PROJECT REPORT

PERFOMANCE APPRISAL
AT
-HDFC BANK, HYDERABAD
MASTER OF BUSINESS ADMINISTRATION

Submitted by

(Student Name)

HT NO: 21WJ1E****

Under the Guidance of

Mr. K. SANDEEP REDDY

ASSISTANT PROFESSOR

School of Management studies

GURUNANAK INSTITUTIONS TECHNICAL CAMPUS

(Autonomous)
CHAPTER CONTENTS PAGE NO.
INTRODUCTION
 Objectives of the study

CHAPTER - I  Need for the study

 Scope of the study

 Research Methodology

CHAPTER - II REVIEW OF LITERATURE

CHAPTER - III COMPANY PROFILE

CHAPTER - IV THEORETICAL FRAMEWORK

CHAPTER - V DATA ANALYSIS & INTERPRETATION

 Findings
CHAPTER - VI  Suggestion
 Conclusion
Annexure / Questionnaire
INDEX
 ABSTRACT

“Appraisal is a process that provides an analysis of a Person’s overall capabilities and potential,
allowing informed decisions to be made for particular purposes”. An Important part of the process is
assessment, whereby data on an individual’s past and current work behavior and Performance are collected
and reviewed.

Typically, performance appraisal has been limited to a feedback process between employees and
supervisors. However, with the increased focus on teamwork, employee development, and customer
service, the emphasis has shifted to employee feedback from the full circle of sources depicted in the
diagram below. This multiple-input approach to performance feedback is sometimes called “360-degree
assessment” to connote that full circle. There are no prohibitions in law or regulation against using a
variety of rating sources, in addition to the employee’s supervisor, for assessing performance.

Research has shown assessment approaches with multiple rating sources provide more accurate,
reliable, and credible information. For this reason, the U.S. Office of Personnel Management supports the
use of multiple rating sources as an effective method of assessing performance for formal appraisal and
other evaluative and developmental purposes. The circle, or perhaps more accurately the sphere, of
feedback sources consists of supervisors, peers, subordinates, customers, and one’s self. It is not necessary,
or always appropriate, to include all of the feedback sources in a particular appraisal program.

The organizational culture and mission must be considered, and the purpose of feedback will differ with
each source. For example, subordinate assessments of a supervisor’s Performance can provide valuable
developmental guidance, peer feedback can be the heart of Excellence in teamwork, and customer service
feedback focuses on the quality of the team’s or agency’s results. The objectives of performance appraisal
and the particular aspects of performance that are to be assessed must be established before determining
which sources are appropriate.

CHAPTER – I
INTRODUCTION
 INTRODUCTION

From immemorial time, man has continuously assesses their capability with others. This urge to do better
has resulted in his continuously evolution which is vital for the growth of any business. Performance
Appraisal (PA) is one such tool to measure the performance of an employee. Employee performance
appraisal is an effective way to determine the performance of the employees in an organization.
Performance Appraisal (PA) is mainly used to determine the wage increase, promotions, transfer and
layoffs, termination of services & the training and development to the employees in an organization. It
serves as a tool to determine the future of the organization and visualize the career growth of the
employees.

Performance Appraisal (PA) is normally done by senior executives and the senior manager in the
organization to appraise the employee for their performance and also to find out difficulties while meeting
their goals. During this period of carrying out the process the appraiser faces the problem in rating the
subordinate/employee/peer and sometime they may rate their subordinate wrongly, which will block the
whole purpose of the appraisal system.

From user testing, the traditional appraisal system found to be efficient in the issues like: it help to
evaluate the true abilities of employees, help employees to understand organizational goals, and to provide
fast and effective feedback. The users found the system easy to understand and use and were more satisfied
with the overall effectiveness of the system.

The main focus of the study of this is to identify the areas in Performance Appraisal System that would
help in the organizational development. Every organization has made it mandatory to have this appraisal
done once in a year to measure their employee performance. Hence, there should be well-defined appraisal
procedure which is properly used to evaluate employee’s performance. This study report aims at covering
all aspects related to performance.

In order to make this report comprehensive, sample appraisals are also provided. This study was conducted
at HDFC Bank Limited, Hyderabad
The objective of the questionnaire was to obtain employees’ opinion on performance appraisal (PA) system
in their organisation.
The Structural questionnaire prepared for HR survey comprised of two parts:

 First part regards the “demographic” of the respondents, asking their name, designation,
qualifications and department in the company (Vice President, Senior HR consultants, Business
Development Executive), their tenure with the organisation and total experience.

The demographic characteristics of the respondent group were as follows. There is Vice President who
has experience of work since 15 years in the organisation, Senior HR consultants who work experience
of 1-5 years experience, Business development executive who work experience of 0-1 years.

 Second part of the questionnaire consisted of “quantitative and qualitative statements”. In order to
identify importance of the factors in determining.
SCOPE OF THE STUDY:

Private area associations around the globe confront phenomenal strain to enhance benefit quality while
logically bringing down their expenses. In the meantime, they are required to wind up more responsible,
client engaged and receptive to partner needs. Accomplishing these objectives includes a change in
administration practices, procedures and culture.
In this manner, keeping in mind the end goal to get a thought regarding the genuine picture of execution
Appraisal work in the staff administration at PSU's, I have embraced my examination on HDFC Bank
Limited. .

 The report is mine of valuable data on private segment execution estimation hone, sensibly
displayed and partnered to commonsense direction and master tips on what to consider in refining
or setting up an execution estimation framework.
 This is an exhaustive and lucid survey of execution administration hone which will intrigue every
one of those looked with actualizing or evaluating measure and target-driven administrations."
 I occupied with a private division organization for my exact examination i.e. HDFC Bank Limited.
of common lines Hyderabad.
 I will meet the representatives at the work force division in HDFC Bank Limited.. I will direct some
studies and a few meetings from senior level officials.
 NEED OF THE STUDY

 Performance Appraisal is a formal exercise in which an association makes an assessment in an

archived type of its workers, as far as commitments made towards accomplishing authoritative
goals and additionally their own qualities and shortcoming, and as far as properties and practices
exhibited for meeting whatever destinations the association may think about important.
 Appraisal is judgments, exchanges and exhibitions of representatives. Execution Appraisal is a
compelling instrument for helping, individuals develop and create in hierarchical settings. It could
as a compelling component of proceeding with training gaining from each other.
 Provide data about the execution positions. Choices with respect to compensation obsession,
affirmation, advancement, exchange and downgrade are taken in light of execution.
 Provide input data about the level of accomplishment and conduct of the subordinate. This data
surveys the execution of the subordinate, correcting execution lacks and to set new principles of
work
OBJECTIVES OF THE STUDY

 To find out present performance appraisal system used in the company.

 To find about the employees views for the system adopted by the company to appraise their
performance.
 To know about the working scheme of the company.
 To suggest some measures for improving the methods to appraise the performance of the workers.
 RESEARCH METHODOLOGY

b) Types of Research-

There is social research in a HR Survey with particular reference to Performance Appraisal as a System for
employees at HDFC Bank Limited.

 Sample Design:
It is random sampling techniques where the samples were designed based on the nature of work,
qualification, experience, etc.

 Sample Size:
100 Employees Respondents

 Tool for collection of Data:

Structured questionnaire is used to collect the data. Copy of questionnaire is placed at the Annexure
of the project report.

 Method of Collecting Data:

The questionnaires were floated to respondents through Researcher where the data was collected
and returned by HR Unit.

 Method of Analysis:
1. The collected data were tabulated
2. Percentage of respond was worked out
3. Analysis is based on percentage frequency
4. Weight age is given to high percentage in response factor
5. Evaluation is made based on the analysis and the presumptions inherences are used, where
every data is ambiguous. Definitive evaluation is made every data is clear.
6.
Limitation of the Study-
Any research study will be restricted in scope by certain inherent limitations that are participated by the
choice of the research design. This study has the following limitations:

 Even though the survey was conducted for the employee performance review the study does not
match with the entire population in the company.

 Because of time constraints, the sample size is restricted to 20, which may not reflect the opinion of
the entire population in the company.

 Since study was restricted to samples. Sample may behave or give different opinions at different
times because of their psychological temperament. This will affect the study.

 Data could be collected from only 20 respondents as they were busy and could not respond so well
to the questionnaires.

