KIRLOSKAR INSTITUTE OF ADVANCE MANAGEMENT STUDIES

Report On Performance Management System In Banking Sector

Submitted by: Ruchi Tiwari, (85) Priya Saklani, (88) Sakshi Vatsa, (89) Sarika Hablani,(91) Bhaumin Shah, (93) Shivi Agrawal (96) Sneha Shashi (101)

Submitted to: Prof. Nilanjan Sen Gupta

ACKNOWLEDGEMENT A report usually falls short of its expectations unless it is aided and guided by the right people at the right time. We humbly wish to mention that this report is not a fruit of our individual effort but of a number of people who have guided us and have associated with us throughout the span of the industry integration. First of all, we would like to acknowledge and express our deep sense of gratitude to Almighty God for showering his blessings upon us. We would like to thank our Director, Dr. Gopal Iyengar and Prof. Nilanjan Sen Gupta without whom we would never have been given the opportunity to associate ourselves with the industries so closely.

0bjective of the Study

To understand the concept of HR in special reference of Performance Appraisal

To understand the application of Performance Appraisal in banking sector

To understand the practical aspect of Performance Appraisal in banking scenario

To understand the modern trends emerging in Performance Appraisal

To understand the management approach towards Performance Appraisal

To understand the banking scenario of India

To gain the knowledge of the practical process of the Performance Appraisal

To view the aspect of Performance Appraisal from managerial perspective

To highlight the effectiveness of Performance Appraisal in banking sector

INTRODUCTION

Performance management is the process of creating a work environment or setting in which people are enabled to perform to the best of their abilities. Performance management is a whole work system that begins when a job is defined as needed. Manpower forms an integral and indispensible part of an organization. Keeping in mind their crucial role, the concept of performance management has gained popularity. It helps in tapping the potential of the manpower and facilitates all round development o the employees. In other words, performance appraisal can be defined as the procedures used to evaluate the personality, performance and potential of the employees of an organization. Performance appraisal is important as it provides feedback about the employees, develops a positive relationship and reduces the grievances among the members of an organization. Performance management gives you the tools to instill the desired qualities in your employees in order to get the job done. Development is not limited to only individuals in your workplace, but also addresses the performance of the team as a whole. All around employee development not only ensures the personal and professional growth of your employees, but also the expansion and improvement of your business. Evaluation of Individual Performance Evaluating and rating the performance of your employees on an individual basis is essential. This gives them a clear picture of where they presently stand, areas that they need to work on and what they are good at. This way, they can focus more on their weaknesses and work to strengthen those areas. You should make it company policy to issue performance reviews while providing your employees with the feedback that they need to perform better at their jobs. Remember - just as it is important to point out your employees' weaknesses and shortcomings, it is also essential to commend them on their strengths. Rewarding Your Employees Rewarding and appreciating your employees' efforts ensures that their level of their performance and consequently the performance of your business is not compromised. It ensures optimum productivity, performance and maximum profitability. Rewarding your staff for a job well done not only enhance their performance but also serves as a tool to keep them motivated. Therefore, performance management is an effective system that allows you to achieve the financial goals of your small business.

