A

STUDY ON

PERFORMANCE EVALUATION

AT

CAPITAL IQ

A Project report submitted to Osmania University

In partial fulfillment for the Award of the Degree of

MASTER OF BUSINESS ADMINISTRATION

Submitted by

Y. JITENDRA REDDY

HT NO: 212120672138

UNDER THE GUIDANCE OF

--------------------------------------------

ARISTOTLE PG COLLEGE
(AFFLIATED TO OSMANIA UNIVERSITY,HYDERABAD)
RECOGNIZED BY UGC UNDER SECTION 2(F) OF UGC ACT 1956
BESIDE MOINABAD POLICE STATION,
CHILKUR, MOINABAD ,RANGA REDDY DISTRICT, TELANGANA.
2020-2022
 INTRODUCTION

Human resource management (HRM) is the strategic and coherent approach to the
management of an organization's most valued assets - the people working there who
individually and collectively contribute to the achievement of the objectives of the business

“Human resource management is a collective implementation of managerial functions

such as planning, organizing, directing and, controlling to reach the organization goals”

Human Resource Management: Scope

1. Personnel aspect-This is concerned with manpower planning, recruitment, selection,

placement, transfer, promotion, training and development, layoff and retrenchment,
remuneration, incentives, productivity etc.

2. Welfare aspect- It deals with working conditions, facilities and amenities such as canteens,
rest and lunch rooms, housing, transport, medical assistance, education, health and safety,
recreation facilities, etc.

3. Industrial relations aspect- This covers union-management relations, joint consultation,

collective bargaining, grievance and disciplinary procedures, settlement of disputes, workers
participation in management etc.

Functions of HRM:

Based on the organization of task and implementation of methods we have two types
of functions, they are:

 Managerial functions and

 Objective functions

Managerial functions are also called the core functionalities of human resource
management, which deal with the planning, organizing, Directing and, Controlling. Among
these directing is also called the Leading.

Objective functions are the active functionalities of human resource management

which have substantial organizing capability in according with requirements of the
organization. These are drawn from the managerial functions for successful achievement of
the organizational tasks. These include the...

Employee evaluation is the major task for an organization because employee

performance will be done and motivation factor to the extent of the employee requirement. It
includes the Conducting the performance appraisal, feedback generation, giving the extra
inputs that requires for the employee, compensation planning, Reviewing and auditing
manpower management in the organization… etc.

Performance Evaluation is defined as a formal and productive procedure to measure

an employee's work and results based on their job responsibilities. ... Performance
evaluation also plays a direct role in providing periodic feedback to employees, such that
they are more self-aware in terms of their performance metrics. Performance evaluation is
the process of evaluating how effectively employees are fulfilling their job responsibilities
and contributing to the accomplishment of organizational goals. To appraise performance
effectively, a manager must be aware of the specific expectation for a job, monitor the
employee’s behavior and results, compare the observed behavior and results to expectations
and measure the match between them.

In most cases, a manager should also provide feedback to employees, a process that can
produce strong reactions.

Performance evaluations are extremely important to an organization, although they may be

difficult to conduct. They tell organizations whether their selection methods are right.

They demonstrate where training, development and motivational programs are needed and

later help to assess whether these have been effective.

As a matter of fact, many organizational policies and practices are evaluated, in large part,
through their impact on performance.
Performance evaluations, after all, are the basis on which managers make decisions about
compensation, promotion, and dismissal.

They also use feedback about people’s performance to recognize them for a job well done
and motivate them.

In short, without a good judgment of the employee’s performance, managers find it very
difficult to identify and encourage organizational effectiveness.

It is because formal Performance evaluations are so important that most organizations

systematically carry them out.

Definition of Performance Evaluation

Performance evaluation means many things to many people. It is a measurement process; it is

an exercise in observation and judgment; it is a feedback process.

It is a control device, which is used by the organization to accomplish its predetermined

goals.

Performance refers to an employee’s accomplishment of assigned tasks. Performance means

doing a job effectively and efficiently.

Performance evaluation is the process by which manager or consultant examines and

evaluates an employee’s work behavior by comparing it with preset standards, documents the
results of the comparison and uses the results to provide feedback to the employees to show
where improvements are needed and why.

