Project Report On Performance Appraisal System at HDFC Life Insurance
Project Report On Performance Appraisal System at HDFC Life Insurance
Project Report On Performance Appraisal System at HDFC Life Insurance
On
First and foremost I would like to thank HDFC Life, Vikas Puri Branch
for giving me an opportunity to do my internship in their esteemed
organization. My special appreciation extends to Mr. Ashish Kumar for his
constant encouragement through out this period.
I would also like to thank our Programme Co-ordinator, Mr. R.C. Jain for
her guidance and unflinching support through out the phases of my
internship.
Shubham Tripathi
2
CONTENTS
SL.No Page. No
1 EXECUTIVE SUMMARY
2 INTRODUCTION
3 HDFC PROFILE
4 STUDY DESIGN
5 SAMPLE DESIGN
6 LIMITATION
7 INTRODUCTION TO PERFORMANCE
APPRAISAL
8 NEED FOR PERFORMANCE APPRAISAL
9 ACHIEVING ORGANIZATIONAL GOAL
10 CHARACTERISTIC OF GOOD PERFORMANCE
APPRAISAL
11 EVALUATION TECHNIQUE
12 METHOD OF PERFORMANCE APPRAISAL
13 FACTOR INFLUENCING PERFORMANCE OF AN
EMPLOYEE
14 ADVANTAGES
15 SAMPLING
16 DATA ANALYSIS AND INTERPRETATION
17 FINDING
18 SUGGESTION
19 QUESTIONNAIRE
20 BIBILOGRAPHY
3
EXECUTIVE SUMMARY
The best learning experience was that I started from the very basics of
getting to that position and not from the position itself. This helped me get
useful insight and understanding of online marketing, the benefits to the
members as well as the HDFC.
Training sessions were held to give me insights about How to create markets
and write comments on other member‟s markets and to encourage and
appreciate them for their nice efforts and creative markets.
I also learnt how to work online for such a nice which enhanced my
knowledge, writing skills and communication.
4
INTRODUCTION:
The process of Human Resource Development (HRD) helps the employee‟s
to acquire and develop technical, managerial and behavioral knowledge,
skills & abilities and the values , beliefs &attitudes necessary to perform
present and future roles. The process of Performance Appraisal helps the
employees and management to know the level of employees Performance
compared to the standard or predetermined level.
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to study the need for Performance Appraisal; how it helps the employees of
the Organization to improve their abilities so as to meet both the personal
and organizational present and future requirements. Whether the
organization is reaching its standards by Performance Appraisal resulting in
increase in quality and productivity of the employees observed.
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2. HDFC PROFILE:
The corporation has a deposit base of Rs. 17,551 cores, earning the trust of
more than 9, 00,000 depositors. Customer Service and satisfaction has been
the mainstay of the organization.
HDFC has set benchmarks for the Indian housing finance industry.
Recognition for the service to the sector has come from several national and
international entities including the World Bank that has lauded HDFC as a
model housing finance company for the developing countries. HDFC has
undertaken a lot of consultancies abroad assisting different countries
including Egypt, Maldives, and Bangladesh in the setting up of housing g
finance companies.
The bank was incorporated in August 1994 in the name of „HDFC‟s Bank
Limited‟, with its registered office in Mumbai, India. HDFC Bank
commenced operation as a Scheduled Commercial Bank in January 1995.
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AWARDS AND ACCOLADES:
Awarded the Economic Times Corporate Citizen award in 2004.
“Best Home Loan Provider” title at the ZEE Pinnacle Awards 2006.
Unit Linked Savings Plan Tops Mint Best TV Ads Survey March,
2008.
8
HDFC Group Companies:
Other Companies:
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BANC ASSURANCE:
Career:
HDFC Bank is a dynamic bank; with a youthful and enthusiastic team
determine to accomplish the vision of becoming a world-class Indian bank.
Our business philosophy is based on four core values – Customer Focus,
Operational Excellence, Product Leadership and People. We believe that the
ultimate identity and success of our bank will reside in the exceptional
quality of our people and their extraordinary efforts. For this reason, we are
committed to hiring, developing, motivating, and retaining the best people in
the industry.
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objective is to build sound customer franchises across distinct business so as
to be a preferred provide of banking service for target retail and wholesale
customer segment, and to achieve a healthy growth in probability, consistent
with the Bank‟s risk appetite. We are committed to do this while ensuring
the highest levels of ethical standards, professional integrity, corporate
governance and regulatory compliance.