This report studies the performance appraisal with special reference to the banking sector. If there is one industry that has the stigma of being old and boring, it has got to be the banking industry. Coupling that with technological developments like internet banking and ATMs, the banking industry is obviously trying its hardest to shed its lackluster image. Yet, it is considered as the most important source of financing for most businesses. The common assumption that underpins much of financial performance research and discussion which led to improved functions and activities of the organizations. Three principal factors improve the financial performance of banks: institution size, asset management and operational efficiency. Banks today understand their revenue and profitability means they first must improve their performance. Good performance management is is essential as banks strive to manage risk, improve branch operations, design and execute more effective marketing campaigns, attract and retain more customers and increase profitability. Banking sector is one of the sectors where special attention is paid to performance appraisal systems. Several nationalized banks have changed their performance appraisal systems or are in the process of changing them. The State Bank of India is in the process of adopting an open system of performance appraisal. Its associate banks like the State Bank of Bikaner and Jaipur, State Bank of Mysore, State Bank of Hyderabad, State Bank of Indore, State Bank of Patiala, State Bank of Travencore, and State Bank of Saurashtra are likely to follow suit after a detailed experience of the SBI are available. Formal appraisal reports of staff are of recent origin in banks. When banks were small in size, decisions on salary and placement were taken on the basis of personal knowledge and were centralized. The decisions continue to remain centralized and, notwithstanding dispersion of branches and staff. The reports used now are sketchy and limited to a few personality traits like ability to work hard, obedience, sincerity etc. The rating of the staff on these parameters was either high or low. Elaborate appraisal forms, heavily loaded with assessment of personality traits, marked the second phase of development of appraisal practice in banks. It should however, be noted that appraisal on the basis of personality involves subjective judgements. In most of the banks that follow traditional appraisal methods, their officers are being appraised on the basis of the following parameters: General intelligence Job knowledge Inactive and resourcefulness Supervision Business capacity Ability to assess sound business propositions Dependability

Relationship with junior and senior colleagues Relationship with public Sociability etc.

Those of the banks that have changed their appraisal systems have normally performance related as well as trait based. Several banks also have self based appraisal as a part of the performance based appraisal. Self- appraisal formats have been adopted by the Corpoartion Bank, United Commercial Banks, Dena Bank, Bank of Baroda etc. MODELS OF PERFROMANCE APPRAISAL In performance appraisal, a model is a guide that indicates how best competencies could be fit into a performance appraisal. The models may be one- dimensional, mixed or three- dimensional. One dimensional model is based on the single factor of performance and the entire factor is on what is to be achieved. ONE- DIMENSIONAL MODEL In this model, people are not aware if the achievement is one- time or situational. The employees can adopt practices to boost their performance in the short run.

THE JOB

DEFINE WHAT RESULTS HAVE TO BE ACHIEVED

ACCOUNTABILITIES (OUTPUTS)

DEFINE A SET OF KEY OBJECTIVES AGAINST THE ACCOUNTABILITIES

REVIEW PERFORMANCE MIXED MODEL AGAINST THE KEY OBJECTIVES A performance appraisal process that combines planning, managing and reviewing both results and competencies is called a mixed model. Mixed models or the competency based model, as they may be called, for their added advantage are becoming the performance management model of the future. These models assess and reward both results and competencies demonstrated by the job.

THE JOB

DEFINE WHAT RESULTS HAVE TO BE ACHEIVED

PERFORMANCE CONTRACT

DEFINE HOW RESULTS HAVE TO BE ACHEIVED

DEFINE A SET OF KEY OBJECTIVES

+
DEFINE ASSET OFBEHAVIORAL OBJECTIVES AGAINST KEY COMPETENCIES

KEY COMPETENCIES (INPUTS)

REVIEW PERFORMANCE AGAINST KEY OBJECTIVES AND KEY COMPETENCIES

The mixed model represents a more powerful and long lasting model than a one- dimensional model. It provides a different perspective to performance management.

THREE DIMENSIONAL MODEL In the third dimension- the most important aspect customer fits into the model. The customer is involved in creating customer contract and providing feedback or performance review.

THE JOB

DEFINE WHAT RESULTS HAVE TO BE ACHIEVED

PERFORMANCE CONTRACT

CUSTOMER EXPECTATION

KEY OBJECTIVES

+
KEY COMPETENCIES

DEFINE HOW RESULTS HAVE TO BE ACHEIVED

CUSTOMER

REVIEW PERFROMANCE FEEDBACK AGAINST KEY OBJECTIVES AND KEY COMPETENCIES

It should however be kept in mind, that an appraisal cannot be effective and reliable unless and until the customer are trained so that they are able to overcome gender bias, personality bias and other kinds of bias. The leniency error, hallo effect and the thorn effect in the appraisal system can be corrected only through the appropriate training of the rater. The hallo effect is caused as a result of a good perception in one area leads to a good rating in all the areas. The thorn effect is caused due to a biased perception in on area leading to a bad rating in all the areas.

