A

SUMMER TRAINING REPORT

ON

PERFORMANCE APPRAISAL AND JOB

SATISFACTION OF BANKING EMPLOYEES: WITH
SPECIAL REFERENCE TO HDFC BANK

SUBMITTED IN THE PARTIAL FULFILLMENT FOR THE DEGREE OF

MASTER OF BUSINESS ADMINISTRATION
(Session 2018-2020)

Submitted to: Submitted by:

Mrs. Shah Noshi Ms. Ankita Srivastava
Head of Department Roll No. 1816370003
Department Of Management MBA (HR) IIIrd Sem.

Dr. MC Saxena College of Engineering,Technology &

Management
 Barawan Kalan,
Lucknow (Affiliated
with AKTU)
.

31/31, Mahatma Gandhi Marg, Hazratganj, Lucknow, Uttar Pradesh 226001

TO WHOM IT MAY CONCERN

This to certify that Ms. Ankita Srivastava student of (MBA), Dr. MC Saxena
College of Engineering,Technology & Management, Barawan Kalan,
Lucknow has successfully completed her summer Training at HDFC BANK.

She completed her training from the Period 30 June 2019 To 16 August 2019 in our
organization on project titled “PERFORMANCE APPRAISAL AND JOB
SATISFACTION OF BANK EMPLOYEES: WITH SPECIAL REFERENCE TO
HDFC BANK”
Her Performance during the project was excellent and we wish luck for her bright
future.

(Branch Manager)
 PREFACE

Performance is art in which the actions of an individual or a group at a

particular place and in a particular time constitute the work. It can
happen anywhere, at any time, or for any length of time. Performance art
can be any situation that involves four basic elements: time, space, the
performer's body and a relationship between performer and audience. It
is opposed to painting or sculpture, for example, where an object
constitutes the work. Of course the lines are often blurred. For instance,
the work of Survival Research Laboratories is considered by most to be
"performance art", yet the performers are actually machines.

Although performance art could be said to include relatively mainstream

activities such as theater, dance, music, and circus-related things like
fire breathing, juggling, and gymnastics, these are normally instead
known as the performing arts. Performance art is a term usually
reserved to refer to a kind of usually avant-garde or conceptual art which
grew out of the visual arts.

Performance art, as the term is usually understood, began to be

identified in the 1960s with the work of artists such as Yves Klein, Vito
Acconci, Hermann Nitsch, Chris Burden, Carolee Schneemann, Yoko
Ono, Joseph Beuys, Wolf Vostell and Allan Kaprow, who coined the
term happenings. But performance art was certainly anticipated, if not
explicitly formulated, by Japan's Gutai group of the 1950s, especially in
such works as Atsuko Tanaka's "Electric Dress" (1956) [1]. In 1970 the
British-based pair, Gilbert and George, created the first of their "living
sculpture" performances when they painted themselves gold and sang
"Underneath The Arches" for extended periods. Alongside pioneering
work in video art by Jud Yalkut and others, some performance artists
began combining video with other media to create experimental works
like those of Chicago's Sandra Binion, who elevated mundane activities
like ironing clothes, scrubbing steps, dining and doing laundry into living
art. Binion has performed all over the world and is highly regarded as an
artist in Europe.
 ACKNOWLEDGEMENT

I readily acknowledge my indebtness to my parents whose

support, dedication and honest efforts have given me an immense help
in doing this project. It gives me immense pleasure to express my deep
sense of gratitude and appreciation to my external guide Mr. Pankaj
Mishra whose constant encouragement and valuable suggestion gave
back bone support in completing this project. I take the opportunity to
thanks to for motivating, encouraging, guiding and supporting at every
step and sparing his valuable time for me. Last but not the least I record
my sincere thanks to all beloved and respectable persons who helped
me and could find any separate mention.
Above all I praise “GOD” the most beneficial, the most merciful that I
have been able to complete my training project successfully.

Ms. Ankita Srivastava

Roll No. 1816370003
MBA (HR) IIIrd Sem.
 TABLE OF CONTENT

Executive Summary
Introduction
Performance Appraisal
Company profile
Research methodology
Research objective
Research instruments
Data Analysis and findings
Limitations of research
Recommendation and suggestion
Conclusion
Bibliography
Annexure
 EXECUTIVE SUMMARY

Performance appraisal or merit rating is one of the oldest and most

universal practices of management. Performance appraisal is a method
of evaluating the behavior in the works pot, normally including both the
quantitative and aspects of job performance.
It implies assessing the performance of an employee on the job.
A formal defining by C. Heyel is as following:-
“Performance appraisal is the process of evaluating the performance &
qualification of the employees in term of the requirements of the job for
which he is employed for the purpose of administration including
placement, selection for promotion, providing financial rewards & other
action which require differential treatment among the member of a group
as distinguished from action affecting all members equally.”
According to Dale S. Beach: “Performance appraisal is the systematic
Evaluation of the individual with regard to his or her performance on the
job & his potential for development.”
According to Shubin: “evaluation is a systematic appraisal of the
employee’s personality traits & performance on the job & is designed to
determine his contribution & relative worth to the firm.”
According to Deal Yoder: “All formal procedures used in working
HDFC Bank to evaluate personalities & contributions & potentials of
group member.”
A formal definition of Performance appraisal is that, “It is the systematic
evaluation of the individual with respect to his or her performance on the
job & his potential for development.”
A more Comprehensive definition is, “Performance appraisal is a formal
structured system of measuring & evaluating an employee’s job, related
behaviors & outcomes to discover how & why the employee is presently
Performing on the job & how the employee can perform more effectively
in the future so that the employee, HDFC Bank & society all benefit.”
Under Performance appraisal we evaluate not only the performance of a
worker but also his potential for development.
 INTRODUCTION

Job satisfaction has been defined as a pleasurable emotional state

resulting from the appraisal of one’s job; an affective reaction to one’s

job; and an attitude towards one’s job. Weiss (2002) has argued that job

satisfaction is an attitude but points out that researchers should clearly

distinguish the objects of cognitive evaluation which are affect (emotion),

beliefs and behaviours. This definition suggests that we form attitudes

towards our jobs by taking into account our feelings, our beliefs, and our

behaviors.

Job satisfaction is a result of various attitudes possessed by an

employee in a narrow sense these attitude are related to the job and are

concerned with such specification factors such as wages, supervision,

steadiness of employment, conditions of work advancement,

opportunities, recognition of abilities, air evaluation of work social

relation in job, prompt settlement of grievances, air treatment by the

employers and others similar items.

HISTORY

One of the biggest preludes to the study of job satisfaction was the Hawthorne

studies. These studies (1924-1933), primarily credited to Elton Mayo of the Harvard

Business School, sought to find the effects of various conditions (most notably

illumination) on workers’ productivity. These studies ultimately showed that novel

changes in work conditions temporarily increase productivity (called the Hawthorne

Effect). It was later found that this increase resulted, not from the new conditions, but

from the knowledge of being observed. This finding provided strong evidence that

people work for purposes other than pay, which paved the way for researchers to

investigate other factors in job satisfaction.

Scientific management (aka Taylorism) also had a significant impact on the study of

job satisfaction. Frederick Winslow Taylor’s 1911 book, Principles of Scientific

Management, argued that there was a single best way to perform any given work

task. This book contributed to a change in industrial production philosophies, causing

a shift from skilled labor and piecework towards the more modern approach of

assembly lines and hourly wages. The initial use of scientific management by

industries greatly increased productivity because workers were forced to work at a

faster pace. However, workers became exhausted and dissatisfied, thus leaving

researchers with new questions to answer regarding job satisfaction. It should also

be noted that the work of W.L. Bryan, Walter Dill Scott, and Hugo Munsterberg set

the tone for Taylor’s work.

Some argue that Maslow’s hierarchy of needs theory, a motivation theory, laid the

foundation for job satisfaction theory. This theory explains that people seek to satisfy
five specific needs in life – physiological needs, safety needs, social needs, self-

esteem needs, and self-actualization. This model served as a good basis from which

early researchers could develop job satisfaction theories.

Models of job satisfaction

Affect Theory

Edwin A. Locke’s Range of Affect Theory (1976) is arguably the most famous job

satisfaction model. The main premise of this theory is that satisfaction is determined

by a discrepancy between what one wants in a job and what one has in a job.

Further, the theory states that how much one values a given facet of work (e.g. the

degree of autonomy in a position) moderates how satisfied/dissatisfied one becomes

when expectations are/aren’t met. When a person values a particular facet of a job,

his satisfaction is more greatly impacted both positively (when expectations are met)

and negatively (when expectations are not met), compared to one who doesn’t value

that facet. To illustrate, if Employee A values autonomy in the workplace and

Employee B is indifferent about autonomy, then Employee A would be more satisfied

in a position that offers a high degree of autonomy and less satisfied in a position

with little or no autonomy compared to Employee B. This theory also states that too

much of a particular facet will produce stronger feelings of dissatisfaction the more a

worker values that facet.