 Most of the organization hesitates to give confidential HR information which is needed for the
study like expectation in salary, periodical incremental percentage.
Present Appraisal System Feedback
In this system, employees and managers set expectations and prepare plans for work and development at
the beginning of the year. The key responsibilities and results (KRRs) dimensions and behavioral
expectations, and the criteria/standards for the performance measurement are prescribed and clarified.
Although they may be expressed differently for different jobs, the basic areas of measurement for all jobs
are quality, quantity, cost and timeliness. To ensure that all employees receive feedback for maintaining or
improving productivity, two documented semi-annual feedback sessions are required. The supervisor uses
discretion to schedule informal feedback based on individual employees’ needs.

Although a case study with a limited number of respondents cannot be widely generalized, the results
should be quite interesting to mangers who would like to think critically and seek ways to improve
performance appraisal systems in organizations
 CHAPTER – II
REVIEW OF LITERATURE
 REVIEW OF LITERATURE

Sharma and Pooja Purang (2000) in their study Value Institutionalization and HRD Climate: A Case
Study of a Navratna public sector organization, found a positive relationship between value
institutionalization and HRD climate in a large public sector organization, meaning thereby that a better
and more ethical environment of the organization shall lead to a better HRD climate for the organization.

B.S. Bhatia and G.S. Batra (2001). is of view that the survival of business organizations in the post
liberalization era of change and uncertainties will, to a large extent depend on the performance of their
human resources. This means that it is in the long interest of organization to invest in this asset. A well
known economist Alfred Marshall stated that “the most valuable of all capital is that invested in human
beings.” This book deals with Human Resource Development. Keeping in view the global business
challenges, growing complexity of the business and increased competition, Human Resource Management
has become one of the important part of the policy framework of any corporate enterprise.

Alphonse (2001) analyzed the HRD climate in a hospital by assessing the top management's belief in
HRD, superior- subordinate relationship, personnel policies, team-spirit, employee development, training,
employee initiatives and management encouragement. It reported the existence of a reasonably good
climate with an average score of 3.46 in the HRD climate assessment scale.

T.V. Rao (2001) used the HRD Climate Scale regarding the HRD climate in 41 organizations revealed that
the general climate in the organizations is average. A general indifference on the part of the employees
towards their own development was found to be the reason for this. The lack of support to the employees
post training is a major hurdle in applying what they had learnt. This in turn affects the career development
of the employees. It was noted that the top management in most of the organizations is doing routine
things. The other impediments of HRD highlighted in the study are the lack of opportunities for transfer of
training skills and career development. Yet, the same study suggests that the employees in these
organizations were serious about the training, the performance appraisal system was objective and the
management was concerned about human resources.
T V Rao, Raju Rao, and Taru Yadav (2001) examine the current status of structuring of the HRD
function and HRD subsystems in India against this "Integrated HRD Systems" framework. The researcher
also comments on the recent approaches to HRD. Data from HRD audits of 12 Indian organizations
indicated that HRD function is not well structured, is inadequately differentiated, poorly staffed, and fails
to meet the requirements of this framework. In the light of these experiences of Indian organizations in
implementing this framework, it has been points out the prerequisites for success of other HRD
frameworks in India. The HRD subsystems, however, have evolved and matured to a substantial degree,
specially the performance management system, and training and development system. OD and feedback
and counseling are in the next level of maturity. Potential appraisal and career planning and development
are the least developed and used subsystems.

Mishra and Bhardwaj (2002) reported that the managers in a private organisation perceived the HRD
climate as favourable. The top management's commitment to HRD, integrated HRD system, well defined
personal policies and culture of openness are listed to be the strengths of HRD in that organisation.

Mishra and Kavita (2002) in his thesis “A study of ‘HRD practices in LIC of India’ concludes that HRD
practices are just using an average level in LIC. It has a large reservoir of competent manpower should take
steps to reorient its methods of organization of work and evolve suitable manpower development
programme so that all the employees are given opportunities to utilize their knowledge, qualifications,
experience and skills in their development. It would go a long way in removing the feeling of frustration at
present prevailing among the employees and improving the overall staff morale and staff productivity.

Kuldeep Singh (2003) in his study "Strategic HR Orientation and Firm Performance in India" concludes
that the strategic alignment of HR planning, selection, performance evaluation, compensation,
development, staffing policies results in better organizational performance. The aim of the present study
was to find out the relationship between the human resources management practices and firm level
performance. The study conducted on 82 Indian firms indicates that there is a significant relationship
between the two human resources practices, namely, training and compensation, and perceived
organizational and market performance of the firm.
Singh (2004) found that there was a positive relationship amongst several HRM practices like selection (r
= 0.32), performance appraisal (r = 0.32), training (r = 0.32), compensation system (r = 0.32) employee
participation (r = 0.32) with firm performance. Out of these practices only Training (r = 0.37,

0.39) and Compensation system (r = 0.41, 0.43) had positive impacts on perceived general and market
performance of the firms, indicating that an addition of (1) unit in training will enhance (0.37) the firm’s
performance and (0.39) in the firm’s market performance, secondly, an increase of (1) unit in
compensation will increase (0.41) in the firm’s performance and (0.43) in the firm’s market performance.
On the other hand two practices, namely job definition (r = -0.21) and career planning system (r = -0.15)
had a negative and an insignificant impact on perceived firm performance.

Charles Moseley (2004) in the study "The Human Resource Dimension and Reform" concludes that only
by empowering employees, to accept the responsibility and to make decisions as fully active participants in
the life of the organization, can organizations hope to create the kind of responsiveness needed to meet the
changing needs of customers in today's business environment

Teseema & Soeters (2006) used eight HR practices in their research paper which are recruitment and
selection practices, placement practices, training practices, compensation practices, employee performance
evaluation practices, promotion practices, grievance procedure and pension system. According to them
these HR practices can affect the employee performance.

Victoria (2006) conducted a study on “Teacher Evaluation Practices and Teacher Job Satisfaction” under
the Faculty of the Graduate School, University of Missouri-Columbia. The purpose of this study was to
determine the relationship between teacher evaluation practices and teacher job satisfaction as measured by
the Teacher Evaluation Profile and one subscale of the Teacher Job Satisfaction Questionnaire. The
quantitative study was conducted administering the Teacher Evaluation Profile and the Teacher Job
Satisfaction Questionnaire to all certificated teachers in a rural, mid-size school district located in the mid-
west. The data from both instruments were analyzed using the Pearson product-moment. Demographic data
pertaining to gender, years of teaching experience, and teaching assignment grade level were collected and
were used as predictors for multiple regression analyses. A significant relationship was found to exist
between the Teacher Evaluation Profile subscale Evaluator Perceptions and the Teacher Job Satisfaction
Questionnaire subscale Work Itself. No significant difference resulted from the multiple regression
analyses using the predictors of gender, years of teaching experience, and teaching assignment grade level.

Wright (2006) have argued that an employee will exert discretionary effort if proper performance
management system is in place and is supported by compensation system linked with the performance
management system. Job definition is combination of job description and job specification. It clearly
outlines duties, responsibilities, working conditions and expected skills of an individual performing that
job. While much of the research on the relationship between HR practices and performance has somewhat
consistently revealed a significant relationship, some recent debates have emerged regarding the value of
different approaches to studying this phenomenon. Debates have arisen regarding the proper sources for
gaining the most valid reports of HR practice measures, the proper level of analysis and proximity of
performance measures, and the timing of measurement.

Narayan and Rangnekar (2008) found that both organizational climate and HRD climate along with job
involvement was significantly influenced the managerial effectiveness. They measured organizational
climate variables as Results, Rewards and Interpersonal relations, Organizational process, Role clarity and
problem sharing and HRD climate variables as Experimentation, Trust, Openness, Facilitation,
Transparency and Reward system. The job involvement was measured as identification with the job and
job centricity.

Venu Gopal (2008) General Secretary, All Indian insurance Employees Association rid the demand for
40% wage hike is quite justified, as both LIC and GIC had the capacity to pay “and the operative expenses
of LIC are the lowest in Industry at 5.54% against 23.111% of private companies.” He said salaries of LIC
staff were much lower in comparison to wages of the private insurance companies’ staff. However, there is
not much attrition and only 4-5% of the LIC staff is leaving jobs to join private companies. The demand for
wage hike is therefore quite reasonable.Even internationally, the accepted norm is that 6% of the premium
income be allocated to salaries of the staff and LIC was only paying 4.6% or so, he explained.