Motivation and Satisfaction

Performance appraisal can have a profound effect on levels of employee motivation and satisfaction - for better as well as for worse. Performance appraisal provides employees with recognition for their work efforts. The power of social recognition as an incentive has been long noted. In fact, there is evidence that human beings will even prefer negative recognition in preference to no recognition at all. If nothing else, the existence of an appraisal program indicates to an employee that the organization is genuinely interested in their individual performance and development. This alone can have a positive influence on the individual's sense of worth, commitment and belonging. The strength and prevalence of this natural human desire for individual recognition should not be overlooked. Absenteeism and turnover rates in some organizations might be greatly reduced if more attention were paid to it. Regular performance appraisal, at least, is a good start.

ICICI BANK company profile

Overview ICICI Bank is India's second-largest bank with total assets of Rs. 3,744.10 billion (US$ 77 billion) at December 31, 2008 and profit after tax Rs. 30.14 billion for the nine months ended December 31, 2008. The Bank has a network of 1,438 branches and about 4,644 ATMs in India and presence in 18 countries. ICICI Bank offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and through its specialized subsidiaries and affiliates in the areas of investment banking, life and non-life insurance, venture capital and asset management. The Bank currently has subsidiaries in the United Kingdom, Russia and Canada, branches in United States, Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar and Dubai International Finance Centre and representative offices in United Arab Emirates, China, South Africa,

Bangladesh, Thailand, Malaysia and Indonesia. Our UK subsidiary has established branches in Belgium and Germany. ICICI Bank's equity shares are listed in India on Bombay Stock Exchange and the National Stock Exchange of India Limited and its American Depositary Receipts (ADRs) are listed on the New York Stock Exchange (NYSE).

Performance Appraisal And Performance Management In ICICI Bank

The facilitation of high achievement by employees. Performance management involves enabling people to perform their work to the best of their ability, meeting and perhaps exceeding targets and standards. Performance management can be coordinated by an interrelated framework between manager and employee. Key areas of the framework to be agreed are objectives, human resource management, standards and performance indicators, and means of reward. For successful performance management in ICICI , a culture of collective and individual responsibility for the continuing

improvement of business processes needs to be established, and individual skills and contributions need to be encouraged and nurtured as the bank deals in service sector where the employees are the main factor of making the difference . One tool for monitoring performance management is Performance Appraisal that the banks use for rewarding its employees. For the bank, performance management is usually known as company performance and is monitored through business appraisal.

Reasons for Performance Appraisal in ICICI

Increase motivation to perform effectively Increase staff self-esteem Gain new insight into staff and supervisors Better clarify and define job functions and responsibilities Develop valuable communication among appraisal participants Encourage increased self-understanding among staff as well as insight into the kind of development activities that are of value Distribute rewards on a fair and credible basis Clarify organizational goals so they can be more readily accepted Improve institutional/departmental manpower planning, test

validation, and development of training programs

ICICI BANK PEFORMENCE APPRAISAL ENVIRONMENT

The bank is using the Management by Objectives (MBO) method. In this 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. The MBO is thus a performance oriented system. A well thought out MBO system provides multiple benefits. It establishes a link between the performance of the individual and the bank It is easy to implement because those who carry out the plan also participates in setting it up. Each employee becomes aware of the task he has to perform in the bank. This leads to better utilization of capacity and talent. It promotes better communication and information sharing. It provides guidelines for self evaluation as well as evaluation by the superior against set tasks and goals. It facilitates guidance and counseling.