Dispositional Theory

Another well-known job satisfaction theory is the Dispositional Theory It is a very

general theory that suggests that people have innate dispositions that cause them to
have tendencies toward a certain level of satisfaction, regardless of one’s job. This

approach became a notable explanation of job satisfaction in light of evidence that

job satisfaction tends to be stable over time and across careers and jobs. Research

also indicates that identical twins have similar levels of job satisfaction.

A significant model that narrowed the scope of the Dispositional Theory was the

Core Self-evaluations Model, proposed by Timothy A. Judge in 1998. Judge argued

that there are four Core Self-evaluations that determine one’s disposition towards job

satisfaction: self-esteem, general self-efficacy, locus of control, and neuroticism. This

model states that higher levels of self-esteem (the value one places on his/her self)

and general self-efficacy (the belief in one’s own competence) lead to higher work

satisfaction. Having an internal locus of control (believing one has control over her\

his own life, as opposed to outside forces having control) leads to higher job

satisfaction. Finally, lower levels of neuroticism lead to higher job satisfaction

Two-Factor Theory (Motivator-Hygiene Theory)

Frederick Herzberg’s Two factor theory (also known as Motivator Hygiene Theory)

attempts to explain satisfaction and motivation in the workplace [5] This theory states

that satisfaction and dissatisfaction are driven by different factors – motivation and

hygiene factors, respectively. An employee’s motivation to work is continually related

to job satisfaction of a subordinate. Motivation can be seen as an inner force that

drives individuals to attain personal and organization goals (Hoskinson, Porter, &

Wrench, p.133). Motivating factors are those aspects of the job that make people

want to perform, and provide people with satisfaction, for example achievement in

work, recognition, promotion opportunities. These motivating factors are considered

to be intrinsic to the job, or the work carried out. [5] Hygiene factors include aspects of
the working environment such as pay, company policies, supervisory practices, and

other working conditions.[5]

While Hertzberg's model has stimulated much research, researchers have been

unable to reliably empirically prove the model, with Hackman & Oldham suggesting

that Hertzberg's original formulation of the model may have been a methodological

artifact.[5] Furthermore, the theory does not consider individual differences,

conversely predicting all employees will react in an identical manner to changes in

motivating/hygiene factors.[5] Finally, the model has been criticised in that it does not

specify how motivating/hygiene factors are to be measured. [5]

Job Characteristics Model

Hackman & Oldham proposed the Job Characteristics Model, which is widely used

as a framework to study how particular job characteristics impact on job outcomes,

including job satisfaction. The model states that there are five core job

characteristics (skill variety, task identity, task significance, autonomy, and feedback)

which impact three critical psychological states (experienced meaningfulness,

experienced responsibility for outcomes, and knowledge of the actual results), in turn

influencing work outcomes (job satisfaction, absenteeism, work motivation, etc.). [6]

The five core job characteristics can be combined to form a motivating potential

score (MPS) for a job, which can be used as an index of how likely a job is to affect

an employee's attitudes and behaviors----. A meta-analysis of studies that assess the

framework of the model provides some support for the validity of the JCM.

Communication Overload and Communication Underload

One of the most important aspects of an individual’s work in a modern organization

concerns the management of communication demands that he or she encounters on

the job (Krayer, K. J., & Westbrook, L., p. 85). Demands can be characterized as a

communication load, which refers to “the rate and complexity of communication

inputs an individual must process in a particular time frame (Faraca, Monge, &

Russel, 1977).” Individuals in an organization can experience communication over-

load and communication under- load which can affect their level of job satisfaction.

Communication overload can occur when “an individual receives too many

messages in a short period of time which can result in unprocessed information or

when an individual faces more complex messages that are more difficult to process

(Farace, Monge, & Russel, 1997).” Due to this process, “given an individual’s style of

work and motivation to complete a task, when more inputs exist than outputs, the

individual perceives a condition of overload (Krayer, K. J., & Westbrook, L., p. 86)

which can be positively or negatively related to job satisfaction. In comparison,

communication under load can occur when messages or inputs are sent below the

individual’s ability to process them (Farace, Monge, & Russel, 1997).” According to

the ideas of communication over-load and under-load, if an individual does not

receive enough input on the job or is unsuccessful in processing these inputs, the

individual is more likely to become dissatisfied, aggravated, and unhappy with their

work which leads to a low level of job satisfaction.

Job satisfaction describes how content an individual is with his or her

job.

The happier people are within their job, the more satisfied they are said

to be. Job satisfaction is not the same as motivation, although it is clearly

linked. Job design aims to enhance job satisfaction and performance,

methods include job rotation, job enlargement and job enrichment. Other

influences on satisfaction include the management style and culture,

employee involvement, empowerment and autonomous work groups.

Job satisfaction is a very important attribute which is frequently

measured by organizations. The most common way of measurement is

the use of rating scales where employees report their reactions to their

jobs. Questions relate to rate of pay, work responsibilities, variety of

tasks, promotional opportunities the work itself and co-workers. Some

questioners ask yes or no questions while others ask to rate satisfaction

on 1-5 scale (where 1 represents "not at all satisfied" and 5 represents

"extremely satisfied").

Definitions

Job satisfaction has been defined as a pleasurable emotional state

resulting from the appraisal of one’s job; [1] an affective reaction to one’s

job;[2] and an attitude towards one’s job. [3] Weiss (2002) has argued that

job satisfaction is an attitude but points out that researchers should

clearly distinguish the objects of cognitive evaluation which are affect

(emotion), beliefs and behaviours. [4] This definition suggests that we form

attitudes towards our jobs by taking into account our feelings, our beliefs,

and our behaviors.

History:

One of the biggest preludes to the study of job satisfaction was the

Hawthorne studies. These studies (1924-1933), primarily credited to

Elton Mayo of the Harvard Business School, sought to find the effects of

various conditions (most notably illumination) on workers’ productivity.

These studies ultimately showed that novel changes in work conditions

temporarily increase productivity (called the Hawthorne Effect). It was

later found that this increase resulted, not from the new conditions, but

from the knowledge of being observed. This finding provided strong

evidence that people work for purposes other than pay, which paved the

way for researchers to investigate other factors in job satisfaction.

Scientific management (aka Taylorism) also had a significant impact on

the study of job satisfaction. Frederick Winslow Taylor’s 1911 book,

Principles of Scientific Management, argued that there was a single best

way to perform any given work task. This book contributed to a change

in industrial production philosophies, causing a shift from skilled labor

and piecework towards the more modern approach of assembly lines

and hourly wages. The initial use of scientific management by industries

greatly increased productivity because workers were forced to work at a

faster pace. However, workers became exhausted and dissatisfied, thus

leaving researchers with new questions to answer regarding job

satisfaction. It should also be noted that the work of W.L. Bryan, Walter

Dill Scott, and Hugo Munsterberg set the tone for Taylor’s work.

Some argue that Maslow’s hierarchy of needs theory, a motivation

theory, laid the foundation for job satisfaction theory. This theory

explains that people seek to satisfy five specific needs in life –

physiological needs, safety needs, social needs, self-esteem needs, and

self-actualization. This model served as a good basis from which early

researchers could develop job satisfaction theories.

 MODELS OF JOB SATISFACTION

Affect Theory:

Edwin A. Locke’s Range of Affect Theory (1976) is arguably the most

famous job satisfaction model. The main premise of this theory is that

satisfaction is determined by a discrepancy between what one wants in a

job and what one has in a job. Further, the theory states that how much

one values a given facet of work (e.g. the degree of autonomy in a

position) moderates how satisfied/dissatisfied one becomes when

expectations are/aren’t met. When a person values a particular facet of a

job, his satisfaction is more greatly impacted both positively (when

expectations are met) and negatively (when expectations are not met),

compared to one who doesn’t value that facet. To illustrate, if Employee

A values autonomy in the workplace and Employee B is indifferent about

autonomy, then Employee A would be more satisfied in a position that

offers a high degree of autonomy and less satisfied in a position with

little or no autonomy compared to Employee B. This theory also states

that too much of a particular facet will produce stronger feelings of

dissatisfaction the more a worker values that facet.

Dispositional Theory:

Another well-known job satisfaction theory is the Dispositional

Theory[citation . It is a very general theory that suggests that people

needed]

have innate dispositions that cause them to have tendencies toward a

certain level of satisfaction, regardless of one’s job. This approach

became a notable explanation of job satisfaction in light of evidence that

job satisfaction tends to be stable over time and across careers and

jobs. Research also indicates that identical twins have similar levels of

job satisfaction.

A significant model that narrowed the scope of the Dispositional Theory

was the Core Self-evaluations Model, proposed by Timothy A. Judge in

1998. Judge argued that there are four Core Self-evaluations that

determine one’s disposition towards job satisfaction: self-esteem,

general self-efficacy, locus of control, and neuroticism. This model states

that higher levels of self-esteem (the value one places on his/her self)

and general self-efficacy (the belief in one’s own competence) lead to

higher work satisfaction. Having an internal locus of control (believing

one has control over her\his own life, as opposed to outside forces
having control) leads to higher job satisfaction. Finally, lower levels of

neuroticism lead to higher job satisfaction

Two-Factor Theory (Motivator-Hygiene Theory):

Frederick Herzberg’s Two factor theory (also known as Motivator

Hygiene Theory) attempts to explain satisfaction and motivation in the

workplace[5] This theory states that satisfaction and dissatisfaction are

driven by different factors – motivation and hygiene factors, respectively.

