A

RESEARCH REPORT

ANALYSIS OF E-BANKING WITH REFERENCE

TO INTERNET BANKING

Bachelor of Business Administration

2016-2017

SUBMITTED TO

RESEARCH GUIDE- SUBMITTED BY

Miss. Namita Mishra Krati Mishra

Asst. Professor BBA IInd Year
BBA Dept Roll No.0905611

SACRED
HEART DEGREE
COLLEGE
SITAPUR-261001

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D E C LARAT I O N
I, KRATI MISHRA, Student of B.B.A, IInd Year, SHDC, SITAPUR, declare that
the project on ANALYSIS OF E-BANKING WITH REFERENCE TO
INTERNET BABKING, SITAPUR , is the result of my own efforts and it is
based on data collected and guidance given to me.

I have prepared it as a part of my course curriculum. This report is

correct to best of my knowledge and so far has not been published anywhere else.

B.B.A,Naipalapur, Sitapur

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 ACKNOWLEDGEMENT

I feel great pleasure in presenting this research report in the hands of my

mentor. It is really a great opportunity given by him to me. This research work is

combined effort of many hearts, hands and brains.

First of all I would like to thank God who showered his blessing in every

step of this profile and has given me this opportunity to conduct this industrial

profiling.

I am immensely grateful to my Guide Miss.Namita Mishra, Asst. Prof BBA

Deptt, SHDC, Sitapur, for providing me this opportunity for bringing out my

talent.

I also want to thank all my teachers, Staff Member and Library members for

their valuable advice and guidance who helped me to complete this project

successfully.

KRATI MISHRA

B.B.A, SHDC, Sitapur

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 Table of Content

1. Introduction

2. Objective of Research

3. Need of study

4. Company Profile

5. Review of Literature

6. Research Methodology

7. Analysis and Interpretation

8. Findings

9. Conclusion

10.Suggestion

11.Limitation

11. Bibliography

12. Annexure

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 INTRODUCTION

The precursor for the modern home online banking services were the distance banking

services over electronic media from the early 80s.The trem online became popular in late 80s and

referred to the use of a terminal,keyboard and tv to access the banking system using a phone

line.Internet banking is changing the banking industry and is having the major effects on banking

relationship .Banking is now no longer confined to the branches were one has to apporoach the

branch in person,to withdraw cash or deposit a cheque.In true internet banking,any inquiry or

transaction is processed online without any reference to the branch at any time. Providing

internet banking is increasingly becoming a need to have than nice to have service .The net

banking,thus.now is more of a norm rather than an exception in many developed countries due to

the fact that it is the cheapest way of providing banking services.

Online banking allows customers to

conduct financial transactions on a secure website operated by their retail bank credit union or

building society.

E-BANKING
E-banking united online is the name of internet banking services of united bank of india. The

service is highly secure as it uses 256bit SSLencryption for the data transmission through

internet.

With Internet Banking,your bank travels with the around the world.You have on line,real time

access.United online sevices are meant to serve the need of the customer of bank.

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ELIGIBILITY-The customer of any branch of bank having any bank account are eligible to

avail e-banking services.

HOW TO APPLY

Submit the duly filled signed application from to your branch.

Services Charges-Internet banking servicesis free of cost.However the charges appilicable for

some of the services like NEFT/RTGS,Stop cheque etc availed through ebanking are some as

service availed through branches.

Charges applicable for issurance of duplicate password is Rs50 plus services tax.

WHY THIS RESEARCH

An analysis of the difference in risk perception between bank customers using

internet banking and those not using internet banking was done and it showed that

risk perception in term of financial,psychological and safety risks among customers

not using the internet was more meaningful than those using internet

banking.Customers are not preferring to use internet banking.only 37%of indian

internet users come from top cities

i.e.Mumbai,Bangalore,Delhi,Calcutta,Chennai,Pune,Hyderadad,Ahmedabad,Surat

And Nagpur.Maximum of the person who are going on for internet banking lies in

the age bracket of 26-35 but the rise in the age the level of users become low.

Approximately 17%of female use internet banking.Although many major banks have

started offering i-banking services,the slow pace will continue until the critical mass

is achieved for PC,internet connection and telephones.

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Private and foreign banks are trying to turn more an more customers towards the

usage if internet for the banking transaction.This study is basically to know the

relation of various independent variables on the customers usage of internet for

banking.

OBJECTIVES OF THE STUDY

Perceptual mapping of internet banking users.

To know the cause why customers are not using internet banking.

To know which age of customers is using different e-banking facilities.

To analyze customer satisfaction level in the internet banking services.

To know the reason for preferring internet banking services.

To know the customer perception about the internet banking services.

Company Profile

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 COMPANY PROFILE: IDBI Bank

Type PubIDBI BANK (BSE: 500116)

Industry Banking, Financial services

Founded July 1964

Headquarters Mumbai, India

Key people R M Malla (CMD)

Products Credit cards, consumer banking,corporate

banking, finance and
insurance, investment banking,mortgage
loans, private banking,private
equity, wealth management

Revenue 20,858 crore (US$4.16 billion)(2011)[1]

Net income 1,563 crore (US$311.82 million)(2011)

Total assets 253,116 crore (US$50.5 billion)(2011)

Employees 14,000 (2011)

Website www.idbi.com

IDBI Bank Limited is an Indian financial service company headquartered Mumbai, India. RBI

categorised IDBI as an "other pubIDBI BANK sector bank". It was established in 1964 by

an Act of Parliament to provide credit and other facilities for the development of the fledgling

Indian industry. It is currently 10th largest development bank in the world in terms of reach with

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1514 ATMs, 923 branches including one overseas branch at DIFC, Dubai and 621 centers

including two overseas centres at Singapore & Beijing. Some of the institutions built by IDBI are

the Securities and Exchange Board of India (SEBI), National Stock Exchange of India (NSE),

the National Securities Depository Limited (NSDL), the Stock Holding Corporation of India

Limited (SHCIL), the Credit Analysis & Research Ltd, theExim Bank (India)(Exim Bank),

the Small Industries Development Bank of India(SIDBI), the Entrepreneurship Development

Institute of India, and IDBI BANK, which is owned by the Indian Government.IDBI Bank is on

a par with nationalized banks and the SBI Group as far as government ownership is concerned. It

is one among the 26 commercial banks owned by the Government of India. The Bank has an

aggregate balance sheet size of Rs. 2,53,378 crore as on March 31, 2011. IDBI Bank's operations

during the financial year ended March 31,

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Recent developments

To meet emerging challenges and to keep up with reforms in financial sector, IDBI has taken

steps to reshape its role from a development finance institution to a commercial institution. With

the Industrial Development Bank (Transfer of Undertaking and Repeal) Act, 2003, IDBI attained

the status of a limited company viz. "Industrial Development Bank of India Limited"

(IDBIL). Subsequently, the Reserve Bank of India (RBI) issued the requisite notification on 30

September 2004 incorporating IDBI as a 'scheduled bank' under the RBI Act, 1934.

