PATNA WOMEN’S COLLEGE

AUTONOMOUS

PATNA UNIVERSITY
3rd. cycle NAAC Accredited at ‘A’ grade with CGPA 3.58/4 CPE status accorded by UGC

DEPARTMENT OF BUSINESS ADMINISTRATION

GUIDE’S CERTIFICATE

This is to certify that Ayesha Maryam, student of BBA Department (Session–2022-25) has
successfully completed her project work entitled “Performance Appraisal” with reference to
Central Bank of India, Regional Office, Patna, in partial fulfilment of Certificate Course in
Human Resource Management during academic year 2022-2023 as per the guidance and
supervision of Dr. Ruchita Masih.

Dr. Ruchita Masih

Coordinator

Department of Business Administration

Patna Women’s College

Patna University
 ACKNOWLEDGEMENT

Preparation of this Internship report would not have been possible without the guidance and
help of help of several individuals who in one way or another contributed and extended their
valuable assistance in the preparation and completion of this study.

My marked appreciation to Dr. Sister M. Rashmi A.C., Principal, Patna Women’s college for
been guiding source behind our work.

I would like to express my gratitude to Patna Women’s College (Autonomous Patna

University) for including internship program as a two credit course which has provided an
opportunity to gain practical working experience in the organization

My sincere gratitude to Mr. Arvind Kumar Jha, Chief Manager at Central Bank Of India,
Regional Office, Patna. I am thankful to Mrs. Nidhi Kumari, my supervisor from HRD for
devoting time from her busy schedule and explaining how work is being done in HRD and
assigning me with various tasks during these 4 weeks of internship period.

I would also like to thank all the respondents for giving me their precious time, relevant
information and advice without which I would not be able to complete this project.

My sincere thanks to Mrs. Ruchita Masih, coordinator of Human Resource Management

course, from Department of Business Administration for her valuable guidance, advice,
support and precious time she devoted for the successful completion of this project.

I am owed to my beloved parents, friends and peers who motivated me a lot in carrying out
this project.

Lastly, I would like to thank all those who contributed in successful completion of the study
carried out during my internship period.

Ayesha Maryam
 PREFACE

Human resource management is a function in organizations designed to maximize employee

performance in service of their employer's strategic objectives. HR is primarily concerned
with how people are managed within organizations, focusing on policies and systems. HR
departments and units in organizations are typically responsible for a number of activities,
including employee recruitment, training and development, performance appraisal, and
rewarding. HR is also concerned with industrial relations, that is, the balancing of
organizational practices with regulations arising from collective bargaining and governmental
laws.

HR is a product of the human relations movement of the early 20th century, when researchers
began documenting ways of creating business value through the strategic management of the
workforce. The function was initially dominated by transactional work, such as payroll and
benefits administration, but due to globalization, company consolidation, technological
advancement, and further research, HR now focuses on strategic initiatives like mergers and
acquisitions, talent management, succession planning, industrial and labor relations, and
diversity and inclusion.

In startup companies, HR's duties may be performed by trained professionals. In larger

companies, an entire functional group is typically dedicated to the discipline, with staff
specializing in various HR tasks and functional leadership engaging in strategic decision
making across the business. To train practitioners for the profession, institutions of higher
education, professional associations, and companies themselves have created programs of
study dedicated explicitly to the duties of the function. Academic and practitioner
organizations likewise seek to engage and further the field of HR, as evident workforce. New
hiring not only entails a high cost but also increases the risk of the newcomer not being able
to replace the person who was working in that position before. HR departments also strive to
offer benefits that will appeal to workers, thus reducing the risk of losing knowledge.

In the current global work environment, most companies focus on lowering employee
turnover and retaining the talent and knowledge held by their workforce. New hiring not only
entails a high cost but also increases the risk of the newcomer not being able to replace the
person who was working in that position before. HR departments also strive to offer benefits
that will appeal to workers, thus reducing the risk of losing knowledge.
 INTRODUCTION TO HRM

MEANING :

Human Resource Management or HRM is the art of procuring, developing and maintaining
competent workforce to achieve organizational goals effectively.

The process of employing people, developing their resources, utilising, maintaining &
compensating their service in tune with the job & organizational requirements with a view to
contribute to the goals of the organization, individual & the society.

DEFINITION:

According to Wendell L French, “the human resource management refers to the philosophy,
policies, procedures, & practice related to the management of people within an organization.”

According to Stephen P Robbins, “Human Resource Management is a process consisting of

the acquisition, development, motivation & maintenance of human resources.”

SCOPE:

The Scope of Human Resource management into the following aspects

1. The Personnel Aspect

This aspect of HRM is concerned with the manpower planning, recruitment, selection,
placement, induction, transfer, promotion, demotion, termination, training & development,
layoff & retrenchment, wage & salary administration, incentives, productivity etc.

2. The Welfare Aspect:-

The welfare aspect is concerned with working conditions & amenities such as canteens,
crèches, rest rooms, lunch rooms, housing, transport, education, medical help, health &
safety, washing facilities recreation & cultural activities etc.

3. The Industrial Aspect:-

This aspect is concerned with employees. It includes union management relations,
joint consultation, negotiating collective bargaining, grievance handling, disciplinary
actions, settlement of industrial disputes etc.
 IMPORTANCE:

1.HRM is important for the organization in the following ways:-

• Good human resource practices help in attracting & retaining the best people in the
organization.

• In order to make use of latest technology the appointment of right type of persons is
essential. The right people can be fitted into new jobs properly only if the management
performs its HR function satisfactorily.

• Globalization has increased the size of the organization who employ thousands of
employees in different countries. The performance of the company depends upon the
qualities of the people employed. This has further increased the importance of HRM.

• HR planning alerts the organization to the types of people it will need in the short, medium
& long run.

• HR development is essential for meeting the challenges of future. The importance of HRM
has increased because of the shortage of really managerial talent in the country.

2.HRM is importance for the employees in the following ways:-

•HRM stress on the motivation of employees by providing them various financial & non-
financial incentives.

• Right organizational climate is also stressed upon so that the employees can contribute their
maximum to the achievement of the organizational objectives.

• Effective management of HR promotes team wok & team spirit among employees.

• It offers excellent growth opportunities to people who have the potential to rise.

• It also encourages people to work with diligence & commitment.

3.mportance for the society:-

Good HR efforts lead to productivity gains (ration of output to input) to the society, since it
enables the managers to reduce costs, save scarce resources, enhance profits & offer better
pay, benefits & working conditions to employees
OBJECTIVES:

1) Societal Objectives :-
• To manage human resources in an ethical & socially responsible manner.
• To ensure compliance with legal & ethical standards.
• To minimise the negative impact of societal demands upon the organisation.

2) Organizational Objective:-
•HR department, like any other department in an organization, should focus on
achieving the goals of the organization first. If it does not meet this purpose, the
HR department cannot exist in the long run.
•HR department should recognize its role in bringing about organizational
effectiveness.
• HRM is not an end in itself. It is only a means to assist the organization with its
primary objectives.
3) Functional Objectives:-
• To maintain the HRM departments contribution at a level appropriate to the
organization’s needs. Resources are wasted when HRM is either more or less
sophisticated to suit the organization’s demands.
•The department's level of service must be tailored to fit the organization it serves.
•HRM should employ the skills & abilities of the workforce efficiently. It should
aim at making the people's strength more productive & beneficial to the
organization.
• HRM should aim at providing the organisation with well trained & well
motivated employees.
4) Personnel Objectives:-
•HRM should increase employees job satisfaction to the fullest extent.
•HRM should also meet the self actualization needs of the employees.
•It should stimulate every employee to achieve his potential.
• HRM should assist the employees in achieving their personal goals, at least in so
far as these goals enhance the individual's contribution to the organization.
• HRM should develop & maintain a quality of work life. It makes employment in
the organization a desirable, personal & social situation. Organizational
performance can never be improved without the quality of work life.