The Effective Components of ICICI P .A System

Performance Planning (includes employee goal setting / objective

setting)

Ongoing Performance Communication Data Gathering, Observation and Documentation Performance Appraisal Meetings Performance Diagnosis and Coaching

An effective Performance Appraisal system in ICICI bank emphasizes individual objectives, Bank objectives and also mutual objectives. From the viewpoint of individual objective the Performance Appraisal talks about a) b) What How task well the the individual individual is has expected done to the do? task?

c) How can his performance be further improved d) His reward for doing well.

From the bank view point a Performance Appraisal should generate manpower information, improve efficiency and effectiveness serve as a mechanism of control and provide a rational compensation structure. In short the appraisal system establishes and upholds the principle of accountability in the absence of which bank failure is the only possible outcome. Finally, talking about mutual goals, the emphasis is on growth and

development, harmony, effectiveness and profitability of the bank The annual Performance Appraisal is usually done in two steps. First, the employees and their manager complete the Performance Appraisal form - doing a self assessment. Often the bank also uses a 60 degree feedback process, asking for input from peers. Secondly, the bank employees and manager participate in a formal Performance Appraisal interview. The appraisal form, used in the first step, consists of performance standards and criteria that are used to judge evaluate your performance. The items comprising your job description are usually the performance standards that are used in employees annual appraisal .The performance standards are derived from a job analysis, which is a detailed list of all of the skills involved in performing a task. For example, what are the skills necessary to perform a complete blood count? The criteria are used to determine the level of performance, which can be excellent, average, or poor (or alternatively meets, exceeds or does not meet standards). Once appraisal is complete, score is averaged and merit raise (if applicable)

In cases where the employee fails to improve his performance he is asked to leave the organization gracefully and a severance package is offered to him. If the employee refuses to leave then his service is terminated and no compensation is offered. This system is called rank and yank strategy. Advocates of this system feel that it continually motivates employees to better their performance since nobody would like to be included in the poor performance band. But the flip side of this strategy is that employees

become too competitive and team spirit is not nurtured.

SBI
OVERVIEW The State Bank of India (SBI) is the largest Indian Banking and Financial services company (by turnover and total assets) with its headquarters in Mumbai, India. The State Bank Group, with over 16,000 branches, has the largest banking branch network in India. SBI has 14 Local Head Offices and 57 zonal Offices that are located at important cities throughout the country. It also has around 130 branches overseas. It has a market share among Indian commercial banks of about 20% in deposits and loans. The State Bank of India is the 29th most reputed company in the world according to Forbes. State Bank of India initially had 7 associate banks under it, which are called as sister banks of India. They were the following:1. State Bank of Bikaner and Jaipur 2. State Bank of Hyderabad 3. State Bank of Travancore 4. State Bank of Mysore 5. State Bank of Patiala 6. State Bank of Saurashtra 7. State Bank of Indore

Recent awards and recognitions : Best Online Banking Award, Best Customer Initiative Award & Best Risk Management Award (Runner Up) by IBA Banking Technology Awards 2010 The Bank of the year 2009, India (won the second year in a row) by The Banker Magazine Best Bank Large and Most Socially Responsible Bank by the Business Bank Awards 2009 Best Bank 2009 by Business India

The Most Trusted Brand 2009 by The Economic Times Most Preferred Bank & Most preferred Home loan provider by CNBC Visionaries of Financial Inclusion by FINO Technology Bank of the Year by IBA Banking Technology Awards SKOCH Award 2010 for Virtual Corporation Category for its e-payment solution The Brand Trust report 11th most trusted brand in India