Consequently, IDBI, formally entered the portals of banking business as IDBIL from 1 October

2004. The commercial banking arm, IDBI BANK, was merged into IDBI.

In March 2008, IDBI Bank entered into a joint venture with Federal Bank and Fortis Insurance

International to form IDBI Fortis Life Insurance, of which IDBI Bank owns 48 percent. The

company ended the year with over 300 Cr in premiums as on 31 March 2009.The name of IDBI

Fortis Life Insurance is now changed to IDBI Federal Life Insurance Co Ltd.

Government of India now owns 65.17% stake in IDBI Bank. Hence IDBI Bank is also referred

as 'The New Age Government owned Bank'

It has bought 10% stake in upcoming commodity bourse Universal Commo-dity Exchange

(UCX) for Rs 10 crore, the bank's top official said. The deal was completed recently. RM Malla,

chairman and MD of IDBI Bank, confirmed that the bank had picked up 10% in what will

become the country's sixth commodity futures exchange. "The idea behind acquiring equity is to

push agriculture loans through this venture," said Malla. "The other advantage is IDBI will be the

only bank among the promoters and therefore all transactions of the exchange will be routed

through IDBI."

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A breakthrough initiative in customer service was taken by IDBI Bank (branded as 'Customer

Delight Campaign [1]' when it removed many of the charges from its retail banking services.

This step has created a wave in banking industry and put the bank on a developmental pedestal

never seen before. Some of the charges waived are- ATM-cum-Debit card annual charges,

Transaction charges on other banks' ATMs, Demand Draft/Pay Order charges, RTGS/NEFT

charges, Cheque book issuance and utilization charges and many more other charges.

It was the winner in two categories in Dun & Bradstreet's Polaris Software Banking Awards

2011.

It has now a network of 933 branches, 621 centres and 1514 ATMs as on October 13, 2011.

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Overview of development banking in India

The concept of development banking rose only after Second World War, after the Great

Depression in 1930s. The demand for reconstruction funds for the affected nations compelled in

setting up a worldwide institution for reconstruction. As a result the IBRD was set up in 1945 as

a worldwide institution for development and reconstruction. This concept has been widened all

over the world and resulted in setting up of large number of banks around the world which

coordinating the developmental activities of different nations with different objectives among the

world. The Narashimam committee had recommended to give up its direct financing functions

and to perform only the promotional and refinancing role. However, the S.H.Khan committee,

appointed by the RBI, recommended its transformation into a universal bank.

The course of development of financial institutions and markets during the post-

Independence period was largely guided by the process of planned development pursued in India

with emphasis on mobilisation of savings and channeling investment to meet Plan priorities. At

the time of Independence in 1947, India had a fairly well developed banking system. The

adoption of bank dominated financial development strategy was aimed at meeting the sectoral

credit needs, particularly of agriculture and industry. Towards this end, the Reserve

Bankconcentrated on regulating and developing mechanisms for institution building. The

commercial banking network was expanded to cater to the requirements of general banking and

for meeting the short-term working capital requirements of industry and agriculture. Specialised

development financial institutions (DFIs) such as the IDBI, NABARD, NHB and SIDBI, etc.,

with majority ownership of the Reserve Bank were set up to meet the long-term financing

requirements of industry and agriculture. To facilitate the growth of these institutions, a

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mechanism to provide concessional finance to these institutions was also put in place by the

Reserve Bank.

The first development bank In India incorporated immediately after independence in

1948 under the Industrial Finance Corporation Act as a statutory corporation to pioneer

institutional credit to medium and large-scale. Then after in regular intervals the government

started new and different development financial institutions to attain the different objectives and

helpful to five-year plans.

The early history of Indian banking and finance was marked by strong governmental

regulation and control. The roots of the national system were in the State Bank of India Act of

1955, which nationalized the former Imperial Bank of India and its seven associate banks. In the

early days, this national system operated alongside of a large private banking system. Banks

were limited in their operational flexibility by the governments desire to maintain employment

in the banking system and were often drawn into troublesome loans in order to further the

governments social goals.

The financial institutions in India were set up under the strong control of both central and state

Governments, and the Government utilized these institutions for the achievements in planning

and development of the nation as a whole. Thus India financial institutions can be classified

under five heads according to their economic importance:

All-India Development Banks

Specialized Financial Institutions

Investment Institutions

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Industrial Development Bank of India (IDBI)

The Industrial Development Bank of India (IDBI) was established on 1 July 1964 under

an Act of Parliament as a wholly owned subsidiary of the Reserve Bank of India. In 16 February

1976, the ownership of IDBI was transferred to the Government of India and it was made the

principal financial institution for coordinating the activities of institutions engaged in financing,

promoting and developing industry in the country. Although Government shareholding in the

Bank came down below 100% following IDBIs pubIDBI BANK issue in July 1995, the former

continues to be the major shareholder (current shareholding: 65.14%). IDBI provides financial

assistance, both in rupee and foreign currencies, for green-field projects as also for expansion,

modernisation and diversification purposes. In the wake of financial sector reforms unveiled by

the government since 1992, IDBI also provides indirect financial assistance by way of

refinancing of loans extended by State-level financial institutions and banks and by way of

rediscounting of bills of exchange arising out of sale of indigenous machinery on deferred

payment terms.

IDBI has played a pioneering role, particularly in the pre-reform era (196491),in

catalyzing broad based industrial development in the country in keeping with its Government-

ordained development banking charter.[citation needed]

Narasimam committee recommends that IDBI should give up its direct financing

functions and concentrate only in promotional and refinancing role. But this recommendation

was rejected by the government. Later RBI constituted a committee under the chairmanship of

S.H.Khan to examine the concept of development financing in the changed global challenges.

This committee is the first to recommend the concept of universal banking. The committee

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wanted the development financial institution to diversify its activity. It recommended to

harmonise the role of development financing and banking activities by getting away from the

conventional distinction between commercial banking and developmental banking.

In September 2003, IDBI diversified its business domain further by acquiring the entire

shareholding of Tata Finance Limited in Tata Home finance Ltd., signaling IDBIs foray into the

retail finance sector. The fully owned housing finance subsidiary has since been renamed IDBI

Home finance Limited. In view of the signal changes in the operating environment, following

initiation of reforms since the early 1990s, Government of India has decided to transform IDBI

into a commercial bank without eschewing its secular development finance obligations. The

migration to the new business model of commercial banking, with its gateway to low-cost

current, savings bank deposits, would help overcome most of the limitations of the current

business model of development finance while simultaneously enabling it to diversify its client/

asset base. Towards this end, the IDB (Transfer of Undertaking and Repeal) Act 2003 was passed

by Parliament in December 2003. The Act provides for repeal of IDBI Act, corporatisation of

IDBI (with majority Government holding; current share: 58.47%) and transformation into a

commercial bank. The provisions of the Act have come into force from 2 July 2004 in terms of a

Government Notification to this effect. The Notification facilitated formation, incorporation and

registration of Industrial Development Bank of India Ltd. as a company under the Companies

Act, 1956 and a deemed Banking Company under the Banking Regulation Act 1949 and helped

in obtaining requisite regulatory and statutory clearances, including those from RBI. IDBI would

commence banking business in accordance with the provisions of the new Act in addition to the

business being transacted under IDBI Act, 1964 from 1 October 2004, the Appointed Date

notified by the Central Government.