Subhash C. Kundu, Divya Malhan (2009) studied that Competitive advantage of a company can be
generated from human resources (hr) and company performance is influenced by a set of effective hrm
practices. In this study, researcher intended to assess the hr practices in insurance companies. Primary data
based on 218 respondents from four insurance companies (twomultinational-7 branches and two Indian-7
branches) were analyzed to assess hr practices being practiced by insurance companies in India. Six factors
from factor analysis were further analyzed. ‘Training and benefits’ was found highly in practice in the
insurance companies. Further, ‘performance appraisal,’ ‘selection and socialization of employees,’ and ‘hr
planning and recruitment’ were moderately practised in insurance companies. ‘Workforce diversity and
contemporary hr practices’ and ‘competitive compensation’ were also practised to some extent. Anova
results showed that Indian companies did not practise workforce diversity. Compensation practices were
found more competitive or performance based in Multinational insurance companies than in Indian ones.
The gender effect showed that only competitive compensation was perceived significantly differently by
male and female employees/executives. Interactive effects were significant on workforce diversity and
contemporary issues, training and benefits, and selection and socialization of employees.

Subrahmanian, Anjani (2010) found that In Automobile Industries, the counseling is basically given for
helping and supporting the employees, who have been reported for reasons such as behavioral changes,
poor attitude, lack of interest in work, high absenteeism, alcoholism, job miss, increased accidents and
reduced production. The counseling is provided by the respective Section Heads, IR Coordinators to the
specific employees who show the sign of misconduct. According to the study, manufacturing and
automobile industries face serious issues amidst their employees, which arises due to various reasons and
have a direct impact on the productivity, which is considered as a loss to both organization and individual.
Taking into account the affecting factor of the above said reasons, counseling is considered to be a vital
procedure that has to be given weight age and studied. Descriptive research design has been adopted in this
study. A total of 200 NEX employees from various automobile industries were selected for the study in
Chennai City.

Subrahmanian, Anjani (2010) found that the success of any organization is highly dependent on how it
attracts recruits, motivates, and retains its workforce. Today's organizations need to be more flexible so that
they are equipped to develop their workforce and enjoy their commitment. Therefore, organizations are
required to adopt a strategy to improve the employees 'quality of work life' (QWL) to satisfy both the
organizational objectives and employee needs. This article reviews the meaning of QWL, analyses
constructs of QWL based on models and past research from the perspective of Textile and Engineering
employees in Coimbatore District of Tamil Nadu. The Constructs of QWL discussed are Job satisfaction,
Compensation, Human Relation, Working Condition, Grievance, competency development, Stress and
well-being. The article concludes that QWL from the perspective of Textile and Engineering employees is
challenging both to the individuals and organizations.

Anil Kumar Singh (2010) found that this study is in the light of the liberal global Indian economy that has
led to a competitive environment. In a changing scenario of the global business environment with a highly
competitive market economy, the HRM practices and organization culture will provide an edge to an
organization. This study revealed that the HRM practices and organizational culture are strong predictors
of the managerial effectiveness of the public sector organizations surveyed. This study was based on the
framework that the HRM practices shape the pattern of interactions between and among the managers and
employees. Further, the organizations generally organize human resource practices that are consistent with
their organization culture (Osteman 1987). This study clearly indicates that the HRM practices along with
organisation culture play a significant role and affect the managerial effectiveness of the organisation.
Training and development, self-realisation, career management and socio-economic support were strong
prerequisite of managerial effectiveness in the public sector organizations. The findings of this study are
indeed significant for the HR practitioners. However, these results cannot be generalized considering the
size of the sample, but they show a definite direction. Human resource management practices are a
potentially powerful lever for shaping the culture of the organization and along with the organization
culture; they are a strong predictors of managerial effectiveness.

Vikas Agarwal (2011) found that Human Resource is the most vital resources for the reason that is the
only resource which has got brain. Even the computer brain which has been developed has human brain
behind it. Development is a systematic process of learning and growth by which managerial personnel gain
and apply knowledge, skills, attitudes and insight to manage the work in their organization effectively and
efficiently. Present study emphasis the attitude of employees towards Training and Development
programmes affect their performance. To achieve this objective primary data is collected with the help of
questionnaires as well as Interview method. The questionnaires were filled up by 100 employees. In this
research paper the hypothesis taken up for conducting the research was true and training and development
programmes adopted by LIC help in improving employee’s performance. The result derived from this
survey proved that the hypothesis taken up for conducting the research was true and training and
development programmes adopted by LIC help in improving employee’s performance and simultaneously
fulfill organizational objectives.
Employee Productivity (EP)

Arthur (1992) identified significant relationship between HRM practices and steel mills performance.
These authors, by their studies suggested that proper implementation of HRM practices increased
organizational performance manifold. However, linkage amongst HRM practices, employee performance
and organizational performance needs to be tested by researchers.

Peter Hosie, Nick Forster & Peter Sevastos (2004). Today’s market place and companies in every
industry are packed with competitors. This, in turn, has a negative effect on the health and comfort of
workers. This results as an issue of high cost to business (MacDonald, 2005). The present state of social
system poses many problems for the working class, like balance between work, family and life satisfaction.
This situation demands effective implementation of HRM practices (Cooper & Robertson, 2001). The
workforce as a competitive weapon now has become a necessity for every organization. Edgar & Geare
(2005) found that work related attitude of employees was the function of a number of HRM practices.
Furthermore they conclude that HRM practices had the potential to yield the greatest performance outcome
for both, employee and employer. Managers who helped employees’ progress in their careers and
encouraged their professional development, supported subordinates through professional development by
providing feedback about performance were likely to stimulate employee performance. They also argued
that investments in human capital development could result in effective and positive results in the
performance of the firm, so each company should understand the link between HRM and employee
satisfaction (Wan, 2007).

Datta et al. (2005) include two primary perspectives; a universal approach and a contingency approach
have been used to model the link between the HRM and firm effectiveness. Those using the universal
approach have posed a positive relationship between ‘Best practice’ HRM and firm performance. In
contrast, the contingency model has proposed the extent (or even direction) of the effect of the HRM on the
firm performance will depend on the firm’s environmental conditions. This study also observed significant
contingency effects, with industry characteristics influencing the degree of the high performance of the
HRM practices impact on labour productivity.

Huselid (1995), who examined the relationship between HR practices and corporate turnover, profitability
and market value. He surveyed senior HR executives in a sample of 968 publicly traded corporations in the
US regarding the percentage of employees who were covered by a set of HR practices generally considered
representative of a high-performance work system (HPWS). After controlling for a number of variables, he
found that his HR index was significantly related to the gross rate of return on assets (a measure of
profitability) and Tobin’s Q (the ratio of the market value of a firm to its book value). This study provided
the foundation for much of the research that followed. He also stressed on importance of training as
complement of selection practices through which the organizational culture and employee behavior can be
aligned to produce positive results.

Guest (2001) found investments in HRM practices benefit employees and proper use of HRM practice
resulted in increasing the level of commitment of employees. He further elaborated that HRM was only
concerned with the effective utilization of employees. Research exploring the relationship between HRM
practice and positive employee attitudes showed a strong association (Guest &Conway, 2002).

Wan et al. (2002) examined the relationship between HRM practices and firm performance. HRM
practices were creating a positive effect on organizational outcome. Results calculated through regression
suggested that effective implementation of key HRM practices increased organizational performance.
Hierarchical regression results reflected a possibility that different aspects of performance could be
effected by different HRM variables. For companies promoting financial performance, the performance
appraisal appeared to be the most important issue to tackle. While the companies interested in enhancing
HR performance emphasized the need for empowerment and training.

Deepak et al. (2003) concluded that organizational performance and competitiveness could be enhanced
by using the high performance work system. Based on universalistic and contingency approach they
conducted regression analysis and found the value of (r = .189,) which is significant at (p

Daniels (2006) describes that people look for jobs in an organization that match with their personality, and
provide motivators that meet their needs. In this respect, key HRM practices like, work life balance and
satisfaction etc, have become of great importance for both employees and organizations. As a result
employers have embraced the issue of creating an acceptable work life balance for employees through
flexibility and introducing a wide range of working patterns to fit the needs of the workforce. Flexibility
relates to different aspects, work timings and work place HRM practices are getting importance because
companies are trying hard to survive. They cannot perform successfully if their employees are not in an
excellent state of health and wellbeing (MacDonald, 2005).