FUNCTIONS OF HRM

1. Managerial function includes

a) Planning:- It is pre-determined course of action. Planning pertain to

formulating strategies of personnel programmes & changes in advance
 that will contribute to the organizational goals. In other words it
involves planning of HR, requirements, selection, training etc.

b) Organizing:- An organization is a means to an end. It is essential to

carry out the determined course of action. According to J.C Massie, an
organization is a structure & a process by which a cooperative group of
human beings allocates its task among its members, identifies
relationship & integrates its activities.

c) Directing:- Activating employees at different level & making them

contribute maximum to the organization is possible through proper
direction & motivation. Taping the maximum potentialities of the
employees is possible through motivation & command.

d) Controlling:- After planning, organizing, & directing the actual

performance of employees is checked, verified & compared with the
plans. It the actual performance is found deviated from the plan,
control measures are required to be taken.

2. Operative Functions are related to specific activities like

1) Employment:- It is concerned with securing & employing the people

possessing the required kind & level of human resources necessary to achieve
the organizational objectives. It includes
2) Job Analysis:- it is the process of study & collection of information relating
to the Role & Responsibilities of a specific job.
3) HR Planning:- it is a process for determination & assuring that the
organization will have an adequate number of qualified persons, available at
proper times, performing jobs, which would meet the needs of the
organization & which would provide satisfaction for the individuals involved.
4) Recruitment:- it is the process of searching for prospective employees &
stimulating them to apply for jobs in an organization.
5)Selection:- it is the process of ascertaining the qualifications, experiences,
skills, knowledge, etc. of an applicant with a view to appraising his/her
suitability to a job.
5) Placement:- it is the process of assigning the selected candidate with the
most suitable job in terms of job requirements. It is matching employee
specifications with job requirements.
6) Induction & Orientation:- Induction & orientation are the techniques by
which a new employee is rehabilitated in the changed surrounding &
introduced to the practices, policies, purposes & people of the organization.
3. Human Resource Development:- It is the process of improving, moulding &
changing the 9/33 knowledge, creative ability, aptitude, values, commitment
etc. based on present & future job organizational requirements.
It includes:

i) Performance Appraisal:- it is the systematic evaluation of individuals with

respect to their performance on the job & their potential for development.

ii) Training:- it is the process of imparting to the employees technical &

operating skills & knowledge.

iii) Managerial Development:- it is the process of designing & conducting

suitable executive development programmes so as to develop the managerial
& human relations skill of employees.

iv) Career Planning & Development: - it is the planning of one’s career &
implementation career plans by means of education, training, job search &
acquisition of work experience. It includes internal mobility & external
mobility.

v) Transfer:- it is process of placing employees in the same level jobs where

they can be utilised more effectively in consistence with their potentialities &
needs of the employees & the organization.

vi) Promotion:- it deals with upward reassignment given to an employee in the

organization occupy higher position which commands better status or pay
keeping in view in human resources of the employees & the job requirements.

vii)Demotion:- it deals with downward reassignment to an employee in the

organization

viii) Retention Management:- employers prefer to retain more talented

employees while they retrench less talented employees. Employers modify
existing human resource strategies & craft new strategies in order to pay more
salaries, provide more benefits & create high quality of work life to retain the
best employees.

4. Compensation:- It is the process of providing adequate, equitable & fair

remuneration to the employees.
It includes
i) Wage & salary Administration:- it is the process of developing &
operating a suitable wage & salary programme.
 ii) Incentives:- it is the process of formulating administrating & reviewing the
schemes of financial incentives in addition to regular payment of wages &
salary.

iii) Fringe Benefits:- these are the various benefits at the fringe of the wage.
Management provides these benefits to motivate the employees & to meet
their life's contingencies. Ex:- housing facilities, canteen facilities, medical
facilities, disablement benefits etc.

iv) Social Security Measures:- management provide social security to their

employees in addition to the fringe benefits. These includes worker men
compensation, maternity benefits for women, medical benefits, retirement
benefits lie PF, pension, gratuity etc.

5. Human Relations:- It is the process of interaction among human beings.

Human relations is an area of management in integrating people into work
situation in a way that motivates them to work together productively
cooperatively & with economic, psychological & social satisfaction.

6. Industrial relations:- It refers to the study of relations among employee,

employer, government & trade unions. It includes Trade union, collective
bargaining. Quality circles etc..

7. Recent Trends in HRM:- HRM has been advancing at a fast rate. The recent
trends in HRM includes Quality of work life, Total quality in human
resources, HR accounting, audit & research & Recent techniques of HRM.
 RESEARCH STUDY

Background of the Study:

The Internship program is an integral part of the Certificate Course in Human Resource
Management. The Students are sent to various organization where they are assigned a project.
At the end of the program, the intern is required to place the accomplishment and findings of
the project through the writing of the internship report covering the relevant topics. During
the program, supervisor guides each student- one from the university and the other from the
organization. The purpose of internship is to be taught the actual work place and practice the
type and nature of actual job duties and responsibilities. The intern student is positioned in
any business organization in which they are interested.

This report has been completed as a requirement for the Internship program. The basic
purpose of this internship report was to find out the performance appraisal procedure at
Central Bank of India. Both primary and secondary sources have been used to collect relevant
information. For collecting primary data a survey was done and for secondary data websites,
books, lectures and some previous reports have been reviewed.

Scope of the Study:

1. This study provide appraisal feedback to employees and thereby serve as vehicles for
personal and career development and allow the management to take effective
decision against drawbacks for the well being of the employee’s development.
2. To improve employee work performance by helping them realize and use their full
potential in carrying out their firms mission.
3. The main aim of the study is to fin d out the effectiveness of performance appraisal &
development programme conducted at "Central Bank of India, Regional Office,
Patna".
4. This study helps to know the level of importance of appraisal system.
5. The payroll and compensation decision, training and development needs, promotion,
demotions transfer including job analysis and providing superior support, assistance
and counselling.

Need of the Study:

1. This study helps building progress towards organizational goals.
2. To help the superior to have a proper understanding about their subordinates.
3. To ensure organizational effectiveness through correcting the employee for standard
and improved Performance and suggesting the changes in employee behavior.
4. It provides information about the performance ranks.
5. To facilitate fair and equitable compensation based on performance.

Objectives of the Study:

1. To know about the employees performance appraisal process at Central Bank

of India.
2. To know about the methods used by Central Bank of India.
3. To know the employees opinion about performance appraisal procedure.
4. To identify the problem regarding the performance appraisal process.
5. To suggest some possible recommendation to overcome the problems.

Limitations of the Study:

1. This study has been restricted to Regional Office Patna only.
2. The information provided by the respondents may be biased and incorrect.
3. The sample may not represent the whole population.
4. Paucity of time and resources could lead to the inability of conducting a large survey.
5. Limited Access to Information.
 CENTRAL BANK OF INDIA

‘CENTRAL BANK OF INDIA’, the premier Public Sector Bank of the Country having a
Pan-India presence through around 4300 branches/offices with a dedicated workforce of
41,000+ (who are collectively called passionately as ‘CENTRALITES’), has transformed
itself as a ‘Preferred Employer’ and a ‘Right Career Destination’ for many job aspirants who
are dreaming to nurture their career as a ‘Banker’.