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 IDBI Bank, with which the parent IDBI was merged, was a new generation Bank. The

Pvt Bank was the fastest growing banking company in India. The bank was pioneer in adapting

to poIDBI BANKy of first mover in tier 2 cities. The Bank has one of the highest productivity

per employee in Indian banking industry.

On 29 July 2004, the Board of Directors of IDBI and IDBI Bank accorded in principle

approval to the merger of IDBI Bank with the Industrial Development Bank of India Ltd. to be

formed incorporated under the Companies Act, 1956 pursuant to the IDB (Transfer of

Undertaking and Repeal) Act, 2003 (53 of 2003), subject to the approval of shareholders and

other regulatory and statutory approvals. A mutually gainful proposition with positive impIDBI

BANKations for all stakeholders and clients, the merger process is expected to be completed

during the current financial year ending 31 March 2005.

The immediate fall out of the merger of IDBI and IDBI Bank was the exit of employees

of IDBI bank. The cultures in the two organizations have taken its toll. The IDBI Bank now is in

a growing fold. With its retail banking arm expanding further after the merger of United western

Bank.

IDBI would continue to provide the extant products and services as part of its

development finance role even after its conversion into a banking company. In addition, the new

entity would also provide an array of wholesale and retail banking products, designed to suit the

specific needs cash flow requirements of corporates and individuals. In particular, IDBI would

leverage the strong corporate relationships built up over the years to offer customised and total

financial solutions for all corporate business needs, single-window appraisal for term loans and

working capital finance, strategic advisory and hand-holding support at the implementation

phase of projects, among others.[

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IDBIs transformation into a commercial bank would provide a gateway to low-cost deposits like

Current and Savings Bank Deposits. This would have a positive impact on the Banks overall

cost of funds and facilitate lending at more competitive rates to its clients. The new entity would

offer various retail products, leveraging upon its existing relationship with retail investors under

its existing Suvidha Flexi-bond schemes.

The responsibility for maintaining standards of corporate governance lies with its Board of

Directors. Two Committees of the Board viz. the Executive Committee and the Audit Committee

are adequately empowered to monitor implementation of good corporate governance practices

and making necessary disclosures within the framework of legal provisions and banking

conventions.

Industrial Investment Bank of India Ltd.

The Industrial Investment Bank of India is one of oldest banks in India. The Industrial

Reconstruction Corporation of India Ltd., set up in 1971 for rehabilitation of sick industrial

companies, was reconstituted as Industrial Reconstruction Bank of India in 1985 under the IRBI

Act, 1984. With a view to converting the institution into a full-fledged development financial

institution, IRBI was incorporated under the Companies Act, 1956, as Industrial Investment Bank

of India Ltd. (IIBI) in March 1997. IIBI offers a wide range of products and services, including

term loan assistance for project finance, short duration non-project asset-backed financing,

working capital/ other short-term loans to companies, equity subscription, asset credit, equipment

finance as also investments in capital market and money market instruments.

In view of certain structural and financial problems adversely impacting its long-term viability,

IIBI submitted a financial restructuring proposal to the Government of India on 25 July 2003.

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IIBI has since received certain directives from the Government of India, which, inter alias,

include restricting fresh lending to existing clients approved cases rated corporates, restrictions

on fresh borrowings, an action plan to reduce the overhead expenditure, disposal of fixed assets

and a time-bound plan for asset recovery/reconstruction. The Government of India had also

given its approval for the merger of IIBI with IDBI and the latter had already started the due

diligence process.

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Acquisition of United Western Bank

In 2006, IDBI Bank acquired United Western Bank in a rescue. [11] Annasaheb Chirmule, who

worked for the cause of Swadeshi movement, founded Satara Swadeshi Commercial Bank in

1907, and some three decades later founded United Western Bank. The bank was incorporated in

1936, and commenced operations the next year, with its head office in Satara,

inMaharashtra State. It became a Scheduled Bank in 1951. In 1956 it merged with Union Bank

of Kolhapur, and in 1961 with Satara Swadeshi Commercial Bank. At the time of the merger

with IDBI, United Western had some 230 branches spread over 47 districts in 9 states, controlled

by five Zonal Offices at Mumbai, Pune, Kolhapur, Jalgaon and Nagpur.

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 INTRODUCTION TO

BANKING SECTOR IN INDIA

A bank is an institution that deals in money and its substitutes and provides other financial

services. Banks accept deposits and make loans or make an investment to derive a profit from the

difference in the interest rates paid and charged, respectively.

In India the banks are being segregated in different groups. Each group has their own benefits

and limitations in operating in India. Each has their own dedicated target market. Few of them

only work in rural sector while others in both rural as well as urban. Many even are only catering

in cities. Some are of Indian origin and some are foreign players.

Indias economy has been one of the stars of global economics in recent years. It has grown by

more than 9% for three years running. The economy of India is as diverse as it is large, with a

number of major sectors including manufacturing industries, agriculture, textiles and handicrafts,

and services. Agriculture is a major component of the Indian economy, as over 66% of the Indian

population earns its livelihood from this area. Banking sector is considered as a booming sector

in Indian economy recently. Banking is a vital system for developing economy for the nation.

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 Hierarchy of Indian Banking System

Reserve Bank of India

Non-Schedule Banks
Schedule Banks
Central co-op
State co-op Commercial Banks and Commercial Banks
Banks Banks Primary Cr.
Societies
Indian Foreign

Public Sector
Banks Private Sector IDBI,
Banks ICICI etc.

State Bank of India Other Nationalized Regional Rural

and its Subsidiaries Banks Banks

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 INDIAN BANKING SYSTEM

Without a sound and effective banking system in India it cannot have a healthy economy.

The banking system of India should not only be hassle free but it should be able to meet new

challenges posed by the technology and any other external and internal factors. For the past three

decades India's banking system has several outstanding achievements to its credit. The most

striking is its extensive reach. It is no longer confined to only metropolitans or cosmopolitans in

India. In fact, Indian banking system has reached even to the remote corners of the country. This

is one of the main reasons of India's growth process. The government's regular poIDBI BANKy

for Indian bank since 1969 has paid rich dividends with the nationalization of 14 major private

banks of India.