Baptiste (2007) drew findings from his research study that, the implementation of HRM practices would
promote commitment, trust, support and positive relationship. By promoting employee wellbeing at work
at all levels, within an organization, the managers can contribute to develop a workforce which is more
committed, satisfied with jobs, has work-life balance and is more positive towards enhanced performance,
reduced absenteeism and turnover. A multitude of studies examined the relationships between HRM
practices and firm performance. But, research of employee performance and HR policies is relatively not to
a great extent explored in literature. Human Resource activities are often recognized as playing an essential
role.

Adnan Riaz1 & Dr. Jameel Qazi (2007) this study was conducted to investigate the impact of HRM
practices on perceived organizational performance. Total six HRM practices such as training, performance
appraisal, job definition, compensation, selection, career planning, were taken as independent variables
while perceived organizational performance as dependent variable. Through questionnaire survey a
response of 223 employees working in different telecom organizations were collected, which showed that
HRM practices are being implemented and the key contributor to the enhanced organizational performance
in the telecom sector while training and selection were found significantly related with perceived
organizational performance. Managerial implications and conclusions are presented based upon these
results.

Katou (2008) the purpose of this paper is to measure the impact of HRM on organizational performance in
the context of Greece. Data were collected from 178 organisations using a questionnaire survey in the
Greek manufacturing sector, and analysed using the ‘structural equation modelling’ methodology. The
results indicated that the relationship between HRM policies (resourcing and development, compensation
and incentives, involvement and job design) and organisational performance is partially mediated through
HRM outcomes (skills, attitudes, behaviour), and it is influenced by business strategies (cost, quality,
innovation). Thus, the contribution of this study for academics and practitioners is that HRM policies
associated with business strategies will affect organizational performance through HRM outcomes.
Seeck & Parzefall (2008) demonstrates that an active role played by employees in constructing
employment relationships, rather than simply responding to employer behavior, are not often considered in
the highly management centered perspective. HRM practices enable companies to gain a competitive
advantage. Effective Human Resource Management enhances the ability of organizations to attract and
retain quality employees, who can be motivated to perform. This result in greater profitability, low
employee turnover, high product quality, lower production costs, and more rapid acceptance &
implementation of corporate strategy, particularly when competitors do not have the right people such
practice can create a number of competitive advantages for the organization

Shahzad et al. (2008) posted three significantly positive relationships of HRM practices i.e., compensation
(M = 3.26, r = .44), promotion practices (M = 3.32, r = .56), and performance evaluation (M = 3.17, r
= .15) with employee performance. He conducted longitudinal study on 12 organizations and discovered
clear evidence of association between positive attitudes towards HRM policies, practices and operational
performance. The results indicated that HRM is a vital element in linking people management practices to
business performance.

Aguinis (2009) described that “the definition of performance does not include the results of an employee’s
behavior, but only the behaviours themselves. Performance is about behaviour or what employees do, not
about what employees produce or the outcomes of their work”. Perceived employee performance
represents the general belief of the employee about his behavior and contributions in the success of
organization. Employee performance may be taken in the perspective of three factors which makes possible
to perform better than others, determinants of performance may be such as “declarative knowledge”,
“procedural knowledge” and “motivation”. HR practices have positive impact on performance of
individuals.

Karunesh Saxena & Pankaj Tiwari (2009) the study of HRD climate is very important for all the
organization and the banking sector is not an exception, especially in the present situation of financial
recession. The present study is an attempt to find out the type of HRD climate that is prevailing in public
sector banks in Ahmedabad. The researchers have also tried to find out the difference in the perception of
employees regarding HRD climate on the basis of age, gender, designation, qualification. The researcher
collected the data from the employees of selected public sector banks using structured HRD climate
questionnaire .The data were analyzed using several statistical tools such as mean, standard deviation,
percentiles, Z test. The result shown that the HRD climate in public sector banks is average and the
perception of employees regarding the HRD climate do not differs significantly on the basis of gender,
qualification and designation but it differs significantly on the basis of age . The paper ends by offering
useful suggestions to the management involved in the operations of the banks.

Budhwar et al. (2010) using correlation identified that there is a significantly positive relationship
between different HRM practices, compensation and employee involvement with organizational
performance. Katou (2008) Identified significantly positive correlation of HRM practices namely selection
(r = .73), training (r = .76), performance appraisal (r = .75), compensation (r = .84) and participation (r
= .89) with organizational performance.

Shikha N. Khera (2010) This study is an attempt to investigate the extent to which Commercial Banks of
India differ on aspects of human resource management practices and the key Human Resource Practices
contributing to employee productivity from a sample of 184 respondents from three commercial banks of
India (one foreign sector, one private sector and one public sector bank). The results of this study strongly
support the research question as there is significant relation of employee productivity with human resource
practices including selection, employee benefits, compensation, training and staffing practices.

Sohrab Ahmadi and Khurram Shahzad (2011) this study investigated the impact of three HR practices
on the perceived performance of university teachers in AJK. Responses from113 respondents were used to
analyze the impact of selected HR practices (compensation, performance evaluation, and promotion
practices) on the employee’s performance. Pearson correlation and regression have been used to find the
association among variables and impact of three independent variables on the dependant variable of
perceived performance of university teachers. The result of the study showed that the compensation
practices in relation to the employees’ performance are significantly positively correlated whereas the
performance evaluation and promotion practices have insignificant relationship with the performance of
university teachers in AJK Pakistan. Adjusted R2 depicts the model that the independent variables
explaining 6.1% of variation in the performance of university teachers. P value is 0.019, which depicts the
significance of the model. This implies that if we enhance compensation then the performance of university
teachers will go up.
Ajay Solkhe & Nirmala Chaudhary (2011) the present study attempts to analyse and determine the
relationship, further the impact of HRD Climate, OCTAPACE Culture on Job Satisfaction as an
Organizational Performance measure in the selected public sector enterprise. The study is based on the
responses sought from 71 executives from various departments and different hierarchical levels of a public
sector undertaking located in North India. and the findings indicate that HRD Climate has a definite impact
on Job Satisfaction which in turn leads to the increased organizational performance. The analysis showed
that there exists a positive relationship between different components of HRD Climate and Job satisfaction.
The correlation coefficient was .734 (General Climate), .693 (JHRD Mechanisms) and .695 (OCTAPAC
Culture) respectively. This proves that HRDC is a contributing factor to increase the level of job
satisfaction of the employees.
 CHAPTER – III
INDUSTRY PROFILE
COMPANY PROFILE
 INDUSTRY PROFILE
Banks are the main providers of credit within India's around half of India's financial assets (Graph 1). Since
the 1970s, government-controlled banks have been central to India's development strategy by extending
credit to sectors prioritized by governments, such as agriculture and infrastructure (RBI 2005). While Indian
authorities have sought to develop a domestic corporate bond market, this remains relatively small and is
mostly used by larger firms and financial institutions (Ganguly 2020). Non-bank financial corporations
(NBFCs) have grown in recent years as alternative intermediaries of finance; however, a substantial share of
funding for NBFCs is ultimately provided by banks. Beyond financing private and state-owned firms, banks
are also a significant funding source for governments, through direct loans and buying bonds issued by the
central and state governments. More generally, India's capital account has remained relatively closed, and so
India remains more reliant on domestic financing sources than comparable emerging market economies.

India's banking system is dominated by government-owned ‘public sector banks’ (PSBs), which account for
around 60 per cent of commercial banking system assets. Since the mid-2010s, these banks have been beset
by problems with non-performing loans (NPLs) and low capital levels (Graph 2) (RBA 2020). Over the past
two decades, private sector banks have become more prominent and generally have healthier balance sheets
with lower NPL ratios, although some private banks have failed in recent years. Foreign banks are in the
strongest financial position but comprise only 7 per cent of commercial banking system assets. Outside the
commercial banking system, there are a number of smaller banks that serve the needs of narrower groups of
borrowers, including rural cooperative banks, small finance banks, local area banks and payment banks.

