Chapter 1

INTRODUCTION
In the business world investment is made in machinery, equipment
and services. Quite naturally time and money is spent ensuring that they
provide what their suppliers claim. In other words the performance is
constantly appraised against the results expected.
When it comes to one of the most expensive resources companies
invest in, namely people, the job appraising performance against results is
often carried out with the same objectivity. Each individual has a role to
play and management has to ensure that the individual’s objectives
translate into overall corporate objectives of the company. Performance
Management includes the performance appraisal process which in turn
helps identifying the training needs and provides a direction for career
and succession planning.
Understanding Performance Management

PERFORMANCE MANAGEMENT

CORPORATE GOALS

DETERMINE INDIVIDUAL
OBJECTIVES LINKED TO
CORPORATE GOALS
ENSURE RESPONSIBILITY AND
ACCOUNTABILITY

PERFORMANCE APPRAISAL

PERFORMANCE LINKED
INCREMENTS/ INCENTIVES/
REWARDS

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HOW IS PERFORMANCE MANAGED?
Good performance by the employees creates a culture of
excellence, which benefits the organization in the long run. The activity
includes evaluation of jobs and people both, managing gender bias, career
planning, and devising methods of employee satisfaction etc. the efforts
are to make to generate the individual’s aspirations with the objectives of
the organization.
Organization has to clear the way of career advancements for
talented and hardworking people. Fear of any kind from the minds of the
employees should be removed so that they give best to their organization.
Allow free flow of information. Communication network should be
designed in such a way no one should be allowed to become a hurdle.
This enables the managers to take correct decisions and that too quickly.

WHY PERFORMANCE APPRAISAL?

Today’s working climate demands a great deal of commitment and
effort from employees, who in turn naturally expect a great deal more
from their employers. Performance appraisal is designed to maximize
effectiveness by bringing participation to more individual level in that it
provides a forum for consultation about standards of work, potential,
aspirations and concerns. It is an opportunity for employees to have
significantly greater influence upon the quality of their working lives. In
these times of emphasis on “quality”, there is a natural equation: better
quality goods and services from employees who enjoy better quality
“goods and services” from their employers.

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 Performance appraisal must be seen as an intrinsic part of a
manager’s responsibility and not an unwelcome and time-consuming
addition to them. It is about improving performance and ultimate
effectiveness.
Performance appraisal is a systematic means of ensuring that
managers and their staff meet regularly to discuss post and present
performance issues and to agree what future is appropriate on both sides.
It should also be understood that pushing a previously prepared
report across and desk cursorily inviting comments, and expecting it to be
neatly signed by the employee is not appraisal - this is merely a form
filling exercise which achieves little in terms of giving staff any positive
guidance and motivation.

MEANING AND DEFINITION OF PERFORMANCE

APPRAISAL
Meaning
The meaning of the word “appraisal” is “to fix a price or value for
something”. This is used in finance in terms such as project appraisal or
financial appraisal where a value is attached to a project. Similarly
performance appraisal is a process in which one values the employee
contribution and worth to the organization.
In simple terms, appraisal may be understood as the assessment of
an individual’s performance in a systematic way, the performance being
measured against such factors as job knowledge, quality, and quantity of
output, initiative, leadership abilities, supervision, dependability, co-
operation, judgment, versatility, health, and the like. Assessment should

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not be confined to past performance alone. Potentials of the employee for
future performance must also be assessed.
A formal definition of performance appraisal is:
“It is the systematic evaluation of the individual with respect to his
or her performance on the job and his or her potential for development.”

METHODS OF PERFORMANCE APPRAISAL

A] Past-oriented methods
1) Rating Scale
The rating scale method offers a high degree of structure for
appraisals. Each employee trait or characteristic is rated on a bipolar scale
that usually has several points ranging from “poor” to “excellent” (or
some similar arrangement). The traits assessed on these scales include
employee attributes such as cooperation, communications ability,
initiative, punctuality and technical (work skills) competence. The nature
and scope of the traits selected for inclusion is limited only by the
imagination of the scale’s designer, or by the organization’s need to
know.
The one major provision in selecting traits is that they should be in
some way relevant to the appraisee’s job.

