Benefits

 Timely communication to the customer on receipt of the PPO

 No delays in commencement of pension disbursals - The Bank is handling the disbursement of Pension
under a Centralized Pension Disbursement Module wherein the Pensioner records are credited centrally
through its Centralized Pension Payment Hub (CCPH) at Mumbai.
 Timely issue of Form- 16A for tax deducted at source in the immediately previous financial year
 Timely revisions based on changes in rates of Pension or Dearness Allowance, done centrally from the
CCPH

Women's Savings Account

For the woman of today

Presenting, Axis Bank's Women's Savings Account. The account is an endeavor by the Bank to understand the
consumers' needs and redefine banking to suit your requirements for a truly comfortable banking experience.
Women's Savings Account gives you instant access to your money anywhere, anytime. With the Women's
Savings Account, you can manage your money and your life and Furthermore Axis Bank's Women's Savings
Account ensures that you have enough time for all the important things in life.

LOANS
HOME LOAN

Quick and easy home loans

Need help buying a home?

Axis Bank offers affordable and flexible housing loans that can turn your dream of owning a home into reality.

If rising real estate prices have pushed the house you coveted beyond your budget, Axis Bank's unmatched
home loans will put it within reach. The attractive interest rates and minimal processing fees make our home
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finance products a first choice for savvy buyers. In addition, features such as flexible tenures, transparent
processing and quick service have made our products stand out among the best home loans in India.

We have products to suit every budget, taste and need. Whether you are self-employed or salaried, want a
floating or fixed rate, Axis Bank will offer a loan that is just right for you.

Car Loan

Car Loans in India - Axis Bank Car Loans

Axis Bank offers uniquely tailored car loan products that take the pain and hassle out of buying a car. Flexible,
transparent, quick, and cost-effective, our car loans put the joy back into owning a car.

At Axis Bank, we realize that owning a car has increasingly become a necessity. But we also realize that the
price tag of your dream car may be just outside your immediate grasp. Axis Bank's Auto Loans are just what
you need to bridge the gap.

Designed specifically to meet the needs of a modern-day car buyer, our car loans offer attractive interest rates
and worry-free procedures. What's more, our streamlined car finance processes ensure that you can drive away
in your dream vehicle in quick time.

The Indian car buyer is spoilt for choice from top-of-the-line sedans to no-frills family hatchbacks, there's a car
for every taste and budget. Regardless of your choice or budget, Axis Bank can help you with an attractive car
loan.

So, don't put a brake on your desires. Get your dream vehicle with one of the best car loans in India.

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Personal Loan

Quick and easy personal loans

Are you in need of some quick cash?

Presenting Axis Bank's Personal Loans. Go on your dream holiday, buy the latest lifestyle gizmo, gift your wife
a lovely diamond ring, renovate your house or just squash a temporary cash crunch.

Let us give you a helping hand. Our personal loans will meet all your personal requirements.

 Loans available for salaried individuals

 Special loans for Doctors, Chartered Accountants, Engineers, Architects and CS
 Loans are available from Rs 1 lack to Rs 20 lacks
 Repayment tenures from 12 to 60 months
 Best in Class Rate of Interest
 Loans at higher rates can be transferred to Axis Bank with our Balance transfer facility.
 Simplified documentation.

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Education Loan

Higher education within your reach

Axis Bank's Study Power aims to provide financial support to deserving students for pursuing higher
professional or technical education in India and abroad. The loan would be provided to students who have
obtained admission to career-oriented courses e.g., medicine, engineering, management etc., either at the
graduate or post-graduate level.

Quantum of Loan
The quantum of finance under the scheme is capped at Rs 10.00 lacs for studies in India and Rs 20.00 lacs for
studies abroad, which would cover tuition fees, hostel charges (if any), cost of books, etc. The minimum amount
of loan would be Rs 50,000.

Margin:
No margin for loans upto Rs 4 laces. For loans above Rs 4 laces, 5% margin for studies within India and 15%
for higher studies overseas.

Role of the Guardian:

The parent(s) or guardian of the student would be treated as a co-applicant of the loan. His or her role would be,
necessarily, like the primary debtor.

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ATM CARDS SERVICES

CREDIT CARD

Gold Credit Card

Axis Bank presents an exclusive credit card for exclusive people - Gold Credit Card. With it you can access
special features and avail the best benefits.

Silver Credit Card

Sheer Surprises coming your way

Presenting, Axis Bank's Silver Credit Card. Now, you can experience freedom like never before. Freedom from
cash, long queues and all other hassles.

EShop Card
Making your online shopping more secure

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Worried about revealing your credit card details on the Internet?
Axis Bank presents the eShop Card. A virtual credit card that allows you to shop online securely without
divulging your credit card details.
All you need is your Axis Bank Credit Card and an Internet connection!

How?

Just follow these simple steps to start secure online shopping.

Register
Register once with your Axis Bank Credit Card details. Accept the terms and conditions and add personal
details to get your unique login and password.
Generate
Simply specify the amount you want to shop for with your e - shop Card. It should be within the available limit
on your Axis Bank Credit Card.
E -Shop!
Now you are all set to shop online.

Platinum Credit Card

Axis Bank presents an exclusive credit card for exclusive people. With it you can access special features and
avail the best benefits.

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DEBIT CARD

Gold Plus Debit Card

The Gold plus Debit Card is an effort from Axis Bank to offer our customers the best value possible through a
debit card. Available only to our most privileged Savings Bank account holders, the Gold plus Debit Card
mirrors your success and needs with a host of privileges, benefits and exclusive value deals.

Gold Debit Card

Earn while you shop

Axis Bank's Gold Debit Card is more than just a debit card. It comes with a host of enhanced benefits and
reward program. It is exclusively issued to our Premium Salary account customers, it is a result of our constant
Endeavour to understand your requirements and design products and services keeping you in mind

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Classic Debit Card
Easy access to your account, no matter where you are

Modern times necessitate that you need to have access to your money anytime and any where. The Axis Bank
International Debit Card addresses this need.

A deposit access program, the Debit Card redefines convenience. Apart from being an ATM (Automated Teller
Machine) Card used for withdrawing cash, it also enables you to shop and make cashless purchases. You can
use the card to make payments at shops, department stores, restaurants, petrol pumps and many more outlets in
India and overseas.

The Axis Bank Debit Card is a VISA Electron Card and is accepted at VISA and VISA Plus ATMs worldwide
and all merchant establishments using electronic terminals and displaying the VISA Electron sign.

SAFEDEPOSITELOCKER

Unmatched protection for your valuables

Looking for a safe storage place for your valuables?

A Safe Deposit Locker with Axis Bank is the solution to your concern. Located at select branches in cities all
over the country, our lockers ensure the safe keeping of your valuables.

Advantages
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  Wide Availability: As on November 30, 2010 lockers are available at 944 branches and extension
counters.
 Lockers available in various sizes.
 Direct debits for locker rentals from your account rid you of the hassles in writing out cheques.