Credit to the non-financial sector in India is equivalent to around 165 per cent of GDP, which is high relative
to many other emerging market economies. India's high level of debt and reliance on bank credit magnify the
effect of stress in the banking system on economic growth. While direct financial links between Australia
and India are limited, potential vulnerabilities in the Indian financial system are important for Australia
through the trade channel. India accounts for only 0.6 per cent of Australian investment abroad, and
0.05 per cent of foreign investment in Australia. A few Australian banks have subsidiaries in India; however,
their operations are very small. In contrast, India was the destination for around 4 per cent of Australia's
exports in 2021. This trade channel was apparent in 2019/19, when weaknesses in India's banking system
 contributed to a slowdown in Indian economic activity, and weighed on India's demand for Australia's
exports (Fair weather and Sutton 2021).
This article examines four factors that are affecting the ability of India's banking system to allocate credit
efficiently and support long-term growth: banks' high NPL ratios and low capital levels; high levels of
government borrowing from banks; Indian authorities' influence on credit allocation; and the interaction of
banks and NBFCs (the shadow banking system).

Indian Major Banks

8 Best Banks to Work for in India
 State Bank of India.
 Bank of Baroda.
 Punjab National Bank.
 Indian Overseas Bank.
 Union Bank of India.
 IDBI Bank.
 Bank of Maharashtra.
 Allahabad Bank.
Financial system, and account for
COMPANY PROFILE
The Housing Development Finance Corporation Limited or HDFC was among the first financial institutions
in India to receive an “in principle” approval from the Reserve Bank of India (RBI) to set up a bank in the
private sector. This was done as part of RBI’s policy for liberalisation of the Indian banking industry in
1994.

HDFC Bank was incorporated in August 1994 with its registered office in Mumbai, India. The bank
commenced operations as a Scheduled Commercial Bank in January 1995. As of June 30, 2021, the Bank
had a nationwide distribution network 5,326 branches and 14,996 ATM's in 2,825 cities/towns.

HDFC Bank's MOGO - our Musical Logo - is a vibrant expression of the values that have driven
the Bank to become India's premier digital bank. It helps form a powerful emotional connect with customers
and builds recall among stakeholders across platforms - ATMs, Phone Banking, Apps and other touch-points
Our MOGO reflects the two dimensions of what we stand for:

Trust
Created through being caring and reliable over the last two decades

Progressive change
To address the ever changing needs of our customers

This piece is inspired on the one hand, by Raag Bilawal which expresses innovation and dynamism, and on
the other by Raag Shudh Kalyan which reflects the caring, humane nature of
HDFC Bank. You will find contemporary western instruments such as the Piano and Guitar accompanying
our very own Sitar, thus creating a wholesome blend of global aspiration and Indian earthiness.

MOGO is a registered trademark of Brand Musiq.

Section I.01 CSR

At HDFC Bank, corporate social responsibility or CSR is all about developing a business model that not
only creates economic value but also contributes to a healthy ecosystem and strong communities. Our
endeavour is to evolve and develop appropriate business processes and strategies to achieve a common goal
that contributes to the greater good.

Our CSR programmers encompass sustainable livelihood, sanitation, education, skilling, community
initiatives and environmental sustainability.

Section I.02 VISION, MISSION AND VALUES

HDFC Bank’s mission is to be a world class Indian bank. We have a two-fold objective: first, to be the
preferred provider of banking services for target retail and wholesale customer segments. The second
objective is to achieve healthy growth in profitability, consistent with the bank’s risk appetite.

The bank is committed to maintaining the highest level of ethical standards, professional integrity, corporate
governance and regulatory compliance. HDFC Bank’s business philosophy is based on five core values:
Operational Excellence, Customer Focus, Product Leadership, People and Sustainability.

Section I.03

Section I.04 Promoter

HDFC is India's premier housing finance company and enjoys an impeccable track record in India as well as
in international markets. Since its inception in 1977, the Corporation has maintained a consistent and healthy
growth in its operations to remain the market leader in mortgages. Itsoutstandits, strong market reputation,
large shareholder base and unique consumer franchise, HDFC was ideally positioned to promote a bank in
the Indian environment.
Section I.05 Business Focus

ding loan portfolio covers well over a million dwelling units. HDFC has developed significant expertise in
retail mortgage loans to different market segments and also has a large corporate client base for its housing
related credit facilities. With its experience in the financial mark
As on September 30, 2018 the authorised share capital of the Bank is Rs. 650 crores. The paid-up share
capital of the Bank is Rs. 509,12,67,434 (2545633717 equity shares of Rs. 2 each). The HDFC Group holds
21.34 % of the bank’s equity and about 18.58 % of the equity is held by the ADS / GDR Depositories (in
respect of the bank’s American Depository Shares (ADS) and Global Depository Receipts (GDR) Issues).
Also, 32.04 % of the equity is held by Foreign Institutional Investors (FIIs) and the bank has 4,74,443
shareholders.
Section I.06 Awards
HDFC Bank began operations in 1995 with a simple mission: to be a "World-class Indian Bank". We
realised that only a single-minded focus on product quality and service excellence would help us get there.
Today, we are proud to say that we are well on our way towards that goal.
It is extremely gratifying that our efforts towards providing customer convenience have been appreciated
both nationally and internationally.

Section I.07 2021

Asiamoney Asia's Outstanding Companies

Most Outstanding Company - Financial Sector
Poll 2020?

2021 Brand™ Top 75 Most Valuable Indian HDFC Bank ranked India’s Most Valuable Brand for the
Brands 7th consecutive year

Euromoney (Global) Awards For Excellence

Lifetime Achievement Award - Aditya Puri
2021

Finance Asia Country Awards 2021 Best Bank in India

Euromoney Awards for Excellence 2021 India’s Best Bank

Great Place To Work HDFC Bank certified as a ‘Great Place to Work’ for 2021

Asiamoney Best Bank Awards 2021 HDFC Bank adjudged Best Domestic Bank in India

Business Today 18th Best Companies to work HDFC Bank Among Top 10 Best Companies to work for
 for in India Survey in India

Best Managed Company- Ranked 1st

HDFC Bank voted ‘Best Managed’, ‘Best Best Corporate Governance- Ranked 1st
Governed’ Indian Company Best CEO- Aditya Puri, MD ranked 1st
Best Environmental Stewardship- Ranked 2nd

India’s Leading Private Bank – BFSI

Best Use of Banking Technology - Data Analytics/BI/Big
Dun & Bradstreet BankTech Awards 2021
Data (Joint Winner with SBI)
Best Use of Banking Technology - API Open Banking

Bank of the Year - HDFC Bank jointly with SBI

Business Today – Money Today Financial
Best Large Bank - HDFC Bank
Awards 2020
Best Fintech Engagement - HDFC Bank

CNBC-TV18 India Business Leader Awards

HDFC Bank - Outstanding Company of the year award
(IBLA) 2020-20

Section I.08 ORGANIZATION STRUCTURE:

HDFC Bank's Board of Directors is comprised of distinguished individuals with a wealth of experience in
public policy, administration, industry and commercial banking. Senior executives representing HDFC Ltd.
are also on the Board.

Various businesses and functions in the bank are headed by senior executives with work experience in India
and abroad. They report to the Managing Director. The Bank is focused on recruiting and retaining the best
talent in the industry as it believes that its people are a competitive strength.
Section I.09 Senior Management Team
HDFC Bank’s leadership team brings together a diversity of talent and a wealth of experience. Guided by an
experienced board and visionary managing director, the team steers the bank to new heights. As the world
becomes increasingly digital, the management team is leading the bank to leadership in this emerging
domain with innovative products and services.
Section I.10 PRODUCTS AND SERVICES OF THE COMPANY

It's a good
work

environment ..work load is high because of process but . their pay are very good ..work life balance is
hampered because of sales pressure but incentive structure is very good.
Past and Current Position
HDFC CEO Keki Mistry said share prices of Housing Development Finance Corporation (HDFC) and
HDFC Bank fell after the announcement of their merger because the management was unable to
articulate the advantages of the merger.

HDFC Bank hikes lending rates by 0.35%; 2nd hike in two months . The hike, which comes
a day ahead of the RBI's scheduled policy review, is the second such move from the lender in as many
months, taking the cumulative hike to up to 0.60 percent.

“I have been recommending a buy in HDFC Bank. I believe there has been significant correction from the
levels it was at. At the current level, it does look attractive even for HDFC Limited. It is a good buy at
current levels.

HDFC Bank sales and Profits

For the first nine months ended December 31, 2022, the private bank's total income was at Rs 1, 16,177.2
crore, up from Rs 1, 08,045.6 crore the same period a year ago. Net revenues for the nine-month period
were at Rs 75,009.7 crore, sharply up from Rs 65,370.4 crore for the nine months ended December 31, 2021.