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2) Check-list Method
Under this method, checklist of “Statements of Traits” of employee in
the form of Yes or No based questions is prepared. Here, the rater only
does the reporting or checking and HR department does the actual
evaluation. The rater concerned has to tick appropriate answers relevant
to the appraisees. When the check-list is completed, it is sent to HR
department for further processing.
Various questions in the check list may have either equal weight age
or more weight age may be given to those questions which are more
important. The HR department then calculates the total scores which
show the appraisal result of an employee.
Table: - Checklist for Operators
SR. QUESTIONS YES NO
NO.
1. Is the employee really interested in the job? - -
2. Does he or she possess adequate knowledge about - -
the job
3. Is his or her attendance satisfactory? - -
4. Does he/she maintain his/her equipment in good - -
condition?
5. Does he/she co-operate with co-workers? - -
6. Does he/she keep his/her temper? - -
7. Does he/she obey orders? - -
8. Does he/she observe safety precautions? - -
9. Does he/she complete what he/she commences? - -
10. Does he/she evade responsibility? - -

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3) Force Choice Method
In this, the rater is given a series of statements about an
employee. These statements are arranged in blocks of 2 or more, and the
rater indicates which statement is most or least descriptive of the
employee. Typical statements are:
1. Learns fast _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ works hard
2. Work is reliable_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ performance is a good
example for
3. Absents often_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ others usually tardy.
As in the checklist method, the rater is simply expected to select
the statements that describe the rate. Actual assessment is done by the HR
Department.
This approach is known as the forced choice method because the rater is
forced to select statements, which are readymade. The advantage of this
method is the absence of personal bias in rating. The disadvantage is that
the statements may not be properly framed – they may not be precisely
descriptive of the ratee’s traits.

4) Force Distribution Method

One of the problems faced in large organizations is relative
assessment tendencies of raters. Some are too lenient and others too
severe. This method overcomes that problem. It forces every one to do a
comparative rating of all the employees on a predetermined distribution
pattern of good to bad. Say 10% employees in Excellent Grade, 20% in

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Good Grade, 40% in Average Grade, 20% in Below Average Grade and
10% in unsatisfied grade.
The real problem of this method occurs in organizations where
there is a tendency to pack certain key departments with all good
employees and some other departments with discards and laggards.
Relatively good employees of key departments get poor rating and
relatively poor employees of laggards’ departments’ get good rating.

5) Critical Incident Method

In this method, only critical incidents and behavior associated with
these incidents are taken for evaluation. This method involves three steps.
A test of noteworthy on the job behavior is prepared. A group of experts
then assigns scale values to them depending on the degree of desirability
for the job. Finally, a checklist of incidents which define good and bad
employees is prepared.

6) Essay Method
In the essay method approach, the appraiser prepares a written
statement about the employee being appraised. The statement usually
concentrates on describing specific strengths and weaknesses in job
performance. It also suggests courses of action to remedy the identified
problem areas. The statement may be written and edited by the appraiser
alone, or it be composed in collaboration with the appraisee.

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7) Grading
In this method, certain categories of abilities of performance are
defined well in advance and person are put in particular category
depending on their traits and characteristics. Such categories may be
definitional like outstanding, good, average, poor, very poor or may be in
terms of letter like A, B, C, D etc with A indicating the best and D
indicating the worst. This method, however, suffers from one basic
limitation that the rater may rate most of the employees at higher grades.

8) Performance Tests & Observations:

This is based on the test of knowledge or skills. The tests may be
written or an actual presentation of skills. Tests must be reliable and
validated to be useful.

