Performance Appraisal
Performance Appraisal
Performance Appraisal
ICICI Bank.
Secondary objectives:
To study the various types of performance appraisal system.
To study about the periodicity of performance appraisal required.
To understand the practical aspect of Performance Appraisal in
banking scenario.
INTRODUCTION TO BANKING
INDUSTRY
A bank is a well regularized and licensed financial institute to assist the
government-owned bank that traces its origins back to June 1806 and that
is the largest commercial bank in the country.
in 1935 formally took over these responsibilities from the then Imperial
Bank of India, relegating it to commercial banking functions.
& framing policy govt. through its budget affects the banking activities
securitization act has given more power to banking sector against
defaulting borrowers.
ECONOMIC FACTORS
Every year RBI declares its 6 months policies & accordingly the various
measures and rates are implemented which has an impact on the banking
sector.
In past 24 months RBI has changed its key monetary rates 13 times to curb
banking channels.
SOCIO-CULTURE FACTORS
TRADITIONAL MAHAJAN PRATHA
Before birth of banks people used to borrow money from local moneylenders,
shahukars, shroffs.
CHANGE IN LIFESTYLE
Lifestyle of people is changing rapidly & they are demanding high class products. They
banks. Banks would open their branches after looking into the population demographics
of the area.
LITERACY RATE
Literacy rate in India is very low compared to developed countries. Illiterate people
hesitate to transact with banks. So this impacts negatively on banks. But there is a
positive side as well i.e., illiterate people trust more on banks to deposit their money,
they do not have market information.
TECHNOLOGICAL FACTORS
introduced.
ENVIRONMENTAL FACTORS
more than half of the Indian GDP. It takes one step closer to
the developed economies of the world.
LEGAL FACTORS
Banking Industry :
b) INTERVENTION BY RBI
The RBI will intervene to smooth sharp movements in the
rupee & prevent a downward spiral in its value, but will
balance this with the need to retain reserves in the event of
prolonged turbulence.
Public
Traded as
NSE: SBIN
BSE: 500112
LSE: SBID
BSE SENSEX Constituent
Industry
Founded
1 July 1955
Headquarters
Area served
Worldwide
Key people
Products
Revenue
Profit
Total assets
Total equity
Owner(s)
Government of India
Employees
292,215 (2012)
32
countries
engaging
currency trade all over the
world.
WEAKNESS
Lack of proper technology
driven
services when compared to private banks.
OPPORTUNITY
SBIs merger with five more banks
THREAT
Net profit of the year has decline
Young
ICICI BANK
Type
Public
Traded as
BSE : 532174
NSE : ICICI BANK
NYSE : IBN
BSE SENSEX Constitution
Industry
Founded
1955
Headquarters
Area Served
Worldwide
Key People
K.V. Kamath (Non-executive Chairman) & Chanda Kochhar (MD & CEO)
Products
Revenue
Total assets
Total equity
WEAKNESS
Customer support of ICICI section is
The
bank service
comparatively higher.
charges
are
OPPORTUNITY
Banking sector is expected to
THREAT
RBI allowed foreign banks to
In
PROCESS OF PERFORMANCE
APPRAISAL
TECHNIQUES OF
PERFORMANCE APPRAISAL
Branch Manager.
In many small branches, the branch manager may initiate the performance
appraisal process.
Every year it is the branch managers duty to send a letter regarding performance
of the employees to the higher authorities like Deputy General Manager and
General Manager.
The higher authorities then take appropriate decision regarding the service of the
employees and the amount of his contribution made towards the development of
the business.
method the subordinate in consultation with the supervisor chalks out short
term objectives followed by specific actions that he has to carry out.
The goals are finally set and are action oriented.
The goals set are
specific,
measurable,
achievable,
review able and
time bound
and most importantly they use to be aligned with the goal of the
organization.
At the end of a specified time period, the activities are jointly reviewed by
both the subordinate and his supervisor. Depending on the performance of
the subordinate, the goals are modified or redesigned for the next period of
time.
