A PROJECT REPORT

ON
“A STUDY ON EMPLOYEES SATISFACTION ON
PERFORMANCE APPRAISAL SYSTEM AT ICICI BANK”
Submitted in partial fulfillment for the award of the degree of

Master of Management Studies (MMS)

(University of Mumbai)

Submitted By

CHANDRASHREYA RAMESH SANIL

Roll No. MB23077

Under the Guidance of

ASST. PROF. MR DEEPAK NAYAK

Academic Year

2023-25

SAS INSTITUTE OF MANAGEMMENT STUDIES (MMS)

Saravali, Boisar (w),
Tal. & Dist. Palghar (MH) - 401501.

1
 DECLARATION

I hereby declare that Project Report submitted by me on the topic “A STUDY

ON EMPLOYEES SATISFACTION ON PERFORMANCE APPRAISAL
SYSTEM AT ICICI BANK” is a Bonafide work undertaken by me and it is not
submitted to any other University or Institution for the award of any degree
diploma/ certificate or published any time before.

Signature:

Name: Chandrashreya Ramesh Sanil

Roll No:
Place: Boisar Date:

2
 DEEP EDUCATION SOCIETY’S
SAS INSTITUTE OF MANAGEMENT STUDIES

Enrich Enhance Elevate

CERTIFICATE
This is to certify that project titled “A STUDY ON EMPLOYEES
SATISFACTION ON PERFORMANCE APPRAISAL AT ICICI BANK” is
successfully completed by CHANDRASHREYA RAMESH SANIL during the IV
Semester, in partial fulfillment of the Master’s Degree in Management Studies
recognized by the University of Mumbai for the academic year 2023-25 through
SAS INSTITUTE OF MANAGEMENT STUDIES.

This project work is original and not submitted earlier for the award of any degree
/diploma or associateship of any other university / Institution.

Internal Examiner
Name: Signature:
External Examiner
Name: Signature:

Dr. Bhagesh Sankhe

(Director SASIMS)

College Seal
3
 ACKNOWLEDGEMENT

I express my sincere thanks to my project guide, “MR DEEPAK NAYAK”,

Assistant Prof, of MBA Department, for guiding me right from the Inception till
the successful Completion of the project, I sincerely acknowledge HIS for
extending HIS valuable guidance, support for literature, critical reviews of project
and the report and above all the moral support HE had provided me for this project.
I would also like to thank our Director Dr. Bhagesh Sankhe Sir and other staff
members of MBA Department, for their help and cooperation throughout my
project.

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 Table of content

Chapter Title Page No.

No.
Declaration 2
College Certificate 3
Acknowledgement 4
1 Introduction 6
2 Company Profile 20
3 Review of Literature 26
4 Research Methodology 36
4.1 Problem Statement -
4.2 Objective of Research -
4.3 Type of Research -
4.4 Sources of Data -
4.4.1 Primary Data -
4.4.2 Secondary Data -
4.5 Instrument of Data Collection -
4.6 Type of Sampling -
4.7 Sample Size -
5 Data analysis and interpretation 38
6 Findings 53
7 Limitations 55
8 Recommendation 56
9 Conclusion 57
10 Bibliography 58
11 Annexure 59

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 CHAPTER 1
INTRODUCTION

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 1. INTRODUCTION

A bank is defined as "accepting deposits from the public that can be repaid on
demand and withdrawn by cheques, draft, or otherwise for the purpose of
lending or investing."

Banks are an industry that involves the processing of cash, lending, and other
financial transactions. Banks provide a safe place to store extra cash and
balances. They offer savings accounts, certificates of deposit, and check
accounts. Banks use these deposits to make loans. These loans include
mortgages, personal loans, business loans, gold loans and car loans.

Banking sector is one of the crucial pillars of an economy; the stronger the
banking sector is the stronger will be the economy. The banking industry has
been continuously upgrading its operation by making use of technology. With
the advancement of the technology, banks have implemented various systems
to carry banking transactions easily and quickly. In a developing country like
India, where customers possess a varied form of needs and desires it becomes
legitimate for the banks and service providers to offer quality services speedily
and efficiently to meet the customer’s expectation.

The banking industry is under increasing pressure to demonstrate that their

services are customer focused and that continuous performance improvement
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is being delivered. However, in introducing improvement, banks need to ensure
that their customers satisfaction is met. In order to face the tough competition
in this competitive scenario of banking sector, banks are forced to adapt to new
technologies.

A bank is a financial institution and a financial intermediary that accepts

deposits and channels those deposits into lending activities, either directly by
lending loans or indirectly through capital markets.

A bank may be defined as an institution that accepts deposits, makes loans, pays
checks and provides financial services. A bank is a financial intermediary for
the safeguarding, transferring, exchanging, or lending of money. A primary role
of banks is connecting those with funds, such as investors and depositors, to
those seeking funds, such as individuals or businesses needing loans. A bank is
a connection between customers that have capital deficits and customers with
capital surpluses.

The services banks offer to customers have to do almost entirely with handling
money or finances for other people. Banks are critical to our economy. The
primary function of banks is to put their account holders' money to use by
lending it out to others who are in need of the same.

Money is a medium of exchange, an agreed-upon system for measuring the

value of goods and services. Once, and still in some places today, precious
stones, animal products, or other goods of value might be used as a medium of
exchange. This system was used for centuries, before the invention of money.
People used to exchange goods or services for other goods or services in return.
This system is also known as “Barter System” and an age-old method that was
adopted by people to exchange their services and goods. Roman soldiers were
sometimes paid in salt because it was critical to life and was a scarce
commodity at those times.

Anything with an agreed-upon value might be a medium of exchange. Today,

many forms of money are used. Money is any object or record that is generally
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accepted as payment for goods and services and repayment of debts in a given
socio-economic context or country. The main functions of money are
distinguished as a medium of exchange; a unit of account; a store of value; and,
occasionally in the past, a standard of deferred payment.

Any kind of object or secure verifiable record that fulfills these functions can
be considered money. Money simply shows how much something is worth,
when you have money, a bank can act as your agent for using or protecting that
money.

Advantages Of Banking Sector

Banking offers several benefits to individuals, businesses, and the economy as

a whole. Here are some key advantages:

➢ Safety and Security

o Protection of Funds: Banks provide a safe place to store money.

Deposits are often insured (e.g., FDIC insurance in the U.S.) to
protect against theft, fraud, or financial institution failure.

o Fraud Prevention: Banks use advanced security measures (like

encryption and multi-factor authentication) to help protect against
fraud and identity theft.

➢ Convenience

o Easy Access to Money: Banks offer convenient ways to access

funds, such as ATMs, mobile banking apps, and online services.

o Automatic Transactions: One can set up automatic bill

payments, direct deposits, and other recurring transactions,
making financial management easier.

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➢ Interest Earning

o Savings Accounts: Banks offer interest on savings accounts,

which allows your money to grow over time.

o Investments: Banks provide opportunities to invest in bonds,

stocks, and other financial products that can yield returns over
time.

➢ Credit and Loans

o Access to Credit: Banks offer credit facilities such as credit cards,

loans, and mortgages, allowing individuals and businesses to
borrow money when needed.

o Building Credit History: By using bank products like credit cards

or loans responsibly, individuals can build or improve their credit
score, which can lead to better borrowing opportunities in the
future.

➢ Financial Management and Advice

o Financial Planning: Many banks offer financial planning

services to help individuals and businesses manage their finances
effectively.

o Investment Advice: Banks can guide you on investing in stocks,

bonds, and other assets to grow your wealth.

➢ Global Transactions

o International Transfers: Banks provide services for sending

money globally through wire transfers and other international
payment systems.