9) Confidential Reports
Though popular with government departments, its application in
industry is not ruled out. Here the report is given in the form of Annual
Confidentiality Report (ACR). The system is highly secretive and
confidential. Feedback to the assessee is given only in case of an adverse
entry. Disadvantage is that it is highly prone to biases and regency effect
and ratings can be manipulated because the evaluations are linked to
future rewards like promotions, good postings, etc.

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10) Comparative Evaluation Method
These are collection of different methods that compare performance
with that of other co-workers. The usual techniques used may be ranking
methods and paired comparison method.

Ranking Method:
Superior ranks his worker based on merit, from best to worst.
However How best and why best are not elaborated in this method. It is
easy to administer.

Paired Comparison Method:

In this method each employee is paired with every other employee
in the same cadre and then comparative rating done in pairs so formed.
The number of comparisons may be calculated with the help of a formula
– N x (N-1) / 2. The method is too tedious for large departments and often
such exact details are not available with Appraiser.

B] Future-Oriented Methods
1) MBO (Appraisal by Results)
The use of management objectives was first widely advocated in
the 1950s by the noted management theorist Peter Drucker. MBO
(management by objectives) methods of performance appraisal are
results-oriented. That is, they seek to measure employee performance by
examining the extent to which predetermined work objectives have been
met.
Usually the objectives are established jointly by the supervisor and
subordinate. Once an objective is agreed, the employee is usually
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 expected to self-audit; that is, to identify the skills needed to achieve the
objective. Typically they do not rely on others to locate and specify their
strengths and weaknesses. They are expected to monitor their own
development and progress.

2) Assessment Center Method

This technique was first developed in USA and UK in 1943. An
assessment centre is a central location where managers may come
together to have their participation in job related exercises evaluated by
trained observers. It is more focused on observation of behaviours across
a series of select exercises or work samples.
Assesses are requested to participate in in-basket exercises, work
groups, computer simulations, role playing and other similar activities
which require same attributes for successful performance in actual job.

3) 360o Appraisal
It is a technique in which performance data/feedback/rating is
collected from all sections of people employee interacts in the course of
his job like immediate supervisors, team members, customers, peers,
subordinates and self with different weight age to each group of
appraisers.
This technique has been found to be extremely useful and effective.
It is especially useful to measure inter-personal skills, customer
satisfaction and team building skills.
One of the biggest advantages of this system is that assesssees
cannot afford to neglect any constituency and has to show all-round
performance. However, on the negative side, receiving feedback from
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multiple sources can be intimidating, threatening, and expensive and time
consuming.

2) Psychological Appraisals
These appraisals are more directed to assess employee’s potential for
future performance rather than the past one. It is done in the form of in-
depth interviews, psychological tests, and discussion with supervisors and
review of other evaluations.
It is more focused on employees emotional, intellectual, and
motivational and other personal characteristics affecting his performance.
This approach is slow and costly and may be useful for bright young
members who may have considerable potential.
However quality of these appraisals largely depends upon the skills of
psychologists who perform the evaluation.
Each of these has its own combination of strengths and weaknesses
and none is able to achieve all the purposes for which management
institutes Performance Appraisal System. Nor is any one technique able
to evade all the pitfalls. The best anyone can hope to do is to match an
appropriate appraisal method to a particular Performance Appraisal goal

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ADVANTAGES OF PERFORMANCE APPRAISALS TO
THE ORGANIZATION AND THE EMPLOYEE
The objectives of performance appraisal, listed, point out the
purpose which such an exercise seeks to meet. What needs emphasis is
that performance evaluation contributes to firm's competitive strength.
Besides encouraging high levels of performance, the evaluation
system helps identify employees with potential, reward performance
equitably and determine employee's need for training. Specifically,
performance appraisal helps an organization gain competitive edge in the
following ways (see Fig below)

Improving
Strategy and Performance Making
Behavior correct
decisions

Competitive
Advantage

Values and Ensuring Legal

Behavior Minimizing Compliance
dissatisfaction
and turnover

Improving Performance
An effective appraisal system contribute to competitive advantage
by improving employee job performance in two ways-by directing
employee behavior towards organizational goals, as was done by the

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second beekeeper (see opening case), and by monitoring that behavior to
ensure that the goals are met.