TAX E PAYMENT

Axis Bank is authorized by Reserve Bank of India (RBI) and Govt. of India for collecting Income/ other Direct
Taxes and Central Excise & Service Tax since August 2003 through its authorized Braches and through e-
Payments.

You can pay your Income / Other Direct Taxes, as well as Central Excise & Service Tax* through connect from
your account online and get on-line acknowledgement of the payment by way of a Cyber Receipt, including
Chillan Identification Number (CIN) immediately after making the payment.

INSURANCE

Motor Insurance

Your car insurance policy is the most important document in your vehicle. No wonder millions of car owners
across India trust Bajaj Allianz to insure their car. Along with comprehensive coverage against physical
damage, bodily injury and cover against third-party liability, your car insurance brings to you confidence and
peace of mind. All this is backed by our superior claims servicing capability and fast settlement record.

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Safe Guard

Axis Bank and Bajaj Allianz General Insurance present you the 'Safe Guard' personal Accident Insurance cover.
A unique policy that offers you insurance coverage at premiums that is extremely competitive and exclusively
meant for Axis Bank customers.

Safe Home

Your home is your most valued possession, a haven of safety. But is it really as safe as you would like to
believe?

We at Axis Bank realize your need to make your home as secure in reality, as it is in your mind, which is why
we, in association with Bajaj Allianz General Insurance bring you - Safe Home, an insurance policy exclusively
designed for Axis Bank customers, which provides protection for your property and valuables at your home.

Family Health

Only Axis Bank offers you the advantage of insuring not just yourself but your entire family with one policy.
Our Family Health insurance programme provides a comprehensive health insurance that covers you, your
spouse and 3 dependent children up to the age of 18 years. Thanks to our association with Bajaj Allianz General
Insurance, now you don't have to pay multiple premiums to insure all the members in your family.

Family Health Insurance Programmed provides you and your family members,

 Hospital Reimbursement:
Reimbursement of your hospital expenses in case of sudden illness, accidents or emergency surgeries
and
 Hospital Cash Payout:
Additional cash benefit for each and every completed day of hospitalization.

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Travel Companion

Whether you travel for business or pleasure, international travel involves risk. Medical treatment abroad can be
expensive and one never knows when one would require it. Having to spend for medical bills in foreign
currency can be expensive proposition. There are other difficult situations also, that one might face like loss of
passport or baggage. Bajaj Allianz's Travel Companion is specially designed to help you deal with such
situations while overseas travel.

Business Advantage

You have built your business by investing so much hard work, time, energy and money. You could face heavy
losses if your business premises are burgled or if machinery breaks down. Therefore it's essential to safeguard
your investment with an insurance cover that protects against losses due to unforeseen calamities.

Advantages:

 Complete risk cover for your business needs

 Cover against loss due to terrorism*
 Competitive rates
 Simple documentation
 Easy payment options

Safe Home Plus

Home is a dream, which you have turned into reality with your sweat, pain, happiness, energy and time. Axis
Bank helps you to protect this dream against unforeseen calamities.

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INTERNRT BANKING

Get control over your account anytime, anywhere at your comfort with Axis Bank Internet Banking - a one stop
solution for all your banking needs. View all your accounts detail, submit requests and undertake a wide range
of transactions.

Features

 Account Details: View your bank account details, account balance, download statements and more.
Also view your Demand, Loan & Credit Card Account Details too all in one place.
 Fund Transfer: Transfer fund to your own accounts, other Axis Bank accounts or Other Bank account
seamlessly.
 Request Services: Give a request for Cheque book, Demand Draft, Stop Cheque Payment, Debit Card
Loyalty point Redemption etc.
 Investment Services: View your complete Portfolio with the bank, Create Fixed Deposit, Apply for
IPO etc.
 Value Added Services: Pay Utility bills for more than 160 billers, Recharge Mobile, Create Virtual
Cards, Pay any Visa Credit Card bills, Register for statement and sms banking etc.

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MOBILE BANKING

Keep a watch on your account with our round the clock SMS Banking service. Every debit or credit in your
account is intimated to you by an SMS as soon as it happens. Be in a smart position to detect any unauthorized
access to your account.

Missing debit cards, unauthorized card usage or compromised passwords are no longer a threat to you. Axis
Bank's SMS Banking service provides you with the ability to detect and prevent misuse of your bank account.

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 PRACTISE PERFORMANCE APPRAISAL IN AXIS BANK

Performance Appraisal is the process of assessing the performance of an employee within a given time period
by a Manager or supervisor. It helps in measuring the exact performance of the employee, his strengths and
weaknesses and the required improvements.

Performance Appraisal is very important aspect for reviewing. Nowadays almost each and every company
follows it.

The Manager or supervisor who is going to perform appraisal should be well aware of the working conditions of
the organization, organizational goals and the employees whose performance needs to be reviewed. New
managers should not be given this task. Every company has a set of norms and conditions which should be
followed. The person who is going to do Performance Appraisal should know the rules and regulations. He
should bear in mind that it is being done for improving the performance of employees and in turn the overall
performance of the organization. Individual data of employees is collected over a period of one year. Employees
performance is reviewed every two to three months. The supervisor talks to the employees and lets him know
how close he is to his goal and in what areas he needs improvements. Training sessions are conducted for
employees who lack some knowledge or for those whose performances are not up to the mark.

Managers ask various questions to the employees for reviewing their performance. They should try to keep the
employee cool and calm and conduct a bit informal meeting rather than a formal one. Until and unless the
employee opens up its useless performing an appraisal and expecting him to better his performance. Managers
should try and find out reasons for employees bad performance. Merely reviewing a problem will not help but
the problem needs to be addressed at the grass root level or its useless. Employees performance can change over
a period of time so past data should be reviewed but should not be given much consideration.

Most effective appraisal system is 360 degrees approach in which data is collected from employees himself, his
peers, customers and seniors. This is the best method because when everyone reviews a person’s performance
we get an appropriate figure for calculation and the spectrum for review increases. Managers should review the
performance and give feed backs. The feedback should not be negative. It should be positive and encouraging.
The reason behind appraisal is to enhance the performance of an employee and not to lower his morale.
Managers should consider every point from the start and not a particular negative behavior or incident while
writing review. He should also not hold any personal grudges with the employee. He should give an unbiased
report concentrating totally on an employee’s overall performance in the organization.

Performance appraisal is carried out so that an employee works with full devotion and is committed to his work.
He does not show a laid back attitude and get irregular. It should increase employee’s efficiency and his
commitment towards work. Regular review of performance is very useful because it makes the organization
aware of employees who are poor or non performers and are not improving. These employees need to be fired
or should not be given a pay hike. Good performers move up the ladder and acquire respectable positions in the
organization thus leading to the profitability in the long run.