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 o Currency Exchange: If you travel or do business internationally,
banks offer currency exchange services.

➢ Support for Business Growth

o Loans for Business Expansion: Banks offer loans and lines of

credit that businesses can use for growth, innovation, and
operations.
o Merchant Services: Banks provide payment processing services,
making it easier for businesses to accept credit cards and online
payments.

➢ Record-Keeping

o Account Statements: Banks provide detailed statements for all

account transactions, which can be useful for budgeting, tax
reporting, and financial planning.

o Tracking Spending: With online banking and mobile apps, you

can track your spending, set limits, and manage your finances
more effectively.

These benefits contribute to financial stability, economic growth, and personal

financial security.

1.2 Performance Appraisal

Performance appraisal, also known as employee appraisal, is a method by
which the job performance of an employee is evaluated (generally in terms of
quality, quantity, cost and time). Performance appraisal is a part of career
development. Performance appraisals are a regular review of employee
performance within organizations. It is the systematic evaluation of individual
with respects to his/ her performance on the job and his potential for
development. The performance being measured against such factors as job
knowledge, quality and quantity of output, initiative, leadership abilities,
11
supervision, dependability co-operation, judgment, versatility, health and the
like. Assessment should not be confined to past performance alone. Potential
of the employee for future performance must also be assessed.
Performance appraisal is the process of obtaining, analyzing and recording
information about the relative worth of an employee. The focus of the
performance appraisal is measuring and improving the actual performance of
the employee and also the future potential of the employee. Its aim is to measure
what an employee does.
According to Flipped, a prominent personality in the field of Human resources,
“performance appraisal is the systematic, periodic and an impartial rating of an
employee’s excellence in the matters pertaining to his present job and his
potential for a better job." Performance appraisal is a systematic way of
reviewing and assessing the performance of an employee during a given period
of time and planning for his future. It is a powerful tool to calibrate, refine and
reward the performance of the employee. It helps to analyze his achievements
and evaluate his contribution towards the achievements of the overall
organizational goals. By focusing the attention on performance, performance
appraisal goes to the heart of personnel management and reflects the
management’s interest in the progress of the employees.
Performance appraisal is the systematic process of evaluating and documenting
an employee’s job performance, skills, achievements, and overall contributions
within an organization. It involves assessing an individual's strengths,
weaknesses, and potential for growth, typically through reviews conducted by
managers or supervisors. The goal is to provide constructive feedback, identify
areas of improvement, and recognize outstanding performance.

2.2 Types of Performance Appraisal

There are several different methods or types of performance appraisal, each
with its own unique approach to evaluating an employee's performance:

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1. Traditional Methods
o Rating Scales: Employees are rated based on various
performance factors (e.g., teamwork, leadership,
communication, etc.) using a numerical or descriptive scale
(e.g., 1-5 or "Excellent," "Good," "Needs Improvement").
o Essay Method: A manager writes a detailed description of an
employee's strengths, weaknesses, achievements, and areas for
improvement.
o Critical Incident Method: Specific incidents of an
employee’s behavior (positive or negative) are recorded and
used to evaluate performance.

2. Modern Methods
o 360-Degree Feedback: Involves gathering feedback from
multiple sources (managers, peers, subordinates, and
sometimes clients) to provide a well-rounded assessment of the
employee’s performance.
o Management by Objectives (MBO): Employees and
managers set specific, measurable objectives together.
Performance is assessed based on the achievement of these
objectives over a specific time period.
o Behaviorally Anchored Rating Scale (BARS): Combines
elements of both rating scales and critical incidents by
assessing employees based on specific behavioral examples
linked to performance levels.

3. Self-Assessment
o Employees assess their own performance, which helps them
reflect on their achievements and areas for growth. It’s often
used alongside other appraisal methods.

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 4. Peer Reviews
o Employees are evaluated by their colleagues, often in a team
setting, providing insights from their day-to-day interactions
with the individual.

1.3 Purpose of Performance Appraisal

The purpose of performance appraisal is multifaceted and serves various
functions within an organization:

1. Evaluation of Employee Performance: The primary purpose is to

assess how well an employee has performed in their role based on
predetermined criteria (e.g., KPIs, competencies).

2. Employee Development: It helps identify areas for growth and

development, providing employees with the feedback necessary to
improve their performance and achieve career advancement.

3. Decision-Making: Performance appraisals assist in making key

organizational decisions related to promotions, salary adjustments,
bonuses, and job assignments.

4. Feedback and Communication: The process creates an opportunity for

managers and employees to discuss performance, provide feedback,
clarify expectations, and strengthen communication.

5. Motivation and Recognition: By acknowledging achievements and

high performance, appraisals serve to motivate employees, boosting
morale and encouraging continued success.

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 6. Aligning Individual and Organizational Goals: Performance
appraisals help ensure that employee efforts are aligned with the broader
goals of the organization, fostering a more productive and cohesive work
environment.

2.4 Objectives of Performance Appraisal

The objectives of performance appraisal are geared toward fostering continuous
improvement and benefiting both the employee and the organization. Some of
the main objectives include:

1. Improving Job Performance

o The primary objective is to improve the employee's overall
performance by identifying areas that need improvement and
providing constructive feedback.

2. Career Development
o Appraisals help in identifying employee strengths and
weaknesses, which guides decisions about further training and
professional development opportunities. It helps in grooming
future leaders by focusing on their growth potential.

3. Rewarding Performance
o Performance appraisals form the basis for determining rewards,
such as promotions, salary increases, bonuses, and recognition for
outstanding contributions to the organization.

4. Facilitating Communication
o Appraisals serve as a formal and structured communication
channel between employees and managers, encouraging open
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 discussion about performance, goals, expectations, and any
concerns.

5. Identifying Training Needs

o The appraisal process helps identify skill gaps or performance
issues that can be addressed through targeted training and
development programs.

6. Enhancing Organizational Effectiveness

o By assessing employee performance against organizational goals,
performance appraisals can identify whether the workforce is
aligned with the strategic objectives of the organization. This helps
in improving overall productivity and effectiveness.

2.5 Importance of Performance Appraisal

Performance appraisal in banks holds significant importance for both the
organization and its employees. Given the highly competitive and regulated
nature of the banking sector, an effective performance appraisal system ensures
that employees align with the bank’s goals, deliver excellent customer service,
and maintain operational efficiency. Here’s why performance appraisals are
particularly important in the banking sector:

1. Improving Employee Performance

• Aligning with Organizational Goals: Banks need their employees to
meet certain performance metrics, such as sales targets, customer
satisfaction, or compliance standards. Performance appraisals help
ensure that individual employee goals align with the broader objectives
of the bank.
• Identifying Strengths and Weaknesses: Through performance
appraisals, banks can recognize where employees excel (e.g., cross-
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 selling, client management) and where they need improvement (e.g.,
compliance knowledge, soft skills). This helps target specific
development areas to enhance overall performance.

2. Ensuring Customer Satisfaction

• Enhancing Service Quality: The performance of bank employees is
often directly linked to customer satisfaction. Regular performance
appraisals allow banks to assess customer service skills and ensure that
employees are up to date with customer service protocols and
expectations.
• Employee Engagement and Motivation: Employees who are regularly
evaluated and recognized for their contributions tend to be more
motivated, leading to better service delivery and increased customer
loyalty.

3. Talent Management and Succession Planning

• Identifying Future Leaders: Banks rely on having strong leadership at
various levels, whether it’s branch managers, relationship managers, or
department heads. Performance appraisals help identify employees with
leadership potential, ensuring effective succession planning and the
preparation of future leaders within the organization.
• Retention of Top Talent: Appraisals allow banks to recognize high
performers with rewards, promotions, and career development
opportunities. This helps retain talented employees who contribute
significantly to the bank's success.