Making Correct Decisions:

As stated above, appraisal is a critical input in making decisions on
such issues as pay raise, promotion, transfer, training, discharges and
completion of probationary periods. Right decision on each of these
contributes to competitive strength of an organization. If promotion, for
example, is made on performance, the promotee feels motivated to
enhance his or her performance.

Minimizing Job Dissatisfaction and Turnover:

Employees tend to become emotional and frustrated if they
perceive that the ratings they get are unfair and inaccurate. Such
employees find that the efforts they had put in became futile and
obviously get de-motivated. Dissatisfaction in the job sets in and one of
the outcomes of job dissatisfaction is increased turnover. An organization
having satisfied and motivated employees has an edge over its
competitors.

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DISADVANTAGES OF PERFORMANCE APPRAISALS
TO THE ORGANIZATION AND TO THE EMPLOYEES
Obstacles to the success of formal Performance Appraisal programs
is to be familiar to most managers, either from painful personal
experience or from the growing body of critical literature. Here are the
most troublesome and frequently cited drawbacks.
 Performance Appraisal programs demand too much from
supervisors. Formal performance appraisal obliviously requires at
least periodic supervisor observation of subordinate’s performance.
 Standards and ratings tend to vary widely and often. Unfairly,
some ratees are tough, while some are lenient. Some departments
have highly competent people, others have less competent people.
 Personal values and bias can replace organizational standards. An
appraiser may not lack standards, but the standards he uses are
sometimes wrong ones.
 Because of lack of communication, employees may not know how
they are rated. The standards by which employees think they are
being judged are sometimes different from those their supervisors
actually use.

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 Chapter 2
COMPANY PROFILE

INTRODUCTION
State Bank of India (SBI) has history of more than 200 years of
existence. The evolution of State Bank of India can be traced back to the
first decade of the 19th century. It began with the establishment of the
Bank of Calcutta in Calcutta, on 2 June 1806. The bank was redesigned
as the Bank of Bengal, three years later, on 2 January 1809. It was the
first ever joint-stock bank of the British India, established under the
sponsorship of the Government of Bengal. Subsequently, the Bank of
Bombay (established on 15 April 1840) and the Bank of Madras
(established on 1 July 1843) followed the Bank of Bengal. These three
banks dominated the modern banking scenario in India, until when these
banks were amalgamated to form the Imperial Bank of India, on 27
January 1921.
An important turning point in the history of State Bank of India is
the launch of the first Five Year Plan of independent India, in 1951. The
Plan aimed at serving the Indian economy in general and the rural sector
of the country, in particular. Until the Plan, the commercial banks of the
country, including the Imperial Bank of India, confined their services to
the urban sector. Moreover, they were not equipped to respond to the
growing needs of the economic revival taking shape in the rural areas of
the country. Therefore, in order to serve the economy as a whole and
rural sector in particular, 30 the All India Rural Credit Survey Committee

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recommended the formation of a state-partnered and state-sponsored
bank.
The All India Rural Credit Survey Committee proposed the
takeover of the Imperial Bank of India, and integrating with it, the former
state-owned or state-associate banks. Subsequently, an Act was passed in
the Parliament of India in May 1955. As a result, the State Bank of India
(SBI) was established on 1 July 1955. This resulted in making the State
Bank of India more powerful, because as much as a quarter of the
resources of the Indian banking system were controlled directly by the
State. Later on, the State Bank of India (Subsidiary Banks) Act was
passed in 1959. The Act enabled the State Bank of India to make the
eight former State-associated banks as its subsidiaries.
The State Bank of India emerged as a pacesetter, with its
operations carried out by the 480 offices comprising branches, sub offices
and three Local Head Offices, inherited from the Imperial Bank. Instead
of serving as mere repositories of the community's savings and lending to
creditworthy parties, the State Bank of India catered to the needs of the
customers, by banking purposefully. The bank served the heterogeneous
financial needs of the planned economic development.
Today, State Bank of India (SBI) has spread its arms around the
world and has a network of branches spanning all time zones. SBI's
International Banking Group delivers the full range of cross-border
finance solutions through its four wings - the Domestic division, the
Foreign Offices division, the Foreign Department and the International
Services division.