Performance evaluation is that part of the performance assessment and management process
in which an employee’s contribution to the organization during a specified period of time is
assessed.

Performance evaluation is the assessment of an individual’s performance in a systematic way.

Such appraisal also has been called employee rating, employee evaluation, performance
review, performance evaluation, and results appraisal. It is widely used for administering
wages and salaries, giving performance feedback, and identifying individual employee
strengths and weaknesses.

Performance evaluation is a systematic process of evaluating how well employees are

performing their jobs. The appraisal is based on results obtained by the employee in his/her
job, not on the employee’s personality characteristics.

It is a developmental tool used for all-round development of the employee and the
organization. The performance is measured against such factors as job knowledge, quality
and quantity of output, initiative, leadership abilities, supervision, dependability, co-
operation, judgment, versatility, and health. Assessment should be confined to the past as
well as potential performance also.

Performance evaluation is a system of review and evaluation of an individual or team’s job

performance. An effective system assesses accomplishments and evolves plans for
development.

Performance management is a process that significantly affects organizational success by

having managers and employees work together to set expectations, review results, and reward
performance.

Its goal is to provide an accurate picture of past and/or future employee performance. To
achieve this, performance standards are established.

Ad by Valueimpression
“Performance evaluation is the systemic evaluation of the individual respect for this
performance on the job and his potential for development.” – Beach

According to Gary Dessler, “Performance evaluation means evaluating an employee’s current

and/or past performance relative to his performance standards.”

According to Keith Davis, “Performance evaluation is the process by which organizations

 evaluate individual job performance.”

Performance means to do something and appraisal means to decide the value of the work
done.

Thus Performance evaluation means deciding the value of the work done by an individual.
Traditionally Performance evaluation has been used as a control mechanism for salary
administration, reward, promotion, and punitive actions.

Performance evaluation;

 is the systematic evaluation of the performance of employees and to understand the abilities
of a person for further growth and development,

 is a process of evaluating an employee’s performance of a job in terms of its requirements,

 is the process of evaluating the performance of employees, sharing that information with
them and searching for ways to improve their performance,

 provides the basis for assessment of employee contributions, coaching for improved
performance and distribution of economic rewards,

 refers to the outcome of the behavior of employees.

Thus, Performance evaluation means deciding the value of work done by an individual. It is a
process by which organizations evaluate individual job performance.

Each employee should receive a thoughtful and accurate appraisal. The success of the process
depends on the supervisor’s willingness to complete a constructive and objective appraisal
and on the employee’s willingness to respond to constructive suggestions and to work with
the supervisor to reach future goals.
 CHAPTER-II
REVIEW OF LITERATURE

In some form, most organizations have an overall plan for business success. The employee
performance evaluation process, including goal setting, performance measurement, regular
performance feedback, employee recognition, and documentation of employee progress,
ensures this success. The performance evaluation process—done with care and understanding
—helps employees see how their jobs and expected contributions fit within the bigger picture
of their organization.

The more effective employee performance evaluation processes accomplish these goals and
have additional benefits. Documented employee performance evaluations are communication
tools that ensure the supervisor and her reporting staff members are clear about the
requirements of each employee’s job. The employee performance evaluation also
communicates the desired outcomes or outputs needed from each employee’s job and defines
how they will be measured.

Goals of Employee Performance Evaluation

These are goals of an effective employee evaluation process.

 The employee and the supervisor are clear about the employee’s goals, required
outcomes or outputs, and how the success of the contributions will be assessed.
 The goals of the best employee performance evaluations are also employee
development and organizational improvement. The employee performance evaluation
helps employees accomplish both personal development and organizational goals. The
act of writing down the goals takes the employee one step closer to accomplishing
them.

Since goals, deliverables and measurements are negotiated in an effective employee

performance evaluation, the employee and the supervisor are committed to achieving
them. The written personal development goals are a commitment from the
organization to assist the employee to grow in his or her career.
 Employee performance evaluation provides legal, ethical, and visible evidence that
employees were actively involved in understanding the requirements of their jobs and
 their performance. The accompanying goal setting, performance feedback, and
documentation ensure that employees understand their required outputs.