An employee’s motivation to work is continually related to job satisfaction

of a subordinate. Motivation can be seen as an inner force that drives

individuals to attain personal and organization goals (Hoskinson, Porter,

& Wrench, p.133). Motivating factors are those aspects of the job that

make people want to perform, and provide people with satisfaction, for

example achievement in work, recognition, promotion opportunities.

These motivating factors are considered to be intrinsic to the job, or the

work carried out.[5] Hygiene factors include aspects of the working

environment such as pay, company policies, supervisory practices, and

other working conditions.

While Hertzberg's model has stimulated much research, researchers

have been unable to reliably empirically prove the model, with Hackman

& Oldham suggesting that Hertzberg's original formulation of the model

may have been a methodological artifact. Furthermore, the theory does

not consider individual differences, conversely predicting all employees

will react in an identical manner to changes in motivating/hygiene

JOB SATISFACTION AND EMOTIONS

Mood and emotions while working are the raw materials which cumulate

to form the affective element of job satisfaction. (Weiss and Cropanzano,

1996). Moods tend to be longer lasting but often weaker states of

uncertain origin, while emotions are often more intense, short-lived and

have a clear object or cause.

There is some evidence in the literature that state moods are related to

overall job satisfaction. Positive and negative emotions were also found

to be significantly related to overall job satisfaction

Frequency of experiencing net positive emotion will be a better predictor

of overall job satisfaction than will intensity of positive emotion when it is

experienced.

Emotion regulation and emotion labor are also related to job satisfaction.

Emotion work (or emotion management) refers to various efforts to

manage emotional states and displays. Emotion regulation includes all of

the conscious and unconscious efforts to increase, maintain, or

decrease one or more components of an emotion. Although early studies

of the consequences of emotional labor emphasized its harmful effects

on workers, studies of workers in a variety of occupations suggest that

the consequences of emotional labor are not uniformly negative.

It was found that suppression of unpleasant emotions decreases job

satisfaction and the amplification of pleasant emotions increases job

satisfaction.[13] The understanding of how emotion regulation relates to

job satisfaction concerns two models:

1. EMOTIONAL DISSONANCE.

Emotional dissonance is a state of discrepancy between public

displays of emotions and internal experiences of emotions, [14][15] that

often follows the process of emotion regulation.Emotional dissonance

is associated with high emotional exhaustion, low organizational

commitment, and low job satisfaction.[16][17]

2. SOCIAL INTERACTION MODEL.

Taking the social interaction perspective, workers’ emotion regulation

might beget responses from others during interpersonal encounters

that subsequently impact their own job satisfaction. For example: The

accumulation of favorable responses to displays of pleasant emotions

might positively affect job satisfaction[13] .

 performance of emotional labor that produces desired outcomes

could increase job satisfaction.

RELATIONSHIPS AND PRACTICAL IMPLICATIONS

Job Satisfaction can be an important indicator of how employees feel

about their jobs and a predictor of work behaviours such as

organizational citizenship, absenteeism, and turnover. Further, job

satisfaction can partially mediate the relationship of personality variables

and deviant work behaviors.

One common research finding is that job satisfaction is correlated with

life satisfaction. This correlation is reciprocal, meaning people who are

satisfied with life tend to be satisfied with their job and people who are

satisfied with their job tend to be satisfied with life. However, some

research has found that job satisfaction is not significantly related to life

satisfaction when other variables such as non-work satisfaction and core

self-evaluations are taken into account.

An important finding for organizations to note is that job satisfaction has

a rather tenuous correlation to productivity on the job. This is a vital

piece of information to researchers and businesses, as the idea that

satisfaction and job performance are directly related to one another is

often cited in the media and in some non-academic management

literature. A recent meta-analysis found an average uncorrected

correlation between job satisfaction and productivity to be r=.18; the

average true correlation, corrected for research artifacts and unreliability,

was r=.30. Further, the meta-analysis found that the relationship

between satisfaction and performance can be moderated by job

complexity, such that for high-complexity jobs the correlation between

satisfaction and performance is higher (ρ=.52) than for jobs of low to

moderate complexity (ρ=.29). In short, the relationship of satisfaction to

productivity is not necessarily straightforward and can be influenced by a

number of other work-related constructs, and the notion that "a happy

worker is a productive worker" should not be the foundation of

organizational decision-making.

With regard to job performance, employee personality may be more

important than job satisfaction. The link between job satisfaction and

performance is thought to be a spurious relationship; instead, both

satisfaction and performance are the result of personality.

 TURNOVER (EMPLOYMENT)

In a human resources context, turnover or Employees turnover is the

rate at which an employer gains and loses employees. Simple ways to

describe it are "how long employees tend to stay" or "the rate of traffic

through the revolving door." Turnover is measured for individual

companies and for their industry as a whole. If an employer is said to

have a high turnover relative to its competitors, it means that employees

of that company have a shorter average tenure than those of other

companies in the same industry. High turnover can be harmful to a

company's productivity if skilled workers are often leaving and the

worker population contains a high percentage of novice workers.

In the U.S., for the period of December 2000 to November 2008, the

average total non-farm seasonally adjusted monthly turnover rate was

3.3%.
 COSTS

When accounting for the costs (both real costs, such as time taken to

select and recruit a replacement, and also opportunity costs, such as lost

productivity), the cost of employee turnover to for-profit organizations

has been estimated to be up to 150% of the employees' remuneration

package. There are both direct and indirect costs. Direct cost relate to

the leaving costs, replacement costs and transitions costs, while indirect

costs relate to the loss of production, reduced performance levels,

unnecessary overtime and low morale.

Internal vs. external turnover

Like recruitment, turnover can be classed as 'internal' or external.

Internal turnover involves employees leaving their current position, and

taking a new position with the same organization. Both positive (such as

increased morale from the change of task and supervisor) and negative

(such as project/relational disruption, or the Peter Principle) effects of

internal turnover exist, and thus this form of turnover may be as

important to monitor as its external counterpart. Internal turnover might

be moderated and controlled by typical HR mechanisms, such as an

internal recruitment policy or formal succession planning.

Skilled vs. unskilled employees

Unskilled positions often have high turnover, and employees can

generally be replaced without the organization or business incurring any

loss of performance. The ease of replacing these employees provides

little incentive to employers to offer generous employment contracts;

conversely, contracts may strongly favour the employer and lead to

increased turnover as employees seek, and eventually find, more

favorable employment.

However, high turnover rates of skilled professionals can pose as a risk

to the business or organization, due to the human capital (such as skills,

training, and knowledge) lost. Notably, given the natural specialization of

skilled professionals, these employees are likely to be re-Employees

within the same industry by a competitor. Therefore, turnover of these

individuals incurs both replacement costs to the organization, as well as

resulting in a competitive disadvantage to the business.

VOLUNTARY VS. INVOLUNTARY TURNOVER

Practitioners can differentiate between instances of voluntary turnover,

initiated at the choice of the employee, and those involuntary instances

where the employee has no choice in their termination (such as long

term sickness, death, moving overseas, or employer-initiated

termination).

Typically, the characteristics of employees who engage in involuntary

turnover are no different from job stayers. However, voluntary turnover

can be predicted (and in turn, controlled) by the construct of turnover

intent.

Causes of high or low turnover

High turnover often means that employees are unhappy with the work or

compensation, but it can also indicate unsafe or unhealthy conditions, or

that too few employees give satisfactory performance (due to unrealistic

expectations or poor candidate screening). The lack of career

opportunities and challenges, dissatisfaction with the job-scope or

conflict with the management have been cited as predictors of high

turnover.

Low turnover indicates that none of the above is true: employees are

satisfied, healthy and safe, and their performance is satisfactory to the

employer. However, the predictors of low turnover may sometimes differ

than those of high turnover. Aside from the fore-mentioned career

opportunities, salary, corporate culture, management's recognition, and

a comfortable workplace seem to impact employees' decision to stay

with their employer.

Many psychological and management theories exist regarding the types

of job content which is intrinsically satisfying to employees and which, in

turn, should minimise external voluntary turnover. Examples include

Hertzberg's Two factor theory, McClelland's Theory of Needs, and

Hackman & Oldham's Job Characteristics Model

 INVESTMENTS

Alternatively, low turnover may indicate the presence of employee

'investments' (also known 'side bets') in their position: certain benefits

may be enjoyed while the employee remains Employees with the

organization, which would be lost upon resignation (e.g. health

insurance, discounted home loans, redundancy packages, etc). Such

employees would be expected to demonstrate lower intent to leave than

if such 'side bets' were not present.