The lender's net profit for the full fiscal year 2022-22 rose 18.8 per cent to ₹36,961.3 crore against
₹31,116.53 crore in 2021-21. For the January to March 2022 quarter, the bank's net interest income grew
10.2 per cent to ₹18,872.7 crore compared to ₹17,120.2 crore a year ago.

HDFC Bank earned a net profit of ₹10,055.2 crore on a standalone basis for the
quarter ending March 2022 (Q4FY22) period, rising by a whopping 22.8% yoy . The bank
had posted a net profit of ₹8,186.51 crore in the March quarter of last year, while the bottom line stood at
₹10,342.20 crore in the third quarter of FY22.
 CHAPTER – IV
THERTICAL FRAME WORK
2.1 INTRODUCTION TO PERFORMANCE APPRAISAL

Once the employee has been selected, trained and motivated, he is then appraised for his
performance. Performance Appraisal is the step where the Management
finds out how effective it has been at hiring and placing employees. If any

problems are identified, steps are taken to communicate with the employee and remedy them.
Section I.11 “Performance Appraisal is a process of evaluating an employee s performance
in terms of its requirements.”
Performance Appraisal can also be defined as the process of evaluating the performance and
qualifications of the employees in terms of the requirements of the job for which he is
employed, for purposes of administration including placement, selection for promotions,
providing financial rewards and other actions which require differential treatment among the
members of a group as distinguished from actions affecting all members equally.

2.1.1 IMPORTANCE AND PURPOSE

Performance Appraisal has been considered as the most significant an indispensable tool for an
organization, for an organization, for the information it provides is highly useful in making
decisions regarding various personnel aspects such as promotion and merit increases.
Performance measures also link information gathering and decision making processes which
provide a basis for judging the effectiveness of personnel sub-divisions such as recruiting,
selection, training and compensation. Accurate information plays a vital role in the
organization as a whole. They help in finding out the weaknesses in the primary areas.
Formal Performance Appraisal plans are designed to meet three needs, one of the organization
and the other two of the individual namely:

 They provide systematic judgments to back up salary increases, transfers, demotions or

terminations.

 They are the means of telling a subordinate how he is doing and suggesting needed
changes in his behavior, attitudes, skills or job knowledge. They let him know where he
stands with the Boss.
 Superior uses them as a base for coaching and counseling the individual.

On the basis of merit rating or appraisal procedures, the main objectives of Employee
Appraisal are:

 To enable an organization to maintain an inventory of the number and quality of all

managers and to identify and meet their training needs and aspirations.

 To determine increment rewards and to provide reliable index for

promotions and transfers to positions of greater responsibility.

 To suggest ways of improving the employee s performance when he is not found to be

up to the mark during the review period.

 To identify training and development needs and to evaluate effectiveness of training and
development programmes.

 To plan career development, human resource planning based potentials.

2.2 PERFORMANCE APPRAISAL STRUCTURE IN THE
ORGANIZATION

Summary of the Performance Analysis System

Setting performance standards, observing and providing feedback, and conducting appraisals
enables the Team Leader to achieve the best results through managing employee performance.
To begin the process, the Team Leader and the employee collaborates on the

development of performance standards. The Team Leader then develops a

performance plan that directs the employee's efforts toward achieving specific results, to
support organizational growth as well as the employee's professional growth. Discussion of goals
and objectives throughout the year provides a framework to ensure that employees achieve
results through One on One and mutual feedback. At the end of the rating period, the Team
Leader appraises the
employee's performance against existing standards, and establishes new goals

together for the next rating period. As the immediate supervisor, the Team Leader plays an
important role; his closest interaction with the employee occurs at this level. There are four key
elements in the appraisal system: 1. Set objectives - Decide what the Team Leader wants from
the employees and agree these objectives with them. 2. Manage performance - Give employees
the tools, resources and training they need to perform well. 3. Carry out the appraisal - monitor
and assess the employees' performance, discuss those assessments with them and agree on future
objectives. 4. Provide rewards/remedies - Consider pay awards and/or promotion based on the
appraisal and decide how to tackle poor performance.
2.3 PERFORMANCE STANDARDS

How does the Team Leader decide what's acceptable and what's unacceptable
performance? The answer to this question is the first step in establishing written
standards.
Performance expectations are the basis for appraising employee performance. Written
performance standards let the Team Leader to compare the employee's performance
with mutually understood expectations and minimize ambiguity in providing feedback.
Having performance standards is not a new concept; standards exist whether or not
they are discussed or put in writing. When the Team Leader observes an employee's
performance, he usually makes a judgment about whether that
performance is acceptable. Standards identify a baseline for
measuring

performance. From performance standards, the Team Leader can provide specific feedback
describing the gap between expected and actual performance.
Guiding Principles

Effective performance standards:

 Serve as an objective basis for communicating about performance.

 Enables the employee to differentiate between acceptable and unacceptable

results.

 Increase job satisfaction because employees know when tasks are performed
well.

 Inform new employees of your expectations about job performance.

2.4 METHODS FOR APPRAISING PERFORMANCE

Performance actually can be appraised by a wide variety of methods and
techniques. The most commonly used performance appraisal methods can be
distinguished into three major categories: comparative appraisals, behavioral
appraisals, and output-based appraisals.

 Comparative Appraisal

 Managers directly compare the performance of their subordinates against one

another in comparative appraisals. For example, a data entry operator's
performance would be compared with that of other data-entry operators by the
computing supervisor. Comparative techniques include ranking, paired
comparisons, and forced distribution.

 Behavioral Appraisals

 In contrast with comparative appraisals, behavioral appraisals allow supervisors

to evaluate each person’s performance independent of other employees but
relative to important job- related behaviors, which when exhibited can lead to job
success.

 Essays: The essay (free-form) appraisal method requires the manager to write a
short essay describing each employee's performance during the rating period. The
rater usually is given a few general headings under which to categorize
comments. The intent is to allow the rater more flexibility than other methods do.
As a result, the method is often combined with other methods.

 360 Degree Appraisal system: In human resources or industrial psychology, 360-

degree feedback, also known as multi-rater feedback, multi source feedback, or
multi source assessment, is feedback that comes from members of an employee's
immediate work circle. Most often, 360-degree feedback will include direct
feedback from an employee's subordinates, peers, and supervisor(s), as well as a
 self-evaluation. It can also include, in some cases, feedback from external sources,
such as customers and suppliers or other interested stakeholders. It may be
contrasted with "upward feedback," where managers are given feedback only by
their direct reports, or a "traditional performance appraisal," where the employees
are most often reviewed only by their managers.

 Output-based Appraisals

While the methods described above focus on job behaviors or processes, output-
based appraisals focus on job products as the primary criteria. The most commonly
used output
 CHAPTER –V
DATA ANALYSIS AND INTERPRETATION
 DATA ANALYSIS AND INTERPRETATION
Part A: Personal Data

1. To carry out any Project Study personal data needs detailed analysis because it is basic
foundation to understand correct profile of respondent. This shows their knowledge,
mental status and maturity. Educational background to understand the topic of the study
so that they can be related age.

Age Group No. of Respondents Percentage

21-30 70 70
31-40 10 10
41-50 20 20
Total 100 100

Age Group
21-30 31-40 41-50
20%

10%

70%

From the above data indicates that 70% of respondents are of 21-30 age group, 10% of
respondents are of 31-40 age group and 20% of respondents are of 41-50 age group.
Gender-
Gender No. of Respondents Percentage
Male 60 60
Female 40 40
Total 100 100

Gender
Male Female

40%

60%

The above data indicates that 60% of respondents are male, rest 40% of respondents are female.

Qualification-
 Qualification No. of Respondents Percentage
Diploma 10 10
Graduate 30 30
Post Graduate 60 60
Total 100 100

Qualification
Diploma Graduate Post Graduate

10%

30%

60%

In the above data, it is seen that 10% of respondents are diploma in qualifications, 30% of
respondents are graduates and rest 60% of respondents are post graduate.
Designation-

Designation No. of Respondents Percentage

Manager 20 20
Officer 50 50
Junior Officer 20 20
VP 10 10
Total 100 100

Qualification
Manager Officer Junior Officer VP

10% 20%

20%

50%

From the above data, it is seen that 20% of respondents are Managerial post, 50% of respondents
are at officer post, 20% of respondents are junior officer and 10% of respondents are VP in post.

