Chapter-1

INTRODUCTION OF THE STUDY

Knowledge present

cannot

be where

perfect

without

application rapidly

in

the

practical only

field.

In

scenario

circumstance

are

changing,

class

room

teaching is not enough, unless exposure to practical dealing .Vocational training has been made all integral part of the management course . I had an opportunity to undergo 4 weeks vocational training in SYNDICATE BANK, BRANCH-SABAIJORE, DEOGHAR, and JHARKHAND. The main coverage of my training and the project report is the study of performance appraisal system. My whole project report is divided in many chapters. I have tried my level best to arrange and write down the report in a good systematical and chronological way with all possible information. Performance appraisal system is very important for every organization. It is done through format, while filling the format is essential that your appraisal should be truthful and fair.

OBJECTIVE OF THE STUDY The objective of the study is to get the practical knowledge of the performance appraisal system. The objective of the study is to get the whole and consistent knowledge about Appraisal system in SYNDICATE BANK. By conducting a survey the ideas and thinking of executive and general staff which Helps in understanding the appraisal system.

SCOPE OF THE STUDY During the study period the main concentration was on the method and application of performance appraisal, which is adopted by SYNDICATE BANK, SABAIJORE. It has also been tried to find out wether these method are effective or not? In this study opinion and suggestion the bank staffs have taken in to consideration. Their feedbacks have also been taken to see about the existing appraisal system.

METHODOLOGY OF THE STUDY Research Tool Questionnaire methodIn this method an attempt was to collect the staff and existing performance system. The questionnaire has been made & its protesting has also been done, So that any collection, if needed can be done. Then only the final questionnaire was carefully prepared and has been made for the BANK staffs.

DATA COLLECTION METHODThe used in the study is random sampling. The select sample of the staffs was 22 out of the54 staffs.

SOURCE OF THE STUDY

The main source of information in the study is as follows: Files and records of personnel department. Interview of the officials and discussion with them. Questionnaire. Magazines and circular by the organization. Observation.

Limitation of the study

All though I tried my best to gather information for preparation of this project report and management of Syndicate bank was kind enough to permit me conduct the study on A brief study of performance appraisal system. During the study some problems likes, with in short span of time it not possible to collect all the Data, opinions and other records have also been experience Secondly many executives were too much busy in their assigned work, so I could not get their full cooperation.

SYNDICATE BANK HEAD OFFICE: MANIPAL-576104

An introduction of the Bank:

Syndicate bank was established in 1925 in Udupi, the abode of Lord Krishna in coastal Karnataka with a capital of Rs.8000/- by three visionaries Sri Upendra Ananth Pai, a businessman, Sri VamanKudva, an engineer and Dr. T M A Pai, a physician who shared a strong commitment to social welfare . Their objective was primarily to extend financial assistance to the local weavers who were crippled by a crisis in the handloom industry through mobilizing small saving from the community. The bank collected as low as 2 annas daily at the doorsteps of the depositors through its Agent under its pigmy deposit scheme started in 1928. The scheme is the banks brand equity today and the bank collects around Rs. 2 crore per day under the scheme. The progress of Syndicate bank has been synonymous with the phase of progressive banking in India. Spanning over 80 years of pioneering expertise, the bank has created for itself a solid customer base comprising customer of two or three generations. Being firmly rooted in rural India and understanding the grassroots realities, the banks perception had vision of future India. It has been propagating innovations in banking and also has been receptive to new ideas, without however getting uprooted from its distinctive socio-economic and cultural ethos. Its philosophy of growth mutual sustenance of both the bank and the people has paid rich dividends. The bank has been operating as a catalyst of development across the country with particular reference to the common man at the individual level and in rural/ semi urban centers at the area level. The Bank is well equipment to meet the challenges of the 21st century in the area of information technology, Knowledge and competition. A comprehensive IT plan is being put in place and the skill and knowledge of the Banks personnel are being upgraded through a variety of training programmers to promote customer delight in every sphere of its activity. The bank has launched an ambitious technology plan called Centralized Banking solution where 500 of our strategic branches with their ATMs are being networked nationwide over a 4- year period.