Our business strategy emphasizes the following:
E-Corporate Governance:
HDFC Bank recognizes the importance of good corporate governance,
which is generally accepted as a key factor in attaining fairness for all stake
holders and achieving organizational efficiency. This corporate Governance
Policy, therefore, is established to provide a direction and framework for
managing and monitoring the bank in accordance with the principle of
goods corporate governance.
11
Standard Life –UK;
Standard Life listed on 10th July 2006, the biggest float on the London
Stock Exchange in the last five years.
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INR 819.69 billion or 81, 969 cores.
13
Joint venture: Stake Holding Pattern
26.00% 74.00%
As on February 28, 2009 HDFC Ltd, holds 72.43% and Standard Life
(Mauritius Holding) 26.00% of equity in the joint venture, while the rest in
held by others.
As all these areas from the basic infrastructure for establishing the highest
possible customer service standards.
14
Vision of HDFC Life Insurance Co. Ltd…
The most successful and admired life insurance company which mean that
we are the trusted company, the easiest to deal wit, offer the best value for
money, and set the standard in the industry.
Key strengths:
Finical Expertise
As a joint venture of leading financial services groups, HDFC Life has the
financial expertise required to manage your long term investments safety
and efficiently.
Range of Solutions
Our gross premium income for the year ending March 31, 2009 stood at Rs.
5,564.69 cores. The company has covered over 10, 00,000 lives as on March
31, 2009.
Our core values are drilled down to all levels of employees, as these are
inviolable. We continue to promote high integrity in business practices and
shun short cuts and unethical practices, as we wish to be perceived as an
institution with high moral standing. Since our inception in 2000, when
Indian insurance space was opened for private participation, we have
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consistently focused on setting benchmarks in all aspect on insurance
business. Being the first private player to be registered with the IRDA and
the first to issue a policy on December 12, 2000, our differentiators are:
Our values
Integrity
Innovation
Customer Centric
People care
Team work
Joy and simplicity
Strong promoter:
Our brand has managed to set a new standard in the Indian life insurance
communication space. We were the first private life insurer to break the ice
using the idea of “Sar Utha Ke Jiyo”. Today, we are one the few brands
that customer recognize, like and prefer to do business. Moreover, our brand
thought, “Sar Utha Ke Jiyo”, is the most recalled campaign in its category.
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Investment philosophy:
Despite the criticality of the life insurance sales in the industry have been
characterized by over by reliance on tax benefits and limited advice-based
selling. Our eight-step structured sales process “Disha” however, helps
customers understand their latent needs at the first instance itself without
focusing on product features or tax benefits. Need- based selling process,
“Disha” the first of its kinds in the industry, looks at the whole financial
picture. Customers see a plan not piecemeal product selling.
HDFC Life has fully implemented a risk control framework to ensure that all
types of risks (not just financial) are identified and measured. These are
regularly reported to the board and this ensures that the company
management and board members are fully aware of any risks and the actions
taken to ensure they are mitigated.
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Focus on training:
HDFC Life does not focus in the business of ramping up the top line only,
but to create maximization of stake holder‟s value. Today, we are extremely
satisfied with the base that we that we have created for long term success of
this company.
Transparent dealing:
We are one the few companies whose product details, pricing; clauses are
clearly communicated to help customer take the right decision.
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Diversified product portfolio:
HDFC Life‟s wide and diversified product portfolio help individuals meet
their various need, be it:
Savings: Save for the milestones and protect your savings too
HDFC Life Selected as „4Ps Power Brand 2006‟, for being of the
India‟s Top 25 Most Innovative Companies‟.
19
+
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Executive Director in 2000. She is responsible for overseeing all aspects of
lending operations of HDFC Limited.
Mr. Ravi Narain is the Managing Director & CEO of National Stock
Exchange of India Limited. Mr. Ravi Narain was a member of the core team
to set- up the Securities & Exchange Board of India (SEBI) and is also
associated with various committees of SEBI and the Reserve Bank of India
(RBI).
Mr. Paresh Parasnis is the principal officer and executive director of the
company November 14, 2008. A fellow of the institute of Charted
Accountant of India, he has been associated with the HDFC Group since
1984. During his 16 – year‟s tenure at HDFC Limited, he was responsible
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for driving and spearheading several key initiatives. As one of the founding
members of HDFC Life, Mr. Parasnis has been responsible for setting up
branches, performance management system, overseeing new business new
business claims settlement, customer interactions ect.