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Key Features followed by Axis Bank in Practicing Performance Appraisal

 Performance Goals are linked to the Corporate Strategy and Goals logically cascaded down organization
units to individual level.
 Written Performance Agreements/Plans are drawn up via one-on-one goal-setting sessions between line
managers and direct reports, as early as possible at the start of a new performance year.
 Individual Performance Agreements include performance measures that are derived from a position's
job/role description, as well as relevant corporate cascaded-down goals.
 Line managers ensure that employees have sufficient resources and tools to get the job done, and that
systems, processes and policies facilitate (and not hinder) optimal performance.
 Both line managers and their direct reports are keeping a record of the letters' performance to refer to
during performance reviews.
 Performance Agreements are adapted as and when priorities and the situation on the ground change.
 Performance feedback (positive and/or 'negative' - constructive), and related coaching, are given to
employees on an ongoing basis, so that there are no unpleasant surprises at performance review time.
 In addition to the formal performance reviews, line managers and their direct reports should meet at
least monthly (1-1) to discuss performance progress and challenges.
 Employees are given adequate warning (at least 14 days) of performance reviews (date and time
mutually agreed).
 Performance reviews are facilitated by line managers in a way that involves the employee and asks for
their input first on how they have fared on each measure and what ratings they think best reflects their
performance. Line managers add their own view, and facilitate agreement. Second-level line managers
are brought in with disputes, and have the final say. A grievance policy and procedure exists as
employee last resort when still unhappy.
 Personal Development Plans (as a performance review output) are based on current competency
shortfalls as well as new role challenges and employee career goals.
 Performance is linked to remuneration in a way that sends a clear message to both good and poor
performers. Sufficient reward differentiation is made so that top performers are lifted out materially and
psychologically for their efforts.
 Employees experience the entire process as positive, motivating and career-enhancing.

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REVIEW OF THE LITERATURE

PERFORMANCE APPRAISAL

Human Resource (or personnel) management, in the sense of getting things done through people, is an essential
part of every manager’s responsibility, but many organizations find it advantageous to establish a specialist
division to provide an expert service dedicated to ensuring that the human resource function is performed
efficiently.

“People are our most valuable asset” is a cliché, which no member of any senior management team would
disagree with. Yet, the reality for many organizations is that their people remain undervalued, under trained and
underutilized.

Performance Appraisal is the process of assessing the performance and progress of an employee or a group of
employees on a given job and his / their potential for future development. It consists of all formal procedures
used in the working organizations to evaluate personalities, contributions and potentials of employees.
The history of performance appraisal is quite brief. Its roots in the early 20th century. But this is not very
helpful, for the same may be said about almost everything in the field of modern human resources management.
As a distinct and formal management procedure used in the evaluation of work performance, appraisal really
dates from the time of the Second World War - not more than 60 years ago. Yet in a broader sense, the practice
of appraisal is a very ancient art. In the scale of things historical, it might well lay claim to being the world’s
second oldest profession! There is, says Dulewicz (1989),
".. a basic human tendency to make judgments about those one is working with, as well as about oneself."

Appraisal, it seems, is both inevitable and universal. In the absence of a carefully structured system of appraisal,
people will tend to judge the work performance of others, including subordinates, naturally, informally and
arbitrarily. The human inclination to judge can create serious motivational, ethical and legal problems in the
workplace. Without a structured appraisal system, there is little chance of ensuring that the judgments made will
be lawful, fair, defensible and accurate. Performance appraisal systems began as simple methods of income
justification. That is, appraisal was used to decide whether or not the salary or wage of an individual employee
was justified. The process was firmly linked to material outcomes. If an employee's performance was found to
be less than ideal, a cut in pay would follow. On the other hand, if their performance was better than the
supervisor expected, a pay rise was in order. Little consideration, if any, was given to the developmental early
27
motivational researchers were aware that different people with roughly equal work abilities could be paid the
same amount of money and yet have quite different levels of motivation possibilities of appraisal. It was felt
that cut in pay, or a rise, should provide the only required impetus for an employee to either improve or
continue to perform well. Sometimes this basic system succeeded in getting the results that were intended; but
more often than not, it failed. For example, early motivational researchers were aware that different people with
roughly equal work abilities could be paid the same amount of money and yet have quite different levels of
motivation and performance. These observations were confirmed in empirical studies. Pay rates were important,
yes; but they were not the only element that had an impact on employee performance. It was found that other
issues, such as morale and self-esteem, could also have a major influence. As a result, the traditional emphasis
on reward outcomes was progressively rejected. In the 1950s in the United States, the potential usefulness of
appraisal as tool for motivation and development was gradually recognized. The general model of performance
appraisal, asset is known today, began from that time. Most persons share a desire to know the answer to the
question, "How am I doing?"They want to know what is expected of them, how well they are meeting the
expectations, how they can improve, and some want to know how they might qualify for higher responsibilities.
The process of performance appraisal should provide the opportunity for discussion of these concerns. The
process should also provide the basis for enhanced communication among college personnel. The feedback is
one of the most important tools provided by Human Resources to managers as the motivational tool. The
feedback by Human Resources is organized usually in the process of the Performance Appraisal.

When speaking with HRM Professionals, you can hear a lot about the performance management process
and the forms used to formalize the whole process of the performance appraisals. Generally, the manager should
give feedback and the quality of the feedback provides the performance appraisals to the individual employee.
But as the HRM Function wants to have a control over the whole performance management process, the main
stress is put on the formal record of the whole performance appraisal discussion. The performance appraisals
can have a huge impact on the future of the employee in the company. When the feedback is provided correctly
and the manager makes a follow up of all the agreements done during the performance appraisal interview, the
performance appraisals can work without any formal documents. As the HRM Function is responsible for the
performance management process, it brings new and better performance appraisal forms every single year. And
the result usually fails every year. The managers and the employees do not see the benefits of participating in
the performance review process as they take it as an activity driven by Human Resources for Human Resources.

28
CONCEPTS
Typically, performance appraisal has been limited to a feedback process between employees and supervisors.
However, with the increased focus on teamwork, employee development, and customer service, the emphasis
has shifted to employee feedback from the full circle of sources depicted in the diagram below. This multiple-
input approach to performance feedback is sometimes called “360-degreeassessment” to connote that full circle.
There arena prohibitions in law or regulation against using a variety of rating sources, in addition to the
employee ’supervisor, for assessing performance. Researches shown assessment approaches with multiple
rating sources provide more accurate, reliable, and credible information. For this reason, the U.S. Office of
Personnel Management supports the use of multiple rating sources as an effective method of
assessing performance for formal appraisal and other evaluative and developmental purposes. The circle, or
perhaps more accurately the sphere, of feedback sources consists of supervisors, peers, subordinates, customers,
and one’s self. It is not necessary, or always appropriate, to include all of the feedback sources in a particular
appraisal program. The organizational culture and mission must be considered, and the purpose of feedback will
differ with each source. For example, subordinate assessments of a supervisor’s Performance can provide
valuable developmental guidance, peer feedback can be the heart of Excellence in teamwork, and customer
service feedback focuses on the quality of the team’s or agency’s results. The objectives of performance
appraisal and the particular aspects of performance that are to be assessed must be established before
determining which sources are appropriate.