MISSION OF SYNDICATE BANK The Mission articulated for the functional area of the Bank is highlighted below:
Resources: To achieve global deposits of Rs. 76 thousand crore by March 2007 with emphasis on low-cost resources by planned strategic initiatives including branch expansion, aggressive marketing and active involvement of each and every employee of the bank. Advances: To build a qualitative asset base of around Rs.51 thousand crore by March 2007 to augment the Income portfolio of the bank. Business: To achieve global business of Rs.127 thousand crore by March 2007 and attain Rs.240thousand crore by 2010 Profitability: To make every branch a profit center to earn a net profit of maximum Rs.one thousand crore by March 2007 and ensure best possible return to the stake holders value. Human Resource & Organization Structure: To mould and strengthen the organizational structure to meet the future business requirements and challenges. To redefine and redevelop peoples management techniques so as to unleash human potential, drive growth and nature leadership of high quality corporate governance. Customer Relationship Management: To fine tune our marketing strategies to meet the ever growing market demands, to ensure that our product and services adapt to the changing needs and expectation of the customer, to provide the customer the ideal banking ambience, to reorient our publicity so as to provide increasing visibility to our Brand, to get our branches/officesISO9000 complaint. Risk Management: To continuously upgrade the risk management systems & processes, imbibe risk management in business activities and implement base1 11 requirements for the benefit of all stakeholders. Information Technology: To bring minimum of 80%of the banks business under centralized core banking network by March 2007 spanning minimum of 1500 branches across the country, supplemented by additional delivery channels with 800 ATMs, backed by a comprehensive fail safe business continuity plan.

Forex and treasury: To profitably manage the forex and investment assets of the bank to achieve a dealing room turnover of Rs.535 thousand crore by March 2007 and a net profit exceeding Rs.105 crore. Para Banking: To achieve insurance premium collection of nearly Rs.180 crore with a commission income of Rs.20 crore, a credit card base of 1 lakh that brings in net earnings of a minimum of Rs. 3.50 crore and a debit card base of 15 lakh fetching a net revenue of Rs.25 crore. Inspection: To migrate progressively from the present transaction oriented inspection system to a risk based audit exercise enhancing the effectiveness of risk management, control and governance processes.

SYNDICATE BANK

Organizational Structure
Bard of directors Chairman & Managing Directors Executive Director General Manager Portfolios . 1. Planning &Dev department 2. Central account & legal dept 3. Personnel department 4. Inspection department 5. Vigilance department 6. Credit department 7. Recoveries department 8. Dept. of Information technology 9. Treasury & International banking Divn. 10. Risk management & Monitoring Dept. 11. Priority sector credit dept

GM Offices/ Regional Offices- 35

Branches- 2014

Pay scale structure of Syndicate bank employee and worker

Government and Bank employees Association has agreed on revised of pay scale on base of 6th pay commission report recommendation. A bank employee has agreed on 17.5% increment of their pay scale. Here is a detail of new pay scale of each grade of bank employees.

Class

Present Pay Scale New Pay Scale 31278-45707 24064-31278 11750-26790 5181-19469 4770-10786

High Class Officer 26620-38900 Class 1 Officer Class 2 Officer Assistant Grade D Group 20480-26620 10000-22800 4410-16570 4060-9180