Other Companies
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STUDY DESIGN
Source of data:
The data for the study has been collected from various primary and
secondary sources.
Primary data:
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Questionnaire:
Secondary data:
SAMPLE DESIGN:
1. Population: The population for the present study consists of all the
employees of HDFC Life Co Ltd working at Somajiguda Branch-V.
2. Sample size: The size of the sample for the present study is confined
to 50 employees belonging to personnel. Administration, marketing
department of HDFC Life Insurance Co Ltd. Somajiguda Branch-V.
The size is confined due to time and availability.
3. Sample Technique: The sample for the present study is selected using
simple random technique.
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LIMITATIONS:
The responses would have also been affected by the amount of work
and working conditions.
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INTRODUCTION TO PERFORMANCE APPRAISAL SYSTEM
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Key to assessing an employee‟s performance is the setting of objectives. A
key element of the performance appraisal process should be reviewing how
well the employee has performed in relation to objective that has been
previously set for them. For objectives to be useful, it‟s often said they
should be SMART.
Specific.
Measurable.
Result oriented.
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NEED FOR PERFORMANCE APPRAISAL:
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ACHIEVING ORGANIZATION GOALS
The achievement of an organization‟s 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.
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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.
EVALUATION TECHNIQUE:
The six steps in performing evaluations
Specific.
Measurable.
Achievable (occasionally agreed between the line manager
&employee.
Result orientate in a company.
Times framed (with a set date for competition).
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EASTABLISH PERFORMANCE EVALUATION POLICIES ON
WHEN TO RATE, OFTEN TO RATE & WHO SHOULD RATE.
When to rate: Usually, all employee are rated on/ near the sane date in a
Company.
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METHODS OF PERFORMANCE APPRAISAL:
TRADITIONAL METHODS:
Is the oldest & still most used method of evaluation? In case the case
the rater is presented with A set of traits & is asked to rate the
employee on each them. There are certain advantages in using
methods
Advantages:
Disadvantage:
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Forced choice: Is technique when rater must choose from a set of
descriptive statement about an employee. The method was developed to
substitute graphic rating scales, as graphic rating scales permits to evaluate
all the employees high.
Essay evaluation:
In which the rater is asked to describe the strong & week aspects of the
employee‟s behavior by a supervisor. Usually, this method is used in
combination with other methods.
Advantages:
Explanation will give specific information about the employee and can revel
more about the supervisor.
Disadvantages:
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Checklists &weighted checklists:
Ranking methods:
The case when the superior is asked to rank the subordinates based on some
overall criterion.
Advantages:
● Easy to use.
● The relative position of each man is tested in terms of his numerical
ranks.
It‟s used in case where there are several subordinates to be ranked. Each
employee is paired with every person to be compared with. The rater
chooses as the better performing subordinate. The number of times that a
person is chooses as the better employee is tallied, & results are indexed
based on this number.
Advantages:
Disadvantages:
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Forced distribution method:
It‟s the method similar to grading on a curve. This rater is asked to rate the
employees in some fixed distribution of categories, such as 10% in low, 20%
in low average, 40% in average, 20%in above average,10%in high.
Advantages:
MODERN METHODS:
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Assessment center:
In this individual from departments are brought to spend two or three days
working on an individual or group observers rank the performance of each
and every participant in order of merit. Since assessment center are basically
meant for evaluating the potential of candidates to be considered for
promotion, training or development, they offer an excellent means for
conducting evaluation processes in an objective way all assesses get equal
opportunity to show their talents and capabilities and secure promotion
based on merit.
An exact answer cannot be given. The major problem is not with the
techniques but how they are used & by whom? The responsibility of the
rater & the seriousness of the rater are much more critical than which
method to choose.
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1) It establishes linkage between the performance of the individual & the
organizations hence both more in the achievements of the same objective.
2) It becomes easy to implement because those who carry out the plans also
participate in setting up these plans
3) The communication chain between & among employees & or units are
clearly established facilitating information sharing.
4) It identifies performance deficiencies.
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Identification of qualities required for the present & future jobs.
Self appraisals by appraise.
Performance analysis to identify factors that have facilitated & factors
that have hindered performance.
Identification of training needs.
Action planning & goal setting for future.
Final assessment by the supervising officer for administrative
purposes.