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 In recent years the bank has focused on three priorities:
 Computerizing its operations and
 Changing the attitude of its employees (through an ambitious
program aptly named 'Parivartan' which means change) as a large
number of employees are very rude to customers.

ROOTS:
The State Bank of India traces its roots to the first decade of 19th
century, when the Bank of Calcutta, later renamed the Bank of Bengal,
was established on 2 June 1806. The government amalgamated Bank of
Bengal and two other Presidency banks, namely, the Bank of Bombay
(incorporated on 15 April 1840) and the Bank of Madras on 27 January
1921, and named the reorganized banking entity the Imperial Bank of
India. All these Presidency banks had been incorporated as joint stock
companies, and were the result of the royal charters. The Imperial Bank
of India continued as a joint stock company. Until the establishment of a
central bank in India the Imperial Bank and its early predecessors served
as India's central bank, at least in terms of issuing the currency. The State
Bank of India Act 1955, enacted by the Parliament of India, authorized
the Reserve Bank of India, which is the central banking organization of
India, to acquire a controlling interest in the Imperial Bank of India,
which was renamed the State Bank of India on 30 April 1955.

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ASSOCIATE BANKS:
There are seven other associate banks that fall under SBI. They all
use the "State Bank of" name followed by the regional headquarters'
name. These were originally banks belonging to princely states before the
government nationalized them in 1959. In tune with the first Five Year
Plan, emphasizing the development of rural India, the government
integrated these banks with the State Bank of India to expand its rural
outreach. The State Bank group refers to the seven associates and the
parent bank. All the banks use the same logo of a blue keyhole. Currently,
the group is merging all the associate banks into SBI, which will create a
"mega bank", and one hopes, streamline operations and unlock value.
 State Bank of Bikaner and Jaipur (SBBJ)
 State Bank of Hyderabad (SBH)
 State Bank of Mysore (SBM)
 State Bank of Patiala (SBP)
 State Bank of Saurashtra (SBS)
 State Bank of Travancore (SBT)

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BRANCHES
The corporate center of SBI is located in Mumbai. In order to cater
to different functions, there are several other establishments in and
outside Mumbai, apart from the corporate center. The bank boasts of
having as many as 14 local head offices and 57 Zonal Offices, located at
major cities throughout India. It is recorded that SBI has about 10000
branches, well networked to cater to its customers throughout India.

FOREIGN OFFICES:
State Bank of India is present in 32 countries, where it has 84
offices serving the international needs of the bank's foreign customers,
and in some cases conducts retail operations. The focus of these offices is
India-related business.

ATM SERVICES
SBI provides easy access to money to its customers through more
than 8500 ATMs in India. The Bank also facilitates the free transaction of
money at the ATMs of State Bank Group, which includes the ATMs of
State Bank of India as well as the Associate Banks – State Bank of
Bikaner & Jaipur, State Bank of Hyderabad, State Bank of Indore, etc.
Account holder may also transact money through SBI Commercial and
International Bank Ltd by using the State Bank ATM-cum-Debit (Cash
Plus) card.

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PRODUCTS AND SERVICES
Personal Banking
1) SBI Term Deposits SBI Loan For Pensioners
2) SBI Recurring Deposits Loan Against Mortgage Of Property
3) SBI Housing Loan Against Shares & Debentures
4) SBI Car Loan Rent Plus Scheme
5) SBI Educational Loan Medi-Plus Scheme

Other Services
1) Agriculture/Rural Banking
2) NRI Services
3) Demat Services
4) Corporate Banking
5) Internet Banking
6) Mobile Banking
7) International Banking
8) Safe Deposit Locker
9) RBIEFT
10) E-Pay
11) E-Rail
12) SBI Vishwa Yatra Foreign Travel Card
13) Broking Services
14) Gift Cheques. Etc.