Not long ago, an account holder had to wait for hours at the bank counters for getting a

draft or for withdrawing his own money. Today, he has a choice. Gone are days when the most

efficient bank transferred money from one branch to other in two days. Now it is simple as

instant messaging or dial a pizza. Money has become the order of the day.

The first bank in India, though conservative, was established in 1786. From 1786 till

today, the journey of Indian Banking System can be segregated into three distinct phases. They

are as mentioned below:

Early phase from 1786 to 1969 of Indian Banks

Nationalization of Indian Banks and up to 1991 prior to Indian banking sector

Reforms.

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 New phase of Indian Banking System with the advent of Indian Financial &

Banking Sector Reforms after 1991.

After 1991, under the chairmanship of M Narasimham, a committee was set up by his

name which worked for the liberalization of banking practices. The country is flooded with

foreign banks and their ATM stations. Efforts are being put to give a satisfactory service to

customers. Phone banking and net banking is introduced. The entire system became more

convenient and swift. Time is given more importance than money. This resulted that Indian

banking is growing at an astonishing rate, with Assets expected to reach US$1 trillion by 2010.

The banking industry should focus on having a small number of large players that can

compete globally and can achieve expected goals rather than having a large number of

fragmented players."

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 KINDS OF BANKS
Financial requirements in a modern economy are of a diverse nature, distinctive variety

and large magnitude. Hence, different types of banks have been instituted to cater to the varying

needs of the community. Banks in the organized sector may, however, be classified in to the

following major forms:

o Commercial banks
o Co-operative banks
o Specialized banks
o Central bank

COMMERCIAL BANKS

Commercial banks are joint stock companies dealing in money and credit. In India,

however there is a mixed banking system, prior to July 1969, all the commercial banks-73

scheduled and 26 non-scheduled banks, except the state bank of India and its subsidiaries-were

under the control of private sector. On July 19, 1969, however, 14 major commercial banks with

deposits of over 50 Corers were nationalized. In April 1980, another six commercial banks of

high standing were taken over by the government.

At present, there are 20 nationalized banks plus the state bank of India and its 7

subsidiaries constituting pubIDBI BANK sector banking which controls over 90 per cent of the

banking business in the country.

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 CO-OPERATIVE BANKS

Co-operative banks are a group of financial institutions organized under the provisions of the Co-

operative societies Act of the states. The main objective of co-operative banks is to provide

cheap credits to their members. They are based on the principle of self-reliance and mutual co-

operation. Co-operative banking system in India has the shape of a pyramid a three tier structure,

constituted by:

SPECIALIZED BANKS

There are specialized forms of banks catering to some special needs with this unique nature of

activities. There are thus,

o Foreign exchange banks,

o Industrial banks,
o Development banks,
o Land development banks,
o Exim bank.
CENTRAL BANK

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A central bank is the apex financial institution in the banking and financial system of a country. It

is regarded as the highest monetary authority in the country. It acts as the leader of the money

market. It supervises, control and regulates the activities of the commercial banks. It is a service

oriented financial institution.

Indias central bank is the Reserve Bank of India established in 1935. A central bank is

usually state owned but it may also be a private organization. For instance, the Reserve Bank of

India (RBI), was started as a shareholders organization in 1935, however, it was nationalized

after independence, in 1949. It is free from parliamentary control.

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 Major Players

FOREIGN BANKS IN INDIA

Major foreign banks in India are:

ABN-AMRO Bank

Abu Dhabi Commercial Bank Ltd.

American Express Bank Ltd

BNP Paribas

Citibank

DBS Bank Ltd

Deutsche Bank

HSBC Ltd

Standard Chartered Bank

Nationalized Banks in India

List of PubIDBI BANK Sector Banks in India is as follows:

Allahabad Bank

Andhra Bank

Bank of Baroda

Bank of India

Bank of Maharashtra

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 Canara Bank

Central Bank of India

Corporation Bank

Dena Bank

Indian Bank

Indian Overseas Bank

Oriental Bank of Commerce

Punjab and Sind Bank

Punjab National Bank

State Bank of Bikaner & Jaipur

State Bank of Hyderabad

State Bank of India (SBI)

State Bank of Indore

State Bank of Mysore

State Bank of Patiala

State Bank of Saurashtra

State Bank of Travancore

Syndicate Bank

UCO Bank

Union Bank of India

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 Private Banks in India

Major private banks in India are:

AXIS BANK

Bank of Rajasthan

Bharat Overseas Bank

CathoIDBI BANK Syrian Bank

Centurion Bank of Punjab

Dhanalakshmi Bank

Federal Bank

IDBI Bank

ICICI Bank

IDBI Bank

IndusInd Bank

ING Vysya Bank

Jammu & Kashmir Bank

Karnataka Bank

Karur Vysya Bank

Kotak Mahindra Bank

SBI Commercial and International Bank

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 REGIONAL CHIEF

Review of literature

Fletcher C, Performance appraisal and management, November 4, 2001: Performance

appraisal has widened as a concept and as a set of practices and in the form of performance

management has become part of a more strategic approach to integrating HR activities and

business policies. As a result of this, the research on the subject has moved beyond the limited

confines of measurement issues and accuracy of performance ratings and has begun to focus

more of social and motivational aspects of appraisal. This article identifies and discusses a

number of themes and trends that together make up the developing research agenda for this field.

It breaks these down in terms of the nature of appraisal and the context in which it operates. The

former is considered in terms of contemporary thinking on the content of appraisal (contextual

performance, goal orientation and self awareness) and the process of appraisal (appraiser

appraisee interaction, and multi-source feedback). The discussion of the context of appraisal

concentrates on cultural differences and the impact of new technology.

Gregory H. Dobbins, Performance Appraisal as Effective Management or Deadly

Management Disease, 1990: Understanding person and system sources of work variation is

fundamental to performance appraisal. Two divergent perspectives on this issue, the traditional

human resource management view and the statistical process control view (Deming, 1986), are

contrasted. Two studies are reported that investigate two specific questions that arise from a

broader view of the appraisal process. Results indicate that managers and subordinates believe

that typical poor performance has different causes and that actual productivity levels far outweigh

person or system sources of performance variance in appraisal judgments.

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 Gregory H. Dobbins, A Contingency Approach to Appraisal Satisfaction, 1990: The

present study explored the moderating effects of organizational variables on the appraisal

characteristic-appraisal satisfaction relationship. Analyses indicated that the appraisal

characteristics of action plans, frequency, and rater training were more positively related to

appraisal satisfaction when subordinates experienced role conflict, were not closely monitored,

and supervisors had a large span of control. The results provide substantial support for

conceptualizing appraisal satisfaction as a contingent function of both appraisal characteristics

and organizational variables. Implications of the findings for the design of appraisal systems,

appraisal effectiveness, and future research are discussed.