Self – Appraisal:
Self –appraisal has an important role to play in employee development. The
individual is not likely to learn & develop himself he is interested in his own
learning & development and makes conscious efforts to develop. Such effort
would include identifying possible direction of growth, experiencing growth
through action, review & reflection to consciously monitor the growth.
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Self –appraisal is not meant to be ritualistic form filling exercise. It is a
significant initial step for performance development. Self appraisal should
start at end of the performance period just before performance review
decision take place. Self- appraisal should start with the appraise taking up
his KPA‟s & objective for the period that was over & reflecting about his
achievements.
Performance counseling:
Objective of counseling:
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Success of the reporting system depends on the following
principles:
The superior officer has to give subordinate a clear understanding of the task
to be performed & the subordinates required to the best of his capacity to the
quantitative & qualitative achievements of the given tasks making optimum
use of the resources available. Also, both the superior & his subordinate are
aware of the ultimate goal of their organization, which can be achieved only
through joint effort by both of them.
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Factors influencing performance of an employee:
Intelligence.
Clarity of objectives.
Public relation.
Data management.
Attitude.
Knowledge of job.
Acceptance of responsibility.
Development of subordinates.
Risk-Taking.
Delegating.
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AVANTAGES OF PERFORMANCE APPRAISAL:
Performance appraisal system can be put to several uses converting the
entire spectrum of human resource function in the organization. The uses
which performance appraisal serves are:
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The Halo Effect- It occurs when the rater assigns on several
dimensions of performed based on an overall, general
impression of the rate.
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SAMPLING:
Sampling: Sampling may be defined as the selection of some part of an
aggregate or totality on the basis of which a judgment or inference about the
aggregate or totality is made. In other words, it is the process of obtaining
information about an entire population only a part of it.
90
80
70
60
50 East
40 West
30 North
20
10
0
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
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DATA ANALYSIS AND
INTERPRETATION
45
SURVEY
a) YES b) NO
OPINION NO. OF PERCENTAGE
RESPONDENTS
50 100
YES
0 0
NO
50 100
TOTAL
YES
NO
From the above it is evident that 100% of the employees feel that
performance appraisal is quit essential for any organization.
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2. Do you think that performance appraisal is essential?
a) YES b) NO
YES 48 96
NO 2 4
TOTAL 50 100
YES
NO
From the above data it is evident that 96% of the respondents feel that
performance appraisal is very essential in the organization, where as 45
employees feel it is not essential in organization.
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3. Does appraisal system of your organization facilities career growth &
learning?
a) YES b) NO
YES 42 84
NO 8 16
TOTAL 50 100
YES
NO
From the above data it shows that 84% of employees feel that organization
facilitate growth & learning due to performance appraisal, where as 16% of
employees feel that organization does not provides growth & learning of
employees.
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4. Is the current performance appraisal system really assesses the quality of
an employee.
Do you agree?
a) YES b) NO
OPINION NO.OF PERCENTAGE
RESPONDENTS
YES 46 92
NO 4 8
TOTAL 50 100
YES
NO
From the above data it is evident that 92% of the employees feel that the
performance appraisal system really assesses the quality of an employee,
where as 85 feel that it does not assesses the quality of an employee.
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5. Periodicity of performance appraisal should be on
c) Annual basis
A 8 16
B 12 24
C 30 60
TOTAL 50 100
A
B
C
From the above data it is evident that 60%of the employees feel that
performance appraisal should be done on annual basis & 24% of the
employees feel should be in done on half yearly basis 165 of the employees
feel should be done in quarterly basis.
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6. The present performance appraisal of your organization distinguishes
the performers & non performers?
A
B
C
D
From the above data it is evident that 74% of the employees „agree‟ that
performance appraisal system of the organization distinguishes performs &
non performers, where as 105 strongly agree and 16% disagree doesn‟t
distinguishes performers & non-performers.
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7. A monthly performance appraisal of employee is required for
maintaining efficiency of individuals &l organization?
a) YES b) NO
YES
NO
From the above it shows that 96% of the employees feel that periodic
performance appraisal of the employee is required for maintaining efficiency
of individual and organization and above 4% of the employees feel that it is
not required to maintained.
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8. Are you aware of the basis or attributes on which your performance is
appraised?
a) YES b) NO
YES
NO
From them above data it shows that 82% of the employees are aware on
which their performance is appraised but 16% of the respondents feel that
they are not aware of the basis on which their performance is appraised.