How to prevent turnover

Employees are important in any running of a business, without them the

business would be unsuccessful. However, more and more employers

today are finding employees remain for approximately 23 to 24 months

according to the 2006 Bureau of Labor Statistics. The Employment

Policy Foundation states it costs a company on an average of $15,000

per employee, including separation costs, including paperwork,

unemployment; vacancy costs, including overtime or temporary

employees and replacement cots including advertisement, interview

time, relocation, training and decreased productivity when colleagues

depart. Providing a stimulating workplace environment in which fosters

happy, motivated and empowered individuals, which lowers employee

turnover and absentee rates. Promoting a work environment that fosters

personal and professional growth promotes harmony and

encouragement on all levels, so the effects are felt company wide.

Continual training and reinforcement develops a work force that is

competent, consistent, competitive, effective and efficient. Beginning on

the first day of work, providing the individual with the necessary skills to

perform their job is important. Before the first day, it is important the

interview and hiring process expose new hires to an explanation of the

company, so individuals know if the job is the best choice Providing

ongoing performance management by networking within the company to

share the best practices, helps build relationships among co-workers.

Motivating employees to focus on customer success, profitable growth

and the company well being is important. Including employees in on

future plans, new purchases, policy changes, introducing new

employees and employees who have gone above and beyond at

meetings keeps employees informed and involved. ] Early engagement

and engagement along the way, shows employees they are wanted

through information or recognition rewards, making them feel included.

When companies hire the best people, new talent hired and veterans are

enabled to reach company goals, maximizing the investment of each

employee. Taking the time to listen to employees and making them feel

involved will create loyalty, in turn reducing turnover allowing for growth

Performing on the job & how the employee can perform more effectively
in the future so that the employee, HDFC Bank & society all benefit.”
Under Performance appraisal we evaluate not only the performance of a
worker but also his potential for development.
 RESEARCH DONE ON JOB
SATISFACTION

Job Satisfaction is one of the most important concepts in the study

of Employees behaviour along with absenteeism productivity and

turnover. Many researchers and industrial psychologists are interest in

finding factors that increase Job Satisfaction

Because it is related to the job behaviour, like performance and

accident. This project studies the determinants of job satisfaction as

Employees turnover they surveyed 59 Employees . To measure job

satisfaction they used Happock’s job satisfaction Bank in addition to self

rating. Results from any respondents suggest that salary and stress level

do not influence job satisfaction. However, factors outside the job such

as age and marital status seem to correlate with job satisfaction. Those

Employees turnover who are married or living with a partner appear to

be more satisfied than those who are single or divorced. Age is

positively correlated with job satisfaction.

Similarly, determinants related to job such as satisfaction in

profession, satisfaction in position perception of room for personal

growth, perception of use of talents and skills appear to maintain a

positive relationship with job satisfaction. These current finding are

consistent with the Herzbeg’s two factor motivation theory.

JOB SATISFACTION IS
MORE IMPORTANT
THAN MONEY OR
PERKS: A RESEARCH
JOB SATISFACTION IS MORE IMPORTANT
THAN MONEY OR PERKS: A RESEARCH

New research shows that job satisfaction is more important than

money or perks. That’s according to a survey conducted by Eden

recruitment. So it is not membership to health clubs or fat salaries that

Employees turnover want, but plain old fashioned job satisfaction.

Job satisfaction was more common as motivating factor in IT and

business services. Sectors while the benefits package available

manufacturing sectors. Remuneration was also more common in the

business services sectors than is other sectors.

The results of survey which are given below, reveal the main

motivating factors in an employee’s decision to remain in or leave

employment
JOB SATISFACTION FALLS
FOR FACULTY MEMBERS:
A FINDING
 JOB SATISFACTION FALLS FOR
EMPLOYEES TURNOVER: A FINDING

Employees turnover, servants face more stress says a survey. Job

satisfaction among Britain’s 6 m public sectors workers has fallen
sharply over the past decades as rising levels of stress have made work
less enjoyable for doctors, Nurses, Teachers, Lectures and Civil
Servants said research published yesterday.
The study from Andrew Oswald and Jonathan Gardener of
Warwick University found that an increase depression, strain, Sleep loss
and unhappiness during the 1990 had made employment more
pressurized and less enjoyable in the public realm.
Job satisfaction has dropped dramatically in the service class
throughout the 90s stress has risen quite dramatically.
According to the research the decline in job satisfaction was linked
to rising stress. The very heavy increase in work loads in the Service
class has made workers much less happy. all group of Faculty in Service
class have become less satisfied at work over the past decade, a
period in which they have faced extra bureaucracy, pressure to meet
targets as well as the introduction of working practices from the private
sector.
The sample of 5000 workers was interviewed each year through
the 1990s with stress levels assessed by the answers to 12 standard
questions used to measure mental distress and psychological ill health.
 REASONS FOR JOB SATISFACTION
RESEARCH:

Why seek information about job satisfaction? For an industrial

organization the consequences are extremely important. By discovering
attitudes on factor related to the job, a firm can correct certain bad
situations and there by improve the job satisfaction of its staff. From this
point of view if would – be justified in being concerned only with this area
and neglecting the individual geo and its employee adjustments to group
outside the plants. How ever and industrial organization can benefits
materially. If is knows what individual attitudes contribute to job
satisfaction, for one thing applying this knowledge will result in better
selection procedures. This is a broad implication as for as the job
satisfaction is concerned, and even though most industrial and business
organization, feel that it is not their problem, it nevertheless agrees
exists. It is also directly related to vocational guidance, schools and
college’s, public and private employment agencies, etc society as a
whole must face it realistically.
 THE IMPORTANCE OF HIGH JOB
SATISFACTION
The importance of job satisfaction is obvious, manager should be
concerned with the level of job satisfaction in there organization for at
least four reasons –
1) There is clear evidence that dissatisfied Employees turnover
skip work more often and are more likely to resign
2) Dissatisfied workers are more likely to engage in destructive
behaviours.
3) It has been demonstrated that satisfied Employees turnover
are batter health and live longer.
4) Satisfaction on the job carries over to the Employees
turnover life outside the job.
An often overlook dimension of job satisfaction is its relationship to
Employees turnover health, several studies have shown that Employees
turnover who are dissatisfied with their jobs are persons to health
setback ranging from headaches to heart disease.
Some researchers even indicate that job satisfaction is a better predictor
of length of life than is physical condition or tobacco use. These studies
suggest that dissatisfaction is not solely a psychological phenomenon.
The stresses that result from dissatisfaction apparently increase one
susceptibility to heart attack and the like.
 PERFORMANCE
PERFORMANCEAPPRAISAL
APPRAISAL

KRAs Routine Responsibilities Competencies

U
R Performance & development Planning
R

T
R
E
A
T
M Mid Year Review
E
N
T

S Feedback & coaching

T
R
E
T
C
H
Final Review
T T
O O
O
O L
L R
Final Score E
S
V
N
O I
F O E
W
R
M E
A M R
P A

L Final Performance Rating

I
 DEFINATION OF PERFORMANCE

Definition of performance in MAP is based up on Key Result Areas of

KRAs and Routine Responsibilities.
 KRAs are ‘critical outcomes towards which effort is directed
to achieve desired business results.’
 Routine Responsibilities are ‘significant on-going tasks or
outcomes that are undertaken or delivered on day-to-day
basis.’

KRAs Routine Competencies

Responsibilities

Performance Plan Development Plan

Performance & Development Plan

Unique Role and Responsibility (URR) templates provide the KRAs,

relative weight of KRAs and Routine Responsibilities, the competencies
and their required proficiency levels for a role. The URR Template in
MAP helps deliver consistency and clarity. On expected performance
measures to Appraiser’s and Appraisers alike.
MAP allows the Appraisee to define the performance measures
applicable to the Appraisee’s situation using combination of KRAs and
Routine Responsibilities.
The achievement against targets sets for each of these will together
constitute the Appraisee’s Performance Plan in the Performance Cycle
or Period.
FEEDBACK AND COACHING

The process of continuous Feedback and coaching is an inherent and

critical part of MAP.
The Mid Year and Final Reviews are specifically focused on Feedback
and Coaching and hence require the Appraisee and the Appraiser to
have a formal feedback session.For feedback and Coaching to be truly
effective, it should be provided and received on an on- going basis.
When used effectively, Feedback & Coaching is a powerful means of
positively impacting performance.
Feedback and Coaching helps an Appraiser in both obtaining
information and providing inputs on how an Appraisee is performing and
whether or not he/she is headed in the right direction. It is also an
opportunity for the Appraisee to solicit resources and help that may be
required for enhancing his/her performance.

Most people are comfortable in providing positive feedback. However,

they are hesitant to initiate a conversation that involves sharing of
negative or unpleasant performance related information. Such hesitation
needs to be overcome, considering the importance of feedback in
correcting the performance level of the Appraisee, and the consequent
benefit to the Appraisee’s career.
Long term impact performance

Coaching

Feedback

Information

Coaching impacts Performance

Feedback
 Positive feedback
 Corrective feedback
 Feedback focused on identifying obstacles to performance
 Feedback for the purpose of sharing information.
Performance Cycle at a Glance
A Performance Cycle refers to the year for which your performance is
being evaluated.
The Performance Cycle of MAP is one year coinciding with ICICI Bank
India Pvt Ltd. ’s financial year.
MAP follows an April to March cycle and consists of three Key phases:
1. Performance and Development Planning
 2. Mid Year Review
3. Final Review
The figure below provides an overview of the Performance Cycle with
key dates for each phase.