Taylor Cox, Differential Performance Appraisal Criteria, 1986 : Performance

appraisal ratings of 125 first-level managers were analyzed to investigate the degree to which the

criteria used to evaluate the overall job performance of black managers differs from that used to

evaluate white managers. The performance appraisal form included items that measured both the

social behavior dimen sion and task/goal accomplishment dimension of job performance. The

appraisal ratings of both groups on each dimension were correlated with measures of overall job

performance and promot ability. Results indicated that social behavior factors are more highly

correlated with the overall job performance of black ratees than for white ratees. Implications of

these results for both black managers and organizations are discussed.

David A. Waldman, Predictors of Employee Preferences for Multirater and Group-

Based Performance Appraisal, 1997: This study conceptualizes and measures user preferences

for 360-degree appraisals and group-level performance management (PM). Users are defined as

either recipients of PM processes or those whose job it is to administer the process. Aspects of

31
individual users, their work design, and current appraisal context were used to predict

preferences. Two studies were conducted involving data collection in a large Canadian

telecommunications conglomerate and a department of the Canadian government, respectively.

Predictors explained significant amounts of variance in user preferences, especially those

pertaining to group-level PM. Practical implications are suggested with regard to collecting and

using user preferences. In addition, suggestions for future research are offered concerning the

need to examine a broad range of users in different organizational settings and to measure actual

system design features and their effectiveness.

Dennis W. Organ, A Restatement of the Satisfaction-Performance Hypothesis, 1988:

This article reviews recent evidence in support of Organs (1977) argument that satisfaction more

generally correlates with organizational prosocial or citizenship-type behaviors than with

traditional productivity or in-role performance. An attempt is then made to interpret just what it is

in satisfaction measures that provides this correlation, leading to the suggestion that fairness

cognitions comprise the major factor. Implications of this interpretation for theory, research, and

management practice are offered.

32
 THEORATICAL REVIEW

INTRODUCTION TO HUMAN RESOURCE MANAGEMENT

Human Resource (or personnel) management, in the sense of getting things done through people,

is an essential part of every managers responsibility, but many organizations find it

advantageous to establish a specialist division to provide an expert service dedicated to ensuring

that the human resource function is performed efficiently.

People are our most valuable asset is a clich, which no member of any senior management

team would disagree with. Yet, the reality for many organizations are that their people remain

under valued, under trained and under utilized.

The market place for talented, skilled people is competitive and expensive. Taking on new staff

can be disruptive to existing employees. Also, it takes time to develop cultural awareness,

product / process / organization knowledge and experience for new staff members.

FUNCTIONS OF HUMAN RESOURCE MANAGEMENT

Following are the various functions of Human Resource Management that are essential for

the effective functioning of the organization:

1. Recruitment

2. Selection

3. Induction

4. Performance Appraisal

5. Training & Development

33
RECRUITMENT

The process of recruitment begins after manpower requirements are determined in terms of

quality through job analysis and quantity through forecasting and planning.

SELECTION

The selection is the process of ascertaining whether or not candidates possess the requisite

qualifications, training and experience required.

INDUCTION

a) Induction is the technique by which a new employee is rehabilitated into the changed

surroundings and introduced to the practices, policies and purposes of the organization.

34
 Appraisal
Performance appraisal is a method of evaluating the behavior of employees in the work spot,

normally including both the qualitative & quantitative aspect of job performance.

Performance Measurement Stages of IDBI Bank

INTRODUCTION TO PERFORMANCE APPRAISAL SYSTEM

Performance Appraisal has been around of hundreds of years, as it is only human nature to

evaluate fellow colleagues. Effective appraisal system should address clarity, openness, fairness;

recognize productivity through reward; & be cognizant to appraisal leadership qualities.

Performance Appraisal is the process of evaluating the performance & qualification of the

employees in terms of the requirements of the job for which he is employed, for the purpose of

administration including placement, selections for promotions, providing financial rewards &

other action which required differential treatment among the group as distinguished from actions

affecting all member equally.

BY HEYEL

35
Performance Appraisal determines who shall receive merit increase, counsels employees their

improvement; determines training needs; determines promo ability; identifies those who should

be transferred more over, it improves employee job performance; encourage employees to

express their views or to seek clarification on duties; broadens thei9r capacity & potential;

promotes a more effective utilization of manpower and improves placement ; facilitates

selection, reward & increase the analytical abilities of supervisors.

BY RONALD BENJAMIN

36
 NEED FOR PERFORMANCE APPRAISAL:

To effect promotion based on competence and performance.

To assess the training &development needs of the employees.

To bridge the gap between the existing performance & desired performance.

To help each employee to understand his own strengths &weakness.

They can be mechanism of increasing communication between the employee &his.

Supervising officer so that each employee gets to know the difficulties of his subordinates

and attempt to solve them.

It provides legally defensible reasons for making promotion, transfer, and reward and

discharge decisions.

They can be instruments to provide an opportunity for employees for self reflection And

goal setting so that individually planned and monitored development takes place.

They can assist in a variety of personnel decisions by generating data about each

employee periodically.

Develop inter personal relationship.

To help in salary increment.

To prevent grievance & in-disciplinary activities.

Provide information about the performance ranks.

37
 ACHIEVING ORGANIZATION GOALS

The achievement of an organizations goals rests with its people. The more talented the people

and the better they are managed and coordinated toward those goals the greater the chance of

success. Performance appraisal is all about providing a way to do this.

The appraisal process starts with a manager and employee setting goals for the year together. The

most effective goals are measurable and have easy to understand performance standards.

38
 CHARACTERISTICS OF GOOD APPRAISAL SYSTEM:

Increase motivation to perform effectively.

Increase staff self-esteem.

Gain new insights into staff and supervisor.

Better clarity &define job function &responsibility.

Develop valuable communication among appraisal participants.

Encourage increase self understanding among staff as well as insight into the kind of

development activities that are of value.

Distribute rewards on a fair & credible basis.

Clarify organizational goals so they can be more readily accepted.

Improve institutional/departmental manpower planning, test validation,& development of

training programs.

39
 Performance Management

Managing Employees Performance

Performance management: the process through which managers ensure that employees

activities and outputs contribute to the organizations goals.

This process requires:

Knowing what activities and outputs are desired

Observing whether they occur

Providing feedback to help employees meet expectations

Stages of the Performance Management Process

40
Purposes of Performance Management

Strategic Purpose means effective performance management helps the organization

achieve its business objectives.

Administrative Purpose refers to the ways in which organizations use the system to

provide information for day-to-day decisions about salary, benefits, and recognition

programs.

Developmental Purpose means that it serves as a basis for developing employees

knowledge and skills.

Employees Want More Feedback

41
Criteria for Effective Performance Management

42
 Contamination and Deficiency of a Job Performance Measure

Methods for Measuring Performance

43
Basic Approaches to Performance Measurement

Measuring Performance: Making Comparisons

44
Measuring Performance: Rating Individuals - Attributes

Graphic Rating Scale Mixed-Standard Scale

Lists traits and provides a Uses several statements
rating scale for each describing each trait to
trait. produce a final score for
The employer uses the that trait.
scale to indicate the
extent to which an
employee displays each
trait.