4. Compliance and Risk Management

• Monitoring Regulatory Compliance: Banks operate in a heavily
regulated environment, and employee adherence to legal and regulatory
standards is critical. Performance appraisals help monitor compliance
with banking regulations, ethical standards, and internal policies.
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 • Identifying Risk Factors: By evaluating employees on their adherence
to risk management policies, banks can detect early signs of negligence
or errors that may expose the organization to financial or reputational
risks.

5. Providing Training and Development Opportunities

• Targeted Development: Performance appraisals highlight areas where
employees need further training, such as product knowledge, regulatory
updates, or interpersonal skills. Banks can then provide tailored
development programs to enhance employees' capabilities and ensure
they stay competitive in a fast-changing industry.
• Cross-Skilling: By identifying gaps in skills, banks can offer
opportunities for employees to develop new skills, enabling them to
move across different roles within the bank and remain adaptable.

6. Incentivizing Performance and Motivation

• Rewards and Recognition: In the banking sector, performance
appraisals directly influence rewards such as bonuses, commissions, and
promotions. Rewarding employees for their achievements encourages
continued excellence and motivates others to perform at a higher level.
• Enhancing Productivity: Performance-based incentives, determined
through appraisals, drive employees to meet or exceed targets, boosting
overall productivity in branches and departments.

7. Supporting Operational Efficiency

• Streamlining Processes: Performance appraisals help identify
inefficiencies or areas where employees may be struggling. Banks can
use this information to optimize processes, introduce new tools, or
reassign roles to improve operational efficiency.

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 • Reducing Errors and Improving Accuracy: In banks, accuracy is
critical (e.g., processing transactions, handling customer accounts).
Performance appraisals highlight areas where mistakes are happening,
allowing banks to take corrective measures, offer additional training, and
ensure fewer errors.

8. Employee Engagement and Job Satisfaction

• Clear Career Pathways: Through performance appraisals, employees
gain a clear understanding of how their performance aligns with their
career progression. Knowing that their efforts can lead to career
advancement fosters job satisfaction and long-term loyalty to the bank.
• Employee Motivation: Regular feedback and recognition through
performance appraisals keep employees motivated and engaged, leading
to higher morale and a positive work culture.

9. Enhancing Organizational Culture

• Establishing Clear Expectations: Appraisals help define performance
expectations, ensuring that employees understand what is expected of
them in terms of both job tasks and behaviors. This helps in cultivating a
productive and cohesive organizational culture.
• Fostering Transparency and Communication: Performance
appraisals create a space for open discussions between employees and
managers, enhancing communication and trust within the organization.

10. Attracting Talent

• Employer Branding: Banks that have a robust and fair performance
appraisal system are more likely to attract top talent. Potential employees
often look for organizations that offer career development, recognition,
and growth opportunities, all of which can be facilitated through
effective appraisals.

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 CHAPTER 2
COMPANY PROFILE – ICICI BANK

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 2. COMPANY PROFILE – ICICI BANK

ICICI Bank Limited is an Indian multinational bank and financial

services company headquartered in Mumbai with a registered office
in Vadodara. It offers a wide range of banking and financial services for
corporate and retail customers through various delivery channels and
specialized subsidiaries in the areas of investment banking, life, non-life
insurance, venture capital and asset management.

ICICI Bank has a network of 6,613 branches and 16,120 ATMs across India. It
also has a presence in 11 countries.

2.1 History

The Industrial Credit and Investment Corporation of India (ICICI) was a

government institution established on 5 January 1955 and Sir Arcot Ramasamy
Mudaliar was elected as the first Chairman of ICICI Ltd. It was structured as a
joint-venture of the World Bank, India’s public-sector banks and public-sector
insurance companies to provide project financing to Indian industry. The
principal objective was to create a development financial institution for
providing medium-term and long-term project financing to Indian businesses.
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Until the late 1980s, ICICI primarily focused its activities on project finance,
providing long-term funds to a variety of industrial projects. With the
liberalization of the financial sector in India in the 1990s,

ICICI transformed its business from a development financial institution

offering only project finance to a diversified financial services provider that,
along with its subsidiaries and other group companies, offered a wide variety
of products and services. As India’s economy became more market-oriented
and integrated with the world economy, ICICI capitalized on the new
opportunities to provide a wider range of financial products and services to a
broader spectrum of clients.

ICICI Bank was established by ICICI, as a wholly owned subsidiary in 1994

in Vadodara. The bank was founded as the Industrial Credit and Investment
Corporation of India Bank, before it changed its name to ICICI Bank. In
October 2001, the Boards of Directors of ICICI and ICICI Bank approved the
merger of ICICI and two of its wholly-owned retail finance subsidiaries, ICICI
Personal Financial Services Limited and ICICI Capital Services Limited, with
ICICI Bank. The merger of parent ICICI Ltd. Into its subsidiary ICICI Bank led
to privatization.

In the 1990s, ICICI transformed its business from a development financial

institution offering only project finance to a diversified financial services
group, offering a wide variety of products and services, both directly and
through a number of subsidiaries and affiliates like ICICI Bank. ICICI Bank
launched Internet Banking operations in 1998.

ICICI’s shareholding in ICICI Bank was reduced to 46 percent, through a public

offering of shares in India in 1998, followed by an equity offering in the form
of American Depositary Receipts on the NYSE in 2000. ICICI Bank acquired
the Bank of Madura Limited in an all-stock deal in 2001 and sold additional
stakes to institutional investors during 2001-02. In the 1990s, ICICI
transformed its business from a development financial institution offering only
project finance to a diversified financial services group, offering a wide variety
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of products and services, both directly and through a number of subsidiaries
and affiliates like ICICI Bank. In 1999, ICICI become the first Indian company
and the first bank or financial institution from non-Japan Asia to be listed on
the NYSE. In 2000, ICICI Bank became the first Indian bank to list on the New
York Stock Exchange with its five million American depository shares issue
generating a demand book 13 times the offer size.

In October 2001, the Boards of Directors of ICICI and ICICI Bank approved
the merger of ICICI and two of its wholly owned retail finance subsidiaries,
ICICI Personal Financial Services Limited and ICICI Capital Services Limited,
with ICICI Bank. The merger was approved by shareholders of ICICI and ICICI
Bank in January 2002, by the High Court of Gujarat at Ahmedabad in March
2002 and by the High Court of Judicature at Mumbai and the Reserve Bank of
India in April 2002.

In 2015, ICICI unveiled an outward remittance platform called

‘Money2World’. The first of its kind, it enabled fully online outward
remittance transactions for non-ICICI and ICICI customers alike.

2.2 Subsidiaries

➢ Domestic

• ICICI Prudential Life Insurance Company Limited

• ICICI Lombard General Insurance Company Limited
• ICICI Prudential Asset Management Company Limited
• ICICI Prudential Trust Limited
• ICICI Securities Limited
• ICICI Securities Primary Dealership Limited
• ICICI Venture Funds Management Company Limited
• ICICI Home Finance Company Limited
• ICICI Investment Management Company Limited
• ICICI Trusteeship Services Limited
• ICICI Prudential Pension Funds Management Company Limited
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 ➢ International

• ICICI Bank UK PLC

• ICICI Bank Canada
• ICICI Bank Eurasia Limited Liability Company
• ICICI Securities Inc.
• ICICI International Limited

2.3 Executive Director’s Profiles

a. Managing Director & CEO

Sandeep Bakhshi

b. Executive Director

Rakesh Jha

Sandeep Batra

24
 Ajay Gupta

2.4 Vision And Mission

Vision

ICICI Bank’s vision is to be the trusted financial services provider of

choice for customers and create sustainable value for stakeholders.