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9. Performance appraisal should be based upon
A
B
C
D
From the above data it shows that 54% of the employees feel that
performance appraisal in railways is based upon performance 36% feel that
it based on both performance and recommendation 7 trade union.
54
10. Performance appraisal is useful to the contributor to encourage people to
perform better on their jobs?
a) YES b) NO
YES
NO
From the above data it shows that 92%of the employees feel that
performance appraisal is contributor to encourage better job, but 8% of the
employees feel that it is not a contributor for job.
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11. The existing appraisal system is helping each employee to discover
his/her potential & make their short comings?
c) Strongly Disagree
A
B
C
D
From the above data it shows that 76% of the employees feel that appraisal
system discovers potential and make their short comings and 125 employees
feel that it does not discover potential.
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12. The present performance appraisal of your organization assesses
individual behavior, discipline, integration, communication skill, leadership
qualities & growth?
d) Strongly Disagree
A
B
C
D
From the above data it shows that 78% of the employees agrees with the
above statement and 10% disagree.
57
13. How do you want tour performance to be communicated to you?
d) No Need
A
B
C
D
From the above data it is evident that most of the employees feel that their
performance should be communicated to them in a written form.
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14. What kind of counseling should occur in an organization?
a) Formal b) Informal
YES
NO
From the above data it‟s evident that 58% feel of the employees feel that
counseling in an organization should be of formal kind and 42% of
employees feel counseling should of informal kind.
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15. According to you, Counseling is a
A
B
C
From the above data it‟s evident that 56% of the employees feel that
counseling is used to know the areas of development and 245 feel that it is
just a formality and 20% feel that it identifies the strength & weakness of the
employees.
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16. How often did you speak, or discuss about your performance with your
superiors?
d) Never
a
b
c
d
From the above data it‟s evident that 38% of the employees said that they
sometimes and 32% frequently speak with their superiors about
performance.
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17. Training & development programs improve the quality of the
employees?
d) Strongly disagree
Agree
Disagree
Strongly Agree
Strongly Disagree
From the above data it‟s evident that 50% of the employees are strongly
agree and 50% agree that training & development the quality of the
employees in the organization.
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18. Has your performance increased as a result of performance ap[praisal
system.?
Large extent
Moderate extent
Less extent
Not at all
From the above data it‟s evident that 64% of the employees are feel that to
moderate extent and 32% to large extent think that performance increased as
a result of performance appraisal system.
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FINDINGS AND SUGGESTION:
Findings:
It has been found that most of the employees think that the
performance appraisal is essential and they think it is used as a tool
to improve performance, to determine organization needs, and to
basis for pay increase, promotions, and transfer.
The appraisal system facilitates growth & learning of employees
and it is used to distinguish performers.
The existing appraisal system helps the management to identify
potentiality of employees as well as useful for maintaining
efficiency of the individual & organization.
Some employees that they do not know which basis their
performance is appraised and most of the employees feel that it
help them discover their potential and enables to know their short
coming.
Organization provides training & development programs to
overcome the short comings identified in performance appraisal.
The employees that their promotions match their contributions and
new performance appraisal technique should be adopted in the
organization and the short comings are informed to them.
The performance appraisal supports to experiment with new ideas
as basis for promotion.
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Suggestion:
The performance appraisal system should facilitate career growth &
learning of employees.
The short coming of employees should be informed to them after
performance appraisal promptly.
Promotion should be based on performance rather than seniority or any
other factors.
Performance appraisal should be appraised by granting awards/ merit
certificate.
New performance appraisal techniques such as 360 degree performance
appraisal system should be used.
The performance appraisal should not be assessed by biased mind and
personal grudge.
Feedback should not be given to the employees more frequently.
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QUESTIONNAIRE FOR A STUDY ON
PERFORMANCE APPRAISAL SYSTEM.
Name (Optional):____________________________________
Age: ______________________________________________
Gender: ____________________________________________
Department/ Role: ____________________________________
a) Yes b) No
a) Yes b) No
a) Yes b) No
a) Yes b) No
c) Annual basis
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7. The Periodical Performance Appraisal of employee is required for
maintaining efficiency of individual & organization?
a) Yes b) No
a) Seniority b) Performance
d) Strongly Disagree
a) Yes b) No
a) Yes b) No
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BIBILOGRAPHY:
Davis, Keith. “Human Behavior at Work”, Singapore. Hill
International Book co; 1989.
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