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 Chapter 3
OBJECTIVES OF THE STUDY

1) To study the Performance Appraisal System’s for executions in

State Bank of India, Chandrapur
2) To evaluate the effectiveness of performance appraisal system.
3) To suggest some suitable changes in the existing Performance
Appraisal System’s
4) To study the employees satisfaction with performance appraisal
system.

I
MPORTANCE AND SCOPE OF THE STUDY
1) To review the performance of the employees over a given period of
time.
2) To judge the gap between the actual and the desired performance.
3) To help better current performances.
4) To help in development of the employees.
5) To determine training and development needs.

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 Chapter 4
PERFORMANCE APPRAISAL PROCESS IN
STATE BANK OF INDIA
The Performance Appraisal Process consists of six steps. Each step
in the process is crucial and is arranged logically. The process shown in
the below figure is some what idealized. Many organizations make every
effort to approximate the ideal process, resulting in the first-rate appraisal
systems. Unfortunately, many others fail to consider one or more of the
steps and, therefore, have less - effective appraisal system.

Performance Appraisal

Establishing Performance Standards

Communicating Standards to Employees

Measuring Actual Performance

Comparing Actual Performance with the Standards Set

Discussing Actual Performance with the Employee ( Appraisal

Interview)

Offering Guidance for Improving Performance (Follow – up

Measures)

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BENEFITS OF PERFORMANCE APPRAISAL
Perhaps the most significant benefit of appraisal at State Bank of
India is that, in the rush and bustle of daily working life, it offers a rare
chance for a superior and subordinate to have to “time out” for one – on –
one discussion of important work uses that might now otherwise be
addressed.
The Company believes that Appraisal offers a valuable
opportunity to focus on work, activities and goals, to identify and correct
existing problems, and to encourage better future performance. Thus the
performance of this organization is enhanced.

 Motivation and Satisfaction:

The management of State Bank of India believes that Performance
appraisal has profound effect on levels of employee’s motivation and
satisfaction - for better as well as for worse.
Performance appraisal provides employees with recognition for their
work efforts. The power of social recognition as an incentive has been
long noted. In fact, there is evidence that human beings even prefer
negative recognition in preference to no recognition at all.
If nothing else, the existence of an appraisal program indicates to an
employee that the organization is genuinely interested in their individual
performance and development. This alone has a positive influence on the
individuals’ sense of worth, commitment and belonging.
The strength and prevalence of this natural human desire for
individual recognition is been overlooked. Absenteeism and turnover
rates in some organizations might be greatly reduced if more attention
were paid to it. Regular performance appraisal, at least, is a good start.
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 Training and Development :
Performance appraisal offers an excellent opportunity – perhaps the
best that it will ever occur - for a supervisor and subordinate to recognize
and agree upon individual training and development needs.
During the discussion of an employee’s work performance, the
presence or absence of work skills has become very obvious – even to
those who habitually reject the idea of training for them!
Performance appraisal makes the needs for training more pressing
and relevant by linking it clearly to performance outcomes and future
career aspirations.
From the point of view of the organization as a whole consolidated
appraisal data form a picture of the overall demand for training. This data
is analyzed by variables such as sex, department etc. in this respect,
performance appraisal provides a regular and efficient training needs
audit for the entire organization.

 Recruitment and Induction:

Appraisal data is used to monitor the success of the organization’s
recruitment and induction practices. For example, how well are the
employees performing who were hired in the past two years?
Appraisal data is also used to monitor the effectiveness of changes in
recruitment strategies. By following the yearly data related to new hires (
and given sufficient numbers on which to base the analysis) it is possible
to assess whether the general quality of the workforce is improving
staying steady, or declining.