The Bank has a long-term vision to become a ‘Retail Banking Hub’ and accordingly, mould
its ‘People’ to be skillful to lead the contemporary banking verticals with a sense of passion,
dedication and volition. It has well-knit ‘People Management’ Policies and Processes which
encompass – empowerment, recognition, right opportunities for growth and employees are
valued, respected and recognized for their proven performance and potential.

It has a fruitful existence of 102 years serving the Nation with a sense of humbleness thereby
partnered in the Socio-economic development of the Nation. It has celebrated 2011 as a
‘Centennial year’ for having completed its 100 years of incorporation and to commemorate
this occasion, a host of programmes have been rolled out throughout the year including
rewarding its employees with ‘Gold Coin’ of 5 gms for their dedicated service to the
Institution. This gesture shows the ‘People-Oriented’ approach of the Management.

The following symbol commemorates the special occasion of the centennial year and this
symbol has been supplemented along with the main symbol in all its correspondence during
the year :
Subsequently, even after the nationalisation of the Bank in the year 1969, Central Bank
continued to introduce a number of innovative banking services as under:

1976 The Merchant Banking Cell was established.

1980 Centralcard, the credit card of the bank was introduced.
1986 ‘Platinum Jubilee Money Back Deposit Scheme’ was launched.
1989 The housing subsidiary Cent Bank Home Finance Ltd. Was started with its
headquarters at Bhopal in Madhya Pradesh.
1994 Quick Cheque Selection Service (QCC) & Express Service was set up to enable
speedy collection of outstation cheques.

Further in line with the guidelines from Reserve Bank of India as also the Government of
India, Central Bank has been playing an increasingly active role in promoting the key thrust
areas of agriculture, small scale industries as also medium and large industries. The Bank also
introduced a number of Self Employment Schemes to promote employment among the
educated youth.

Among the Public Sector Banks, Central Bank of India can be truly described as an All India
Bank, due to distribution of its large network in all 29 States as also in 6 out of 7 Union
Territories in India. Central Bank of India holds a very prominent place among the Public
Sector Banks on account of its network of 4659 Branches, 1 Extension counters, along with
10 Satellite Offices (as on February 2019) at various centres throughout the length and
breadth of the country.

Customers' confidence in Central Bank of India's wide ranging services can very well be
judged from the list of major corporate clients such as ICICI, IDBI, UTI, LIC, HDFC as also
almost all major corporate houses in the country.
VISION & MISSION
ORGANISATIONAL STRUCTURE
 BOARD OF DIRECTORS

Sr. No. Name & Designation of the Director

1. Shri Tapan Ray

Non-Executive Chairman

2. Shri Matam Venkata Rao

Managing Director & CEO

3. Shri Alok Srivastav

Executive Director

4. Shri Rajeev Puri

Executive Director

5. Shri Vivek Wahi

Executive Director

6. Dr. Bhushan Kumar Sinha

Government of India Nominee Director

7. Shri P. J. Thomas
RBI Nominee Director

8. Smt. Mini Ipe

Shareholder Director
 AWARDS AND ACHIEVEMENTS

Central Bank of India awarded FIRST PRIZE for excellent implementation of Official
Language Policy of Government of India for the year 2016-2017.

Central Bank of India was awarded Fintech India Award 2016 under category Mobile
Banking at a function organized at Mumbai.

Central Bank of India awarded Rajbhasa Kirti Puraskaar.

Central Bank of India awarded with three ‘FIRST’ Prizes for all the three linguistic regions
under ‘RBI RAJBHASHA SHIELD SCHEME’.

Banking technology award to Central Bank of India

Central Bank of India awarded FIRST PRIZE for excellent implementation of Official
Language Policy of Government of India.
 PRODUCTS AND SERVICES
• Internet Banking
• Mobile Banking
• Debit Cards
• Credit Cards
• Prepaid Cards/Gift Cards
• Savings Account
• Current Account
• Fixed Deposit Account
• Recurring Deposit Scheme.
• Government Business Scheme
• Public Provident Fund Scheme
• Housing Loans
• Cent Home Loan Scheme
• Cent Home Loan to Employee
• Cent Vehicle Loan
• Loan against property
• Personal Loans
• Education Loan
• Loan to senior citizens
• Loans for women
• Scheme For IDA Members
• Cent Shop
• Cent MSME Schemes
• Cent Mudra (Pradhan Mantri Mudra Yojana)
• Cent – Business Gold Loan
• Loans for Agriculture Sector
• Cent Kisan Tatkal Scheme
• Cent Tractor Scheme
• Cent Kisan Credit Card
• Cent Kisan Gold Card
• Government Sponsored Schemes
• Cent Stand Up India Scheme
• Cent Smart Pay
 PERFORMANCE APPRAISAL

To appraise is to assess. In the context of industrial organization, performance appraisal is a

systematic evaluation of personal by supervisors are those familiar with their performance. In
other words, performance appraisal is a systematic and objective way of judging the relative
word or ability of an employee in performing his/her task.

According to Heyel, “Performance appraisal is the process of evaluating performance and

qualifications of the employees in terms of the requirements of the job for which he is
employed.

According to Flippo, “Performance appraisal is the systematic, periodic and an impartial

rating of an employee's excellence in matters pertaining to his/her present job And his
potential for a better job.”

To Beach, “Performance appraisal is the systematic evaluation of the individual with regard
to his or her performance on the job and his potential for development.”

Thus on the basis of the above definitions we can say that performance appraisal is a process
of evaluating an employee's performance of a job in terms of its requirements.

All organisations use performance appraisal for various purposes. the main issue hovers
around the question of what criteria should be used to appraise performance. Given that all
appraisals involve judgement which are not always fair, organisations use multifarious
techniques and tools to measure performance as objectively as possible. Besides a good
technique, successful performance appraisal requires a consistent approach; clear standards
and measures and bias free ratings. A critical part all the evaluation process is the preparation
of the rater. Raters must be trained on the system being used and its purpose to ensure
consistency and accuracy. Finally, is the employees’ performance is to improve, they must be
provided feedback underperformance and advice on how to make improvements.

Thus, performance appraisal is a systematic way of judging the relative worth of an employee
and performing his task. It helps identify employees who are performing their tasks well and
also those who are not and the reason for the poor performance.
 PURPOSE OF PERFORMANCE APPRAISAL

Performance appraisal has been considered as the most significant and indispensable tool for
an organisation. The information it provides is highly useful in making decisions regarding
various personal aspects such as promotions and merit increases. Performance appraisal is
very important because it links information gathering and decision-making processes which
provide a basis for judging the effectiveness of personal subdivisions such as recruiting,
selection, training and compensation.

The purpose of performance appraisal are as follows:

• Compensation Decision: It can serve as a basis for pay raises. managers need
performance appraisal to identify employees who are performing at or above expected
levels. According to this, pay raises should be given or merit rather than seniority.

• Promotion Decision: It can serve as a guide for job change or promotion. When merit
is the basis for reward, the person doing the best job receives the promotion.

• Training and Development Programmes: Performance appraisal can inform

employees about their progress and tell them what skills they need to develop to
become eligible for pay rises or promotions or both. It can serve as a guide for
formulating a suitable training and development programme.

• Feedback: it can tell an employee what he can do to improve his present performance
and go up the organizational ladder.