In the event that an employee is not succeeding or improving in his job performance,
the performance evaluation documentation can be used to develop a Performance
Improvement Plan (PIP). This plan provides more detailed goals with more frequent
feedback to an employee who is struggling to perform. The goal is improvement but
non-performance can lead to disciplinary action up to and including employment
termination.
 In many organizations numeric rankings are used to compare an employee’s
performance with the performance of other employees. Numeric ratings are frequent
components of these systems, too. No matter how fair and non-discriminatory, these
ratings are made to appear through endless establishment of criteria for rating, they
basically boil down to the supervisor’s opinion of an employee’s performance. This is
why I don’t particularly support numeric components in a employee performance
evaluation process.
 The employee performance evaluation provides evidence of non-discriminatory
promotion, pay, and recognition processes. This is an important consideration in
training supervisors to perform consistent, regular, non-discriminatory employee
performance evaluations. The documentation of success and failure to achieve goals is
a critical component of the employee performance evaluation process.

While employee performance evaluation systems take many forms from organization to
organization, these are the components likely to be included. Some are more effective than
others. But the goals for the employee performance evaluation system, or the evaluation
process, or the performance management process are similar. The differences appear in the
approach and the details. And, that can make all the difference in how the system is perceived
by and carried out by employees.

Second only to firing an employee, managers cite performance evaluation as the task they
dislike the most. This is understandable given that the process of performance evaluation , as
traditionally practiced, is fundamentally flawed. It is incongruent with the values-based,
vision-driven, mission-oriented, participative work environments favored by forward thinking
organizations today. It smacks of an old fashioned, paternalistic, top down, autocratic mode
of management which treats employees as possessions of the company.

The Traditional Performance Evaluation Process

In the conventional performance evaluation or review process, the manager annually writes
his opinions of the performance of a reporting staff member on a document supplied by the
HR department. In some organizations, the staff member is asked to fill out a self-review to
share with the supervisor.

Most of the time, the evaluation reflects what the manager can remember; this is usually the
most recent events. Almost always, the evaluation is based on opinions as real performance
measurement takes time and follow-up to do well. The documents in use in many
organizations also ask the supervisor to make judgments based on concepts and words such
as excellent performance (what's that?), exhibits enthusiasm (hmmm, laughs a lot?) and
achievement oriented (likes to score?).
 CHAPTER-III
RESEARCH METHODOLOGY

NEED OF THE STUDY:-

 Performance evaluation System acts as most important link in Human

Resource Management
 Ensure the organizational hierarchy is in line with challenges industry and
sustains competence
 Provide updated information which helps to counsel the candidate
 Provide information about the performance ranks basing on which decision
regarding salary, allowances and other perks are to be taken
 Provide information to diagnose efficiency in employee regarding skill,
knowledge etc
 Prevent grievances and in disciplinary activities

SCOPE OF THE STUDY:-

 Seeks to analyze the current Performance evaluation system objectively and

as critically as possible
 Make recommendations on possible changes to improve efficiency
 Increase relevance of Performance evaluation system to expanded ambit of
services offered
 Adequate bi-directional communication between employees and employer
to ensure satisfaction on both sides
OBJECTIVES OF THE STUDY:-

1) To study the Performance evaluation method being conducted by the

CAPITAL IQ
2) To analyze the awareness and satisfaction of the employee
3) To identify how far organization succeed in conducting performance
appraisal
4) To evaluate the current Performance evaluation system and make
necessary suggestions
 RESEARCH METHODOLOGY

“Research is simply a systematic and refined technique of thinking, employing specialized

tools, instruments, and procedures in order to obtain a more adequate solution of a problem
than would be possible under ordinary means. It starts with a problem, collects data or facts,
analyze these critically and reaches decisions based on the actual evidence. It involves
original work instead of mere exercise of personnel. It evolves from a genuine desire to know
rather than a desire to prove something. It is quantitative, seeking to know not only what but
how much, and measurement is therefore, a central feature of it.”

RESEARCH DESIGN

Work Performance evaluation systems assess the employee's effectiveness, work habits and also
the quality of the work produced. The research methodology used to evaluate the accuracy and
effectiveness of the appraisal instrument takes different forms and depends on the type of career
professional under the microscope for evaluation, but the foundation for all evaluations rests on
several basic research techniques. The evaluation methodology corroborates the original
employee evaluations and performance appraisals through supporting multiple research reporting
measures.