Mission

ICICI Bank’s mission is to:

• Deliver products and services that create value for customers
• Meet customer needs
• Conduct business within well-defined risk tolerance levels
ICICI Bank is committed to acting professionally and fairly in all its
dealings. The bank has a Code of Business Conduct and Ethics that
provides the values, principles, and standards that should drive employee
decisions and actions.

2.5 Acquisitions

• 1996: ICICI Ltd. A diversified financial institution with headquarters in

Mumbai
• 1997: ITC Classic Finance. Incorporated in 1986, ITC Classic was a non-
bank financial firm that engaged in hire, purchase and leasing operations.
At the time of being acquired, ITC Classic had eight offices, 26 outlets
and 700 brokers.
• 1997: SCICI (Shipping Credit and Investment Corporation of India)
25
 • 2002: The Darjeeling and Shimla branches of Grindlays Bank
• ICICI Bank has also acquired smaller banks to increase its reach,
including Sangli Bank in 2007.
• 2010: The Bank of Rajasthan (BOR) was acquired by the ICICI Bank in
2010 for ₹30 billion.
• In June 2023, ICICI Securities announced that it would delist and become
a subsidiary of ICICI Bank. The ICICI Bank board authorized the plan
on June 29, 2023.
• In March 2020, ICICI Bank invested ₹10 billion (US$120 million) in Yes
Bank, resulting in a 5% ownership interest in Yes.

2.6 Awards And Recognitions

ICICI Bank has won many awards for its services and solutions, including:

• Company of the Year: ICICI Bank won this award at the 2022
Economic Times Awards for Corporate Excellence.
• Best Retail Bank in India: ICICI Bank won this award for the ninth year
in a row at the 2022 Asian Banker Excellence in Retail Financial Services
International Awards.
• Digital Bank of the Year: ICICI Bank won this award at the 2020 Asset
Triple A Digital Awards.
• Best Retail Mobile Banking Experience: ICICI Bank won this award
at the 2020 Asset Triple A Digital Awards.
• Best Digital Wealth Management Experience: ICICI Bank won this
award at the 2020 Asset Triple A Digital Awards.
• Best ATM Project: ICICI Bank won this award at the 2020 Asset Triple
A Digital Awards.

26
 • Utkarsha Puruskar: ICICI Bank won this award for achieving the
second highest percentage of digital payment transactions among large
and medium private sector banks.

2.7 Performance Appraisal At ICICI Bank

Performance appraisal at ICICI Bank is a structured process designed to
evaluate, manage, and improve employee performance. It serves as a vital tool
to align individual goals with the bank's strategic objectives while fostering
employee growth, recognition, and organizational efficiency. Here’s an
overview of the performance appraisal process at ICICI Bank, highlighting
its key components:

Key Elements of Performance Appraisal at ICICI Bank

1. Goal Setting and Expectations

o SMART Goals: At the start of the appraisal period, employees at
ICICI Bank work with their managers to set SMART (Specific,
Measurable, Achievable, Relevant, and Time-bound) goals. These
goals are designed to align with the bank’s strategic objectives and
are used as key performance indicators (KPIs).
o Role-Specific Expectations: Performance metrics are clearly
defined based on the role, including targets related to customer
satisfaction, sales, compliance, teamwork, and overall job
performance.

2. Continuous Monitoring and Feedback

o Regular Check-ins: ICICI Bank emphasizes continuous
monitoring and feedback. Managers conduct regular one-on-one
meetings with employees to provide real-time feedback, track
progress, and address any challenges.
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 o 360-Degree Feedback: In some cases, ICICI Bank may use a 360-
degree feedback system. This involves gathering feedback from
multiple sources such as peers, subordinates, and other
departments to get a holistic view of an employee's performance.

3. Self-Assessment
o Employee Self-Reflection: Employees are asked to conduct a
self-assessment where they reflect on their achievements,
challenges, and progress against the set goals. This gives
employees the opportunity to take ownership of their performance
and identify areas where they feel they’ve excelled or need
improvement.
o Empowerment: Self-assessment encourages employees to
engage in their own development process and provides a starting
point for the feedback conversation with their manager.

4. Manager’s Evaluation
o Objective Review: After receiving the self-assessment, the
manager evaluates the employee’s performance against the
agreed-upon goals and key performance indicators (KPIs). The
manager reviews both qualitative and quantitative factors, such as
sales performance, customer feedback, compliance with bank
policies, and teamwork.
o Holistic Assessment: The manager considers the employee’s
contribution to the team, leadership potential (if applicable), and
overall alignment with the bank’s objectives.

5. Performance Review Meeting

o Constructive Feedback: A formal performance review meeting
takes place where the employee and manager discuss the
evaluation. This is a two-way conversation, allowing employees
28
 to share their experiences and discuss their self-assessment. The
manager provides feedback on areas of strength and areas for
improvement.
o Goal Alignment: This meeting ensures that both the employee
and the manager have a clear understanding of expectations and
performance standards for the upcoming period.

6. Development Plans and Career Growth

o Training and Skill Development: Based on the performance
review, managers and employees may identify specific areas for
skill development. ICICI Bank offers various learning and
development programs to help employees grow, including
leadership training, technical upskilling, and customer service
excellence.
o Personal Development Plans (PDP): Employees are encouraged
to create a development plan that includes personal goals, desired
skills, and career advancement opportunities. This plan often
includes training sessions, workshops, or job rotations to enhance
their capabilities.

7. Reward and Recognition

o Incentives and Rewards: High-performing employees at ICICI
Bank are typically rewarded with promotions, salary increases,
bonuses, or other financial incentives. These rewards are designed
to recognize their contributions and motivate them to maintain or
exceed their performance.
o Recognition Programs: The bank also has non-monetary
recognition programs in place, such as “Employee of the
Month,” performance awards, or public acknowledgment in
meetings or internal communications.

29
 8. Documentation and Record-Keeping
o Maintaining Records: All performance appraisals are
documented and stored in the bank’s human resources
management system. This helps in tracking progress over time,
supporting future decisions regarding promotions, bonuses, or
career development.
o Objective Evaluation: Proper documentation ensures fairness,
transparency, and consistency in the performance evaluation
process. It also helps in addressing any future disputes regarding
performance or career progression.

9. Follow-up and Future Planning

o Feedback Implementation: After the performance appraisal, it’s
crucial for employees to act on the feedback provided. ICICI Bank
follows up on development plans to ensure employees have the
support they need to improve and meet their targets in the future.
o Ongoing Support: Managers continue to provide guidance,
resources, and feedback throughout the year, creating an
environment of continuous improvement.

2.8 Benefits of Performance Appraisal at ICICI Bank

• Alignment with Bank Objectives: It ensures that employees’ goals are
in sync with ICICI Bank’s strategic goals, fostering a results-oriented
culture.

• Employee Development: By identifying strengths and weaknesses, the

performance appraisal system helps employees develop new skills and
advance in their careers.

30
 • Motivation and Retention: Recognizing and rewarding employees for
their contributions boosts motivation, satisfaction, and retention rates, as
employees feel valued for their efforts.

• Improved Customer Service: A strong performance appraisal system

ensures that employees meet customer satisfaction goals, which is crucial
in the banking industry.

• Clear Career Path: Employees understand what they need to do to

progress in their careers, as the performance appraisal provides a clear
path for growth and advancement.