• Personal Development: It can help in revealing the causes of good or poor employee
performance. Through discussions with individual employee, a line manager can find
out why they perform as they do and what steps can be initiated to improve their
performance.
 PROCESS OF PERFORMANCE APPRAISAL

Though the specific steps that an organisation will follow in developing an appraisal system
may vary somewhat from organisation to organisation, yet the following are the common
steps usually followed by organisations while developing an appraisal system for them:
1. Establish performance standards
2. Communicate performance expectation
3. Measure actual performance
4. Compare actual performance with standards
5. Discuss the appraisal with the employee
6. Initiate corrective actions

These steps are further discussed below:

1.Establish Performance Standards: The appraisal process begins with the establishment of
performance standards. The managers must determine what outputs, accomplishments and
skills will be evaluated. These standards should have evolved out of job analysis and job
descriptions. These performance standards should also be clear and objective to be
understood and measured.

2. Communicate Performance Expectations to Employees: Once the performance

standards are established, these need to be communicated to the respective employees so that
they come to know what is expected of them. Past experience indicates that not
communicating standards to the employees compounds the appraisal problem. Here, it must
be noted that mere transference of information from the manager to the employees is not
communication. It becomes communication only when the transference of information has
taken place and has been received and understood by the employees. The feedback from the
employees on the standards communicated to them must be obtained. If required, the
standards may be modified or revised in the light of feedback obtained from the employees.

3. Measure Actual Performance: In this stage, the actual performance of the employee is
measured on the basis of information available from various sources such as personal
observation, statistical reports, oral reports, and written reports. Measurement must be
objective based on facts and findings. This is because what we measure is more critical and
important to the evaluation process than how we measure.

4. Compare Actual Performance with Standards: In this stage, the actual performance is
compared with the predetermined standards. Such a comparison may reveal the deviation
between standard performance and actual performance and will enable the evaluator to
proceed to the fifth step in the process, i.e., the discussion of the appraisal with the concerned
employees.
5. Discuss the Appraisal with the Employee: The fifth step in the appraisal process is to
communicate to and discuss with the employees the results of the appraisal. This is one of the
most challenging tasks the managers face to present an accurate appraisal to the employees
and then make them accept the appraisal in a constructive manner. A discussion on appraisal
enables employees to know their strengths and weaknesses. This in turn impacts their future
performance. The impact may be positive or negative depending upon how the appraisal is
presented and discussed with the employees.

6. Initiate Corrective Action: The final step in the appraisal process is the initiation of
corrective action when it is necessary. The areas needing improvement are identified and
then, the measures to correct or improve the performance are identified and initiated. The
corrective action can be of two types. One is immediate and deals predominantly with
symptoms. This action is often called as "putting out fires." The other is basic and delves into
causes of deviations and seeks to adjust the difference permanently. This type of action
involves time to analyse deviations. Hence, managers often opt for the immediate action, or
say, "put out fires". Training, coaching, counselling, etc. are the common examples of
corrective actions that managers initiate to improve the employee performance.
 METHODS OF PERFORMANCE APPRAISAL

Several methods and techniques of appraisal are available for measurement of performance of
an employee. These methods can be categorised as Traditional methods and Modern
methods.

Methods under both the categories are discussed as follows:

TRADITIONAL METHODS :-

1. Ranking Method: It is the oldest and simplest formal systematic method of

performance appraisal in which one employee is compared with all others for the
purpose of placing them in a simple rank order of worth. The employees are ranked
from the highest to the lowest or from the best to the worst. In doing this, the
employee who is the highest on the characteristic being measured and also the one
who is the lowest, are indicated. Then, the next highest and the next lowest are
chosen, alternating between next highest and lowest until all the employees to be rated
have been ranked. Thus, if there are ten employees to be appraised, there will be ten
ranks from 10. However, the greatest limitations of this appraisal method are that
• it does not tell that how much better or worse one is than another,
• task of ranking individuals is difficult when a large number of employees are rated,
and
• it is very difficult to compare one individual with others having varying behavioural
traits. To remedy these defects, the paired comparison method of performance
appraisal has been evolved.
 2. Paired Comparison Method: In this method, each employee is compared with other
employees on one- on-one basis, usually based on one trait only. The rater is provided
with a bunch of slips each containing a pair of names, the rater puts a tick mark
against the employee whom he considers the better of the two. The number of times
this employee is compared as better with others determines his or her final ranking.
The number of possible pairs for a given number of employees is ascertained by the
formula: N(N-1)/2 ; where N = the total number of employees to be evaluated. The
number of times a worker is considered better, makes his/her score. Such scores are
determined for each worker and he/she is ranked according to his/her score. One
disadvantage of this method is that the method can become unwieldy when large
number of employees are being compared.

3. Grading Method: In this method, certain categories of worth are established in

advance and carefully defined. There can be three categories established for
employees: outstanding, satisfactory, and unsatisfactory. There can be more than three
grades. Employee performance is compared with grade definitions. The employee is,
then, allocated to the grade that best describes his or her performance. One of the
major drawback of this method is that the rater may rate most of the employees on the
higher side of their performance.

4. Forced Distribution Method: This method was evolved by Tiffen to eliminate the
central tendency of rating most of the employees at a higher end of the scale. The
method assumes that employees performance level confirms to a normal statistical
distribution, that is., 10, 20, 40, 20, and 10 per cent. This is useful for rating a large
number of employees’ job performance and promotability. It tends to eliminate or
reduce bias. It is also highly simple to understand and easy to apply in appraising,
performance of employees in organisations. It suffers from the drawback that if all
distribution grades improve similarly, no single grade would rise in a ratings.

5. Forced-Choice Method: The forced-choice method is developed by J. P. Guilford. It

contains a series of groups of statements, and rater rates how effectively a statement
describes each individual being evaluated. Common method of forced-choice method
contains two statements, both positive or negative. The rater indicates which
statement is most or least descriptive of the employee. For example,
Learns fast - works hard ;
Absent often - others usually tardy.
The HR department does actual assessment. The advantage is the absence of personal
bias in rating. Disadvantage is that the statement may not be properly framed.

6. Checklist Method: In this method, a series of statements, that is, questions with their
answers in 'yes' or 'no' are prepared by the HR department. The check-list is, then,
presented to the rater to tick appropriate answers relevant to the appraisee. Each
question carries a weightage in relationship to their importance. When the check-list
is completed, it is sent to the HR department to prepare the final scores for all
 appraisees based on all questions. While preparing questions, an attempt is made to
determine the degree of consistency of the rater by asking the same question twice,
but in a different manner. The advantages of check-list method are are economy, ease
of administration, limited training of rater & standardization. The disadvantage
includes improper weights by the HR department. It is difficult to assemble, analyse
and weigh a number of statements about employee characteristics and contributions.
From cost point of view, this method may be inefficient particularly if there are a
number of job categories in the organisation, because a check-list of questions must
be prepared for each category of job. It will involve a lot of money, time and efforts.

7. Critical Incidents Method: In this method, the rater focuses his or her attention on
those key or critical behaviours that make the difference between performing a job in
a noteworthy manner. There are three steps involved in appraising employees using
this method. First, a list of noteworthy (good or bad) on-the-job behaviour of specific
incidents is prepared. Second, a group of experts then assigns weightage or score to
these incidents, depending upon their degree of desirability to perform a job. Third,
finally a check-list indicating incidents that describe workers as "good" or "bad" is
constructed. Then, the check-list is given to the rater for evaluating the workers. The
basic idea behind this rating is to appraise the workers who can perform their jobs
effectively in critical situations. This is so because most people work alike in normal
situation. The strength of cirtical incidents method is that it focuses on behaviours
and, thus, judges performance rather than personalities. One of the advantages of this
is that the evaluation is based on actual job-behaviour. It also increases the chance
that the subordinate will improve because they learn more precisely what is expected
of them. Its drawbacks are to regularly write down the critical incidents which
become time-consuming and burdensome for evaluators, that is, managers. Generally,
negative incidents are more noticeable than positive ones. It is rater's inference that
determines which incidents are critical to job performance. Hence, the method is
subject to all the limitations relating to subjective judgements.