Example of a Graphic Rating Scale

45
Example of a Mixed-Standard Scale

46
Measuring Performance: Rating Individuals - Behaviors

Behaviorally Anchored Rating

Critical-Incident Method Scale (BARS)
Based on managers records
Rates behavior in terms of a
of specific examples of
the employee acting in
scale showing specific
ways that are either statements of behavior
effective or ineffective. that describe different
Employees receive feedback levels of performance.
about what they do well
and what they do poorly
and how they are helping
the organization achieve
its goals.

47
Example of Task- BARS Rating Dimension for a Patrol Officer

48
 Measuring Performance: Measuring Quality

The principles of total quality management (TQM), provide methods for performance

measurement and management.

With TQM, performance measurement combines measurements of attributes and results.

Subjective feedback

Statistical quality control

Coaches provide feedback to their team just as managers provide feedback to their

employees.

Feedback is important so that individuals know what they are doing well and what areas

they may need to work on.

49
 Sources of Performance Information

360-Degree Performance Appraisal: performance measurement that combines

information from the employees:

Managers

Peers

Subordinates

Self

Customers

Performance management is critical for executing a talent management system and involves one-

on-one contact with managers to ensure that proper training and development are taking place.

50
 Types of Performance Measurement

Rating Errors

Contrast errors: the rater compares an individual, not against an objective standard, but

against other employees.

Distributional errors: the rater tends to use only one part of a rating scale.

Leniency: the reviewer rates everyone near the top

Strictness: the rater favors lower rankings

Central tendency: the rater puts everyone near the middle of the scale

Rater bias: raters often let their opinion of one quality color their opinion of others.

Halo error: when the bias is in a favorable direction. This can mistakenly tell

employees they dont need to improve in any area.

Horns error: when the bias involves negative ratings. This can cause employees

to feel frustrated and defensive.

51
Political Behavior in Performance Appraisals

Distorting a performance evaluation to advance ones personal goals

A technique to minimize appraisal politics is a calibration meeting:

Meeting at which managers discuss employee performance ratings and provide

evidence supporting their ratings with the goal of eliminating the influence of

rating errors

Giving Performance Feedback

Scheduling Performance Feedback

Performance feedback should be a regular, expected management activity.

Annual feedback is not enough.

Employees should receive feedback so often that they know what the manager

will say during their annual performance review.

Preparing for a Feedback Session

Managers should be prepared for each formal feedback session.

When giving performance feedback, do it in an appropriate meeting place.

52
 Meet in a setting that is neutral and free of distractions.

What other factors are important for a feedback session?

Conducting the Feedback Session

During the feedback session, managers can take any of three approaches:

Tell-and-Sell managers tell employees their ratings and then justify those

ratings.

Tell-and-Listen managers tell employees their ratings and then let the

employees explain their side of the story.

Problem-Solving managers and employees work together to solve

performance problems.

53
Improving Performance

54
 Legal and Ethical Issues in Performance Management

Legal

Performance management processes are often scrutinized in cases of

discrimination or dismissal.

Ethical

Employee monitoring via electronic devices and computers may raise concerns

over employee privacy.

Legal Requirements for Performance Management

Lawsuits related to performance management usually involve charges of:

Discrimination

Unjust dismissal

To protect against both kinds of lawsuits, it is important to have a legally defensible

performance management system.

A legally defensible performance management system includes:

Based on valid job analyses, with requirements for job success clearly

communicated to employees.

Performance measurement should evaluate behaviors or results, rather than traits.

Multiple raters (including self-appraisals) should be used.

All performance ratings should be reviewed by upper-level managers.

There should be an appeals mechanism for employees

55
 RESEARCH METHODOLOGY.

Research is a systematic method of finding solutions to problems. It is essentially an

investigation, a recording and an analysis of evidence for the purpose of gaining knowledge.

Sample

A finite subset of population, selected from it with the objective of investigating its properties

called a sample. A sample is a representative part of the population. A sample of 50 BANK

EMPLOYEES in total has been randomly selected. The response to various elements under each

questions were totaled for the purpose of various statistical testing.

Sampling Design.

A sample design is a finite plan for obtaining a sample from a given population. Simple random

sampling is used for this study. The procedure adopted in the present study is probability

sampling, which is also known as chance sampling. Under this sampling design, every item of

the frame has an equal chance of inclusion in the sample

Universe.

The universe chooses for the research study is the employees of IDBI BANK, Sitapur.

Sample Size.

Number of the sampling units selected from the population is called the size of the sample.

Sample of 50 BANK EMPLOYEES were obtained from the population.

56
. Nature of Research.

Descriptive research, also known as statistical research, describes data and characteristics about

the population or phenomenon being studied. Descriptive research answers the questions who,

what, where, when and how.

Although the data description is factual, accurate and systematic, the research cannot describe

what caused a situation. Thus, descriptive research cannot be used to create a causal relationship,

where one variable affects another. In other words, descriptive research can be said to have a low

requirement for internal validity.

Methods of Data Collection.

The datas were collected through Primary and secondary sources.

Primary Sources.

Primary data are in the form of raw material to which statistical methods are applied for the

purpose of analysis and interpretations.

The primary sources are discussion with employees, datas collected through questionnaire.

Questionnaire.

A well defined questionnaire that is used effectively can gather information on both overall

performance of the test system as well as information on specific components of the system. A

defeated questionnaire was carefully prepared and specially numbered. The questions were

arranged in proper order, in accordance with the relevance.

57
Nature of Questions Asked.

The questionnaire consists of open ended, dichotomous, rating and ranking questions.

Pre-testing

A pre-testing of questionnaire was conducted with 10 questionnaires, which were distributed and

all of them were collected back as completed questionnaire. On the basis of doubts raised by the

BANK EMPLOYEES the questionnaire was redialed to its present form.

Secondary Sources.

Secondary datas are in the form of finished products as they have already been treated

statistically in some form or other.

The secondary data mainly consists of data and information collected from records, company

websites and also discussion with the management of the organization. Secondary data was also

collected from journals, magazines and books.

Variables of the Study.

The direct variable of the study is the employee performance appraisal system

Indirect variables are the incentives, interpersonal relations, career development opportunities

and performance appraisal system.

Presentation of Data.

The data are presented through charts and tables.

58
(Data Analysis & Interpretations)

59
 1. Duration for which the respondent has been working in IDBI BANK,

SITAPUR.

Table 1: Duration of work period in IDBI BANK, SITAPUR .

Particulars Percentage of respondents

0-1 yrs 3%
1-5 yrs 55%
5-10 yrs 25%
10+ yrs 17%
Total 100%
Chart 1: Duration of work in IDBI BANK, SITAPUR .