Unit/business Sector Draft Budget End February

Offline Performance Planning

March-Mid April
Normalision &
score Appraiser

ONGOING
FEEDBACK
Final Review &
Appraise Feedback

Mid Year
Review

May

Final Review & Feedback

April September-October Mid April-End

April

In certain cases, such as those involving a mid-cycle change in role to

transfers etc, an Appraisee may be more than one Performance Plan in
a Performance Cycle. The period that each Performance Plan covers is
referred to as the Performance Period for that Performance Plan.
PERFORMANCE AND DEVELOPMENT PLANNING
The performance& Development Planning phase of MAP is initiated in
March, upon the finalization of the draft budget ICICI BANK INDIA PVT
LTD. INDIA LIMITED Unit business objectives and development
initiatives will be derived from this and cascaded to your Performance
Planning.
The Appraisee will be assigned a URR based on the role that he/she
performs. The template will provide the Appraisee the relevant KRAs
and Routine Responsibilities. The Appraisee will use the built-in-flexibility
to develop the Performance Plan suited to his/her situation.

Performance and Development Planning Process

Appraiser will Appraiser will review Appraisee will set

complete assign identify flexible KRAs Targets & develop
relevant URR to and write Optional KRAs Action Plan for each
Appraisee if required KRA

Appraiser will assign

Percentage weight age to Appraisee will
Appraisee will each KRA & Routine define routine
draw-up Responsibility out of total of responsibility & develop
Development plan 100% for each section Actions Plans

Appraisee will Appraiser will discuss

submit Performance Targets using Stretch Tool &
& development plan Finalize Performance &
to Appraiser Development Plan

Appraiser will
Final Performance & send finalized plan
Development plan for the to reviewer for
Appraisee Sign-off

CREATING PERFORMANCE PLAN

 1. Select KRAs

Based on the URR assigned, the Appraisee will have a set of

Essential KRAs and in addition, can select other relevant one from
the list of Flexible KRAs.
 Essential KRAs are predetermined and compulsory for
performance of the role.
 Flexible KRAs are suggested as relevant for a role but
are not compulsory. The Appraisee selects the appropriate KRAs.

The total number of Essential and Flexible KRAs put together cannot
exceed 12. Incase the required number of KRAs in the Flexible list
cannot be accommodated within the Flexible section; the Appraisee
will use Optical section to add the same in his/her Performance &
Development Plan.
 Optional KRA Section comprises of KRAs that can be
added by the Appraisee if they have not been captured in either of the
above two categories and may be required in a specific location or
Performance Period. As stated above, thy also include KRAs that
cannot be accommodated because of the limit of 12 Essential plus
Flexible KRAs. These must be included in the Appraisee’s plan. A
maximum of 3 such KRAs can be added.

2. Set Targets and Action Plans for KRAs

For each KRA:
a) A specific Target must be defined by the Appraisee that
quantifies or verifies the extent of achievement in a given timeframe.
FINAL REVIEW
During the Final Review phase, the Appraiser will assess the
Appraisee’s level of achievement on KRAs Routine Responsibilities
and the demonstration of Competencies. The Final Review will be
concluded in the month of April.

Final Review Process

Appraiser will
Appraisee will review Self-
complete self Appraisal and
appraisal and performance
submit to the outcomes of the
appraiser. appraisal for the
performance cycle

Appraiser will Appraiser will

provide feedback determine rating
on each area of on each KRA,
performance and routine
development to responsibility and
appraisee. competency

Appraiser will
determine overall Appraiser
score based on KRA sends final
score, routine review
responsibility score documents
and the weight age and overall
assigned to each score to
section reviewer

Conducts Final score is

final communicate Reviewer
review d to appraisee validates
phase. and appraiser and provides
final score.
The Final Review Phase will begin with the Appraisee’s self-appraisal
wherein he/she give a self-rating on performance parameters- KRAs and
Routine Responsibilities defined in the Performance Plan and the
Competencies defined in the Development Plan.
The Appraiser will review the outcomes and self-appraisal and will
evaluate the Appraisee on the Performance Plan. The Appraiser will
assign a Rating for each KRA, Routine Responsibility and Competency
using the appropriate Rating scale.

PERFORMANCE EXCELLENCE PLAN (PEP) TEMPLATE

PEP Template has been introduced in companies to standardize

measurement of performance across individuals, teams, functions and
units.
The templates ensure consistency and uniformity in terms of the KRAs
that are applicable to a role. At the same time, they also provide
flexibility to incorporate differences that might exist in jobs mapped to the
same unique role. The flexibility take care of the specific emphasis or
focus that a role may require in a given performance period.
Unique Roles are jobs that may be held by different incumbents but are
essentially the same. For instance, there may be certain differences in
incumbents like designation, years of experience, number of people
supervised etc. but if the expectations of performance from them and
their responsibilities are essentially the same, they perform the same
Unique Role.
The template provides:
 Unique Role name
 Brief description of the role
 KRA
 Competencies and their proficiency levels
 Overall weightage of the KRAs Section to Routine Responsibility
Section

Each Appraisee would be assigned a PEP by his Appraiser at the start

of the Performance Cycle. This PEP will be used by the Appraisee for
the purpose of creating the Performance and Development plan.

The PEP template has two categories of KRAs that have been
predetermined.

1) Essential KRAs-KRAs those are predetermined and compulsory

for performance of the role. These will become part of the
Performance Plan of each Appraisee who is mapped to this PEP.
2) Flexible KRAs-KRAs those are predetermined and relevant to a
role though not compulsory. These suggested for adoption by the
Appraisee as applicable flexible KRAs give the Appraisee to
choose such KRAs from the list that he/she feels would be relevant
for measuring performance in the performance Cycle.
 RATING KRAs AND ROUTINE RESPONSIBILITIES

KRAs and Routine Responsibilities have a 5-point scale where each

rating has been articulated and explained.

1 2 3 4 5
Significantly Moderately Meets Moderately Significantly
Below Below Expectation Above Above
Expectations Expectation Expectation Expectations

Rating Competencies

The 5-point Rating Scale for Competencies a different from the one used
for KRAs and Routine Responsibilities.
The Appraise will be evaluated on all Competencies in the PEP using
the Competency Scale.
Each rating on the scale has been articulated to describe the extent to
which an Appraise has displayed the behaviors described in the required
proficiency level of the Competency.
Based upon the behaviors observed, the Rating that best describes the
set of displayed behaviors is chosen as the Rating on that Competency.
 TRENDS IN PERFORMANCE APPRAISAL

FORMER
ITEM PRESENT FOCUS
EMPHASIS
1. Terminology Merit-Rating Performance
Appraisal
2. Purpose Determine wage Development of the
increase, promotion, individual improved
transfer, layoff job performance.
3. Application For rank & file For managerial &
workers technical personnel.
4. Factors rate d Personal traits Performance, result
or accomplishment.
5. Techniques Rating scales with Mutual goal-setting,
emphasis upon critical incidents,
scores group appraisal.
6. Post appraisal Superior Superior stimulates
communicates his employee to analyze
rating to the himself & set goals
subordinate & seeks with the help.
to have employee
accept the rating.
 FEATURES OF PERFORMANCE APPRAISAL

1) Performance appraisal is the systematic description of an

employee’s job relevant strength and weaknesses.
2) It is a continuous process in every large-scale HDFC Bank .
3) The basic purpose is to find out how well the employee is
performing the job & establish a plan of improvement.
4) Performance evaluation is not job evaluation.
5) Appraisals are arranged periodically according to a definite plan.

FUNCTIONS

 Identification the areas of training & development.

 Helps in reward allocation.
 Provide the opportunity to review the strange & weakness of the
employees.
 It helps in career planning & personnel development.
 Helps in establishing credibility of the selection procedure.
 Act as a motivation factor.
 OBJECTIVES OF PERFORMANCE APPRAISAL

SALARY INCREASE:

Performance appraisal play a role in making decision about salary

increase. Normally salary increase depends on how employee is
performing his job. There is continuous evaluation of this performance
either formally or informally in small HDFC Bank . There is direct contact
between employees & Performance appraisal has to be an undertaken.

1) PROMOTION:

Performance appraisal plays a significance role where promotion is

based on merits most of HDFC Bank use a combination of merit &
seniority for promotion. Performance appraisal discloses how an
employee is working in his present job & what his strong & weak
points are. It can be decided whether he can be promoted or not. It is
also used for transfer, promotion, demotion & discharge of
employees.