8. Graphic Scale Method: The graphic rating scale is one of the most popular and
simplest technique for appraising performance. It is also known as linear rating scale.
In this method, the printed appraisal form is used to appraise each employee. The
form lists traits (such as quality and reliability) and a range of job performance
characteristics (from unsatisfactory to outstanding) for each trait. The rating is done
on the basis of points on the continuum. The common practice is to follow five point
scale. The rater rates each appraisee by checking the score that best describes his or
her performance for each trait. At last, all assigned values for the traits are then
totaled.

9. Essay Method: Essay method is the simplest one among various appraisal methods
available. In this method, the rater writes a narrative description on an employee's
strengths, weaknesses, past performance, potential and suggestions for improvement.
Its advantage is that it is simple in use. It does not require complex formats and
 specific training to complete it. However, essay method, also has some is drawbacks.
In the absence of any prescribed structure, the essays are likely to vary widely in
terms of length and content. Also the quality of appraisal depends more upon rater's
writing skill than the appraisee's actual level of performance. Moreover, because the
essays are descriptive, the method provides only qualitative information about the
employee. In the absence of quantitative data, the evaluation suffers from subjectivity
problem.

10. Field Review Method: When there is a reason to suspect rater’s biasedness or his or
her rating appears to be quite higher than others, these are neutralised with the help of
a review process. The review process is usually conduted by the personnel officer in
the HR department. The review pro- cess involves the following activities:
(a) Identify areas of inter-rater disagreement.
(b) Help the group arrive at a consensus.
(c) Ensure that each rater conceives of the standard similarity.
However, the process is a time-consuming one. The supervisors generally resent what they
consider the staff interference. Hence, the method is not widely used.

11. Confidential Report: It is the traditional way of appraising employees mainly in the
Government Departments. Evaluation is made by the immediate boss or supervisor
for giving effect to promotion and transfer. Usually a structured format is devised to
collect information on employee’s strength, weakness, intelligence, attitude,
character, attendance, discipline, etc. Its drawbacks include it is a subjective
evaluation based on evaluator’s impression about the appraisee rather than on facts
and figures. As the feedback is not given to the appraisee, the appraisal remains
confined to evaluation than development. Feedback, if any, is given only in case of
adverse report.

MODERN METHODS :-

1. Management By Objective (MBO) : It was Peter F Drucker who gave the

concept of MBO way back in 1954 when his book “The Practice of
Management” was first published. There are four steps in an MBO
programme: goal setting, performance standard, comparison, and periodic
review.
Process:-
(i) In goal-setting, goals are set which each individual is to attain.
The superior and subordinate jointly establish these goals. The
goals refer to the desired outcome to be achieved by each
individual employee.
 (ii) In performance standards, the standards are set for the
employees as per the previously arranged time period. When the
employees start performing their jobs, they come to know what is
to be done, what has been done, and what remains to be done.
(iii) In the third step, the actual level of goals attained are compared
with the goals agreed upon. This enables the evaluator to find out
the reasons for variation between the actual and standard
performance of the employees. Such a comparison helps devise
training needs for increasing employees' performance. Somuchso,
it can also explore the conditions having their bearings on
employees' performance but over which the employees have no
control.
(iv) Finally, in the periodic review step, corrective measure is
initiated when actual performance deviates from the standards
established in the first step-goal-setting stage. Consistent with the
MBO philosophy, periodic progress reviews are conducted in a
constructive rather than punitive manner. The purpose of
conducting reviews is not to degrade the performer but to aid in
his/her future performance.

Limitations:-
• MBO Programme takes a great deal of time, energy for
completing the form and appraisal on the part of
managers
• Most Executives who have been involved in the MBO
appraisal process, find difficulty in applying the MBO
concepts to their own work habits.
• In areas like cutting costs or increasing sales objective
measurement becomes difficult.
• Both the raters and subordinates are ignorant about the
rationale and value of MBO and are not clear about the
goals.
• There is sometimes continuous a war between rater and
ratees in which the subordinate tries to set the lowest
targets possible and the supervisor the highest.

This method is ideal for businesses of all sizes, evaluation for top-management positions like
directors, executives, etc. It is used by retail giants like Walmart extensively uses the MBO
method for managing the performance of its employee across all levels.

2. Behaviourally Anchored Rating Scales (BARS): The problem of

judgemental performance evaluation inherent in the traditional methods of
performance evaluation led to some organisations to go for objective
evaluation by developing a technique known as “Behaviourally Anchored
Rating Scales (BARS)” around 1960s. BARS are descriptions of various
degrees of behaviour with regard to a specific performance dimension. It
combines the benefits of narratives, critical incidents, and quantified ratings by
anchoring a quantified scale with specific behavioural examples of good or
poor performance. The proponents of BARS claim that it offers better and
more equitable appraisals than do the other techniques of performance
appraisal we discussed so far. Developing a BARS typically involves five
steps:

(i) Generating Critical Incidents: Critical incidents (or say, behaviours) are
those which are essential for the performance of the job effectively. Persons
who are knowledgeable of the job in question (jobholders and/or supervisors)
are asked to describe specific critical incidents of effective and ineffective
performance. These critical incidents may be described in a few short
sentences or phrases using the terminology.
(ii) Developing Performance Dimensions: The critical incidents are then
clustered into a smaller set of performance dimensions, usually five to ten.
Each cluster, or say, dimension is then defined.
(iii) Reallocating Incidents: Various critical incidents are reallocated
dimensions by another group of
People who also know the job in question. Various critical incidents so
reallocated to original dimensions
Are clustered into various categories, with each cluster showing similar
critical incidents. Those critical
Incidents are retained which meet 50 to 80% of agreement with the cluster as
classified in step 2.
(iv) Scaling Incidents: The same second group as in step 3 rates the behaviour
described in each incident in terms of effectiveness or ineffectiveness on the
appropriate dimension by using seven to nine points scale. Then, average
effectiveness ratings for each incident are determined to decide which
incidents will be included in the final anchored scales.
(v) Developing Final BARS Instrument: A subset of the incidents (usually six
or seven per cluster) is used as a behavioural anchor for the final performance
dimensions.

BARS method of performance appraisal is considered better than the

traditional ones because it provides advantages like a more accurate gauge,
clearer standards, better feedback, and consistency in evaluation.
However, BARS is not free from limitations. The research on BARS indicates
that it too suffers from distortions inherent in most rating scales. The research
study concluded that “it is clear that research on BARS to date does not
support the high promise regarding scale independence. In short, while BARS
 may outperform conventional rating techniques, it is clear that they are not a
panacea for obtaining high inter-rater reliability".
It is ideal for businesses of all sizes and depth for evaluating entry-level to top
management performance.