PERFORMANCE FOR THE PERIOD ENDED 31ST March 2010

Syndicate Bank recorded 18% increase in its operating profit for the 4th quarter ended March 2010. The operating profit was Rs. 552 crore for the Q4 as against Rs. 466 crore recorded during the corresponding period of the previous year. Net Interest income increased by 57% to Rs. 681 crore for the quarter ended March 2010 from Rs. 547 crore for the quarter ended March 2009. However, the net profit for Q4 at Rs. 168 crore, was lower mainly due to higher provision towards wage arrears, taxes etc. The provision made towards taxes during the quarter at Rs. 121 crore is substantially higher than Rs. 27 crore provided during the corresponding quarter in the previous year. Similarly, provision of Rs. 34 crore towards arrears of wages during the quarter is much higher than Rs. 15 crore provided in the Q4 of previous year. The operating profit for the year ended March 2010 increased to Rs. 1873 crore with an increase of 12% over Rs. 1671 crore as at March 2009. The net Interest Income for 2009-10 increased to Rs. 2740 crore from Rs. 2548 crore in the previous year. The net profit for the year4 however, was lower at 813 crore as compared to Rs. 913 crore last year (2008-09). This was mainly due to the higher provisions towards taxes at 361 crore as against Rs. 112 crore in the previous year and wage arrears at Rs. 220 as against Rs. 75 crore in the previous year. The Global Business of the Bank crossed the milestone of Rs. 2,00,000 crore and stood at Rs. 2,08,820 crore as on 31.03.2010. Global Deposit reached Rs. 1,17,037 crore and advances increased to Rs.89,905 crore as on 31.03.2010. The bank shed around 40% of its high cost bulk deposits amounting to Rs. 7874 crore during its share of CASA to domestic deposits during the year to 32.86% from 28.89% on Mar 09.

The Banks thrust on priority sector including leading to agriculture sector continued and the outstanding amount under priority sector increased to Rs. 32713 crore from Rs. 27364 crore as on 31st March 2009, achieving a growth of 19.55% and constituted 45.88% of Adjusted Net Bank credit Agriculture advances increased to Rs. 13135 crore from Rs. 10769 as on March 2009, registering a growth of 21.97% and constituted 18.42% of Adjusted Net credit. The banks focus on MSME credit resulted in 22% y-o-y growth in this sector with outstanding amount increased to Rs. 9741 crore during the year Rs. 7978 crore as on 31st March 2009. The Bank focused on infrasture lending and the years on year growth under infrasture sector were Rs.11393 crore. Extending Education loans was one of the priority areas under retail sector and the Bank recorded 24.18% growth under education loans was Rs.1460 crore during the year. Due to recessionary conditions and consequential stress on the assets, the percentage of Gross & Net NPAs of the Bank increased marginally to 2.19% and 1.07% respectively in 2009-10 as compared to 1.935 and 0.77% in 2008-2009. However, the NPA provision coverage Ratio is 73.3 which is higher than the mandatory coverage ratio of 70% The bank opened 82 branches during the year 2009-10. Most of the new branches opened during the year either in tier 3 to 6 centre or in under banked districts, thus making the banking facilities available to the financially excluded sector. All the 2307 branches of the Bank spread along the length & breath of the country are networked under core banking solution (cbs). The bank also has overseas branches at Londan. The Bank opened 3 new Regional offices at Guwahati, Moradabad and jaipur to provide better services to its clients. The total Regional offices have increased to 38.

Different Product and Services offered by the Bank

Counter service
All branches display time norms indicative of all maximum timings requires for extending various under normal circumstances. In case of delay, the bank may bring the matter to the notice of the branches head or to the Appellate Authority seeking remedy.

TELLER FACILITY: Teller facility is introduce in all Totally Computerized and CBS branches to reduce the transactions time in cash withdrawal and case deposits up to certain monetary ceiling. Under this single window concept the withdrawal slip or cheque of amount up to the prescribed ceiling may be tendered to the teller directly to obtain the cash thus reducing the transaction or waiting time. In CBS branches services from the front line officers are made available.

DEMAND DEPOSITS: Current Accounts and Savings Accounts are categorized as demand deposits and prescribed minimum balance is required to be maintained in these accounts to enable servicing of such accounts. Non-maintenance of minimum balance will attract charges as prescribed by the bank from time to time. The prescribed minimum balance requirement is provided hereunder. At CBS branches the minimum monthly average balance is prescribed in place of minimum balance.