2) TRAINNING & DEVELOPMENT:

Performance appraisal tries to identify the strengths & weaknesses of

an employee on his present job. This information can be used for
devising training & development programmers appropriate for
overcoming weakness of the employees.
3) FEEDBACK:

Performance appraisal provides feedback to employees about their

performance. It tells them where they stand. A person works better
when he knows how he is working first, the person gets feedback
about his performance & try to overcome his deficiencies second,
when the person gets feedback about his performance, he can relate
his work to the HDFC Bank objectives.

4) PRESSURE ON EMPLOYEES:
Performance appraisal put a post of pressure on employees for
better performance. If the employees are conscious that they are
being appraisal in respect of certain factors & their future largely
depends on such appraisal, Appraisal can work automatically as
control device.
 PROCESS OF PERFORMANE APPRAISAL IN HDFC BANK

Establishment
1 of
Performance Standards

6 2
Establishment of Establishment of
Performance Performance Standards
Standards

5 3

Establishment of Establishment of
Performance Performance Standards
Standards

Establishment of
Performance Standards
1) ESTABLISMENT OF PERFORMANCE:
We need some kind of measures again which we are going to compare
the performance of employees. Some of these standards are based on
job description should be clear enough to be measured & understood by
everyone standers are the expectation.

2) COMMUNICATE EXPECTATION TO EMPLOYEES:

Standards need to be communicated is employees so that they know
what is expected of them & how will they about it.
It has to be received by employees & manager should receive the
feedback so that he comes to know whether employees have
understood the intention of communication.

3) MEASURES ACTULY PERFORMANCE:

After setting standard you will some critical to measure the performance
of employees.

4) COMPARE ACTUAL PERFORMANCE WITH STANDARD:

This is done to see if any discrepancy exists & if so then how will it be
rectified.

5) DISCUSS APPRAISAL WITH EMPLOYEE:

Performance of employee is reviewed & then manager has to convince
the employees about his judgment. He conduct meeting with employees
for this purpose.

6) INITIAL CORRECTIVE ACTION:

If there is any deviation in performance then suggestive corrective action
can be provided to the employees.
 METHODS OF PERFORMANE APPRAISAL IN HDFC BANK

PERFORMANCE APPRAISAL METHODS

Individual Multiple-person Other method

evaluation evaluation method
method

 Ranking  Group appraisal

 Confidential  Paired Comparison  HRA
report  Forced Comparison  Assessment center
 Easy evaluation  Field review
 Critical incidents
 Checklists
 Graphic rating
scale
 Behaviorally
anchored
 Rating scale
 Forced choice
method
 APPRAISAL BASED ON TRADITIONAL TRAITS

There are various methods of Performance Appraisal based on

traits:

1) Ranking Method: Ranking is the oldest & simplest method of

appraisal in which a person is ranked against other on the basis
of certain traits & characteristics. It is not good for large number5
of employees. It does not indicate absolute or equal difference of
ability between individuals.

2) Faired comparison Method: Paired comparison is a slight

variation of ranking system. In this method each person or
employees is compared with all other person. Then the rank is
given according Rader gives rating & puts a tick mark the name of
each employee alter which the name of ticks are counted & the
employees having the most no. of tick marks is rated the highest.
The larger the no. of employees the more difficult in composition.

3) Grading: In this method certain categories well in advance &

persons are put in their traits & characteristics such categories are
like: - outstanding, good, average, poor, very poor or may be in
terms of A, B, C, and D etc.
 4) Forced Distribution Method:

It assumes that employee’s performance conforms to the bell-

shaped, this method tries to remove the error of leniency or central
tendency.

10 20 30 40 50

10% - Excellent 30% - Average

20% - Good 40% - Below Average

This method can be challenged people might question why they have
been put in the category. This method is useful to rate job performance
& Promo ability.

5) Forced-choice Method: The forced-choice rating method

contains a service group of statement & the rater checks how
effectively the statement each individual being evaluated. Since
forced choice is made might be disliked by the managers also
 depends on whether the statements properly formulated or not.
The ultimate scoring lines
SYSTEM OF PERFORMANCE APPRAISAL
1. Establish performance standards.
2. Communicate standard / expectation to
employee.
3. Measure actual performance by following the
instructions.
4. Adjust the actual performance due to the
environmental influences.
5. Compare the adjusted performance with that of
other & previous.
6. Compare the actual performance with standard &
find out deviation, if any.
7. Communicate the actual performance to the
employee concerned.
8. Suggest changes in job analysis & standard, if
any necessary.
9. Follow-up performance appraisal report.

Eighth Stage is suggesting necessary changes in standards, job

analysis, internal & external environment.
Ninth Stage is follow-up performance appraisal report. This stage
includes guiding, counseling, coaching & directing the employee or
making arrangement for training & development of the employee or
making arrangements for training & development of the employee in
order to ensure improved performance. If the actual performance is very
poor & beyond the scope of improvement, it is necessary to take steps
for demotion or retrenchment or any suitable measure.
KEY ELEMENTS OF PERFORMANCE APPRAISAL SYSTEM

Human Performance Employee

Performance Appraisal Feedback

Performance
Measure

Performance –
Related
Standard

Human Employee
Resource Record
Decisions
 USES OF PERFORMANCE APPRAISAL IN HDFC BANK

1) PERFORMANCE IMPROVEMENT:

Performance feedback allows the employee, manager, & personnel

specialists to intervene with appropriate action to improve
performance.

2) COMPENSATION ADJUSTMENTS:

Performance evaluation help decision-makers determine who should

receive pay rises. Many firms grant part or all of their pay increases &
bonuses based upon merit, which is determine mostly through
performance appraisals.

3) PLACEMENT DECISION:

Promotion, transfer, & demotion are usually based on past or

anticipated performance. Often promotions are reward for past
performance.

4) TRAINING & DEVELOPMENT NEEDS:

Poor performance may indicate the need for retaining. Likewise,
good performance may indicate untapped potential that should be
developed.

5) CAREER PLANNING & DEVELOPMANT:

Performance feedback guides career decision about specific career
paths one should investigate.
 6) STAFFING PROCESS DEFICIENCIES:

Good or bad performance implies strength or weakness in the

personnel department staffing procedure.

7) INFORMATION INACCURACIES:

Poor performance may indicate errors in job analysis information,

human resource plans, or other parts or the personnel management
information system. Reliance on inaccurate information may have led
to inappropriate hiring, training, or counseling decisions.

8) JOB DECISION ERRORS:

Poor performance may be a symptom of ill-conceived job designs.
Appraisals help diagnose these errors.
9) EQUAL EMPLOYMENT OPPORTUNITY:

Accurate performance appraisals that actually measure job-related

performance ensure that internal placement may be able to provide
assistance.

FEEDBACK TO HUMAN RESOURCES:

Good / bad performance throughout the HDFC Bank indicates how well
the human resources function is performing.
 PROBLEMS OF PERFORMANCE APPRAISAL IN HDFC BANK
Rating Biases:

The problem subjective measure (is that rating which is not verifiable by
others) has the opportunity for bias. The rater biases include:

(i) Halo effect,

(ii) The error of central tendency,
(iii) The leniency & strictness biases,
(iv) Personal prejudice, &
(v) The regency effect.

a) Halo Effect:

It is the tendency of the raters to defend excessively on the rating of one

trait of one trait or behavioral consideration in rating all other traits or
behavioral consideration. One way of minimizing the halo effect is
appraising all the employees by one trait before going to rate on the
basis of another trait.

b) The Error Central Tendency:

Some raters follow play safe policy in rating-by-rating all the employees
around the middle point of the rating scale & they avoid rating the people
at both the extremes of the scale. They follow play safe policy because
of answerability to management or lack of knowledge about the job &
person he is rating or least interest in his job.

c) The Leniency & Strictness:

 COMPANY PROFILE

HDFC Bank

HDFC Bank Limited

Type Public
BSE: 500180,
Traded as
NYSE: HDB
Banking
Industry
Financial services
Founded August 1994
Headquarters Mumbai, India
Area served Worldwide
Key people Aditya Puri (MD)
Finance and insurance
Investment Banking
Commercial Banking
Retail Banking
Products
Private Banking
Asset Management
Mortgages
Credit Cards
Revenue $4.476 billion (2019)[2]
Profit $545 million (2019)[2]
Total assets $53.670 billion (2019)[2]
Total equity $6.787 billion (2019)[2]
Employees 51,888 (2019)[2]
Website HDFCBank.com

HDFC Bank Limited (BSE: 500180, NYSE: HDB) is a major Indian

financial services company based in India, incorporated in August 1994,
after the Reserve Bank of India allowed establishing private sector
banks. The Bank was promoted by the Housing Development Finance
Corporation, a premier housing finance company (set up in 1977) of
India. HDFC Bank has 1,925 branches and over 5,23 ATMs, in 832 cities
in India, and all branches of the bank are linked on an online real-time
basis. As of 30 September 2019 the bank had total assets of Rs.1479.56
billion. For the fiscal year 2018-19, the bank has reported net profit of
2,684.9 crore (US$498.37 million), up 21% from the previous fiscal. Total
annual earnings of the bank increased by 58% reaching at 19,622.8
crore (US$4.36 billion) in 2018-19.