3. Assessment Centre Method: This method of appraising was first applied in

German Army in 1930. In fact it is a system or organization, where assessment
of several individuals is done by various experts using various techniques.
These techniques include in-basket, role-playing, case studies, and simulation
exercise, transactional analysis. In this individual are brought together to
spend two or three days working on an individual or group assignment similar
to the ones they would be handling when promoted. Observers rank the
performance of each and every participant in order of merit. All assesses get
an equal opportunity to show their talents and capabilities and secure
promotion based on merit.
This method of performance appraisal has been adopted by Philips and
Microsoft to identify future leaders in their organization.
The method can be tailored according to need, role, position, or objectives and
give insight into an employee’s personality. The con is that this method can be
costly and, time-consuming.

4. 360-degree appraisal: Under 360-degree appraisal, performance information

such as employee’s skills, abilities and behaviours, is collected “all around” an
employee, i.e., from his/her supervisors, subordinates, peers and even
customers and clients27. In other worlds, in 360-degree feedback appraisal
system, an employee is appraised by his supervisor, subordinates, peers, and
customers with whom he interacts in the course of his job performance. All
these appraisers provide information or feedback on an employee by
completing survey questionnaires designed for this purpose. All information
so gathered is then complied through the computerised system to prepare
individualized reports. These reports are presented to the employees being
rated. They then meet the appraiser-be it one’s superior, subordinates or peers
and share the information they feel as pertinent and useful for developing a
self-improvement plan. This method is suitable for businesses of all types. The
private sector can especially benefit from this method. RBS, G4S are some of
the top companies employing 360 degree feedback system for appraisal.
This method gives a clearer and unbiased review of the employee’s
performance. However, outside sources like customers may not understand
how to provide constructive feedback.
5. Resource Accounting Method: Also known as Human Resource Cost
Accounting Method, this method is used to evaluate an employee’s
performance as per the monetary benefits they yield from the organization.
This means the performance of an employee is compared against the salary &
other costs the company pays to the employee. The cost of retaining an
employee in regard to their contribution is evaluated to get the cost of that
employee for the organization. This method of performance appraisal
considers factors like work quality, overhead cost, unit-wise average service
value, interpersonal skills and, so on. The idea is to analyse how the
contributions compare with regard to cost (recruiting, hiring, training and
development) benefit the organization. In this method, the company appraises
employees on the basis of cost to the company and the value they offer.
It is Ideal for start-ups & small businesses where each individual employee’s
contribution holds significance for the company.It is effective to measure the
value an employee brings to the organization. However, the drawback is there
are no certain guidelines to define the cost and value that an employee offers. It
may vary for each evaluator.

6. Psychological Appraisal: This method of appraisal normally consists of in-

depth interviews, psychological tests, discussions with supervisors and a
review of other evaluations. The psychologist then writes about employee’s
intellectual, emotional, motivational and other- related characteristics that
suggest individual potential and may predict future performance. Since the
quality of the appraisal depends largely on the skills of the psychologists,
some employees object to this type of evaluation, especially if cross-cultural
differences exists. This method suits the best for the workforce today.
Employees now are pretty vulnerable and often fall into the pit while
balancing their work and personal life. This method understands that aspect
and allows employees to shine in the future.
 PROBLEMS IN PERFORMANCE APPRAISAL

None of the methods of performance appraisal discussed so far is absolutely valid and
reliable. As we can seen, each method has its own strengths and weaknesses. There are some
problems and issues associated with the formal appraisal methods that make appraisal
ineffective. These problems have been briefly discussed below:

1. Judgement Errors: People commit mistakes while evaluating people and their
performance. Biases and judgement errors of various kinds may spoil the show. Bias
here refers to distortion of a measurement. These are of various types:

• First impressions (primacy effect): The appraiser’s first impression of a candidate

may colour his evaluation of all subsequent behaviour. In the case of negative
primacy effect, the employee may seem to do nothing right; in the case of a
positive primacy effect, the employee can do no wrong (Harris, p.192).

• Halo: The Halo error occurs when one aspect of the subordinate’s performance
affects the rater’s evaluation of other performance dimensions. If a worker has
few absences, his supervisor might give the worker a high rating in all other areas
of work. Similarly, an employee might be rated high on performance simply
because he has a good dress sense and comes to office punctually!

• Horn effect: The rater’s bias is in the other direction, where one negative quality
of the employee is being rated harshly. For example, the ratee rarely smiles, so he
cannot get along with people!

• Leniency: Depending on rater’s own mental make-up at the time of appraisal,

raters may be rated very strictly or very leniently. Appraisers generally find
evaluating others difficult, especially where negative ratings have to be given. A
professor might hesitate to fail a candidate when all other students have cleared
the examination. The leniency error can render an appraisal system ineffective. If
everyone is to be rated high, the system has not done anything to differentiate
among employees.

• Central tendency: An alternative to the leniency effect is the central tendency,

which occurs when appraisers rate all employees as average performers. For
example, a professor, with a view to play it safe, might give a class grades nearly
equal to B, regardless of the differences in individual performance.

• Stereotyping: Stereotyping is a mental picture that an individual holds about a

person because of that person’s sex, age, religion, caste, etc. By generalising
behaviour on the basis of such blurred images, the rater grossly overestimates or
 underestimates a person’s performance. For example, employees from rural areas
might be rated poorly by raters having a sophisticated urban background, if they
view rural background negatively.

• Recency effect: In this case, the rater gives greater weightage to recent
occurrences than earlier performance. For example, an excellent performance that
may be six or seven months old is conveniently forgotten while giving a poor
rating to an employee’s performance which is not so good in recent weeks.
Alternatively, the appraisal process may suffer due to a ‘spill over effect’ which
takes place when past performance influences present ratings.

2. Poor Appraisal Forms: The appraisal process might also be influenced by

the following factors relating to the forms that are used by raters:
• The rating scale may be quite vague and unclear.
• The rating form may ignore important aspects of job performance.
• The rating form may contain additional, irrelevant performance
dimensions.
• The forms may be too long and complex.

3. Lack of Rater Preparedness: The raters may not be adequately trained to

carry out performance management activities. This becomes a serious
limitation when the technical competence of a ratee is going to be evaluated
by a rater who has limited functional specialisation in that area. The raters may
not have sufficient time to carry out appraisals systematically and conduct
thorough feedback sessions. Sometimes the raters may not be competent to do
the evaluations owing to a poor self-image and lack of self-confidence. They
may also get confused when the objectives of appraisal are somewhat vague
and unclear.

4. Ineffective Organisational Policies and Practices: If the sincere appraisal

effort put in by a rater is not suitably rewarded, the motivation to do the job
thoroughly finishes off. Sometimes, low ratings given by raters are viewed
negatively by management – as a sign of failure on the part of rater or as an
indication of employee discontent. So, most employees receive satisfactory
ratings, despite poor performance. Normally, the rater’s immediate supervisor
must approve the ratings. However, in actual practice, this does not happen.
As a result, the rater ‘goes off the hook’ and causes considerable damage to
the rating process.
 PERFORMANCE MANAGEMENT SYSTEM

A performance management system tracks the performance of employees in a manner that is

consistent and measurable. The system relies on a combination of technologies and
methodologies to ensure people across the organization are aligned with – and contributing to
– the strategic objectives of the business.
The system is collaborative, with managers and employees working together to set
expectations, identify employee goals, define performance measurement, share
employee performance reviews and appraisals, and provide feedback.

When properly defined and consistently applied, a performance management

system increases overall workforce productivity. Employees are more invested in
their work and turnover is minimized while revenue per employee is maximized.

Key elements of a Performance Management System:

Performance management software can be implemented on premise, in the cloud, or

within a hybrid environment.
A cloud platform or HR cloud provides a range of benefits including larger data
storage capacities, stronger security, and easier integration with complementary
applications, such as learning and development, compensation, and other people-
centric systems.