Part B: Research Data

 1. Is the Performance Appraisal process user friendly?
S.No. Options No. of Respondents Percentage

1 Yes 80 80

2 No 20 20

Total 100 100

Performance Appraisal user

friendly
Yes No

20%

80%

Respondents and Responses-

80% of the respondents are agreed to the above statement
 It is user-friendly and easily accessible within the organization. It also provides a
consolidated view.
 It captures an individual’s strengths, improvement areas and also captures training
courses recommended.
 It gives an opportunity to the employee to accept or decline.
 It is very flexible.
 20% of the respondents are disagreed to the statement
 It is a very easier tool, where employee can fill in short time.
 As an employee need to know what is required of them in order to work effectively by
this.
2. Is Performance Appraisal conducted on time?
 S.No. Options No. of Respondents Percentage

1 Yes 60 60

2 No 40 40

Total 100 100

Time
Yes No

40%

60%

Respondents & Responses-

60% of the respondents agreed to the above statement
 Performance Appraisal process will start on time.
 There is a fixed schedule to meet listed in detail at the beginning of the process.
 Process will be conducted as per the appraisal period.
 40% of the respondents disagreed to the statement
 Process end will take long time and unintentionally however measuring quality issues do
cause delays.
 Process Cycle should be reduced because there is always delay due to the respective
owners of the employee.
 The steps involved in the process are very long as a result.

Does Performance Appraisal process assess fairly?

S.No. Options No. of Respondents Percentage
 1 Yes 80 80

2 No 20 20

Total 100 100

Performance Appraisal process

assess fairly
Yes No
20%

80%

Respondents & Responses-

80% of the respondents agreed to above statement
 The process assessment is fair and justified with business units.
 It is objective process.
 Measuring an individual is fair.
 The metrics are adequate.
 20% of the respondents disagreed to the statement
 Across Business units does not yield right results.
  There are some issues with performing employees not getting proper result of the
appraisal.
 360 feedback systems should be there.
 There is an element of subjectivity. The presence of Appraiser and reviewer is aimed at
eliminating the subjectivity.
4. Is Performance Appraisal process simple to understand?
S.No. Options No. of Respondents Percentage

1 Yes 17 85

2 No 3 15

Total 20 100

Performance Appraisal
simple to understand
Yes No

15%

85%

Respondents & Responses-

90% of the respondents agreed to the above statement
 It is simple to understand and follow pre-process.
 It clears to express as individual his strength and capacity.
 It gives an opportunity to show case his achievement.
 It helps to understand the required capacity to meet requirements.
  10% of the respondents disagreed to the statements
 A Performance Appraisal tool should be kept as simple as possible while meeting
objectives.
 A Performance Appraisal tools should be based on assessment of work quantity, quality,
and knowledge of job but not personality.
 Process cycle time has to be reduced.
5. Do you receive an orientation on how to conduct appraisal process?
S.No. Options No. of Respondents Percentage

1 Yes 12 60

2 No 8 40

Total 20 100

Orientation on Appraisal process

Yes No

40%

60%

Respondents & Responses-

60% of the respondents agreed to the above statement
 Detailed orientation is given to all levels at the beginning of the process.
 Various training programs are available and discussed with superiors.
  40% of the respondents disagreed to the statement
 Sometimes process will be failed due to some internal problems after getting orientated
on the Performance Appraisal system.

6. How much time is spent in preparing for feedback session?

S.No. Options No. of Respondents Percentage

1 1 hour 8 40

2 2 hour 12 60

Total 20 100

Feedback Session Time

1 hour
40%

2 hour
60%

Respondents and Responses-

40% of the respondents agreed to 1 hour statement
 More time will be spent if one employee worked under different managers for different
assignments.
 It is necessary to know the earlier manager’s feedback on the employee to assess
properly.
 In the Performance Appraisal system no records/data are available of confirmation
 appraisal and project end appraisal.
 60% of the respondents agreed to 2 hours statement
 Approximately 2 hours, 1 hour for collecting feedback and brainstorming and 1 hour for
filling Review.
 1 hour need to have things documented on how an employee has been appraised.
 There different process and have their strengths or improvement plans throughout the
year.
 Feedback session involved revision of individual’s accomplishments during the appraisal
period. His/her strengths, improvement areas and training & development.
7. In your opinion how is overall Performance Appraisal system in “HDFC BANK
LIMITED.”?
S.No. Options No. of Respondents Percentage

1 Excellent 10 50

2 Good 6 30

3 Average 4 20

4 Poor - -

Total 20 100

Opinion about PA System

Average
20%

Excellent
50%

Good
30%
The above data predicts that the present appraisal system status in the company where 50% of
the employees responded to be excellent, 30% respondent to be good, and 20% responded as
average i.e. just satisfied.
Thus the majority of respondents have viewed their opinion that the present appraisal system is
good.
8. a) Are you satisfied with the current Appraisal system?
S.No. Options No. of Respondents Percentage

1 Yes 14 70

2 No 6 30

Total 20 100

Satisfaction level for PA

System
No
30%

Yes
70%

Respondents and Responses-

70% of the respondents agreed to the above statement
 It is simple to understand and follow pre process.
 It is clear to express as individual his strength and capacity.
 It gives an opportunity to show case his achievement.
 It helps us to understand the required capacity to meet requirements.

30% of the respondents disagreed to the statement

 Suggested by some managers to have half yearly appraisal system.
 Promotion, salary revisions can be dealt during annual appraisal.
 Half yearly appraisal will help in motivating, keeping employees known of peer strength
and improvement areas.
 Confirmation appraisal and project end appraisal process needs to be automated.
 In the process of performance appraisal cross business unit appraisal process should be
smoothened.
  Performance Appraisal should be subject to regular evaluation and review.

8. b) If not then what are the areas need to be improved?

S.No. Options No. of Respondents Percentage

1 Time 7 35

2 Process 13 65

Total 20 100

Improvement required for PA

system
Time
35%

Process
65%

The above data predicts that 35% of the respondent need to change the duration of PA system
and rest of the 13 respondents i.e. 65% need to change the process of performance appraisal.
9. Do you feel any difficulty in handling them?
S.No. Options No. of Respondents Percentage

1 Yes 4 20

2 No 16 80

Total 20 100

Difficulty level for PA System

Yes 20%

No
80%

The above data indicates that 80% of the respondents feels no difficulty while handling
performance appraisal system while the rest of the 20% of the respondent feels little difficulty.
10. What other process can be included making the appraisal process much better?

S.No. Options No. of Respondents Percentage

1 MBO 8 40

2 Critical Incident 4 20
Method

3 Web based appraisal 8 40

system

Total 20 100

Process need to be included

MBO Critical Incident Method
Web based appraisal system

35%

45%

20%

The above data indicates that equal percentage of respondent need to add MBO as well as Web
based appraisal system in their organization i.e. 40% and the rest 20% of other needs to include
Critical incident Method.
Present Appraisal System Satisfaction Level-

Particulars Respondents Percentage

Good 12 60

Satisfactory 6 30

Poor 2 10

Total 20 100

Good Satisfactory Poor

10%

30%

60%

The above data indicates the present appraisal system status in the company where 60% of the
employees responded to good, 30% responded to satisfactory i.e. just satisfied and the remaining
10% are not satisfied and who have not responded as poor.

Thus, the majority of the respondents have viewed their opinion that the present appraisal system
is good.
Efficiency of the present appraisal system in employee development-

Particulars Respondents Percentage

Yes 16 80

No 4 20

Total 20 100

Yes No
20%

80%

The above data shows that 80% respondents are accepting that Performance Appraisal has aimed
at development of the employee, and only 20% of them disagreed to the present system.

Hence, most of the respondents are agree that Performance Appraisal is aiming to the career
development of the employee.
Present Appraisal system in setting work targets-

Particulars Respondents Percentage

Yes 14 70

No 6 30

Total 20 100

Yes No
30%

70%

The above data reveals that possibility of setting targets for the different jobs they do under
different department, 70% respondents have said yes for the job they do. 30% respondents have
said no for the qualitative and creative jobs they do.