It is one of the Big Four banks of India, along with State Bank of India,
ICICI Bank and Punjab National Bank—its main competitors.

History

HDFC Bank was incorporated in 1994 by Housing Development Finance

Corporation Limited (HDFC), India's largest housing finance company. It
was among the first companies to receive an 'in principle' approval from
the Reserve Bank of India (RBI) to set up a bank in the private sector.
The Bank started operations as a scheduled commercial bank in
January 1995 under the RBI's liberalisation policies.
Times Bank Limited (owned by Bennett, Coleman & Co. / Times Group)
was merged with HDFC Bank Ltd., in 2000. This was the first merger of
two private banks in India. Shareholders of Times Bank received 1 share
of HDFC Bank for every 5.75 shares of Times Bank.

In 2008 HDFC Bank acquired Centurion Bank of Punjab taking its total
branches to more than 1,000. The amalgamated bank emerged with a
base of about Rs. 1,22,000 crore and net advances of about Rs.89,000
crore. The balance sheet size of the combined entity is more than Rs.
1,63,000 crore.

Business focus

HDFC Bank deals with three key business segments. - Wholesale

Banking Services, Retail Banking Services, Treasury. It has entered the
banking consortia of over 50 corporates for providing working capital
finance, trade services, corporate finance and merchant banking. It is
also providing sophisticated product structures in areas of foreign
exchange and derivatives, money markets and debt trading and equity
research.

Wholesale banking services

Blue-chip manufacturing companies in the Indian corp to small & mid-

sized corporates and agri-based businesses. For these customers, the
Bank provides a wide range of commercial and transactional banking
services, including working capital finance, trade services, transactional
services, cash management, etc. The bank is also a leading provider of
for its to corporate customers, mutual funds, stock exchange members
and banks.
Retail banking services

The objective of the Retail Bank is to provide its target market customers
a full range of financial products and banking services, giving the
customer a one-stop window for all his/her banking requirements. The
products are backed by world-class service and delivered to customers
through the growing branch network, as well as through alternative
delivery channels like ATMs, Phone Banking, NetBanking and Mobile
Banking. HDFC Bank was the first bank in India to launch an
International Debit Card in association with VISA (VISA Electron) and
issues the Mastercard Maestro debit card as well. The Bank launched its
credit card business in late 2001. By March 2009, the bank had a total
card base (debit and credit cards) of over 13 million. The Bank is also
one of the leading players in the “merchant acquiring” business with over
70,000 Point-of-sale (POS) terminals for debit / credit cards acceptance
at merchant establishments. The Bank is well positioned as a leader in
various net based B2C opportunities including a wide range of internet
banking services for Fixed Deposits, Loans, Bill Payments, etc.

Treasury

Within this business, the bank has three main product areas - Foreign
Exchange and Derivatives, Local Currency Money Market & Debt
Securities, and Equities. These services are provided through the bank's
Treasury team. To comply with statutory reserve requirements, the bank
is required to hold 25% of its deposits in government securities. The
Treasury business is responsible for managing the returns and market
risk on this investment portfolio. this is all about HDFC.

Distribution network
An HDFC Bank Branch

HDFC Bank is headquartered in Mumbai. The Bank has an network of

1725 branches spread in 780 cities across India. All branches are linked
on an online real-time basis. Customers in over 500 locations are also
serviced through Telephone Banking. The Bank has a presence in all
major industrial and commercial centres across the country. Being a
clearing/settlement bank to various leading stock exchanges, the Bank
has branches in the centres where the NSE/BSE have a strong and
active member base.

The Bank also has 5,016 networked ATMs across these cities.
Moreover, HDFC Bank's ATM network can be accessed by all domestic
and international Visa/MasterCard, Visa Electron/Maestro, Plus/Cirrus
and American Express Credit/Charge cardholders.

SWOT ANALYSIS

STRENGTH
 Goodwill of company
  Financially a very strong company
 Effective well designed and developed production and marketing
network.
 Superior quality and service to provide maximum benefits to
customers.
 The family environment in the company.
 Dedicated work force.
 Continuous growth.
 Market share of the company.
 Tax benefit to the company.

WEAKNESSES
 Less number of channel partners.
 High cost of equipments as compared to competition.

OPPORTUNITY
 There must be more efficient utilization of the dealer network.
 There is a huge opportunity in consumables sales.
THREATS

 New entrants in the business

 Threats of substitute products.
 Availability of the other brands.
 Rivalry among the competitions.
 Preference of customers.
Departments/ hierarchy of the HDFC Bank
There are mainly six departments of the company. These are as
follows
 UNIT HEAD

Human Maintenan
Accounts Production Purchase Quality
resource ce

Officers
Officers
Officers Officers
Officers Officers
Literature of review

The purpose of this policy is to ensure that we win through quality in the
market place. This means that we must do every thing to ensure
consistent delivery of quality products to the customers every time.
Our commitment to quality and safety will be reflected in every
action and is non negligible. That means:
 All ingredients used in our factories always meet specified quality
standards.
 All factories and depots maintain high standard which ensures that
our products are safe for consumption.
 Our manufacturing products always ensure delivery of products
consistent with product and pack specifications which are free from
contamination.
 Our supply chain practices enable delivery of products to our
customers.

We will fulfill these objectives through:

 Investing in appropriate technology and equipping our
factories adequately.
 Working collaborates with our business partners to create
‘win win’ business outcomes.
 Developing process which enable consistent delivery of
quality products to our customers.
Continually training and retraining our employees and business partners
to create a culture that values quality and safety as the core pillars of our
business.
RESEARCH METHODOLOGY
 RESEARCH METHODOLOGY

Research Methodology is a way to systematically solve the research

problem. It may be understood as a science of studying how research is
done scientifically. It is necessary for the researcher to know not only the
research methods/techniques but also the methodology.

Research design is a conceptual structure with the help of which

research is conducted. There is no unique method which can entirely
eliminate the elements of undertaking both research methodologies
more than any other procedures can minimize the degree of uncertainty.
Thus it reduces the probability of making a wrong choice amongst the
alternative course of action. In this research descriptive research design
is being used. A descriptive research study is concerned with describing
the characteristics of the particular field of group. The study is done for
specific purpose with the help of facts collected but car should be taken
the information should be free from bias and should be reliable.
Research process consists of a number of closely related activities. But
such activities overlap continuously and do not follow a strictly
prescribed sequence.

Various steps involved in a research process are not mutually exclusive;

nor are they separate and distinct. They do not necessarily follow each
other in any specific order and the researcher has to be constantly
anticipating at each step in the research process the requirements of the
subsequent steps. However, the following order concerning various
steps provides a useful procedural guideline regarding the research
process. The design includes the following steps:-

1. Formulating the research problem;

2. Extensive literature survey;

3. Developing the hypothesis;

4. Preparing the research design;

5. Determining sample design;

6. Collecting the data;

7. Execution of the project;

8. Analysis of data;

9. Hypothesis testing;

10. Generalizations and interpretation;

11. Preparation of the report or presentation of the results.

RESEARCH OBJECTIVE

OBJECTIVE OF THE STUDY

The objective for doing my research report is to make my self capable

for moving forward in corporate world, to gain knowledge & experience &
know how to work in the HDFC Bank environment. It will help me to
gain more & more about corporate sector, which was very essential for
me to do. Therefore I joined HDFC Bank Lucknow to improve my
capabilities.
MAIN OBJECTIVE

 To Know about the existing system of Performance Appraisal in

HDFC Bank ”
 To study the awareness of the employees regarding the appraisal
system in HDFC Bank .
 To evaluate the effectiveness of appraisal system in HDFC Bank .
 To know the satisfaction of the employees, with the appraisal system
followed in HDFC Bank .

SUB-OBJECTIVE
 Are the present performance appraisal is sufficient enough to
analyze the ability of a HDFC Bank .
 To see the difference between the theoretical knowledge &
practical knowledge.

SCOPE OF THE STUDY

It provides useful information for research and also introduces the
researcher with the practical problem faced in the company. This
research is very important for any Human Resource student to gain a
real time experience. I have done my research in HDFC Bank in
Performance Appraisal.
There are many departments in HDFC Bank but my research work is
confined with Human Resource department where I studied that how the
Performance Appraisal method should be done.
Sample design
The collection of raw data allows the managers to see the real scenario
and then take a decision as per the data obtained. The sample design is
exploratory.

Defining the Sampling method- The sampling method chosen were-

Simple Random Sampling-

Every customer we surveyed irrespective of any pvt. bank is a potential

customer

Convenience Sampling-

A convenience sample chooses the individuals that are easiest to

reach or sampling that is done easy. Convenience sampling does not
represent the entire population so it is considered bias. We have used
our own contacts and resources to target potential customers from local
private and government offices. The purpose of using this sampling is to
get the employees.

Sample plan
1-The primary objective of the research is performance appraisal of the
employees of Pvt. sector bank.
2-The secondary objective of research is to prove that performance
appraisal of the employees is more than that of the employees of HDFC
Bank .
To suggest ways to increase the level of job satisfaction level can also
be increases.