A performance management system relies on three key processes:

1. Plan and act with goal management

o Align employee performance to the objectives of the organization.
o Assign work that is meaningful and fulfilling to increase employee
engagement.
o Quickly adapt goals when business priorities shift.
2. Monitor with continuous performance management
o Monitor the goals of each employee to ensure ongoing alignment with
organizational goals.
o Provide feedback and guidance to improve performance.
o Recognize good results as they happen.
3. Evaluate and recognize through performance assessments
o Assess performance consistently and accurately.
o Recognize and reward strong performers.
o Use data-driven insights from the system to quantify the value your workforce
delivers to the business.

Any company with an employee base – regardless of industry or size – will benefit from a
performance management system.
Although every employee will interact with the system at some stage, the power user is the
team leader or manager with direct reports.

Employees work with their managers to define employee goals. They build their individual
employee performance reviews within the system, and participate in 360-degree review
cycles if this model is in use.

HR professionals define the HR processes and systems that support the performance
management cycle. They work with managers and employees to ensure processes are fair and
that each stage is carried out in a timely manner.

Managers are the power users of the system and must ensure every employee actively
participates in the process. Managers are also ultimately responsible for the performance of
their team(s).
 Evolution Of Performance Management System

Businesses have been managing the performance of individuals for centuries. But
one of the first formalized models was introduced during the First and Second World
Wars when the military needed to understand the strengths and capabilities of each
member to inform battle strategies.

By mid-century, performance appraisals were being used by businesses to grade the

performance of individual workers and to assign rewards.

In the 1960s, the focus began to shift to employee development, where discussions
were held between an employee and their manager to review performance and –
where warranted – to institute teaching and training to help the employee improve
and/or advance in their career.

In the intervening years, some aspects of traditional performance management

software have evolved due to better technology, such as cloud computing,
improvements in user interfaces, and artificial intelligence (AI) and machine learning.
However, most systems continue to emphasize employee evaluation and reward on
a quarterly or annual basis.

While recognition remains an important aspect of performance management,

businesses are moving to a more holistic approach, one that provides ongoing
feedback and guidance for employees to help them achieve their goals.
 PMS At Central Bank Of India
Human Resource Management System integration by Central Bank of India helps staff in
regular tracking and other basic employee services. In present days every organization seen
using HRMS services to enhance their service by providing quick support to their staff.
Central Bank of India HRMS portal also referred to as India Cent Swa Darpan HRMS Login.
It’s the name set for the Staff of the Central Bank of India.

The digital system of performance appraisal was introduced in 2019 at the Central Bank of
India. It was developed by the IT department of the organization. This system is meant for
officers and not lower scale employees.

CBI introduced a login portal for the employees of CBI. This portal is known as Cent Swa-
Darpan HRMS. Moreover, this portal allows only members of CBI to log in. The main aim of
this HRMS portal is to enhance productivity along with the work environment.

It involves the automation of various tasks by CBI employees. The Salary Structure, Pay Slip
Generation, Salary Distribution, Recruitment Process, Leaves and other such basic services of
an employee managed through Software. Due to this, it offers great assistance to the members
of CBI who are currently working. This software not only provides convenience to current
staff but to pensioners as well. Besides, it makes it easier for the bank to effectively manage
human resources. It is because it stores complete information of all employees whether
current or pensioners. It has proved an effective solution for employees in the simplification
of difficult tasks. Therefore, it assists in maintaining the confidence level of CBI employees.

Also, making all employees aware of this portal considers one of the crucial HR
responsibilities.

For CBI employees, it is necessary to log in to the portal before using it. Moreover, login
credentials comprise of User ID and password. Login credentials are provided to CBI
employee.

To log in Cent Swa-Darpan HRMS portal, follow the below mentioned

steps:

• Firstly, open the Central Bank of India HRMS website.

• Now provide the User ID and password correctly for
uninterrupted login.
• Finally, click on the “Submit” option to log in to the portal.

Employees can conduct various banking functions in the best manner. Without a doubt, one
can depict productive outcomes using this software.

Cent Swa-Darpan software helps in better human resource management. Undoubtedly, it

assists current as well as former CBI employees. Employee as well as pensioner can use HRMS
Central Bank of India online portal to manage employee self services.
Cent Swa-Darpan Features
Let us have a look at some services going to offer through HRMS Central
Bank of India portal to their staff.

• Service Record Details: Employee details along with service record will be
available in CBI HRMS portal. Their previous designation along with office work
updated here.

• Leave Passbook: Every employee does get a few sick leaves, casual leaves and
personal leaves in their service period. All the details of leaves for an employee
available in this section of Central Bank HRMS.

• PF Summary: Staff can anytime check their individual PF information by

accessing the Central Bank HRMS portal. One click and you will get information about
PF along with premium paid and total amount accumulated.

• Holiday Booking: The Indian Cent Swa-Darpan HRMS Portal gives a separate
link for Holiday booking for staff of Central Bank of India. This is exclusively meant
to book rooms and other services during holiday trip.

• Job information Summary: The information of present designation along with

grade and other basic information seen by Central Bank of India, may update here for
quick view.

• Pay Slip History: The Salary Slip is an important part of an employee and thus by
end of every month the pay of an employee calculated based on leaves taken and
updated in CBI HRMS portal. The pay slip generated with all details and kept
available for your view.

• Tax Estimation Details: The employee salary listed with a sum of taxation on
their total earnings. Here details of taxation along with any exemption if you opted
and uploaded here.

• Leave Request & Approval: Staff can apply for their leaves directly online, and
applied leaves approved or rejected by manager in same portal on same day. There
will be quick processing and updates which will ease your work during salary
generation.
Benefits Of Cent Swa-Darpan

This account makes work so much easier. It is basically designed for the Employees of the
CBI. It is an online web portal installed to ensure the productivity of the employees and
escaping the boring times at office. So it provides many benefits to the Employees. The site
also arranges and automates all the different Employee related tasks and functions for them to
be easy.

The main reason to develop this web portal is to make the Employees job or work much
easier than before as they can see and accordingly figure out how they would manage the
work. With the help of the Human Resources Management solution, it makes it easier to
manage human resources. This online web portal can be accessed by the present as well as
former Employees. The latest work of HRMS is to redirect or automate 30 different type of
processes in the bank. It is very beneficial for the Employees to use it wisely and correctly.

Another reason behind the launch of the software is to make sure that the staff and pensioner
live to become a little more convenient in the office for sure. So, there is no doubt that one
needs to know how to use this in the best way. With the help of the human resource
management solution, it will easier for people to manage human resources.

Hence the confidence of the employees will increase as well. So, this can again prove to be
very helpful to the people for sure.
METHODOLOGY

The research design in my case was exploratory research design, which is also known
Formulative Research Design.

The main purpose of my study was getting the opinion of people regarding the performance
appraisal system and what are the problems which are faced by the appraisees and the
appraisers.

The research design in my study was flexible to provide opportunities for considering
different aspects of the problem under study.

Types of Data collected:

• Primary: First hand information was received from the employees through
questionnaires and personal interviews.

• Secondary: The data from internet was collected to get a better insight and the
company's manual.

Simple Random Sampling: Simple random sampling refers to the sampling technique
in which each and every item of the population is given equal chance of being included in the
sample.

Sample size: The sample size is 30.