29
SUPERIORS

Evaluations by superiors are the most traditional source of employee feedback. This form of evaluation includes
both the ratings of individuals by supervisors on elements in an employee’s performance plan and the
evaluation of programs and teams by senior managers.

SELF-ASSESSMENT
This form of performance information is actually quite common but usually used only as informal parts of the
supervisor-employee appraisal feedback session. Supervisors frequently open the discussion with: “How do you
feel you have performed?” In a somewhat more formal approach, supervisors ask employees to identify the key
accomplishments they feel best represent their performance in critical and non-critical performance elements. In
a 360-degree approach, if self-ratings are going to be included, structured forms and formal procedures are
recommended.

PEERS
With downsizing and reduced hierarchies in organizations, as well as the increasing use of teams and group
accountability, peers are often the most relevant evaluators of their colleagues’ performance. Peers have a
unique perspective on a co-worker’s job performance and employees are generally very receptive to the concept
of rating each other. Peer ratings can be used when the employee’s expertise is known or the performance and
results can be observed. There are both significant contributions and serious pitfalls that must be carefully
considered before including this type of feedback in a multifaceted appraisal program.

SUBORDINATES
An upward-appraisal process or feedback survey (sometimes referred to as a SAM, for “Subordinates
Appraising Managers”) is among the most significant and yet controversial features of a “full circle”
performance evaluation program. Both managers being appraised and their own superiors agree that
subordinates have unique, often essential, perspective. The subordinate ratings provide particularly valuable
data on performance elements concerning managerial and supervisory behaviors. However, there is usually
great reluctance, even fear, concerning implementation of this rating dimension. On balance, the contributions
can outweigh the concerns if the precautions noted below are addressed.

CUSTOMERS
30
Executive Order 12862, Setting Customer Service Standards, requires agencies to survey internal and external
customers publish customer service standards, admeasure agency performance against these standards. Internal
customers are defined as users of products or services supplied by another employee or group within the agency
or organization. External customers are outside the organization and include, but are not limited to, the general
public.

31
DEFINITION OF PERFORMANCE APPRAISAL
“Appraisal is a process that provides an analysis of a Person’s overall capabilities and potential, allowing
informed decisions to be made for particular purposes”. An Important part of the process is assessment,
whereby data on an individual’s past and current work behavior and Performance are collected and reviewed

Performance Appraisal is defined as the process of assessing the performance and progress of an employee or a
group of employees on a given job and his / their potential for future development. It consists of all formal
procedures used in working organizations and potential of employees. According to Flippo, “Performance
Appraisal is the systematic, periodic and an important rating of an employee’s excellence in matters pertaining
to his present job and his potential for a better job.”

CHARACTERISTICS

1. Performance Appraisal is a process.

2. It is the systematic examination of the strengths and weakness of an employee in terms of his job.

3. It is scientific and objective study. Formal procedures are used in the study.

4. It is an ongoing and continuous process wherein the evaluations are arranged periodically according to
a definite plan.

5. The main purpose of Performance Appraisal is to secure information necessary for making objective
and correct decision of an employee.

32
 PROCESS

The process of performance appraisal:

1. Establishing performance standards

2. Communicating the Standards

3. Measuring Performance

4. Comparing the actual with the standards

5. Discussing the appraisal

6. Taking Corrective Action

LIMITATIONS

1. Errors in Rating

2. Lack of reliability

3. Negative approach

4. Multiple objectives

5. Lack of knowledge

33
METHODS OF PERFORMANCE APPRAISAL

The foregoing list of major program pitfalls represents a formidable challenge, even considering the available
battery of appraisal techniques. But attempting to avoid these pitfalls by doing away with appraisals themselves
is like trying to solve the problems of life by committing suicide. The more logical task is to identify those
appraisal practices that are (a) most likely to achieve a particular objective and (b) least vulnerable to the
obstacles already discussed.
Before relating the specific techniques to the goals of performance appraisal stated at the outset of the article, I
shall briefly review each, taking them more or less in an order of increasing complexity.
The best-known techniques will be treated most briefly.
ESSAY APPRAISAL
In its simplest form, this technique asks the rater to write a paragraph or more covering an individual's
strengths, weaknesses, potential, and so on. In most selection situations, particularly those involving
professional, sales, or managerial positions, essay appraisals from former employers, teachers, or associates
carry significant weight.

GRAPHIC RATING SCALE

This technique may not yield the depth of an essay appraisal, but it is more consistent and reliable. Typically, a
graphic scale assesses a person on the quality and quantity of his work (is he outstanding, above average,
average, or unsatisfactory?) and on a variety of other factors that vary with the job but usually include personal
traits like reliability and cooperation. It may also include specific performance items like oral and written
communication.
FIELD REVIEW
The field review is one of several techniques for doing this. A member of the personnel or central
administrative staff meets with small groups of raters from each supervisory unit and goes over each employee's
rating with them to (a) identify areas of inter-rater disagreement, (b) help the group arrive at a consensus, and
(c) determine that each rater conceives the standards similarly.
FORCED-CHOICE RATING

Like the field review, this technique was developed to reduce bias and establish objective standards of
comparison between individuals, but it does not involve the intervention of a third party.

34
 MANAGEMENT BY OBJECTIVES

To avoid, or to deal with, the feeling that they are being judged by unfairly high standards, employees in some
organizations are being asked to set - or help set - their own performance goals. Within the past five or six
years, MBO has become something of a fad and is so familiar to most managers that I will not dwell on it here.

RANKING METHODS
For comparative purposes, particularly when it is necessary to compare people who work for different
supervisors, individual statements, ratings, or appraisal forms are not particularly useful. Instead, it is necessary
to recognize that comparisons involve an overall subjective judgment to which a host of additional facts and
impressions must somehow be added. There is no single form or way to do this.
The best approach appears to be a ranking technique involving pooled judgment.
The two most effective methods are alternation ranking and paired comparison ranking.
1. “Alternation ranking”:
Ranking of employees from best to worst on a trait or traits is another method for evaluating employees. Since it
is usually easier to distinguish between the worst and the best employees than to rank them, an alternation
ranking method is most popular. Here subordinates to be rated are listed and the names of those not well enough
to rank are crossed. Then on a form as shown below, the employee who is highest on the characteristic being
measured and the one who is the lowest are indicated. Then chose the next highest and the next lowest,
alternating between highest and lowest until all the employees to be rated have been ranked.
2. “Paired-comparison ranking”:

This technique is probably just as accurate as alternation ranking and might be more so. But with large numbers
of employees it becomes extremely time consuming and cumbersome.
Both ranking techniques, particularly when combined with multiple rankings (i.e., when two or more people are
asked to make independent rankings of the same work group and their lists are averaged), are among the best
available for generating valid order-of-merit rankings for salary administration purposes.