2.9 Need Of Performance Appraisal In ICICI Bank

The need of performance appraisal in ICICI Bank, like in any organization,
is to evaluate employees' job performance and support their personal and
professional development, while also aligning their efforts with the bank's
organizational goals. The key purposes of performance appraisal in ICICI
Bank:

1. Aligning Individual and Organizational Goals

• Goal Alignment: ICICI Bank uses performance appraisals to ensure that
individual employee goals are in line with the bank's broader objectives.
This alignment helps employees focus on areas that are crucial for the
bank's success, such as customer satisfaction, sales, compliance, and
operational efficiency.
• Strategic Focus: By evaluating performance against clear organizational
goals, ICICI ensures that all employees are working towards the bank’s
mission and vision, thereby driving collective success.

31
2. Employee Development and Growth
• Identifying Strengths and Weaknesses: The appraisal process helps
ICICI Bank recognize the strengths and areas for improvement in its
employees. This insight is used to provide targeted development
programs, such as training, mentorship, or leadership development
opportunities.
• Career Pathing: Performance appraisals help employees understand
their career progression within the bank. Based on their performance,
employees can set new goals and take steps toward promotions or lateral
moves that align with their career interests.

3. Reward and Recognition

• Incentivizing High Performers: ICICI Bank uses performance
appraisals to reward top performers through promotions, salary
increases, bonuses, and other incentives. Recognizing achievements
motivates employees to maintain high standards of performance and
fosters a culture of excellence.
• Employee Motivation: The appraisal process ensures that good work is
acknowledged, which not only motivates the employee being recognized
but also encourages others to perform better.

4. Performance Management and Accountability

• Monitoring and Improving Performance: ICICI Bank uses
performance appraisals to regularly assess whether employees are
meeting performance standards and targets. This process helps in
managing underperformance and taking corrective actions where
necessary.
• Clear Expectations: Appraisals set clear expectations for employees,
allowing them to understand how their performance will be assessed.
This transparency increases accountability and helps in identifying areas
that need improvement.
32
5. Succession Planning and Talent Management
• Identifying Future Leaders: Performance appraisals at ICICI Bank
help identify employees who demonstrate leadership potential or high
competency. These individuals can then be groomed for higher roles,
ensuring a strong pipeline for future leadership within the bank.
• Retention of Top Talent: By rewarding high performers and offering
them career advancement opportunities, ICICI Bank can retain talented
individuals who contribute significantly to its success.

6. Enhancing Employee Engagement

• Two-Way Communication: Performance appraisals provide an
opportunity for open communication between employees and their
managers. Employees can voice concerns, share feedback, and discuss
their performance in a constructive manner, which enhances engagement
and job satisfaction.
• Career Development Discussions: These appraisals allow managers to
discuss employees' career goals, helping them feel supported in their
professional growth and increasing their commitment to the
organization.

7. Providing Learning and Development Opportunities

• Targeted Learning: Based on the feedback provided during
performance appraisals, ICICI Bank can identify specific areas where
employees need further training, such as improving technical skills, soft
skills, or compliance knowledge.
• Enhancing Skillsets: Regular performance reviews enable the bank to
offer employees the necessary tools, workshops, and development
programs to help them grow and stay competitive in their roles.

33
8. Ensuring Compliance and Regulatory Adherence
• Monitoring Compliance: In the banking sector, adhering to regulatory
requirements is crucial. ICICI Bank uses performance appraisals to
ensure employees are adhering to banking laws, internal policies, and
ethical standards. Employees who consistently meet these expectations
are recognized and rewarded.
• Risk Management: Performance appraisals also help identify
employees who might not be following regulatory guidelines or internal
procedures, allowing the bank to take corrective actions to mitigate risks.

9. Continuous Improvement and Feedback

• Continuous Feedback: The performance appraisal process at ICICI
Bank ensures that employees receive feedback on a regular basis, which
can be used to make improvements in performance throughout the year.
• Employee Motivation for Growth: Employees are motivated to
improve based on the constructive feedback they receive, leading to a
culture of continuous learning and self-improvement.

10. Legal Protection and Documentation

• Documentation of Performance: Performance appraisals provide a
documented record of an employee's performance over time. This
documentation can be valuable for decision-making regarding
promotions, pay raises, or even corrective actions in case of disputes or
legal matters.
• Objective Evaluation: By using a structured and systematic
performance appraisal system, ICICI Bank ensures that performance
evaluations are fair, unbiased, and based on measurable criteria.

34
2.10 Key Elements of the Performance Appraisal Process in ICICI Bank:

• Clear Performance Metrics: ICICI Bank sets clear and specific

performance metrics based on roles, targets, and bank-wide objectives.
• 360-Degree Feedback: In some cases, ICICI Bank uses multi-source
feedback to gather insights from managers, peers, and customers.
• SMART Goal Setting: Setting measurable and realistic goals that
contribute to both personal growth and organizational success.
• Employee Development: A focus on career growth and skill
enhancement based on performance feedback.
• Continuous Feedback: Regular discussions and check-ins to track
progress and make adjustments as necessary.
• Fair and Transparent Recognition: Recognizing and rewarding
employees based on performance to maintain motivation and loyalty.

2.11 Performance Appraisal Method At ICICI Bank

ICICI Bank, one of India's leading private sector banks, employs a structured
and comprehensive performance appraisal system to assess and develop its
employees. While specific details of the performance appraisal method might
vary depending on the role, department, and level within the bank, here are
some key components that are typically part of ICICI Bank’s performance
appraisal system:

1. Key Performance Indicators (KPIs)

• Role-Specific KPIs: ICICI Bank uses KPIs to evaluate the performance

of employees. These indicators are tailored to the specific roles and
responsibilities of employees, helping them focus on objectives that are
aligned with the bank’s overall goals.

• Quantitative and Qualitative Metrics: KPIs often include both

quantitative (e.g., sales targets, customer acquisition) and qualitative
metrics (e.g., leadership, team collaboration)
35
2. Competency-Based Assessment

• ICICI Bank assesses employees on competencies such as problem-

solving, communication, leadership, and decision-making.

• This method helps in identifying an individual’s skill set, strengths, and

areas of improvement beyond just task-based performance.

3. 360-Degree Feedback

• Multi-Source Feedback: The 360-degree feedback method gathers

performance evaluations not only from managers but also from peers,
subordinates, and sometimes even clients. This method provides a
comprehensive understanding of an employee’s performance from
multiple perspectives.

• Holistic Evaluation: By using this method, ICICI Bank ensures a

balanced assessment of both technical and interpersonal skills.

4. Self-Assessment

• Employee Input: Employees are often encouraged to evaluate their

own performance, set personal goals, and reflect on their achievements
and challenges. This helps employees understand their progress and
also aligns their personal goals with the bank’s objectives.

• Goal Setting: Employees set their performance goals for the upcoming
period, which are reviewed in subsequent appraisals.

5. Manager Appraisal

• Direct Supervisor Review: The performance appraisal process at

ICICI Bank involves direct evaluation by the immediate supervisor or
manager. This includes assessing the employee’s contribution to team
goals, leadership skills, and alignment with organizational values.

• Objective vs. Subjective Evaluation: While performance is largely

based on measurable outcomes, managers may also factor in soft skills
36
 and how employees contribute to the team’s culture.

6. Annual or Bi-Annual Appraisal Cycle

• ICICI Bank typically conducts performance appraisals annually or bi-

annually. The appraisals are followed by discussions between
employees and managers to review performance, reward achievements,
and identify areas for improvement.

7. Training and Development Focus

• The performance appraisal at ICICI Bank is closely tied to learning and

development. Employees identified as high performers may be given
opportunities for career progression, while employees needing
improvement may be provided with additional training or coaching to
enhance their skills.
• Performance vs. Potential: ICICI also evaluates an employee’s
potential for growth and leadership roles, which is crucial for
succession planning within the bank.