Performance Appraisal Process at SBI In State Bank of India, performance appraisal is done on yearly basis. It is carried out to judge the performance of employees in correlation with the fulfilment of goals, mission and vision of the bank. The immediate supervisor starts the process of performance appraisal. His observations regarding the employee are put in written and forwarded to the 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. Every employee is given a fixed monthly salary along with Dearness Allowance (DA), House Rent Allowance (HRA) City Compensatory Allowance (CCA) and increments. Generally an employee is given 1 increment annually. But if he is highly educated person in terms of his being a graduate or has completed a professional course, then he is given 2 increments. The increment given may vary from branch to branch as decided by the higher authority. The top management may also have the right to stop the increment for an employee in case he does not perform satisfactorily. During the process of Performance Appraisal, the employee is judged on the following aspects and given points out of a total of 100 points. Behavior: The behavior of employee towards customers, his subordinates, his superiors and his peer group members is noted. The behavior of employee towards minority customers is also kept in mind. Assistance and Implementation of Guidelines: The helping nature of employee is stressed upon in this criterion. The help that he provides to his subordinates and peer group is noted. Also the guidelines given to the employee by his senior members is seen. The employee is required to implement the guidelines and improve his service and performance.

 Critical Performances: The ability of an employee to perform outstandingly during difficult and significant situation is noted. Work Analysis: The ability of an employee to achieve his target, the business brought by him towards the organization is an important criterion that is observed during performance appraisal process. The additional efforts made by employee by moving out of his seat to develop the business are also noted.

Responsibility and Risk Taking: The employee is marked for his performance and his response towards the responsibility of special task assigned to him. Also the risk taking ability of an employee is focused to take accurate decision in the future. Self Improvement and skills: The skills of an employee are given consideration in performance appraisal process. Also his interest for self development in the field of education and other courses are noted. Employee is always motivated to improve his skills and qualification for his personal development and also for the development of the organization as a whole. The employee who finds it difficult to perform is given special training in the area where he lacks required skills. Lastly the performance appraisal process also considers the sincerity, integrity, discipline, attendance and punctuality of the employee and his commitment towards the development of the business. Also customer feedback is also taken into consideration to judge the performance of the employee. The employees who do not perform well are given warning for improvement and provided required training. There is no demotion in SBI but the employee may not be given any additional benefits if he does not meet the expectations of the top management by his performance. Rewards and Appreciation provided to employees: The employees with outstanding performance are recognized in the meeting held by the top management. Rewards like monetary benefits, promotional benefits, best employee certificate, bronze, silver, or gold medal, and many more additional benefits are given to motivate the employees and recognize his efforts. Tools and methods used for providing Performance Appraisal: Straight ranking method : SBI uses straight Banking method, it is one of the oldest and simplest technique for measuring performance the appraiser rank the employee on a scale of 0 to 10 based on their overall performance. It is very useful for comparative analysis. Essay appraisal method : SBI also uses this essay appraisal method, the process of its implementation is as follows the immediate boss makes a report about the employee which includes all the incidents and situation where he had performed extra ordinarily and taken any initiatives all the things will be in written form has to be submitted to the Head office department, then the higher authority after reading the report will think about the appraisal, it could monetary appraisal as well as non monetary appraisal based on the performance of employees.

Confidential reporting : Confidential reporting is also done by your immediate boss at SBI but the employee is unaware of this and some the remarks about the also taken from other employees of the organization, in that report the boss exactly write what they really feel about the employee, and this report has got much weight age in providing promotion to the employee. Critical incidents method : In this method of performance appraisal how employees have behave in critical situations is noted in this we write both his positive performance as well as his negative performance, the drawback of this method is that the employer has to note down all things at the happening of the event. Checklist Method The Employer is provided a checklist of the descriptions of the behaviour of the employees on job. The checklist contains a list of statements on the basis of which the employer describes the on the job performance of the employees. Behaviorally anchored rating scales : In this method rating is based on the behavior of the employees how well he is dealing with his subordinate and his it also includes the effectiveness and ineffectiveness of work done by him to the organization.

Human resources accounting method : Human resource accounting aims at analysing the human resources potential in money terms while casting the organisations financial statements. With the emergence of the knowledge based economy, recognition of human capital has an important part of the enterprises total value has gained importance. This has led to two important issues:
1. 2.

The methods to assess the value of human capital The methods to improve the development of human capital in enterprises.

