CHAPTER -I INTRODUCTION 1.

1 Background of the Study Performance appraisal is a management tool which is helpful in motivating and effectively utilizing human resources. Assessment of human potential is difficult, no matter how well designed and appropriates the performance planning and appraisal system is. Performance appraisal is an important process for influencing both the extrinsic and intrinsic motivations of employees, that is, increasing employees' perceptions and understanding of job tasks and subsequently their job satisfaction. Performance appraisal also serves to focus employee efforts and attention on critical tasks through the use of performance feedback, which therefore assists employees in reducing job errors and minimizing the risks of learning through trial and error. Feedback is an important component of performance appraisal. While positive feedback is easily accepted, negative feedback often meets with resistance unless it is objective, based on a credible source and given in a skillful manner. In addition, where employees desire jobs that allow them to make good use of their skills and talents, performance appraisal increases job task "fit through the identification of training and development needs that are consistent with individual and organizational goals. There are several enduring issues relative to performance appraisal system implementation in both private and public commercial bank of Nepal. They include the controversy over combining developmental purposes, the absence of rater training, the lack of organizational commitment and top-level support, rating errors, employee dissatisfaction with the amount of performance feedback received, and the absence of specific performance documentation.

1.2 Objectives of the Research The general objective of this study is to understand the current performance appraisal systems and practices in both private and public sectors banks. The specific objectives of this study are: Determining organizational training and developments needs. Making and validating administrative decisions such as pay, promotion, placement and terminations. Identifying systematic factors that are barriers, facilitators of effective performance of employees.

Providing information about human resources and their developments. Measuring the efficiency with which HR or employees are being used and improved.

1.3 Research Statement Problem This research is based to find out the current situation of performance appraisal systems and practices in both private and public sectors banks. There are some other problems that need to be explored to establish the effective, systematic and efficient performance appraisal systems and practices in both private and public sectors banks.

What do you feel about your contributions to the organizations? What can I do as your supervisors to support you? What are the influencing factors that differentiate performance in your organization? What can be done for establishing effective, efficient and systematic performance appraisal systems in your organizations? What area(s) of your work practices would you like to develop over the next appraisal period?

1.4 Hypotheses of the Research For the identification of major problems related to performance appraisal systems and practices in private and public sectors banks, factors and issues will be identified from research through the questionnaire with the employees of the organization as target by this research work. Basically there are two hypotheses will be examined, they are as following: H1: There is no significant difference between public and private sectors banks about performance appraisal systems and practices H2: The level of effectiveness of performance appraisal systems of public and private sectors banks significantly affects the general efficiency of the organization.

CHAPTER-II REVIEW OF LITERATURE Review of literature means taking knowledge from different sources. This chapter will the review of various already published materials and information from the research work in both private and public sectors banks as well as from other sources which are relevant with this research work. This chapter will be fundamentally divided into two parts i.e. Conceptual Framework and Review of Related Studies and Articles. This chapter will deal with some definitions of various terms related with performance appraisal systems and practices, characteristics of performance appraisal systems, components of performance appraisal systems, factors considered for evaluating the performance of employees, performance appraisal practices in developed and developing countries, private bank participation, commitment and growing needs of performance appraisal systems and overall performance appraisal systems in Nepal along with the current situation of overall performance appraisal systems and practices in Nepal. Similarly, related articles and studies on performance appraisal systems in Nepal and private bank participation along with international articles and studies will be studied and considered.

CHAPTER - III RESEARCH DESIGN AND METHODOLOGY 3.1 General This chapter will describe the research design and method used in this research. It will describe the steps that will have been taken to address the guiding hypotheses and research questions. The research will be conducted by a series of surveys, interviews, and observation. It includes questionnaires, structured interview with public and private banks employees, and discussions with both HR head of both private and public banks. 3.2 Sample of the Study The study will include as many as (at least 100 respondents) respondents from public and private banks. Structured questionnaires will be distributed with researchers own present; therefore, all the responses will be duly collected. 3.3 Nature and Source of the Data Information is the lifeblood of any research. Both primary and secondary information will be collected. Primary information will be based on questionnaire, surveys, and observations. On the other hand, Secondary data will be gathered from the published bulletin and unpublished records of targeted both private and public banks. 3.4 Data Collection Procedure Based on the review of the literature, a comprehensive structured questionnaire will be developed, after developing questionnaire; researcher will directly go the respondents and collect the necessary information or data by filling questionnaire. 3.5 Statistical Analysis

After the collection of information from the respondents and other sources, data will be tabulated. Similarly, percentage and frequency distribution table will be used to describe the respondents profile. Statistical tools such as mean, standard deviation, and other required techniques will be used.

CHAPTER - IV RESULTS AND DISCUSSION Data analysis is an important stage of the research process. It involves organizing, tabulating, performing statistical analysis and drawing inferences. This chapter will cover some presentation of results of the research findings. Such as, frequency distribution table, pie-charts, histogram table etc. Likewise, findings of the research will be presented through descriptive analysis method. E.g. mean median, standard deviation, standard error etc. After getting the required information on the research, the two hypotheses will be analyzed using chi-square methods of analysis. The interpretation step is also a part of it. So the process of interpretation involves tabulating the results of analysis, making inferences relevant to the research relations studied, and drawing conclusions about the relations.

CHAPTER -V SUMMARY AND CONCLUSION 4.1 Summary It this part, all the function researcher performed for the objectives will be briefly summarized. The relevance of the hypotheses to the theory and its contribution to the solution of the problem investigated will be presented. 4.2 Conclusions Conclusion will be made by following results and discussion chapter. Conclusions will be drawn on the basis of the interpretation of data. And whether the research is successful to solve the problem of the research will be examined along with accomplishment of the research objectives. 4.3 Recommendations Recommendations will be given to the relevant areas on the basis of findings and interpretation of previous chapter. The justification will be provided if necessary. If there is a need of further investigation, then researcher will recommend for further investigation.