OBJECTIVES:
 To study the Performance evaluation method conducting by the ICICI Bank Limited
 To analyze the awareness and satisfaction of the employee in the organization
 To identify how far organization succeed in conducting performance appraisal

STUDY AREA AND PROBLEM DEFINITION:

Conducting study on Performance evaluation at CAPITAL IQ, Hyderabad which is having all
type of employees as it is private sector bank. Rating Scale Performance evaluation is being
used by the CAPITAL IQ for the last few years with effective and deliberate response from
the employees. Performance evaluation is one of the key factors for analyzing the employee
strength and weakness to provide compensation according to their performance which is for
the growth of the organization.
TYPE OF RESEARCH:
The present project is Descriptive in nature, the data based on facts collected with the help of
the tools and presented in the form of pie chart and bar-charts, and percentages, describing
present status of the appraisal technique adopted by the organization.

SOURCE OF DATA COLLECTION:

Data is the collection of the individual records in the form of numerical, words…etc for the
evidence of research. This can be done using the collection from different methods.
PRIMARY DATA:
The data that has been analyzed and observed by the researcher for the first time to the best of
their knowledge. It is considered more reliable.
 Primary data collected from Officers, Senior officers and Assistant Managers with
respect to the content like their satisfaction, knowledge, feedback, Objectives of
appraisal form…etc.

 Mode of data collection : Questionnaire and interview method

 Data collection tool : Questionnaire.

SECONDARY DATA: This data is the statistics not gathered form immediate study at hand
but for some other purpose. The secondary data for the study was collected mainly from
appraisal form, website.

SAMPLE DESIGN:

It is definite plan for obtaining a sample from a given population. It refers to the technique or
the procedure the researcher would adopt in selecting items for the sample.
POPULATION: It refers to the aggregate of data source or any aggregate from which data is
collected. Unrevised is the target group of study and is finite.
SAMPLE SIZE: A sample is a small portion of the population. In the study a sample of 80
employees who are Officers, Senior officers and Assistant Managers.

 Sample size : 80 employees(officers, senior officers and assistant managers)

TOOLS AND TECHNIQUES USED FOR ANALYSIS:

The basic tools used for the study were questionnaire and interview methods.
QUESTIONNAIRE: A questionnaire handed with officers, senior officers and assistant
managers based on the various aspects of Performance evaluation form. Questionnaire was
prepared on the basis content in appraisal form of the bank which is helpful to understand
and brings the awareness about the technique.

INTERVIEW: Continuous interaction with various industry people provided me knowledge

on various helpful industry activities. And satisfaction and assessment level employee,
training programs within in the organization came to figure in mind.
The following are the techniques used to analyze the data collected.
PIE DIAGRAM: The circle is divided into number of sectors representing the values of the
data in identifying the accurate distribution.
TABULATION: The classified data is represented in an orderly way and this calls for
systematic representation of data.

LIMITATIONS OF THE STUDY:-

 This study doesn’t suggest improvements in Performance evaluation for future given the
current global economic scenario with rampant protectionism
 It doesn’t suggest any radical reforms keeping adaptability of the current structure in
mind
 Its objective towards greater employee satisfaction might compromise some choices in
hand of employer
 It compares the existing system with other systems that are widely-followed but not
emerging ones
 CHAPTER-IV

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 CHAPTER-V

CHAPTERIZATION
CHAPTERIZATION
CHAPTER-1
INTRODUCTION

CHAPTER-2
REVIEW OF LITERATURE
CHAPTER-3
RESEARCH METHODOLOGY
 NEED OF THE STUDY
 OBJECTIVES OF THE STUDY
 SCOPE OF THE STUDY
 DATA COLLECTION
 LIMITATIONS OF THE STUDY
CHAPTER-4
INDUSTRY PROFILE
COMPANY PROFILE
CHAPTER-5
DATA ANALYSIS
CHAPTER-6
FINDINGS
CHAPTER-7
SUGGESTION & CONCLUSION
BIBLIOGRAPHY
ANNEXURES