Organisations, trying to reflect the value of its people are using different approaches: Methods of valuing and accounting of human resources : The methods to value and account for human resources can be classified into the following categories: 1. Methods based on costs (which include costs incurred by the company to recruit, hire, train and develop human resources) 2. Methods based on economic value of human resources and the capitalisation of companys earnings.

360 degree performance appraisal method: This kind of appraisal include feedback of the employee from all his colleagues, his peer group and from all other employees of that organization, it is performed at SBI in a manner a that a feedback form is given to all employees and they have to fill that form and in case they dont want to disclose their name they could also do so.

This kind of feedback form is provided to customer as well, so that customer could rate employee based on their behavior the relevance of the information provided by him and are they satisfied with the service given by him or not. This is one of the most effective method of appraisal. Assessment Centers:

This method typically involves the use of methods like social/informal events, tests and exercises, assignments being given to a group of employees to assess their competencies to take higher responsibilities in the future. Generally, employees are given an assignment similar to the job they would be expected to perform if promoted. The trained evaluators observe and evaluate employees as they perform the assigned jobs and are evaluated on job related characteristics. Major competencies that are judged in assessment centers are interpersonal skills, intellectual capability, planning and organizing capabilities, motivation, career orientation etc. assessment centers are also an effective way to determine the training and development needs of the targeted employees. These performance appraisal is used as a reference by the top management to decide the promotional worth of an employee. Generally for promotion purpose, the performance appraisal letter for the past four years is referred from which the 3 best appraisals are chosen. Around 10% of weight age is given to performance appraisal of an employee. The employees are ranked based upon the points they acquire in performance appraisal process. A minimum of 60% marks are required for promotion purpose in the performance appraisal process. An employee who scores 90% or more is listed on merit basis. For those who score between 60%-90% are given senior positions. The employees may be rated on a scale of excellent, very good, good, poor depending upon the points they receive in the performance appraisal process. Also the Branch Manager is given points for the excellent work done by the employees and the branch under his guidance.

Banner Corporation BaNK

Northwest U.S. based Banner Corporation has selected Halogen Software for a Web-based talent management system to streamline the employee Performance Appraisal process and tightly integrate learning into its talent management process. Banner Corporation, which operates commercial banks in Washington, Oregon and Idaho, is focused on creating a tightly integrated talent management program, to ensure its 1,200 employees are executing on the bank's strategic vision and delivering outstanding

customer service. Halogen was selected following a review of more than 20 talent and learning management vendors.

"Our number one priority was to improve our learning management processes, and we quickly realized that for this to work, it was critical that we establish a tight link between employee performance, talent management and learning functions," explained Mimi Ellis, SVP Talent Management, Banner Corporation. "We really did our homework and selected Halogen based on the fact that it would meet all of our current and future talent management needs." The new Web-based system will enable Banner Corporation to automate the employee appraisal process driving consistency across the organization. Learning functions, such as compliance training, will be tied into the appraisal process, and information from appraisals will be used for succession planning purposes, thereby creating a complete talent management strategy across all its locations in the Northwest. Banner Corporation is starting with a deployment of Halogen eAppraisal Financial Services and Multi-Rater for employee performance management and plans to build on the implementation with fully integrated Halogen eSuccession and eLMS modules.

"The Halogen system is straightforward and easy to use, and everyone we've worked with at the company has been wonderful," added Ellis. "We are looking forward to continuing to work with Halogen and reaping the benefits of our new approach to talent management."

Banner Corporation joins financial services institutions across North America relying on Halogen, including AGF, International Finance Corporation, People's Bank and United Bank and Trust. About Halogen Software

A recognized industry leader with over 1000 customers worldwide, Halogen Software makes powerful, simple-to-use and affordable employee performance and talent management applications. The company offers a complete suite of web-based products that automate, simplify and integrate employee Performance Appraisals, 360 degree feedback, compensation management (pay for performance), succession planning and learning management. Halogen's offering makes HR best-practices accessible to

companies of all sizes and its healthcare, financial services and professional services specific suites meet the unique needs of these industries. Halogen is consistently recognized by the industry and its customers for its exceptional implementation and support services, and has won multiple awards for its corporate leadership and product innovation, including HR Technology Product of the Year.