35
 ASSESSMENT CENTERS

So far, we have been talking about assessing past performance. What about the assessment of future
performance or potential? In any placement decision and even more so in promotion decisions, some prediction
of future performance is necessary. How can this kind of prediction be made most validly and most fairly?

360 DEGREE FEEDBACKS

Many firms have expanded the idea of upward feedback into what the call 360-degree feedback. The feedback
is generally used for training and development, rather than for pay increases.

Most 360 Degree Feedback system contains several common features. Appropriate parties – peers, supervisors,
subordinates and customers, for instance – complete survey, questionnaires on an individual. 360 degree
feedback is also known as the multi-rater feedback, whereby ratings are not given just by the next manager up
in the organizational hierarchy, but also by peers and subordinates. Appropriates customer ratings are also
included, along with the element of self appraisal. Once gathered in, the assessment from the various quarters
are compared with one another and the results communicated to the manager concerned.

Another technique that is useful for coaching purposes is, of course, MBO. Like the critical incident method, it
focuses on actual behavior and actual results, which can be discussed objectively and constructively, with little
or no need for a supervisor to "play God.

36
Advantages

Instead of assuming traits, the MBO method concentrates on actual outcomes. If the employee meets or exceeds
the set objectives, then he or she has demonstrated an acceptable level of job performance. Employees are
judged according to real outcomes, and not on their potential for success, or on someone's subjective opinion of
their abilities.

The guiding principle of the MBO approach is that direct results can be observed easily. The MBO method
recognizes the fact that it is difficult to neatly dissect all the complex and varied elements that go to make up
employee performance.

MBO advocates claim that the performance of employees cannot be broken up into so many constituent parts,
but to put all the parts together and the performance may be directly observed and measured.

Disadvantages

This approach can lead to unrealistic expectations about what can and cannot be reasonably accomplished.
Supervisors and subordinates must have very good "reality checking" skills to use MBO appraisal methods.
They will need these skills during the initial stage of objective setting, and for the purposes of self-auditing and
self-monitoring.

Variable objectives may cause employee confusion. It is also possible that fluid objectives may be distorted to
disguise or justify failures in performance.

37
 BENEFITS OF PERFORMANCE APPRAISALS

 Measures an employee’s performance.

 Helps in clarifying, defining, redefining priorities and objectives.
 Motivates the employee through achievement and feedback.
 Facilitates assessment and agreement of training needs.
 Helps in identification of personal strengths and weaknesses.
 Plays an important role in Personal career and succession planning.
 Clarifies team roles and facilitates team building.
 Plays major role in organizational training needs assessment and analysis.
 Improves understanding and relationship between the employee and the reporting manager and also
helps in resolving confusions and misunderstandings.
 Plays an important tool for communicating the organization’s philosophies, values, aims, strategies,
priorities, etc among its employees.
 Helps in counseling and feedback.

Rating Errors in Performance Appraisals

 Performance appraisals are subject to a wide variety of inaccuracies and biases referred to as 'rating
errors'. These errors can seriously affect assessment results. Some of the most common rating errors are:
-
 Leniency or severity: - Leniency or severity on the part of the rater makes the assessment subjective.
Subjective assessment defeats the very purpose of performance appraisal. Ratings are lenient for the
following reasons:
 a) The rater may feel that anyone under his or her jurisdiction who is rated unfavorably will reflect
poorly on his or her own worthiness.
 b) She/he may feel that a derogatory rating will be revealed to the rate to detriment the relations
between the rater and the rate.
 c) He /she may rate leniently in order to win promotions for the subordinates and therefore, indirectly
increase his/her hold over him.
38
 Central tendency: - This occurs when employees are incorrectly rated near the average or middle of the
scale. The attitude of the rater is to play safe. This safe playing attitude stems from certain doubts and
anxieties, which the raters have been assessing the rates.
 Halo error: - A halo error takes place when one aspect of an individual's performance influences the
evaluation of the entire performance of the individual. The halo error occurs when an employee who
works late constantly might be rated high on productivity and quality of output as well as on motivation.
Similarly, an attractive or popular personality might be given a high overall rating. Rating employees
separately on each of the performance measures and encouraging raters to guard against the halo effect
are the two ways to reduce the halo effect.
 Rater effect: -This includes favoritism, stereotyping, and hostility. Extensively high or low score are
given only to certain individuals or groups based on the rater's attitude towards them and not on actual
outcomes or behaviors; sex, age, race and friendship biases are examples of this type of error.
 Primacy and Regency effects: - The rater's rating is heavily influenced either by behavior exhibited by
the rate during his early stage of the review period (primacy) or by the outcomes, or behavior exhibited
by the rate near the end of the review period (regency). For example, if a salesperson captures an
important contract/sale just before the completion of the appraisal, the timing of the incident may inflate
his or her standing, even though the overall performance of the sales person may not have been
encouraging. One way of guarding against such an error is to ask the rater to consider the composite
performance of the rate and not to be influenced by one incident or an achievement.
 Performance dimension order: - Two or more dimensions on a performance instrument follow each
other and both describe or rotate to a similar quality. The rater rates the first dimensions accurately and
then rates the second dimension to the first because of the proximity. If the dimensions had been
arranged in a significantly different order, the ratings might have been different.
 Spillover effect: - This refers lo allowing past performance appraisal rating lo unjustifiably influence
current ratings. Past ratings, good or bad, result in similar rating for current period although the
demonstrated behavior does not deserve the rating, good or bad.

39
 ROLES IN THE PERFORMANCE APPRAISAL PROCESS

a) Reporting Manager

-Provide feedback to the reviewer / HOD on the employees’ behavioral traits indicated in the PMS Policy
Manual
-Ensures that employee is aware of the normalization / performance appraisal process
- Address employee concerns / queries on performance rating, in consultation with the reviewer
b) Reviewer (Reporting Manager’s reporting Manager)

-Discuss with the reporting managers on the behavioral traits of all the employees for whom he / she is the
reviewer
-Where required, independently assess employees for the said behavioral traits; such assessments might
require collecting data directly from other relevant employees
c) HOD (In some cases, a reviewer may not be a HOD)

-Presents the proposed Performance Rating for every employee of his / her function to the
Normalization committee.
-HOD also plays the role of a normalization committee member
-Owns the performance rating of every employee in the department

d) HR Head

-Secretary to the normalization committee

-Assists HOD’s / Reporting Managers in communicating the performance rating of all the employees

e) Normalization Committee

-Decides on the final bell curve for each function in the respective Business Unit / Circle
-Reviews the performance ratings proposed by the HOD’s, specifically on the upward / downward shift in
ratings, to ensure an unbiased relative ranking of employees on overall performance, and thus finalize the
performance rating of each employee

40
 KEY CONCEPTS IN PMS

In order to understand the Performance Management System at AXIS BANK, some concepts need to be
explained which play a very important role in using the PMS successfully. They are:

- KRA’S (KEY RESULT AREAS): The performance of an employee is largely dependent on the KRA
score achieved by the employee during that particular year. Thus, it is necessary to answer a few basic
questions i.e.