8. Rewards and Recognition

• Based on the performance appraisal results, ICICI Bank offers

recognition and rewards to top performers. This can include salary
hikes, promotions, bonuses, and other incentives.

• Performance-linked Compensation: In some cases, employees'

compensation may be linked directly to their performance, motivating
them to achieve higher targets.

9. Continuous Feedback and Development

• The bank emphasizes ongoing feedback, with managers providing

regular updates on an employee’s progress. This helps employees
adjust their goals and performance throughout the review cycle.

• Coaching and Mentoring: Managers are often involved in coaching

employees to achieve their goals, offering feedback to improve
performance continuously.
37
 CHAPTER 3
REVIEW OF LITERATURE

38
 3. REVIEW OF LITERATURE

Kent, 2007 Conducting regular performance appraisal is an important work

force development strategy for organizations such as Banks. Given the
challenges of working in the financial sector, performance appraisals offer a
valuable opportunity to recognize and reward staff’s efforts and performance,
detect key barriers and facilitation to work practice and identify professional
development needs and opportunities.

Victor Vroom’s Expectancy Theory, 1964 An employee performs or is

motivated to do so according to the expected result of the work done. Vroom
concludes that people will be motivated to the extent that they can perceive
links between effort, performance and rewards available. He further argues that
performance is a vital component of the expectancy theory. Specifically, he is
concerned with the linkage between effort and performance. That employees
need to know what to expect after a given 10 task, however it is critical for
management to communicate what is expected of the employees.
Furthermore, he argued that they must feel confident that if they exert an effort
within their capabilities, it will result in a satisfactory performance as defined
by the criteria by which they are being measured. However, Vroom under-
estimated the fact that employees should feel confident in the process of
evaluation in that, if they perform, they are being asked, they will achieve the
rewards they value. He suggests that the expected reward (financial and non-
financial) will motivate or be the basis of the employee performance.

Taylor and Kalliathan, 2001 “Training Programs and their effects on the
performance of staff” emphasized the need for on-job training, short seminars
and team building workshops as programs that increase the employee
performance.

Berman, 2005 The performance appraisal process offers employees the

opportunity to receive structured, constructively framed feedback about their
work and growth potential.

39
Armstrong, 2006 argues that appraisal and improvement are critical to
developing and maintaining a strong capable workforce. Structured
performance incorporates the institutions vision and mission into the overall
evaluation of the employee.

Fletcher, 1994 Performance appraisal systems utilize standard assessment

criteria, dimensional ratings, structured rating scales and explicit individual–
peer appraisal. These components help to minimize subjective impressions and
conscious or intentional biases. Sophisticated technologies for performance
evaluations (for example on line ratings and development plans, 360-degree
feedback) are well developed and 11 increasingly common in both large and
small institutions.

Roberts, 2002 Accurate and reliable performance appraisals help organizations

to support and reward their most capable employees. When used in conjunction
with performance improvement systems, a structured performance appraisal
system conveys meaningful feedback in a useful format, helps refocus
employees who are performing below expectation and facilitates career
development plans for all employees. The performance appraisal systems
increase the fairness and transparency of the evaluation process and guide
individuals and supervisors towards targeted improvement strategies. They also
protect both the employee and the institution from potential bias and ensure that
employees receive fair and accurate feedback. However, these should be
tailored to suit the necessary employee aspirations as noted by the department
or organization at large; something hardly existed in the above reviewed
literature thus more investigations were needed in this arena. However, in
respect of work habits and individual abilities, motivation levels were not put
into perspective. Most Bank evaluations hardly stressed the need for defining
specific individual work habits as they define how they work and their different
challenges, therefore such unique variations called for further research.

Cole, 2002 Recommended and categorized two forms of Staff assessment and
that is summative and formative assessment. In summative assessment of Staff
attainment of each performance criterion, Cole (2002) argues that, the evaluator
40
rates the Staff as meeting, or not meeting division expectations. He further
argues that, formative appraisals involve the process of gathering performance
data, analyzing it and using the results to improve performance. Often this data
is gathered through structured and at times informal classroom observations.
On the other hand, 12 summative appraisal is the process of using performance
data to make formal written judgment about the quality of teaching using the
criteria for Staff performance established by the Bank.

Latham and Latham, 2000 recommend the need to evaluate the appraisal
process. In reference to their recommendations, if staff is to have positive
attitude towards the appraisal system, the performance appraisal should
undergo regular review and improvement. For example, focus groups or
surveys could be conducted to gauge staff perceptions of the appraisal process.
This confirms Roberts (2002) recommendations that; a successful performance
appraisal process should demonstrate a change in both the ratings of staff
performance and aspects of the work environment that impact upon work
performance.

Fletcher, 1994 In his study on the effect of Staff development management

system program on staff performance commended the development
management system program for providing feedback to the employees in areas
that needed improvement and further provided training for Staff as a way of
handling the improvement and development criteria systematically. In essence,
best performance appraisals involve; integrating performance appraisal into a
formal goal setting system; basing appraisals on accurate and current job
descriptions; offering adequate support and assistance to staff or workers to
improve performance (for example, professional development opportunities);
Ensuring that appraisers have adequate knowledge and direct experience of the
staff performance; and conducting appraisals on a regular basis.

41
 CHAPTER 4
RESEARCH METHODOLOGY

42
 4. RESEARCH METHODOLOGY

4.1. Problem Statement

The research problem is to study employees satisfaction on performance

appraisal at ICICI bank.

4.2. Objectives

➢ To provide an overview of the performance appraisal system used by

ICICI Bank.

➢ To examine how the performance appraisal system influences employee

motivation, job satisfaction, and career development.

➢ To understand whether the employees are aware of the performance

appraisal system followed within the organization.

➢ To understand the satisfaction level of employees towards their

performance appraisal system.

➢ To summarize the findings from the study and provide a clear conclusion
about the overall effectiveness of ICICI Bank's performance appraisal
system.

4.3. Types Of Research

Two types of research have been used. They are:

a. Descriptive Research:
The descriptive research design is selected for the study to learn the
profile of the respondents, presentation and description of data
collection, and describe the employees satisfaction on the performance
43
 appraisal system.

b. Quantitative Research:

Quantitative research involves collecting numerical data that can be

measured and analyzed statistically. This allows to quantify employees
satisfaction levels, making it easier to understand the extent to which
employees are satisfied with performance appraisal system at ICICI
Bank.

4.4. Sources Of Data

4.4.1. Primary Data- Surveys

4.4.2. Secondary Data- Internet

4.5. Instruments of Data Collection

Data has been collected through questionnaires that had predetermined

questions, enabling efficient and reliable data gathering.

4.6. Type of Sampling

Technique: Simple random sampling has been used to ensure the employees
satisfaction level on performance appraisal system at ICICI Bank.

4.7. Size Of Sampling

The sample size for this study used is 100 employees of ICICI bank.

44
 CHAPTER 5
DATA ANALYSIS AND
INTERPRETATION

45
46
 5. DATA ANALYSIS AND INTERPRETATION

SECTION 1: DEMOGRAPHIC INFORMATION

1. Gender

Gender No Of Respondents
Male 72
Female 28
Total 100

Gender

Female, 28%

Male, 72%

Male Female

Interpretation

The pie chart visually represents the distribution of gender among 100
respondents. From the above diagram it is found that majority of the
respondents are male (72%) when compared to that of female (28%).
47
2. Age

Age No Of Respondents
Below 25 60
26-35 20
36-45 12
Above 46 8
Total 100

AGE
Above 46
8%
36-45
12%

26-35 Below 25
20% 60%

Below 25 26-35 36-45 Above 46

Interpretation

The total number of respondents is 100, with the majority of them 60% being
under the age below 25.
20% respondents are between the ages of 26-35 years old. The number of
respondents between the 36-45 is 12%, which is the second-lowest of all age
groups.
The number of respondents Above an age of 46 years is 8%, which is the lowest
of all age groups.