Therefore, majority of respondents have agreed the possibility of setting work targets.
The target for the job they do even though every job needs certain degree of creativity which
depends upon the nature of job.
Actions taken after Performance Appraisal-

Particulars Respondents Percentage

Useful discussions 11 55

No discussions 4 20

Only failure are discussed 2 10

Genius Feedback is given 3 15

Total 20 100

Useful discussions No discussions

Only failure are discussed Genius Feedback is given
15%

10%

55%

20%

The above data shows actions taken after the Performance Appraisal by the appraiser the
management 55% respondents of them reported they take up useful discussions on the evaluation
and results, 4 of them i.e. 20% have denied and says no discussion, 10% said only failures are
discussed, no discussion is made on achievement, 15% agreed that they get genius feedback on
evaluation.
Thus, majority of respondents told they are useful discussions with appraiser after performance
appraisal.
Availability of feedback in Performance Appraisal system-

Particulars Respondents Percentage

Yes 17 85

No 3 15

Total 20 100

Yes No
15%

85%

The above data distributes whether the present appraisal system is used in getting the feedback
from the employees, 85% respondents told the present appraisal system helps in giving the
feedback from the employees and only 15% respondents told the existing appraisal system is not
helping in getting proper feedback from the employees.

Therefore, majority of the respondents are accepting that the present appraisal system help in
getting feedback from the employees.
CHAPTER – V

FINDINGS

CONCLUSIONS

SUGGESTIONS
FINDINGS

The following key findings are found while performing HR survey for identifying the impact of
Performance Appraisal (PA) system:

 HDFC BANK LIMITED. follows two types of Appraisal process - Graphic Rating Scales
and Behaviorally Anchored Rating Scaling (BARS) which is user-friendly and easily
accessible within the organization.
 Feedback is given to the employees about their performance.
 Promotions schemes exist in the organization according to the employees’ performance.
 It captures an individual’s strengths, improvement areas & also captures training courses
recommended.
 Performance Appraisal process will start on time and process will be conducted as per the
appraisal period.
 There is a fixed schedule to meet listed in detail at beginning of the process.
 The process assessment is fair and justified with business units.
 It is objective process, measuring an individual is fair but the metrics are inadequate.
 Across business units does not yield right results.
 There are some issues with performing employees not getting proper result of the
appraisal.
 Process is clear to express as an individual his strengths and capacity.
 It gives an opportunity to show case his achievement.
 It helps to understand the required capacity to meet requirements.
 A Performance Appraisal system tools should be based on assessment of work
performance not personality.
 A Performance Appraisal system tools should be kept as simple as possible while
meeting objectives.
 Detailed orientation will be given at all level at beginning of the performance
appraisal process.
 Various training programs are available and discussed with superiors.
 Sometimes process will be failed due to some internal problem after getting orientated on
the performance appraisal system.
 Feedback session involved revisions of individual’s accomplishments during the
appraisal period. His/her strengths, improvement areas and training and development.
 More time will be spent if one employee worked under different managers for
assignments.
 It is necessary to now the earlier manager’s feedback on the employee to assess properly.
 In Performance Appraisal includes Quantitative and qualitative measures.
 It will clarify organizational goals and expectations.
 It provides a mechanism for improving communication between workers and superiors.
 It will decide upon future work requirements and objectives.
 By this employee can discuss ideas, comments and suggestions.
 Develop an action plan for indentifying strategies which will make it possible for the
employees to achieve the objective discussed.
 Performance Appraisal should be developed and implemented in consultation with
employees and superiors.
 Performance Appraisal should operate equitable throughout the organization.
 Promotions, salary revisions can be dealt during annual appraisal.
 Group work and team work exist in an organization.
 Majority of the executives give reasons for not completing their targets.
 Review and reset of the task is not made uniformly.
CONCLUSIONS
Most of the time Performance Appraisal (PA) for determining compensation increases, training
need identification and for promotions. The Performance Appraisal has delinked itself from
being an instrument of evaluating performance in the organization. Application of performance
and bringing about better performance management practices that enables organization to
improve their performance and bring in a performance driven culture is the need of the hour
rather performance appraisal only.

No Doubt without the commitment of the top management it would just be very difficult to bring
this sort of change. This in fact calls for a cultural change where in emphasis is not only given to
the Outcome or the end result but also on the process and effort made to achieve the result.
While discussing of the process & effort we need to focus on the leadership style, his approach
of consulting others, his ability to learn, his approach as a team member, his effort in planning
his days and week, and his overall orientation for subordinates development. All this really calls
for a different ball games wherein the concerned supervisors are able to emphasize with his sub-
ordinates and is really above to understand his emotional world.
In this era where every individual is competing with each other and where very tight schedules
are drawn without much scope for slippages, there is every probability that conflicts are going to
become a common affair. As such is has become all the more important that a supervisor makes
all out effort to understand emotional world of the sub-ordinate in terms of his hindering and
facilitating factors in terms of achieving his goals, what help the person growth and his own
ambition in the next 3-4 years, what is happening on his family front.

All this shall only happen if the sub-ordinate is able to see value and a genuine concern in all
this. For this what can be done is that once in a month an effort can be made by the supervisor to
sit his sub-ordinate to sit with his sub-ordinate and have a face to face interaction in a non
threatening atmosphere. What I have personally observed that it charges the motivation level of
an individual considerably and in fact the employee makes all out effort to achieve the
Organizational goals.
SUGGESTIONS

 Though the employees feels that the company is fair in its appraisal process but still has
lot to in terms of making the appraisal process effective so that it results in enhanced
employee satisfaction and helps in retaining key employees of the company.
 The project leaders are dissatisfied with the way responsibilities are distributed. The
company needs to works in this area and bring more clarity in the definitions of roles and
responsibilities.
 The Management should design training and development programs, career plans for
their employees’ on the basis of skills, knowledge needs.
 Appreciate employees’ on the basis of employees’ work performance by Promotion or
increment in the salaries.
 The performance culture of the company is another area where needs to be done to
improve the training regimen so that involvement of the employees is enhanced which
finally would build the morale and productivity would be enhanced.
 Employees have doubts about the rewards and feel that the system is not too transparent.
This in the long run unattended would reduce the morale and may lead to attrition.
 BIBILOGRAPHY

1. V S P Rao, Human Resource Management, Anurag Jain for Excel Books, Hyderabad.

2. Dr. K Ashwathappa, Human Resource & Personal management, TATA

McGraw-Hill Publishing Company limited, Hyderabad.

3. Prem Chadha, Performance Management

4. Google Engine Search

5. www.appraisals.naukrihub.com

6. www.performance-appraisal.com

7. Wikipedia -An Encyclopedia

 ANNEXERUE

QUESTIONAIRE

Part A:

Name of the Respondent : ______________________

Age : ______________________
Gender : ______________________
Qualification : ______________________
Designation : _______________________

Part B:
1. Is the Performance Appraisal process user friendly?
a.  Yes b.  No
2. Is Performance Appraisal conducted on time?
a.  Yes b.  No
3. Does Performance Appraisal process assess fairly?
a.  Yes b.  No
4. Is Performance Appraisal process is simple to understand?
a.  Yes b.  No
5. Do you receive an orientation on how to conduct appraisal process?
a.  Yes b.  No
6. How much time is spent in preparing for feedback session?
a- 1 hour b- 2 hour
7. In your opinion how is overall performance appraisal system in
“HDFC BANK LIMITED.”?
a. Excellent b- Good c- Average d- Poor
8. a) Are you satisfied with the current appraisal system?
a.  Yes b.  No
b) If not then what are the areas need to be improved?
a. Time b. Process
9. Do you feel any difficulty in handling them?
a.  Yes b.  No
10. What other process can be included making the appraisal process much
better?
a. MBO b. Critical Incident Method c. Web based Method.
 BENCH MARKING

Performance appraisal is very important for any company. It helps to make the companies
employee work better and show good result for the company too. This helps the company to turn
out to be profit making company.

As in HDFC BANK LIMITED. we are using the “Rating scales” or “Fair comparison method”
mostly to grade the performance of the employees. The method used by the company is very fair
and it is very easy to be adopted by the personnel’s. This method is very convenient to be used.
But the drawback associated with the method is that it has now became an out dated method to
be used because there are fifty percent chances of biasness to occur for a particular employee by
the raters.

After the survey and the conversation by the people of other company we came to know that they
have introduced the 360-degree performance appraisal in the company. Before they were using
the same method as used by HDFC BANK LIMITED. at times they used “Forced choice
method” also to rate the performance, which affected the companies working to a great extent.

But when they realized that they are having complains from the workers, staff etc. they decided
to go for a change and now they incorporated 360-deree performance appraisal, the result of
using this method is that everyone in the company is satisfied by it.

Hence accordingly to my views I would also suggest the company to go for the change it the
method adopted by them for better results and employee satisfaction.