RESEARCH METHODOLOGY
DATA COLLECTION
Qualitative Data
Survey
Questionnaires
RESEARCH DESIGN
Descriptive Research Design
SAMPLE SIZE
50 Respondents
SAMPLING FRAME
Non-Probability Sampling
Convenience
QUESTIONNAIRE
1. Are you aware about the banks performance appraisal system?
3. Does appraisal system of your bank facilitate career growth & learning?
18. How often did you speak, or discuss about your performance with
your superiors?
19. Training & development programs improve the quality of the employees?
20. Do you think the present appraisal system of your bank is effective to
increase your performance?
HYPOTHESIS TESTING
Z TEST
Null Hypothesis (H0) (1 - 2 = 0) - The Performance Appraisal is not
Sample 2 (SBI)
x1 = 1.76
x2 = 1.2
S12 = 0.5044 S22 = 0.3941
n1 = 25
n2= 25
z =
(x1 - x2) ( 1- 2)
S12 / n1 + S22 / n2
=
(1.76 1.2) (0)
0.5044 / 25 + 0.3941 / 25
= 2.95
RESULT OF Z TEST
Since the calculated value of z =2.95 > the critical or table
CHI-SQUARE TEST
Null
is a
relationship between who should do the
appraisal and the effectiveness of appraisal
system to increase the performance.
df
Pearson Chi-Square
2.813a
.421
Likelihood Ratio
3.783
.286
Linear-by-Linear Association
.038
.846
N of Valid Cases
25
In Chi-Square test the crosstabs commands the rows include the Who should do
the appraisal and the columns include the Do you think the present appraisal
system of your bank is effective to increase your performance.
The first line of the Chi-Square Tests table gives the results from the chi-
squared test of independence. The Asymp. Sig. in the Chi-Square Test is 0.421.
At the 95% confidence level, the exact test finds no evidence of an association
calculated value i.e., 0.421 is less than the tabulated value i.e., 1.145.
Therefore, accept H0 i.e., There is no relationship between who should do the
df
Pearson Chi-Square
7.857a
.249
Likelihood Ratio
9.682
.139
.162
N of Valid Cases
25
In Chi-Square test the crosstabs commands the rows include the Who should do
the appraisal and the columns include the Do you think the present appraisal
system of your bank is effective to increase your performance.
The first line of the Chi-Square Tests table gives the results from the chi-
squared test of independence. The Asymp. Sig. in the Chi-Square Test is 0.249.
At the 95% confidence level, the exact test finds no evidence of an association
calculated value i.e., 0.249 is less than the tabulated value i.e., 1.145.
Therefore, accept H0 i.e., There is no relationship between who should do the
In Chi-square test the calculated value in State Bank of India is 0.421 and in ICICI
Bank it is 0.249.
While comparing both the banks it shows that the appraisal system of State Bank of
India is more effective then ICICI bank as per the response given by the
respondents.
From the results of Chi-Square of SBI and ICICI bank it shows that we accept null
FINDINGS
CRITERIA
SBI
ICICI BANK
100% 100%
100% 100%
96%
4%
44%
56%
Counseling
Formal
Informal
76%
24%
72%
28%
32%
68%
44%
56%
56%
44%
0%
28%
68%
4%
LIMITATIONS
Whenever the work is conducted by the human, there are errors or limitations to it. But as a
matter of fact they could not be eliminated completely. There is no concrete basis to prove
the response given is a true measure of the opinion of all the respondents as a whole.
I have tried my level best to remove errors and degrade the level of limitations. Though
there are some limitations related to my work as follows: Study is limited to selected banks and its branches.
Problems with confidential information.
Even after a lot of effort from my side some of the employees fear to supply the
RECOMMENDATION
Findings suggest that the SBI performance appraisal process is
ratee.
Finally and most importantly, the appraisal process must be part of a total
management system which considers the needs of the agency as well as the
public employee.
Performance Appraisal should be treated as an integral part of the bank
CONCLUSION
To summarize we can say that the Performance Appraisal an integral
THANK YOU