Interpretations

3 percent of the respondents are dealing with IDBI BANK, SITAPUR for less than a year. 55

percent of the respondents are dealing in IDBI BANK, SITAPUR from 1-5 yrs. 25 percent of the

respondents are dealing in IDBI BANK, SITAPUR from 5-10 yrs. 17 percent of the respondents

are dealing in IDBI BANK, SITAPUR for over 10 yrs.

2. Extent of satisfaction in setting goals/objectives in the beginning of the year.

60
 Table 2: Extent of satisfaction

Particulars Percentage of

respondents
Very satisfied 63%
Satisfied 30%
Dissatisfied 7%
Total 100%

Chart 2: Extent of satisfaction.

Interpretations

63 percent of the respondents are very satisfied in setting their goals and objectives in the

beginning of the year. 30 percent of the respondents are satisfied in setting their goals and

objectives in the beginning of the year. 7 percent of the respondents are dissatisfied in setting

their goals and objectives in the beginning of the year.

61
 3. Ratings of the PA strategies and programmes in the company.

This question was asked to the employees of IDBI BANK, SITAPUR to rate the standard of

various PA strategies and programmes that take place in the organization.

Table 3: Ratings of PA strategies.

Particulars Percentage of respondents

Good 70%
Average 30%
Bad 0%
Total 100%

Chart 3: Ratings of PA strategies.

Interpretations

70 percent of the respondents rate the Performance Appraisal strategies as good. 30 percent of

the respondents rate the Performance Appraisal strategies as average. None of the respondents

rates the Performance Appraisal strategies as bad.

4. Performance Appraisal strategies are fair and objective.

62
This question was asked to the employees to know if the performance appraisal strategies are fair

and objective to the employees.

Table 4: PA strategies are fair or not.

Particulars Percentage of respondents

Yes 84%
No 16%
Cant say 0%
Total 100%

Chart 4: PA strategies are fair or not.

Interpretations

84 percent of the respondents say that the Performance Appraisal strategies are fair and

objective. 16 percent of the respondents say that the Performance Appraisal strategies are not fair

and objective. None of the respondents are there who cant say anything.

5. It is necessary to appraise an employee.

This question was asked to the employees to know how important it is to appraise an employee.

63
 Table 5: Necessity to appraise an employee.

Particulars Percentage of respondents

Yes 100%
No 0%
Total 100%

Chart5: Necessity to appraise an employee.

Interpretations

100 percent of the respondents say that it is necessary to appraise an employee. None of the

respondents says that it is necessary to appraise an employee.

64
 6. There is clarity in what is expected from the employee.

This question was asked to the employees to know if they are made clear on what is expected of

them so that they can work accordingly.

Table 6: Clarity in what is expected from the employee.

Particulars Percentage of respondents

Yes 100%
No 0%
Total 100%

Chart 6.: Clarity in what is expected from the employee.

Interpretations

100 percent of the respondents say that they are clear with what is expected of them. None of the

respondents say that they are not clear with what is expected of them.

65
 7. Feedback is given to the Management Cadre Staff for the task

accomplished by them.

This question was asked to the employees to know if they are provided with proper feedback for

the task they accomplish, based upon which they can work better in future.

Table 7: Feedback is given to MCS.

Particulars Percentage of respondents

Yes 62%
No 38%
Total 100%

Chart 7: Feedback is given to MCS.

Interpretations

62 percent of the respondents say that the feedback is given to the MCS for the task

accomplished by them. 38 percent of the respondents say that the feedback is not given to the

MCS for the task accomplished by them.

8. Suggestions and innovations are rewarded.

66
 Table 8: Suggestions and innovations are rewarded.

Particulars Percentage of respondents

Yes 35%
No 65%
Total 100%

Chart 8: Suggestions and innovations are rewarded.

Interpretations

35 percent of the respondents say that their suggestions and innovations are rewarded. 65 percent

of the respondents say that their suggestions and innovations are not rewarded.

9. Supervisors take interest in sharing an employees personal concern.

67
 Table 9: Supervisors share an employees personal concern.

Particulars Percentage of respondents

Yes 72%
No 28%
Total 100%

Chart 13: Supervisors share an employees personal concern.

Interpretations

72 percent of the respondents say that the supervisors take interest in sharing their personal

concern. 28 percent of the respondents say that the supervisors do not take interest in sharing

their personal concern.

10 Annual increments/promotions are based on performance.

68
This question was asked to the employees to know if the annual increments/promotions are based

on their performance or not.

Table 10: Increments & promotions based on performance.

Particulars Percentage of respondents

Yes 82%
No 15%
Cant say 3%
Total 100%

Chart 10: Increments & promotions based on performance.

Interpretations

82 percent of the respondents say that the annual increments/promotions are based on their

performance. 15 percent of the respondents say that the annual increments/promotions are not

based on their performance. 3 percent of the respondents cant say or their answers are

inapplicable.

11. Extent of satisfaction in interdepartmental teamwork.

This question was asked to the employees to know the extent of satisfaction in interdepartmental

teamwork based on which their effectiveness in work can be known.

69
 Table 11: Satisfaction in inter departmental team work.

Particulars Percentage of respondents

Very satisfied 28%

Satisfied 50%
Dissatisfied 22%
Total 100%

Chart 11: Satisfaction in inter departmental team work.

Interpretations

28 percent of the respondents are very satisfied with interdepartmental teamwork. 50 percent of

the respondents are just satisfied with interdepartmental teamwork. 22 percent of the respondents

are dissatisfied with interdepartmental teamwork.

12. Extent of help of training and development programmes in improving

employees performance.

70
This question was asked to the employees to know how far the training and development

programme is helping the employees to learn and work better.

Table 12:

Particulars Percentage of respondents

To great extent 22%
To some extent 70%
To very little extent 8%
Total 100%

Chart 12:

Interpretations
22 percent of the respondents say that the training and development programmes help to a great
extent to improve their performance. 70 percent of the respondents say that the training and
development programmes help to some extent to improve their performance. 8 percent of the
respondents say that the training and development programmes help to a very little extent to
improve their performance.

13. Performance Appraisal System is used in job rotation.

This question was asked to the employees to know the extent of use of performance appraisal

system in job rotation.

71
 Table 13:

Particulars Percentage of respondents

Mostly 12%
Partially 88%
Nil 0%
Total 100%

Chart 13:

Interpretations

12 percent of the respondents say that performance appraisal system is mostly used in job

rotation. 88 percent of the respondents say that performance appraisal system is partially used in

job rotation. None of the respondents say that performance appraisal system is not at all used in

job rotation.

14. Extent of the purpose of performance appraisal system being fulfilled.

Table 14:

Particulars Percentage of respondents

Completely 65%
Partially 35%

72
 Total 100%

Chart 14:

Interpretations

65 percent of the respondents say that the purpose of performance appraisal is completely

fulfilled. 35 percent of the respondents say that the purpose of performance appraisal is partially

fulfilled.