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 Employee Evaluation:
Though often understated or even denied, evaluation is a legitimate
and major objective of performance appraisal.
But the need to evaluate (i.e to judge) is an on going source of
tension, since evaluative and development priorities appear to frequently
clash. Yet at its most basic level, performance appraisal is the process of
examining and evaluating the performance of an individual.
Though organizations have a clear right – some would say a duty –
to conduct such evaluations of performance, many still recoil from the
idea. To them, the explicit process of judgment can be dehumanizing and
demoralizing and a source of anxiety and distress to employees.
“It is said that appraisal cannot serve the needs of evaluation and
development at the same time; it is one or the other”

The Appraisal Feedback Interview at State Bank of India

At State Bank of India, the Management believes that Performance
appraisal process is incomplete without the feedback given to the
employee about his appraisal and his performance. But the way of giving
as well as receiving the feedback differs from person to person and their
way of handling and their outlook towards the issue. According to a
popular saying:
“A SUCCESSFUL MAN IS ONE WHO CAN LAY A FIRM
FOUNDATION WITH THE BRICKS OTHERS HAVE THROWN AT
HIM.”
Whatever method of appraisal, may be used by an organization, it
is crucial to allow for ‘employee feedback’.

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 An interview between the manager and the employee is the main
way of achieving this. This is called the Appraisal Feedback Interview
This interview provides the opportunity to discuss an employees’
performance and explore areas of possible improvements and growth. It
also provides an opportunity to identify attitudes and feelings more
thoroughly and thus improve communication. Fundamental to the success
of the appraisal interview is the relationship between the two participants
in the process.
Points to be noted, while the Feedback Interview takes
place:
On the part of the person receiving the feedback, the following points
are important to be taken care of:
 The employee should have a positive attitude towards the feedback
process
 He should listen to the suggestions of the appraiser calmly and try
to incorporate them in his plans.
 He should not hesitate to ask for the help of his superiors.
 Should have a co-operative attitude during the feedback meeting.
 Don’t judge the appraiser as a person.
 Should take the feedback objectively.
 Should not judge the appraiser as a person on the basis of the
feedback.
On the part of the appraiser or the manager / person giving the
feedback, the following points are to be taken care of:
 The appraiser should make the receiver feel comfortable during the
feedback meeting.

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  The appraiser should make it a two – way conversation i.e. let the
employee speak.
 Listen to the employee and note his points, suggestions, problems
etc.
 Provide a constructive feedback to the employee i.e. in a way
which will motivate him to perform better.
 Have a positive attitude towards the process
 Try to understand the reasons of his failure.
 Be fair and objective
 Make the appraisal feedback meeting useful and productive for the
organization and the employee.

SELF APPRAISAL SYSTEM IN STATE BANK OF INDIA

State Bank of India follows The Performance Appraisal system. It
is done at three levels. First by the employee itself followed by his
superior and then by the reviewing authority.
The appraisal process is based on Performance and is subjective in
nature. In Self Appraisal, the Appraisee is asked to highlight his best
performances and also list the areas where he feels he is not up to the
mark.
The Appraisee is also asked to highlight problems he’s faced and
opportunities he is required to improve his performance. He is also asked
to mention any outstanding performance he’s done outside the
organization but for the organization.
The Self Appraisal is followed by the appraisal done by the
superior (appraiser). This appraisal basically includes analyzing various
business dimensions related to financial aspects.
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 It also includes qualitative aspects of business such as attitude,
customer service, etc. The appraisal also gives feedback on Key
Responsibility Areas (KRA’s), which includes:
 The primary responsibilities assigned to the appraisee and
 Managerial dimensions for operational and non-operational
assignments.
Managerial dimensions for operational and non- operational
assignments include:
 Job knowledge
 Leadership
 Decision Making
 Administrative skill
 Public Relation marketing Skills and
 Integrity and Honesty

The Appraiser gives comments on:

 Conceptual activities
 Emotional Strength
 Responsiveness to corporate concerns
 Willingness to assume Responsibilities
 Creativity and Innovativeness
 Communication Skills
 The several assessment of performance is done Operational an
Non - operational assignments. This assessment is done by both appraiser
and receiving authority.