 DATA ANALYSIS

1.Gender

INTEEPRETATION: There is not much disparity in terms of the ratio between males and
females in Central Bank of India (RO), Patna. The sample was carefully chosen to ensure that
the study gave an equal opportunity to both the sections to voice their opinion and gain a true
picture of the conclusions derived by the study. The balance of both the genders in the
Organization also gives rise to a good work atmosphere and better understanding between the
employees.

2.Age Group

INTERPRETATION: The above chart is a representation of the employee age data and
clearly shows the dominance of 36-45 year aged employees.

3.How long have you been working in the present organization?

INTEEPRETATION: Most of the employees in the Organization are relatively new because a
majority of them have between one and five years of experience in the Organization. This is
mainly due to the fact that the Organization is in a constant mode of growth and is therefore
recruiting in a big way. The expansion plans are done keeping in mind the proposed growth
in business in the near future.

4. Is award linked with performance appraisal in your organization?

INTERPRETATION: The above chart shows that most of the employees are rewarded for
significant improve in their performance.

5.Are you comfortable in discussing the differences in opinion about your performance with
the appraiser?

INTERPRETATION: The major reason for significant fewer positive rating might be due to
the fact that the respondents did not feel free to express their displeasure, if any. This can be
due to decreased comfort levels with the appraiser. The appraisal system can only be efficient
if it takes into consideration the employee's side of the appraisal. There might be various
aspects that the appraiser might have accidentally overlooked or certain circumstances
misinterpreted which can be clarified if the employee is more open and comfortable with the
employer.

6.What are the performance-linked reward related to PMS in your Organization?

INTERPRETATION: The above chart shows that the employees mostly receive fringe
benefits as their reward and also Incentives for their performance appraisal.

7. What are the areas under Performance Management System that needs improvement?

INTERPRETATION: This question breaks up the different phases of the appraisal system
and tries to come to derive a conclusion as to the areas of improvement in the process of
evaluation. 45 percent of the respondents say that there should be a change in the standars set
for their performance expectations. Lack of role clarity is another aspect that needed review.

8.To what extent, supervisor gives feedback to the employees regarding performance
appraisal?

INTERPRETATION: The data clearly showcases the conduct of supervisors towards their
subordinates which is positive here. However, few of the employees are still not satisfied
with the feedback mechanism.

9.How effective is Performance Management System in improving your overall

performance?
INTERPRETATION: The above chart depicts that majority of the employees do find the
performance management system of much help to their overall performance or growth.

10. What is your satisfaction level with the Performance Management System?

INTERPRETATION: The satisfaction level of the employees with the upgraded appraisal
system is quite satisfactory as can be seen from the data collected. This is a good sign as
increased level of satisfaction is the main emphasis of any appraisal system. However, 25
percent of votes were not in favour which suggests certain improvements required in the
system.

Findings:
1. The gender ratio of the organization is fairly well.
2. Most of the employees are of the age-group 36-45.
3. Majority of the employees have up to 5 years of experience.
4. Employees are rewarded on the basis of their performance.
5. Employees are mostly comfortable in discussing their performance with their
supervisors.
6. Fringe benefits and Incentives are the most common rewards employees are
given according to their performance appraisal.
7. Majority of the employees are unhappy with the standards set or the target
assigned to them. Some of them even complain about role clarity.
8. The organization has a healthy feedback mechanism based on performance
appraisal.
9. A good percentage of employees are contended with performance appraisal
helping in overall improvement of their performance.
 10. A significant percentage of employees show their dissatisfaction with the
current appraisal system.

Suggestions:
• One function of performance appraisal is to help employees develop so they can
contribute more effectively. In order for the employees to develop and learn they need
to know what they need to change, where specifically they have fallen short, and what
they need to do. The organization must work on the effective flow of communication
throughout all the levels of management in the organization, especially between
supervisors and employees.
• Most employees resist being classified at the low end of the scale. Employees who
are low rated are more likely to resist the evaluation of the superior and argue,
claiming that personal bias was involved in the ratings. So, the organization must look
in to the degree of fairness with which the whole appraisal system is operating.

• The implementation of a Performance Appraisal System rests on the shoulders of the

manager and he must ensure that it is done properly. A good manager can make an
average appraisal system work and vice-versa. Thus, the organization must pay
special attention to the managerial efficiency.

• Employees feel dissatisfaction to a certain level with the targets they are assigned.
The supervisor and the employee must come together to discuss the efficiency of the
employee and set the standard on that basis.

• The organization must ensure to enlighten its employees on the benefits of

performance appraisal system which will motivate the employees and reduce their
dissatisfaction with the appraisal system.
 CONCLUSION

After collecting information of Central Bank of India and studying this information I
conclude that this is one of the largest banking service company into the world as well as
India and this company create good relation with their customers.

Central Bank of India has been known for the process being oriented with focus on quality
and cost saving. Central bank of India long term strategy is to create brand image and new
Innovation.

During my internship period, I found that the employees use KPI (key performance indicator)
method to analyze employee’s performance. Most of the employees are well known about the
method but they are not fully satisfied with it. Some of them think that some more necessary
steps in this field will be very helpful for them. So the management need to change the
methods as first as possible. They are happy the way their manager treat them so it seems a
good team bonding. I think if this organization is going like this, very soon they will be
archive all their target goals.

In conclusion a performance appraisal is one of the most important factors in any

organization and also a great tool used to record productivity. Every organization has to have
goals and objectives established and every employee has to be involved in the process. Also
conducting a performance appraisal will improve productivity and also the morale of the
employees. Appraisals are a positive way for a manager to let the employees know how well
they are performing the duties that are assigned to them. Sometimes we get caught up in our
job and do not realize what all the company strives to do for employees. Whether the reward
is a lousy employee dinner and or a simple thank you card, your work is being recognized.
Also, employees should be thankful for any job they may have, because the company did not
have to hire on any means.
 ANNEXURE

QUESTIONNAIRE

1. Gender:

🔲Male

🔲Female

🔲Others:

2. Age Group:

🔲25-35

🔲36-45

🔲46-55

🔲56+

3. How long have you been working in the present organisation?

🔲1-3 years

🔲3-5 years

🔲5-10 years

🔲10 or above
4.Is reward linked with performance appraisal?

🔲Yes

🔲No

5.Are you comfortable in discussing the differences in opinion about your performance with
the appraiser?

🔲Yes

🔲No

6.What are the performance-linked reward related to PMS in your Organization?

🔲Incentives

🔲Promotion with salary increase

🔲Fringe Benefits

🔲Other

7.What are the areas under Performance Management System that needs improvement?

🔲Standards set

🔲Lack of role clarity

🔲Frequency of appraisal

🔲Other
8.To what extent supervisor gives feedback to the employees regarding performance
appraisal?

🔲To a great extent

🔲To a considerable extent

🔲To some extent

🔲To a very little extent

9.How effective is Performance Management System in improving your overall

performance?

🔲Highly Effective

🔲Moderately Effective 000

🔲Ineffective

10.What is your satisfaction level with the Performance Management System?

🔲High

🔲Medium

🔲Low
 BIBLIOGRAPHY

PRIMARY SOURCES
• Survey
• Interviews

SECONDARY SOURCES
Books:

• Drucker, P. F. (1954). Management by objectives and self-control. Practice of

management
• Toppo, L., & Prusty, T. (2012). From performance appraisal to performance
management. Journal of Business and Management.
• Dr. S.S. Khanka, Human Resource Management
• VSP Rao, Human Resource Management

Websites:

• www.bankindia.org
• www.scribd.com
• www.cettest.org