-What are the guidelines for setting the KRA’s for an employee?

-How does an employee write down his KRA’s for a particular financial year?

-KRA’s: The Four Perspectives.

-How is the KRA score calculated for an employee on the basis of the targets sets and targets
achieved?

-BEHAVIORAL TRAITS: Some of the qualitative aspects of an employees’ performance combined with
the general behavioral traits displayed by the employee during a year constitutes his behavior traits. An
employee is assigned the rating on the basis of the intensity of the behavior displayed by him. They play
a very important role in the deciding the final performance rating for an employee as is even capable of
shifting the rating one level upwards/downwards.

-AXIS BANK 2012 LEADERSHIP COMPETENCY FRAMEWORK: This competency framework is a

simple and structured way to describe the elements of behaviors required to perform a role effectively.
This framework also tries to assess the performance of an employee objectively.

-THE PERFORMANCE RATING PROCESS: The rating process tries to explain the four different types
of rating that an employee can achieve i.e. EC, SC, C and PC. It also explains the criteria, which is
considered for awarding any of these ratings to the employee.

-PROMOTION AND RATING DISRTRIBUTION GUIDELINES: The promotion and normal

distribution guidelines provide the framework within which the performance appraisal process has to
work. It is very important that the HR department pays due attention to these guidelines while preparing
the bell curves for various functions and the consolidated bell curve for all the functions. These
guidelines also help in deciding upon the promotion cases in a year.

41
 PERFORMANCE RATING PROCESS

EXCEPTIONAL CONTRIBUTOR (EC) SIGNIFICANT CONTRIBUTOR (SC)

· Performs consistently and · Performs above expectations in all

substantially above expectations in all areas
areas · Achieves final score between 100-
· Achieves a final score greater than or 114%
equal to 115%
 Versatile in his/ her area of
· Consistently delivers on stretch
targets operation
 Develops creative solutions and
· Is proactive require little / minimal supervision
· Spots and anticipates problems,  Sets examples for others
implements solutions  Take ownership of own
development
· Sees and exploits opportunities  Coaches others
· Delivers ahead of time  Demonstrates business initiative
 Is self motivated
· Sees the wider picture-impacts across  Supportive team player
business  Leads own team very effectively
· Focuses on what’s good for the  Demonstrate functional initiative
business
·
· Seen as role model by others
· Recognized as exceptional by other
functions as well
· Motivates others to solve problems
· Develops others
· Provides open and honest feedback
· Able to establish and lead cross-
functional teams

42
 TEN TIPS FOR CREATING A EMPLOYEE APPRAISAL SYSTEM

Face the facts: Creating a new employee performance appraisal system is a difficult undertaking. It’s even more
difficult if the organization doesn’t have a logical, well-tested, step-by-step process to follow in developing
their new procedure.

One
Get top management actively involved. Without top management’s commitment and visible support, no
program can succeed. Top management must establish strategic plans, identify values and core competencies,
appoint an appropriate Implementation Team, demonstrate the importance of performance management by
being active participants in the process, and use appraisal results in management decisions.

Two
Establish the criteria for an ideal system. Consider the needs of the four stakeholder groups of any appraisal
system: Appraisers who must evaluate performance; Appraises whose performance is being assessed; Human
Resources professionals who must administer the system; and the Senior Management group that must lead the
organization into the future. Identifying their expectations at the start helps assure their support once the system
is finally designed. Ask each group: "What will it take for you to consider this system a smashing success?"
Don’t settle for less.

Three
Appoint an Implementation Team. This task force should be a diagonal slice of both appraisers and appraises
from different levels and functions in the organization. The implementation team is responsible for
accomplishing the two major requirements for a successful system. First, developing appropriate appraisal
forms, policies and procedures. Second (and the task too often overlooked) assuring a successful deployment.
Four
Design the form first. The appraisal form is a lightning rod that will attract everyone’s attention. Design the
form early and get lots of feedback on it. Don’t believe anybody who tells you that the form isn’t important.
They’re wrong. If you’re designing a new form internally, make sure it assesses both behaviors and results.
Five
Build your mission, vision, values, and core competencies into the form. Performance appraisal is a means, not
an end. The real objective of any performance management systems to make sure that the company’s strategic
43
plan and vision and values are communicated and achieved. Core competencies expected of all organization
members should be included, described and assessed. If your mission statement isn’t clearly visible in the
performance appraisal system, cynicism will likely result. Values become real only when people are held
accountable for living up to them.

Six
Assure on-going communication. Circulate drafts and invite users to make recommendations. Keep the
development process visible through announcements and regular updates. Use surveys, float trial balloons,
request suggestions and remember the cardinal principle — "People support what they help create."
Seven
Train all appraisers. Performance appraisal requires a multitude of skills — behavioral observation and
discrimination, goal-setting, developing people, confronting unacceptable performance, persuading, problem-
solving, planning, etc. Unless appraiser training is universal and comprehensive, the program won’t produce
much. And don’t ignore the most important requirement of all: the need for courage.
Eight

Orient all appraises. The program’s purposes and procedures must be explained in advance — and explained
enthusiastically — to everyone who will be affected by it. Specific skills training should be provided if the new
performance management procedure requires self-appraisal, multi-rater feed-back, upward appraisal, or
individual development planning.

Nine
Use the results. If the results of the performance appraisal are not visibly used in making promotion, salary,
development, transfer, training and termination decisions, people will realize that it’s merely an exercise.

Ten
Monitor and revise the program. Audit the quality of appraisals, the extent to which the system is being used,
and the extent to which the original objectives have been met. (One of the great advantages of an online
performance appraisal system is that all of these data are available instantaneously.)

Provide feedback to management, appraisers and appraises. Train new appraisers as they are appointed to
supervisory positions. Actively seek and incorporate suggestions for improvement.
44
A company’s performance appraisal process is critically important. It answers the two questions that every
member of an organization wants to know: 1) what do you expect of me? And 2) how am I doing at meeting
your expectations? Using these ten tips will help you develop or select a system to will give accurate and
complete answers to everyone.