73
 15. IDBI BANK, SITAPUR always strives for continuous individual improvements.

This question was asked to the employees to know how far they agree with the fact that IDBI

BANK, SITAPUR always strives for continuous individual improvements.

Table 15:

Particulars Percentage of respondents

Strongly agree 22%
Agree 58%
Disagree 15%
Strongly disagree 5%
Total 100%

Chart 15:

Interpretations
22 percent of the respondents strongly agree that IDBI BANK, SITAPUR always strives for
continuous individual improvements. 58 percent of the respondents agree that IDBI BANK,
SITAPUR always strives for continuous individual improvements. 15 percent of the respondents
disagree that IDBI BANK, SITAPUR always strives for continuous individual improvements. 5
percent of the respondents strongly disagree that IDBI BANK, SITAPUR always strives for
continuous individual improvements.

74
 Findings

From the Analysis following findings were drawn

1. Mostly Employees are working in IDBI Bank from 1-5 yrs.

2. Mostly Employees are very satisfied in setting their goals and objectives in the beginning

of the year

3. Mostly Employees rate the Performance Appraisal strategies as good

4. Mostly Employees say that the Performance Appraisal strategies are fair and objective

5. Mostly Employees agree that it is necessary to appraise an employee

6. Mostly Employees agree that they are clear with what is expected of them. None of the

employees agree that they are not clear with what is expected of them.

7. Mostly Employees agree that the feedback is given to the MCS for the task accomplished

by them.

8. Mostly Employees agree that their suggestions and innovations are rewarded

9. Mostly Employees agree that the supervisors take interest in sharing their personal

concern

10. Mostly Employees agree that the annual increments/promotions are based on their

performance

11. Mostly Employees agree that they are very satisfied with interdepartmental teamwork.

12. Mostly Employees agree that the training and development programmes help to a great

extent to improve their performance. 70 percent of the employees say that the training

and development programmes help to some extent to improve their performance

75
13. Mostly Employees agree that performance appraisal system is partially used in job

rotation.

14. Mostly Employees agree that the purpose of performance appraisal is completely

fulfilled

15. Mostly Employees agree that IDBI BANK, SITAPUR always strives for continuous

individual improvements

76
 Conclusion

Performance management is the process through which managers ensure that employees

activities and outputs contribute to the organizations goals.

Organizations establish performance management systems to meet three broad purposes:

Strategic purpose

Administrative purpose

Developmental purpose

Performance measures should fit with the organizations strategy by supporting its goals

and culture.

Performance information may come from an employees self-appraisal and from

appraisals by the employees supervisor, employees, peers, and customers.

Using only one source makes the appraisal more subjective.

Organizations may combine many sources into a 360- degree performance appraisal.

Organizations can minimize appraisal politics by establishing a fair appraisal system,

involving managers and employees in developing the system, allowing employees to

challenge evaluations, communicating expectations, and having open discussion.

Performance feedback should be a regular, scheduled management activity, so that

employees can correct problems as soon as they occur.

77
 The performance feedback discussion should focus on behavior and results rather than on

personalities.

Managers must make sure that performance management systems and decisions treat

employees equally, without regard to their race, sex, or other protected status.

A system is more likely to be legally defensible if it is based on behaviors and results,

rather than on traits, and if multiple raters evaluate each persons performance.

78
 Suggestions

There are differences among organizations, the performance appraisal is the formal tool

with which bosses and management assess employees. However, its also wise to understand

the informal process or how your organizations political culture works. That way, youll

understand the entire picture. For example, when you grasp both processes, youll know why

some people get ahead faster than otherseven if both individuals have excellent performance

appraisal interviews or reviews.

Tips on anticipating questions and how youd respond: Once youve assessed your boss

perspective, youll be able to anticipate the majority of questions that hed ask and also prepare

the gist (main point) of your replies.

Identify areas for improvement: If youve anticipated your boss mindset, youll know the

areas in which you need to improve. That way, youll be readyand willingto discuss these

needs with your boss.

Develop next steps: While youre preparing for your meeting, think about specific ways in

which you could enhance your performance.

Follow up with boss: Throughout the year, periodically follow up by email or in person with

your boss. Let him know how youre progressing with your self-improvement plan. That way,

your next performance appraisal will be successful.

79
 Limitations of the study

The study is focused on a very general level rather than a full scale detailed report.

The study does not get information from an in depth prospective.

The study is not necessarily the solution to the problem that exists.

There were a lot of breaks and hindrances while the study took place.

The feedback given by recipients is not necessarily right.

80
 BIBLIOGRAPHY

Books:-

Kothari C R. Research Methodology-Methods & Techniques-2nd revised edition (2007)

New Age International Publishers- New Delhi. (pg 199-213)

Aswathappa K, Human Resource and Personnel Management Text and Cases, Tata

McGraw Hill, 2007 (pg 151-189).

VSP Rao, Human Resources Management Text and Cases, Excel Books, 2010(pg 160-

199).

Gary Dessler, Human Resource Management, Prentice Hall of India, New Delhi, 2009

(pg 252-471).

Tripathi. A. N., Human Values, New Age International Pvt. Ltd., New Delhi, 2002 (pg

504-541).

Websites:-

www.managementparadise.com

www.humanresourcemanagement.com

www.en.wikipedia.org

www.mbastudymaterial.com

www.IDBI.co.in

81
 ANNEXURE

Questionnaire on Performance Appraisal for

Appraises and appraisers

(Tick your choice)

Name of the respondent:

Address : Phone no. :

1) Since how long have you been working in IDBI BANK, SITAPUR ?

0-1 yrs 1-5 yrs 5-10 yrs 10+ yrs

2) How satisfied are you in setting your goals and objectives in the beginning of the year?

Very satisfied Satisfied Dissatisfied

3) How are the Performance Appraisal strategies and programmes in the company

Good Average Bad

4) Do you consider Performance Appraisal strategies fair and objective?

Yes No Cant say

82
5) Is it necessary to appraise an employee?

Yes No

6) Are you clear with what is expected of you?

Yes No

7) Are the Management Cadre Staff provided with regular performance feedback?

Yes No

8) Are your suggestions and innovations rewarded?

Yes No

9) Do your supervisors take interest in sharing your personal concern?

Yes No

10) Are your annual increments/promotions based on your performance?

Yes No Cant say

11) How satisfied are you in interdepartmental teamwork?

Good Average Bad

12) To what extent do training and development programmes help in improving your

performance?

83
 To great extent To some extent To very little extent

13) How far is the Performance Appraisal system used for job rotation?

Mostly Partially Nil

14) To what extent is the purpose of Performance Appraisal fulfilled?

Completely Partially Nil

15) Does IDBI BANK, SITAPUR always strive for continuous individual improvement?

Strongly agree Agree Disagree

Strongly disagree

Date:

Place: Signature

84