48
3. What is your Annual Income?

Annual Income No Of Respondents

Less than Rs. 3 Lakh 36
Rs. 3 lakhs to Rs. 5 Lakhs 40
More than Rs. 5 Lakhs 24
Total 100

ANNUAL INCOME
More than Rs. 5 Lakhs
24%

Less than Rs. 3 Lakh

36%

Less than Rs. 3 Lakh

Rs. 3 lakh to Rs. 5 Lakhs
More than Rs. 5 Lakhs

Rs. 3 lakh to Rs. 5

Lakhs
40%

Interpretation

From the above table, 36% of the respondents have an income less than 3 lakhs.
24% of respondents earn more than 5 lakhs and 40% of the remaining
respondents either earn between Rs.3 lakhs and Rs.5 lakhs.

49
 SECTION 2: PERFORMANCE APPRAISAL

1. Do you know about the performance appraisal system prevailing in the bank?

a. Yes
b. No

RESPONSE
No
0%

Yes No

Yes
100%

Interpretation

All the respondents know about the performance appraisal system which is
followed in the bank.

50
2. Are you satisfied by the performance appraisal system of the company?

a. Extremely Satisfied
b. Satisfied to some extent
c. Neutrally satisfied
d. Dissatisfied

SATISFACTION LEVEL OF EMPLOYEES

Extremely Satisfied,
60 56

50

40 Satisfied to some
extent, 31

30

20

Neutrally satisfied, 9
10 Dissatisfied, 4

0
Extremely Satisfied Satisfied to some Neutrally satisfied Dissatisfied
extent

Interpretation

From all the respondents who know about the performance appraisal system of
ICICI Bank, majority of them (56 employees) are extremely satisfied with the
appraisal system. 31 respondents are satisfied to some extent.
9 employees of the total respondents are neutrally satisfied with the appraisal
system and only 4 of the respondents are dissatisfied with the appraisal system
followed by the bank.

51
3. Do you think that performance appraisal system of the company is helpful
for the better performance?

a. Strongly Agree
b. Agree
c. Neutral
d. Disagree
e. Strongly Disagree

45 Strongly Agree, 41

40

35

30

25
Agree, 20 Neutral, 19
20 Disagree, 16

15

10
Strongly Disagree, 4
5

0
Strongly Agree Agree Neutral Disagree Strongly
Disagree

Interpretation

Majority of the respondents (41 employees), Strongly Agree that the existing
performance appraisal are helpful for better performance.
20 of the respondents agree that the existing appraisal system is helpful for
better performance and 19 neutrally agree with same.
16 employees feel that the existing appraisal system is not helpful for better
performance and 5 employees strongly disagree with the fact that the existing
appraisal system will be helpful for better performance.

52
4. Did you know about future goals of the company from the beginning of every
year?
a. Strongly Agree
b. Agree
c. Neutral
d. Disagree

Disagree Disagree, 6

Neutral Neutral, 18

Agree Agree, 10

Strongly Agree Strongly Agree, 66

0 10 20 30 40 50 60 70

Interpretation

From the chart it is clear that majority of the respondents (66 employees)
strongly agree that the goal of the organization was known to them from very
beginning of the year
18 employees also agree with them and 10 employees are neutral with their
thoughts. However, 6 employees didn’t know the goals of the organization from
the beginning.
53
5. Do you think that clarity about the future goals of the bank will help in doing
the work in a better way?

a. Strongly Agree
b. Agree
c. Neutral
d. Disagree

Disagree Disagree, 0

Neutral Neutral, 3

Agree Agree, 31

Strongly Agree Strongly Agree, 66

0 10 20 30 40 50 60 70

Interpretation

In the above diagram, it is clear that 66 employees strongly agree with the fact
that having a clarity about the future goals of the organization will help in
completing the work in a better way.
However, 31employees also agree and only 3 employees are neutral.

54
6. Will a regular review of the goals be helpful for the better result?

a. Strongly Agree
b. Agree
c. Agree To Some Extent
d. Disagree
e. Strongly Disagree

Strongly Disagree Strongly Disagree, 3

Disagree Disagree, 3

Agree To Some
Agree To Some Extent Extent, 13

Agree Agree, 30

Strongly Agree Strongly Agree, 51

0 10 20 30 40 50 60

Interpretation

From the diagram it is clear that 94 employees of the total respondents think
that review of the goals will be helpful for better results in the future out of
which 51 employees strongly agree, followed by 30 employees who also agree.
Also 13 employees also agree to some extent with the fact that review of the
goals can be beneficial for better results.
However, 6 employees disagree with the same.
55
7. Does your department do regular performance appraisal of all the
employees?

a. Yes
b. No

No, 0

Yes, 100

Yes No

Interpretation

From the diagram it is clear that all the employees agree that their departments
do regular performance appraisal of the employees.

56
8. Does your company give proper feedback after performance appraisal?

a. Yes
b. No

No, 10%

Yes No Yes, 90%

Interpretation

From the diagram it is clear that majority of the employees (90 employees)
think that the feedback given by the organization is proper.
However, 10 employees feel that the results as not correct.

57
9. Does your manager do regular one on one talk with you and discuss your
strength and weakness?

a. Strongly Agree
b. Agree
c. Neutral
d. Disagree
e. Strongly Disagree

Strongly Agree, 44

45

40

35

30
Agree, 25
25

20
Neutral, 13 Disagree, 12
15

10 Strongly Disagree, 6

0
Strongly Agree Agree Neutral Disagree Strongly Disagree

Interpretation

From the above table it is clear that majority of the respondents, 44 employees
strongly agree that their managers do regular one on one talk with them and
discuss about their strengths and weakness which is beneficial to them.
25 employees also agree. However, 13 employees are neutral about their
responses. Total of 18 employees think that their managers don’t conduct a
regular review and discuss about their strengths and weakness, out of which 6
employees strongly disagree.
58
10. Leaders always and clearly communicate appraisal system results. Do you
Agree?

a. Strongly Agree
b. Agree
c. Neutral
d. Disagree
e. Strongly Disagree

Strongly Agree, 43

45

40 Agree, 37

35

30

25

20

15 Neutral, 9 Disagree, 8

10 Strongly Disagree, 3

0
Strongly Agree Agree Neutral Disagree Strongly Disagree

Interpretation

From the above diagram it is clear that majority of the employees 80 employees
out of which 43 employees strongly agree that the leaders always and clearly
communicate the appraisal results and rest 37 also agree with the same.
However, 9 employees are neutral about their thought.
And total of 11 employees disagree that the leaders always and clearly
communicate the appraisal results.

59
CHAPTER 6
FINDINGS

60
 6. FINDINGS

➢ Gender composition shows that most respondents were men (72 %).
Female (28%). The study, therefore, showed that performance appraisal
system was more popular among men than female.

➢ The age distribution of respondents revealed that the majority of

respondents (60 %) were from the age groups Less than 25 years and
26-35 years together (20%). It was followed by the age groups of 36-45
years (12%) and Above 46 (8%).

➢ The result of the study indicated that all the respondents are aware of the
appraisal system prevailing in the bank. However, 87 employees are
satisfied with the appraisal system prevailing in the bank out of which
56 employees are strongly satisfied and rest are satisfied. 9 employees
are neural with their thought and rest 4 employees are dissatisfied with
the present appraisal system.