45
OBJECTIVES OF THE STUDY

To carry out the study of AXIS BANK, we framed the following objectives:

1. Identification of the STAFF PERFORMANCE OF AXIS BANK.

2. Identification of the technique of performance appraisal followed in AXIS BANK.

3. Employee attitude towards the present appraisal system.

4. Review of the current appraisal system in order to

5. Enhance productivity

6. Attain global standards

7. To provide suggestions & recommendations from the study conducted

46
 RESEARCH METHODOLOGY

Research is an academic activity and as such the term should be used in a technical sense. According to Clifford
Woody research comprises defining and redefining problems, formulating hypothesis or suggested solutions;
collecting, organizing and evaluating data; making deductions and reaching conclusions; and at last carefully
testing the conclusions to determine whether they fit the formulating hypothesis. D. Steiner and M. Stephenson
in the Encyclopedia of Social Sciences define research as “the manipulation of things, concepts or symbols for
the purpose of generalizing to extend, correct or verify knowledge, whether that knowledge aids in construction
of theory or in the practice of an art.”
Research is, thus, an original contribution to the existing stock of knowledge making for its advancement. It is
the per suit of truth with the help of study, observation, comparison and experiment. In short, the search for
knowledge through objective and systematic method of finding solution to a problem is research. The
systematic approach concerning generalization and the formulation of a theory is also research. As such the
term ‘research’ refers to the systematic method consisting of enunciating the problem, formulating a hypothesis,
collecting the facts or data, analyzing the facts and reaching certain conclusions either in the form of
solutions(s) towards the concerned problem or in certain generalizations for some theoretical formulation.

RESEARCH OBJECTIVE
The purpose of the study is to examine effects of materials management on the productivity of an organization.
However, the objectives aimed are as follows:
i. To ascertain the relationship between the effective management of materials and the level of productivity in
an organization.
ii. To examine if the positive effect of these materials management has helped improving the company
productivity.

RESEARCH ANALYSIS
Primary data
Primary data analysis is the original analysis of data collected for a research study. Analyzing primary data is
the process of making sense of the collected data to answer research questions or support or reject research
hypotheses that a study is originally designed to assess. The choice of data analysis methods depends on the
type of data collected, quantitative or qualitative. Quantitative data are collected when researchers rely on
measurement, or assigning numerical values to units, to indicate the relative levels or degrees of the variables
under investigation, whereas qualitative data are textual data that are produced in the form of participants’
transcribed or researchers’ descriptive accounts. This entry provides an overview of basic quantitative and
qualitative data analysis techniques. In the field of workplace health research, for example, direct observations
may involve a researcher watching people at work. The researcher could count and code the number of times
she sees practices or behaviours relevant to her interest; e.g. instances of improper lifting posture or the
number of hostile or disrespectful interactions workers engage in with clients and customers over a period of
time.

47
Secondary Data
There are several types of secondary data. They can include information from the national population census
and other government information collected by Statistics Canada. One type of secondary data that’s used
increasingly is administrative data. This term refers to data that is collected routinely as part of the day-to-day
operations of an organization, institution or agency. There is any number of examples: motor vehicle
registrations, hospital intake and discharge records, workers’ compensation claims records, and more.

AREAS OF PRACTICISING PERFORMANCE

APPRASAL IN AXIS BANK

There are two seasons of performance appraisal in Axis bank which are-

1) Mid Year Appraisal

2) Annual Appraisal

There is some point in appraisal area which is 100%.This 100% it’s obtain through the following areas of
performance appraisal.

Two areas of performance appraisal.

Services – 80% e.g. customer care, internet banking

Sales – 20% e.g. saving Account, general life insurance

48
 ANALYSIS AND INTERPRETATION

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

Options Response in (%)

Yes 97

No 3

3%

Yes
No

97%

Interpretation:

In the above graph it is observed that 97% of the respondents are in favour of yes that awareness of performance
appraisal is being practiced in their company whereas 3% respondents are in favour of no.

49
 Number of Employees being appraised during their service period

Options Response in (%)

4 employees 40

5 employees 30

6 employees 30

30%
40% 4 employees
5 employees
6 employees

30%

40 employees being appraised during the service period

Interpretation:
This graph shows that When 4 employees are employed ,their response is 40% where as 5 employees are
employed , their response is 30% and where more than 6 employees are employed ,their response is 30%.

50
 Employees Opinion as to the Purpose of Performance Appraisal

Options Response in (%)

Yes 90

No 10

10%

Yes
No

90%

Interpretation:

In the above graph it is observed that 90% of respondents said yes that they understand the purpose of
performance appraisal whereas 10% they answered no.

51
 Employees’ opinion as to the present appraisal system

Options Responses (in %)

Fully Satisfied 34

Satisfied 44

Can’t Say 12

Dissatisfied 10

44
45
40
34
35
30
25
20
15 12
10
10
5
0
Fully Satisfied Can’t Say Dissatisfied
Satisfied

Interpretation

In the above graph it is concluded that 34% of employees are fully satisfied, 44% are satisfied, and 12% can’t
give their opinion whereas 10% are being dissatisfied with their present performance appraisal.

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 Employee perception as to the frequency of appraisal

Options Response (in %)

Once During The 10

Service Period

Continuous 84

Never 0

Can’t Say 6

90 84
80
70
60
50
40
30
20 10
10 6
0
0
Once During Continuous Never Can’t Say
The Service
Period

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If continuous appraisal – what should be the gap between two appraisal period

Options Response (in %)

Quarterly 20

Half Yearly 50

Yearly 30

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

Interpretation:

54
 How Performance Appraisal affects the productivity of the employees

Options Motivated Indifferent Demotivated

+ Feedback 38 12 0

- Feedback 12 10 28

Neutral 24 21 5

30 28

25 24
21
20

15
12 - Feedback
10
10 Neutral
5
5

0
38 12 0

Motivated Indifferent Demotivated

Interpretation:

From the graph it has been observed that 38 % of employees has been motivated whereas 12% has been
indifferent and 0% has been demotivated.

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Who should do the appraisal?

Options Response ( in % )

Superior 4

Peer 0

Subordinate 0

Self Appraisal 8

Consultant 4

All of the above 68

Superior + Peer 16

70 68

60

50

40

30

20 16

10 8
4 4
0 0
0
Superior Peer Subordinate Self Consultant All of the Superior +
Appraisal above Peer

Interpretation:

From the above graph it is observed that 4% are in favor of superior ,0% for peer and subordinate, 8% self
appraisal,4% in favor of consultant,68% agree on opinion all of above whereas 16% agree on both superior
and peer.

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Does appraisal help in polishing skills and performance area

Options Response ( in % )

Yes 74

No 10

Somewhat 16

16

10 Yes
No
Somewhat
74

Interpretation

If the process of appraisal does not lead to the improvement of the skills and proficiency of the employees, the
very purpose of appraisal becomes illogical. In the survey conducted it was observed that nearly 74 % of the
respondents agree that Performance Appraisal does leads to polishing the skills of the employees. Nearly 10 %
of the respondents view that it does not serve this purpose and around 16 % were not able to respond as to
whether it serve any such purposes or not.

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 Does personal bias creeps in while appraising an employee

Options Response ( in % )

Yes 82

No 18

18%

Yes
No

82%

Interpretation

In the process of appraising, both the parties are human being, that is, the one who is being apprised and the
other who is appraising. Thus, there bound to be subjectivity involved, be it an objective way of appraising.