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The operational assignments include:
 Business Dimensions, which has 30 marks,
 Qualitative Aspects of Business, which has 20 marks,
 Managerial Dimensions, which has 40 marks and
 Outstanding Performance, which has 10 marks.

Non – Operational assignments include:

 Key Responsibility Areas, which has 50 marks,
 Managerial Dimensions, which has 40 marks and
 Outstanding Performance, which has 10 marks.

From the above scores, given by the appraiser, and reviewing

authority. Performance is rated on the scale of:
 Outstanding (80 – 100);
 Good (60 – 79);
 Average (40-59) and
 Below Average (Below 40)

After the information so obtained from the assessment of

performance, the company is able to provide training needs and in able to
find out the potentiality of the employees.
The final appraisal is done by the reviewing authority, which
includes remarks and comments on the appraisal done.

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 Chapter 4
FINDINGS AND CONCLUSION

FINDINGS
 Most of the employees know about performance appraisal and few
of them not aware of the performance appraisal.
 All the employees agree that State Bank of India Ltd.
implementing the performance appraisals.
 Most of the employees say that they know the procedure of
performance appraisals and few of them don’t know.
 In the State Bank of India Ltd. implementing the Modern method.
 Most of the employees satisfied with the present appraisal system
followed by the State Bank of India Ltd. and few of them not
satisfied.
 In this Organization performance appraisal evaluated once in
yearly.
 Most of the employees agree that Self appraisal system will be
more comfortable and advisable.
 Performance feed back is not being implemented in the
organization, presently only few employees are receiving
performance feedback.
 The head of the department will appraise the performance of the
employees.
 Most of the employees thinking that present appraisal system need
to be change.

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  Most of the employees thinking that Self Appraisal system is
required.
 Most of the employees are saying that performance appraisal is
used for identity training needs, promotions/demotions, recognize
employees efforts.
 Most of the employees are agree that they are getting some sort of
benefits after appraised.
 Most of the employees are saying that there is a need of an expert
person in the H.R. department.
 Most of the employees are feel that overall performance appraisal
system is good.
 Performance appraisal not been done for some categories of
employees of the organization.

CONCLUSION
 In the whole appraisal system, often superiors assume the role
judges. In contrast the aim is to develop employees; managers need
to be counselors, helpers and teachers.
 Maximum employees in the organization were of the opinion that
the performance appraisal is a positive step taken by the
organization to help them to improve their own performance.
 Employees were hopeful that after the performance appraisal is
over they will be properly rewarded for their work and that it was a
way to ensure that their efforts don’t go unnoticed.
 The employees showed eagerness to learn from their mistakes
which they hoped to rectify and perform better.

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 Chapter 5
SUGGESTIONS
 The awareness can be created among all the employees by
conducting classes and interactive sessions about the Performance
Appraisal.
 The organization should cover all categories of employees for
appraisal system.
 Hence different forms should be designed for different categories
of employees of the Organization.
 By this the employees will know about their lacking and try to
improve and their superior should counsel the employee about the
Performance.
 Organization should give feedback to all levels of employees.
 Organization should appoint an expert in appraisal to make
appraisal authentic and foolproof.
 Performance appraisal should be done for the lower level
employees also, so that they can work sincerely.
 Periodical appraisal helps the company to compare employee’s
performance and to take apt decisions for further improvement

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 BIBLOGRAPHY

1) “Human Resource Management and Industrial Relations”

- Subba Rao. P
2) “Human Resource Management”
- Aswathappa. K
3) “Appraising and Developing Managerial Performance”
- Rao, T.V”
4) “Performance Management”
- Prem Chadha

Websites:
 www.google.com
 www.changingminds.org
 www.performance-appraisal.com

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