➢ The result also shows that majority of the respondents (61 employees),
agree that the existing performance appraisal are helpful for better
performance of the company out of which 41 employees strongly agree
the same and the remaining 20 of the respondents agree that the existing
appraisal system is helpful for better performance of the company and
19 neutrally agree with same. And 16 employees feel that the existing
appraisal system is not helpful for better performance and 5 employees
strongly disagree with the fact that the existing appraisal system will be
helpful for better performance.

➢ The results indicated that 66 employees strongly agree that the future
goals of the bank are known to them in the beginning of the financial
year itself. 18 employees are neutral about their thoughts and 10
employees agreed with the same. However, 6 employees disagree as
according to them future goals are not informed in the beginning of the
year.

61
➢ The results also shows that 66 employees strongly agree with the fact
that having a clarity about the future goals of the organization will help
in completing the work in a better way. However, 31employees also
agree with the same and only 3 employees are neutral about their
thoughts.

➢ The results indicate that 94 employees of the total respondents think that
review of the goals will be helpful for better results in the future out of
which 51 employees strongly agree, followed by 30 employees who also
agree. Also 13 employees also agree to some extent with the fact that
review of the goals can be beneficial for better results. However, 6
employees disagree with the same.

➢ The results also show that all the employees agree that their departments
do regular performance appraisal of the employees, and majority of the
employees (90 employees) think that the feedback given by the
organization is proper. However, 10 employees feel that the results as
not correct.

➢ It also reflects that majority of the respondents, 69 employees agree that

their managers do regular one on one talk with them and discuss about
their strengths and weakness which is beneficial to them. Out of which
44 and strong with their thoughts and 25 employees also agree.
However, 13 employees are neutral about their responses. Total of 18
employees think that their managers don’t conduct a regular review and
discuss about their strengths and weakness, out of which 6 employees
strongly disagree.

➢ The results show that majority of the employees (80 employees) out of
which 43 employees strongly agree that the leaders always and clearly
communicate the appraisal results and rest 37 also agree with the same.
However, 9 employees are neutral about their thought. And total of 11
employees disagree that the leaders always and clearly communicate the
appraisal results.
62
 CHAPTER 7
LIMITATIONS OF THE STUDY

63
 7. LIMITATIONS

Although the study includes many behavioral aspects on employee satisfaction

on the performance appraisal system but it also has some limitations.

➢ This is an academic effort and it is limited to cost and time.

➢ The study was carried out for only employees of ICICI Bank. It is
possible that employees of other bank have different perceptions
regarding satisfaction level on the performance appraisal system.

➢ Customers in urban areas are not included in the survey. However, the
results of the survey may differ if it can be done in semi-urban or urban
areas.

➢ The survey contains 100 data showing that employees are satisfied.
However, if the number of respondents may have increased, the results
of research cannot be the same.

➢ An interpretation of this study is based on the assumption that the

respondents have given correct information.

64
 CHAPTER 8
RECOMMENDATION

65
 8. RECOMMENDATION

➢ Employees should be motivated & encourage having a positive view

about the performance appraisal held for them.

➢ Training program must be designed & conducted scientifically & with

a good spirit & intention according to the feedback generated out of
performance appraisal.

➢ Performance Appraisal should be done at regular interval that is on a

financial year basis so that a perfect comparison of skill could be
done. It should be done after 2 months for new employees.

➢ In case of transfer of employees from one department to another

department appraisal should be done again and training should be
given specifically so that organization is able to achieve the goals. •

➢ Organization should provide performance appraisal to cover the gap

between the desired & the present level in order to develop the
competencies of people, consequently the competencies of the
organizations.

➢ The techniques and processes of a performance appraisal should be

related directly to the needs and objectives of an organization.

➢ Along with the technical, attitudinal based program, behavioral

program etc. should also be arranged for workers and staff members.

➢ Performance appraisal should be conducted in the actual job

environment to the maximum possible extent.

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CHAPTER 9
CONCLUSION

67
 9. CONCLUSION

In conclusion, Performance appraisal is a vital tool in managing and

improving employee performance in any organization. It allows for
systematic evaluation, which in turn helps guide decisions related to
promotions, compensation, development, and organizational alignment.
When done effectively, performance appraisals help improve
communication between employees and managers, motivate employees,
and ensure that individual and organizational goals are met.

At ICICI Bank, performance appraisals serve multiple purposes — from

enhancing employee development and aligning individual goals with the
bank’s mission, to rewarding high performers and improving
organizational effectiveness. This structured process not only helps
ICICI Bank optimize its workforce's performance but also ensures that
employees are continuously engaged, motivated, and supported in their
career growth.

ICICI Bank's performance appraisal system aims to provide a

comprehensive and balanced evaluation, focusing on both outcomes and
competencies. It encourages employee development and aligns
individual goals with organizational objectives. The inclusion of multiple
feedback sources, goal-setting mechanisms, and a focus on development
ensures that the appraisal process supports both individual growth and
the bank's long-term success.

68
 CHAPTER 10
BIBLIOGRAPHY

69
 10. BIBLIOGRAPHY

1. https://en.wikipedia.org/wiki/ICICI_Bank

2. www.google.com

3. www.scribd.com

4.https://taxguru.in/rbi/evolution-internet-banking-benefits-challenges-
impact.html

5.https://repository.out.ac.tz/2035/1/DISSERTATION%20-
%20DOREEN%20ADAD%20MCHOMBA%20-
%20FINAL%20FEB.pdf

6.https://sist.sathyabama.ac.in/sist_naac/documents/1.3.4/1922-b.com-
b.com-batchno-19.pdf

7. https://www.icicibank.com/about-us/bod-3

70
CHAPTER 11
ANNEXURE

71
 11. ANNEXURE

Section 1: Demographic Information

1. Name: ------------------

2. Gender

a. Male
b. Female
3. Age

a. Below 25
b. 26-35
c. 36-45
d. Above 46
4. What is your Annual Income?

a. Less than Rs. 3 Lakh

b. Rs. 3 Lakhs to Rs. 5 Lakhs
c. More than Rs. 5 Lakhs

Section 2: Performance Appraisal

1. Do you know about the performance appraisal system prevailing in the bank?

a. Yes
b. No
2. Are you satisfied by the performance appraisal system of the company?

a. Extremely Satisfied
b. Satisfied to some extent
72
 c. Neutrally satisfied
d. Dissatisfied
3. Do you think that performance appraisal system of the company is helpful
for the better performance?

a. Strongly Agree
b. Agree
c. Neutral
d. Disagree
e. Strongly Disagree
4. Did you know about future goals of the company from the beginning of every
year?
a. Strongly Agree
b. Agree
c. Neutral
d. Disagree
5. Do you think that clarity about the future goals of the bank will help in doing
the work in a better way?

a. Strongly Agree
b. Agree
c. Neutral
d. Disagree
6. Will a regular review of the goals be helpful for the better result?

a. Strongly Agree
b. Agree
c. Agree To Some Extent
d. Disagree

73
7. Does your department do regular performance appraisal of all the
employees?

a. Yes
b. No
8. Does your company give proper feedback after performance appraisal?

a. Yes
b. No

9. Does your manager do regular one on one talk with you and discuss your
strength and weakness?

a. Strongly Agree
b. Agree
c. Neutral
d. Disagree
e. Strongly Disagree
10. Leaders always and clearly communicate appraisal system results. Do you
Agree?

a. Strongly Agree
b. Agree
c. Neutral
d. Disagree
e. Strongly Disagree

74
75