Thus, when asked from among the sample size of 25 respondents, as huge as 82 % respond ended that personal
bias do creep in while appraising an individual. Hence, it is inevitable to say that personal likings do not come
in the process of appraisal. It is the extent to which the appraiser manages it so that it does not become very
partial and bias.

If given a chance, would employees like to review the current appraisal technique?

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 Options Response ( in % )

Yes 72

No 4

Can’t Say 24

24%
Yes
No
4% Can’t Say
72%

Interpretation:

In the survey conducted it is observed that 72% of employees would like to review the current appraisal
technique, whereas 4% doesn’t want, whereas 24% can’t give their opinion.

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Appropriate method of conducting the performance appraisal

Options Response ( in % )

Ranking Method 12

Paired Comparison 0

Critical Incidents 20

MBO 58

Assessment Centre 4

360 degree 6

60 58

50

40

30
20
20
12
10 6
4
0
0
Ranking Paired Critical MBO Assessment 360 degree
Method Comparison Incidents Centre

Interpretation:
From the above graph it is concluded that 58% of respondents considered MBO as an appropriate method for
conducting performance appraisal, 0% for paired comparison, 20% for critical incident, 4% assessment centre,
6% 360 degree and 12% for ranking method.
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Does performance appraisal leads to identification of hidden potential

Options Response ( in % )

Yes 96

No 4

4%

Yes
No

96%

Interpretation:

From the survey conducted it is being observed that 96 % of respondents favors yes that it leads to
identification of hidden potential of the employees whereas 4% favors no.

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 INTERPRETATION

In the survey of performance Appraisal practices in AXIS BANK of 25 employees, it was found that the
employees of the bank are satisfied with the performance appraisal followed in the bank.
The method and process of performance appraisal in the banks are satisfactory to the employees.
The performance appraisal also increase and polishing the skills of employees.
The performance appraisal is satisfactory to all the employees in the AXIS BANK

LIMITATIONS OF THE STUDY

1. The information provided by the workers is not definitely true

2. The workers hesitate disclosing the true fact in order to secure their job.
3. There is no measure to check out whether the information provided by the employee was correct or not.
4. Employees are busy so that they are not able to give their best response at a time
5. Only limited time was given which was not enough to bring out the real outcomes and adequate to bring
clear nature of behavior of people.

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 CONCLUSION

After having analyzed the data, it was observed that practically there was good appraisal in the organization.
According to number of employees being satisfied with the performance appraisal and most of them there aware
about performance appraisal practice in the company.

From survey we came to know that the proper method of performance appraisal and awareness of performance
appraisal practice in company. The performance appraisal is practiced and followed in proper way and taken as
serious by the company to increase the employees performance, ability and skills.

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 SUGGESTIONS

1. The very concept of performance appraisal should be marketed throughout the organization. Unless this is
done, people would not accept it, be it how important to the organization.
2. To market such a concept, it should not start at bottom; instead it should be started by the initiative of the
top management. This would help in percolating down the concept to the advantage of all, which includes
the top management as well as those below them. This means that the top management has to take a
welcoming and positive approach towards the change that is intended to be brought.
3. Further, at the time of confirmation also, the appraisal form should not lead to duplication of any
information. Instead, detailed appraisal of the employee’s work must be done – which must incorporates
both the work related as well as the other personal attributes that are important for work performance.
4. It should be noted that the appraisal form for each job position should be different as each job has different
knowledge and skill requirements. There should not be a common appraisal form for every job position in
the organization.
5. Self-Appraisal-Self-appraisal could be introduced for employees at all levels. At presents the system of
self-appraisal is applicable only to supervisory personnel and junior officer-to-officer level.
6. Proper communication of Appraisal report (Feedback) - The appraisal report should be properly
communicated to the concerned employee. Good performance should be appreciated so that the employee
is sufficiently motivated and happy. Also shortfalls and weaknesses must be made known to the
employees so that they can work on their weaknesses and perform better the next time around

64
 BIBLIOGRAPHY

Books – Implementing Performance Management

Managing and Measuring Employee Performance

Websites surfed- Axis bank official site

Wikipedia
Research gate, emerald insight

Journals –
Aguinis, H. (2009). Performance management (2nd ed.). Upper Saddle River, NJ: Pearson Prentice Hall.
Aguinis, H., Joo, H., & Gottfredson, R. K. (2011). Why we hate performance management–—and why we
should love it. Business Horizons, 54(6), 503—507.
Ainspan, N., & Dell, D. (2000). Employee communication during the mergers. New York, NY: Conference
Board.
Appelbaum, Madelyn. & Armstrong Sharon. (2003). Stress free Performance Appraisal. USA: Career Press
Publication, p. 9

65
 APPENDIX
Performance Appraisal Questionnaire

Name of the Employee ………………………..

Questionnaire

1. Awareness of performance Appraisal being practiced in your company?

a) Yes b) No

2. Is there any number of employees being appraised in period of service, How many are they?

a) 4 employees b) 5 employees c) 6 employees

3. Do you understand what the purpose of performance appraisal is?

a) Yes b) No

4. What according to you should be the appropriate method for conducting performance appraisal?
a) Rating the employee on number of traits along with the range of performance for each by the
supervisor. (Ranking method)
b) For every trait, each subordinate is paired with and compared to every other Subordinate. (Pair
comparison)
c) Reviewing employees on the basis of identified specific examples of good or poor performance.
(Critical incident)
d) Setting specific measurable goals with each employee and periodically reviewing the progress
made. (MBO)
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 e) Reviewing performance through case studies, presentations, role playing, etc. For future
performance. (Assessment center)
f) Receiving feedback from people whose views are considered helpful and relevant including the
appraise himself. (360)

5. What is your opinion to present Performance Appraisal?

a) Fully Satisfied b) Satisfied

c) Can’t Say d) Dissatisfied

6. Should the appraisal process be:

a) Once during the service period b) Continuous

c) Never d) Can’t Say

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

Any specific reason………………………………

8. Does Performance Appraisal helps in improving the productivity of the employees?

Motivated Indifferent Demotivated

+ Feedback

- Feedback

Neutral

9. Who in your opinion should appraise the employee?

a) Superior b) Peer

c) Subordinates d) Self Appraisal

e) Consultant f) All of the above

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10. Does the appraisal system helps in polishing the skills or performance area?

a) Yes b) No c) Somewhat

11. Do you think personal bias creeps in while appraising an individual?

a) Yes b) No

12. If given a chance or an opportunity would you like that the current appraisal procedure should be
reviewed?

a) Yes b) No c) Can’t Say

13. Does Performance Appraisal leads to identification of hidden potential of the employees?

a) Yes b) No

14. Suggestions and views ….…………………………………...............................

…………………………………………………………
…………………………………………………………
…………………………………………………………
THANK YOU

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