Performance Appraisal Process at SBI

In State Bank of India, performance appraisal is done on yearly basis. It is carried out
to judge the performance of employees in correlation with the fulfillment of goals,
mission and vision of the bank. The immediate supervisor starts the process of
performance appraisal. His observationsregarding the employee are put in written and
forwarded to the Branch Manager. In many smallbranches, the branch manager may
initiate the performance appraisal process. Every year it is thebranch manager¶s duty
to send a letter regarding performance of the employees to the higher authorities like
Deputy General Manager and general Manager. The higher authorities then take
appropriate decision regarding the service of the employees and the amount of his
contribution made towards the development of the business.Every employee is given
a fixed monthly salary along with Dearness Allowance, House RentAllowance. City
Compensatory Allowance and increments. Generally an employee is given
1increment annually. But if he is highly educated person in terms of his being a
graduate or hascompleted a professional course, then he is given 2 increments. The
increment given may varyfrom bank to bank as decided by the higher authority. The
top management may also have theright to stop the increment for an employee in case
he does not perform satisfactorily.During the process of Performance Appraisal, the
employee is judged on the following aspectsand given points out of a total of 100
points.


B
eh
avior:
The behavior of employee towards customers, his subordinates, his superiorsand his
peer group members is noted. The behavior of employee towards minoritycustomers
is also kept in mind.

Assistanc
e
and Impl
e
m
e
ntation of Guid
e
lin
e
s
: The helping nature of employee isstressed upon in this criterion. The help that he
provides to his subordinates and peer group is noted. Also the guidelines given to the
employee by his senior members is seen.The employee is required to implement the
guidelines and improve his service andperformance.


C
ritical
Pe
rformanc
e
s:
The ability of an employee to perform outstandingly duringdifficult and significant
situation is noted.


W
ork Analysis:
The ability of an employee to achieve his target, the business brought byhim towards
the organization is an important criterion that is observed duringperformance
appraisal process. The additional efforts made by employee by moving outof his seat
to develop the business are also noted.


R
e
sponsibility and
R
isk Taking:
The employee is marked for his performance and hisresponse towards the
responsibility of special task assigned to him. Also the risk takingability of an
employee is focused to take accurate decision in the future.


S
e
lf Improv
e
m
e
nt and skills:
the skills of an employee are given consideration inperformance appraisal process.
Also his interest for self development in the field of education and other courses are
noted. Employee is always motivated to improve hisskills and qualification for his
personal development and also for the development of theorganization as a whole.
The employee who finds it difficult to perform is given specialtraining in the area
where he lacks required skills.


Lastly the performance appraisal process also considers the sincerity, integrity,
discipline,attendance and punctuality of the employee and his commitment towards
thedevelopment of the business. Also customer feedback is also taken into
consideration tojudge the performance of the employee. The employees who do not
perform well aregiven warning for improvement and provided required training.
There is no demotion inSBI but the employee may not be given any additional
benefits if he does not meet theexpectations of the top management by his
performance.
R
ew
ards and Appr
e
ciation
The employees with outstanding performance are recognized in the meeting held by
the topmanagement. Rewards like monetary benefits, promotional benefits, best
employee certificate,bronze, silver, or gold medal, and many more additional benefits
are given to motivate theemployees and recognize his efforts.To conclude, the current
Performance Appraisal process in SBI uses a combination of traditionaland modern
methods which includes straight ranking method, essay appraisal method,confidential
reporting, critical incidents method, assessment centers, behaviorally anchoredrating
scales, human resources accounting method and 360 degree performance
appraisalmethod.This performance appraisal is used as a reference by the top
management to decide thepromotional worth of an employee. Generally for
promotion purpose, the performance appraisalletter for the past four years is referred
from which the 3 best appraisals are chosen. Around 10%of weight age is given to
performance appraisal of an employee. The employees are rankedbased upon the
points they acquire in performance appraisal process. A minimum of 60% marks

are required for promotion purpose in the performance appraisal process. An

employee whoscores 90% or more is listed on merit basis. For those who score
between 60%-90% are givensenior positions. The employees may be rated on a scale
of excellent, very good, good, poor depending upon the points they receive in the
performance appraisal process. Also the BranchManager is given points for the
excellent work done by the employees and the branch under hisguidance