Sample techniques:- – The next step is to determine the sources of

data. The researcher has to decide whether he has to collect primary
data or depend exclusively on secondary data. Sometimes research
study based on both primary and secondary data.
In today’s world correct information is the key to success. Data that is
used in this project basically comprises of Primary.

Primary data – Primary data is the data that is not already available.
Primary data collection is necessary when a researcher cannot find the
data needed in secondary sources, surveys and experiments. 

Three basic means of obtaining the primary data are:

i.) Surveys.
ii.) Experiments.
iii.) Observation.
The choice will be influenced by the nature of the problem and by the
availability of time and money.

The mode that is used in this project for collecting the primary data are
surveys, books and Data provided by the HDFC Bank and for
secondary data is Internet. Surveys or questioning involve using a
questionnaire (data collection instrument) to ask respondents questions
to secure the desired information. The data was collected by
approaching individually to the customers depending upon their
interests.

The data collection from two sources:

Primary data:-
It was collected through the survey of employees of HDFC Bank
Secondary data:-
It was collected from internet, various books, newspapers and company
literature.
Research instruments:-
Pie chart, table
DATA ANALYSIS AND FINDING
 FINDING

It is evident from the finding of the data that there are 33% of
employees of HDFC Bank who are highly satisfied with their jobs.
Almost 37% employees of HDFC Bank are satisfied. More over there
are 30% and 20% of employees who have an overall neutral attitude
towards their performance appraisal in HDFC Bank respectively.
The percentage of dissatisfied employees of HDFC Bank is 5%
which is much lower Recommendations were made to the concerned
authorities of HDFC Bank
 LIMITATION OF RESEARCH

It is not possible to remove the limitation of any investigator. So this

project also has certain limitations that are as –

1) Information was gathered through the rating of the subject, thus

biasness is possible.

1. As the sample size was small it is possible that it may not

represent the precise picture. The survey has been conducted
only in a few area of Lucknow city due to limeade time.
2. It is very difficult to make brand loyalty to understand the
significance of conducting survey.
3. Lack of employee’s interest to answer the questions is also an
important limitation.
4. Lack of knowledge of area has also affected the research.
5. Information was gathered through the rating of the subject, thus
biasness is possible.
6. As the sample size was small it is possible that it may not
represent the precise picture.
7. Since the feedback of the customer’s loyalty was done through
Questionnaire major limitation was unavailability of customer’s
loyalty thus leading to highly low success rate.
8. Most of the employees were so furious that they refused to part
with any information
9. Time factor
RECOMMENDATIONS AND SUGGESTION
 RECOMMENDATIONS AND SUGGESTION

The following recommendations and suggestion on the basis of the data

collected can be made the concerned authorities of performance
appraisal in HDFC Bank :-

1. It was found that the employees were particularly dissatisfied with

the level of salary. In consonance with the Maslow’s theory the
monetary remunerations is required for full filling the first two
lower level needs, which is not up to the mark and fails to satisfy
the employees. Now unless the lower level needs will be full fill
there are remote chances that the employees can full fill or even
sense the need for existence of any high level needs.

2. In accordance with the Hertzberg dual structure model of

performance appraisal the motivators such as salary, supervision,
company policy and administration, technical supervision, working
condition should be improved to increase the among the
employees. And factors like advancement that is the hygiene
factors.

3. Suggested by Hertzberg is also an important determinant in

performance appraisal and should be improved so that the
employees are not dissatisfied with their jobs.

4. The employees of HDFC Bank were neutral towards a large

number determinants of job satisfaction including the job it self, the
degree of motivation and the like. On the other hand there was
high degree of motivation in the employees of Pvt. sector bank.
 Therefore proper attention should be given to motivate the
employees of pvt sector bank towards their job.

The following recommendations are made to the employees that

they can increase their performance appraisal:-

1. They should first decide, depending upon their abilities, which

performance appraisal they want to do and should only take
careers, which is interesting to them .

2. The performance appraisal should be chosen according to the

aptitude to the employees. This will lead to greater level of
learning, achievement and ultimately motivation in the
employees to the excel.

3. The employees should make sure that they do not let their
personal tension affect their work. They should keep their
personal relationships harmonious.

4. Physical health affects the level of performance appraisal.

Proper care should be taken by employees in this respect

5. Employees should put in their best in their jobs so that their is

no fear of loosing their performance appraisal.

.
CONCLUSION
 CONCLUSION

1) The hypothesis of study that “comparative analysis of HDFC Bank

on performance appraisals system” is proved. It is evident from the
interpretation of data that there are 33% of employees of HDFC Bank
who are highly satisfied with their job. More over there are 30% and 20%
of employees who have an overall neutral attitude towards their job in
pvt. Sect bank. The percentage of dissatisfied employees in HDFC
Bank is 12% which is much higher than 5% of HDFC Bank .

2) employee of HDFC Bank were found to be highly satisfied with

aspects such as communication and information flow manner in which
their efforts are valued, job itself, carrier opportunities, methodology by
which change or innovation is implemented, scope the job offers to
realize the aspirations and ambitions, skills, utilizations, HDFC Bank
climate and level of salary with respect to experience as compared to
those of multinational corporations who are not satisfied with level of job
security, communication an information flow and level of salary with
respect to experience.

3) The employees HDFC Bank were satisfied with aspect such as

interpersonal relationship, evaluation of efforts, degree of motivation,
current carrier opportunities, extent of involvement and identification with
the HDFC Bank goals and image, nature of supervision manners in
which tasks are required to be performed, extent to which personal
growth and development is possible, method of conflict resolution, scope
the job offer for realization of aspiration and ambitions, extent of
participation in important decision, flexibility and independence allowed,
quantity of work expected are allotted and feeling of extension in
performance appraisal, where as the employees HDFC Bank were
found to be satisfied in aspects such as interpersonal relationship
evolution of efforts degree of motivation, current carrier opportunities,
extent of involvement and identification with the HDFC Bank goals and
image, method of conflict resolution, degree of skill utilization, level of
salary.

4) The employees HDFC Bank were found to be neutral in aspects such

HDFC Bank structure where as the employees of the Pvt. sector
undertakings were found to be neutral in aspect such as job it self
degree of motivation current carrier opportunities, nature of supervision,
methodologies of change implementation extent to which personal
growth and development is possible, scope the job offer for realizations
of aspiration and ambitions, flexibility and independence allowed, HDFC
Bank structure quantity of work expected or allotted.

5) The employees of the HDFC Bank were found to be dissatisfied

particularly with level of salary and were found to be highly satisfied with
the level of performance appraisal.
 BIBLIOGRAPHY

Magazines:
 Business Today January 2, 2005 “India’s Best Banks”
 Pitch: Marketing at crossroads December 15- January 14, 2004/05
“Banking ON Emotional Bonding”
.Books:
 Newman A.J. and Cullen P - Banking: Environment and
Operations
 C.R. Kothari Research methodology
Websites:
 www.hdfcbank.com
 www.google.com
 QUESTIONNAIRE
Dear respondent:-
Given here are some question based on various aspects of performance
appraisal . You have to rate them according to what you feel, starting
from high satisfaction to low satisfaction. Tick the desired answer.
_________________________________________________________
__________HS: Highly satisfied S: Satisfied N: Neutral
D: Dissatisfied HD: Highly Dissatisfied
_________________________________________________________
__________

Q.1:- Communication and information flow in your HDFC Bank :-

HS S N D HD

Q. 2:- Interpersonal relationships in HDFC Bank ?

HS S N D HD

Q. 3:- Feeling about the manner in which your effects are valued:-
HS S N D HD

Q. 4:- The job itself?

HS S N D HD

Q. 5:- Degree of motivation as for the job is concerned:-

HS S N D HD
Q. 6:- Current carrier opportunities:-
HS S N D HD

Q.7:- The level of job security in HDFC Bank :-

HS S N D HD

Q. 8:- Extent of your involvement and identification with the HDFC Bank
goals and image:-
HS S N D HD

Q. 9:- The nature of supervision:-

HS S N D HD

Q. 10:- The methodology by which change / innovation is

Implemented in the HDFC Bank :-
HS S N D HD

Q. 11:- The manner of tasks you are required to perform. :-

HS S N D HD

Q. 12:- The extent to which personal growth and development is possible:-

 HS S N D HD

Q. 13:- The methods of conflicts resolution in your HDFC Bank :-

HS S N D HD

Q. 14:- The scope of your job offer for you realize your aspiration and ambition :-
HS S N D HD

Q.15:- The extent of your participation in important decision. :-

HS S N D HD

Q. 16:- The degree to which your skills are utilized:-

HS S N D HD

Q.17:- Flexibility and independent allowed:-

HS S N D HD

Q.18:- The HDFC Bank climate:

HS S N D HD

Q.19:- Your level of salary with respect to your experience:-

 HS S N D HD

Q.20:- Your satisfaction with the HDFC Bank structure:-

HS S N D HD

Name:
Age:
Designation:
Name of HDFC Bank :
Thank you, for your time and input