About Banner Corporation

Banner Corporation is the parent company of Banner Bank, a commercial bank that operates a total of 86 branch offices and 12 loan offices in 29 counties in Washington, Oregon and Idaho. It is also the parent of Islanders Bank which operates three branch offices in Washington's San Juan Islands. Banner serves the Pacific Northwest region with a full range of deposit services and business, commercial real estate, construction, residential, agricultural and consumer loans.

State Bank of India

The method used by the SBI is called Development Oriented Appraisal System. In this method the concept of the bank is quite flexible.

The ideas and the changes that are brought into the system are through its own experiments and experiences.

As the system is quite adaptable it encourages the need for improvement.

It can be said that this system is a communication of achievements. This means that whatever changes that were applied in the bank and out of them , the ones that turned out to be fruitful are accepted while the rest of the ideas are rejected.

ICICI Bank

The method used by this bank is called MBO.

Management By Objectives can be understood by its name that its a technique that focuses on one task at a time.

This method is performance oriented and focuses on the objective that is given at the time.

As this method is short term , it emphasizes on performance and proficiency. The task are quite clear and become easy to accomplish by defining the job function along with its responsibilities.

Apart from this the organizational goals are also properly defined and thus, are readily accepted.

This kind of an approach increases the frequency of communication between supervisor and employee.

UBS

The system used by this bank is called Performance Measurement and Management (PMM)
process.

PMM is a continuous cycle of objective setting and performance review that is characterized by transparent methods and continuous open dialogue.

It provides a framework for personal and professional development. Top performers receive proportionately higher rewards but most importantly, PMM enables an employee to take greater responsibility for the direction and fulfillment of his career.

This method helps to attain objectives. This is supported by continuous feedback and may include interim evaluations. Feedback focuses on understanding and reinforcing successes as well as addressing shortfalls.

This method is also performance oriented.

Banner Corporation

The Banner Corporation uses a software called Halogen Software. This is a software that has been developed for the assistance in performance appraisal.

This software on its own automates the entire appraisal process for the bank.

It provides consistency in the entire organization and thus, helps in attaining proper growth overall.

There are also learning functions that are added in this process (Compliance Training).

It helps to establish a tight link between employee performance, talent management and learning functions.

Major Aspects in Comparison.

Bank

Type

Detail
In this method, gradually change is initiated which is carefully thought out beforehand. This kind of an approach makes it quite flexible.

State Bank of India

Development Oriented Appraisal System

ICICI Bank

Management by Objectives

This method is performance oriented. It assigns task that are not too big, small task are assigned one at a time proficiency is measured in each task.

UBS

Performance Measurement and Management

This Method is designed to recognize and reward individual contributions to team success and reinforce our meritocratic, performance-oriented and clientfocused culture.

Banner Corporation

Halogen Software

This is software that has been designed to help banks in the matters of performance appraisal. It focuses tightly on the integrated talent management program

CONCLUSION

To summarize our discussion we can say that the Performance Appraisal is an integral part of performance management and has become the important component of the HRM. P e r f o r m a n c e management includes activities to ensure that goals are consistently b e i n g m e t i n a n e f f e c t i v e a n d e f f i c i e n t m a n n e r . P e r f o r m a n c e management can focus on performance of the organization, banks, a department, processes to build a product or service, employees, etc.

. We can say that Performance management should be:

Strategic - it is about broader issues and longer-term goals

Integrated - it should link various aspects of thebusiness, people management, and individuals andteams

BIBILOGRAPHY

www.scribd.com

www.halogensoftware.com

www.docs.google.com

www.ubs.com