CATEGORY Branches Current Account Individuals Others Saving Accounts With Cheque book Without Cheque book For Pensioners

Rural/ Semi-urban

Urban/ Metropolitan

CBS

1000/2000/-

2000/3000/-

10000/10000/-

500/100/5/-

500/250/5/-

2000/2000/250/-

TERM DEPOSITS Under these deposit schemes depositors can opt payment of interest either at maturity or at periodical intervals. Fixed Deposits, Social security deposits, senior citizen security deposits are schemes offering periodical interest payments. In respect of suvidha deposit part withdrawals of principal amount is also allowed without penalty. The interest is compounded quarterly in V IKAS Cash Certificate and payable along with principal at maturity.

LOANS AND ADVANCES: The Bank has carefully designed the loan schemes to meet divergent financial needs of various segments of society and there payment schedules are tailored to suit their income streams. Personal Banking Loan Schemes viz. SyndSaral,SyndSuvidha, SyndVahan, SyndKisan, SyndMortgage aim to fulfill the individual financial needs like purchase of consumer durables, Vehicles or any other genuine credit requirements. The students pursuing higher education are provided credit under our SyndVidya scheme. The agriculturists, professionals, salaried class, executives, traders, pensioners, defence personnel, industrialists can meet their financial needs through various credit schemes of the bank.SyndNivas meets the aspirations of the public to own a house loan products are designed to provide credit against security of gold ornaments,NSC, KVP, LIC policies goi bonds, share of public listed companies, units of UTI and against rents receivable etc. also The temporary financial needs of pensioners and people drawing, salary though our branches are met though SyndOverline and temporary overdrafts in SB accounts.

SYNDICATE BANK GLOBAL DEBIT / ATM CARD & GLOBAL CREDIT CARD:

The Bank is offering global debit cum ATM card to the account holders of CBS branches to facilitate withdrawal of cash not only at our banks ATM but also other banks ATM which accept VISA cards. The debit card can be used for purchases at any merchant establishment who accept VISA cards. The bank has become a member of Cash tree to facilitate the account holders to withdraw cash and make balance enquiries with other member banks ATM at nominal charges. The bank is also offering Syndicate Bank global credit card with features like minimum payable amount and lower interest rates.

Synd Bill Pay: A hassle free utility payment product wherein utility bills can be paid by
the Bank. The modes of payment by registering with the bank all for no charges

A. Autopay- Where the bank pays the bill on date B. On line pay- Where you can view the bills that are due and authorize payment on line

On Line Railway Ticket Booking:

The bank has joined hands with Indian Railway Catering & Tourism Corporation Ltd to offer online booking of railway tickets for all inter customers of our bank. This facility is offered to the customers at free of cost.

GIFT CHEQUES:
The bank sells through 785 designated branches/ extension counter gift cheques at par in denomination of Rs. 51, 101 and 501.

REMITTANCES/ TRANSFER OF FUNDS:

The public can purchase Demand Drafts, pay orders or remit money through mail transfer, telegraphic transfer on other on other branches of the bank by paying the prescribed charges. The bank also important electronic fund transfer, special electronic fund transfer, electronic clearing scheme in the designated centre. The bank has also tied up for western union money transfers.

COLLECTION OF CHEQUES/ BILLS:

The public can collect the local or outstation cheques/ bills drawn on our branches of other banks through all our branches subject to payment of prevent charges. The bank is offering cash management service enabling speedy collection of receivables of corporate at select branches. The discounting of cheques bills is also considered at the request of the customer based on the conduct of their accounts.

SAFE DEPOSIT LOCKRS:

The bank offers the facility of safe deposit to the public for safe keeping of the valuables/ articles and the locker rent depends on the size of the lockers.

SAFE CUSTODY SERVICE:

The banks accept for safe keeping important document like deposit receipts, share certificate security will and sealed covers etc. Subject to prevalent guidelines at its branches for a nominal fee .The customer may also utilize the facility for collection of interest on such securities kept in safe custody with the bank at the prescribed charges.

FOREIGN EXCHANGE TRANSACTIONS: Some of the additional service

offered at these designated branches. To enable faster remittance facility to the NRI customers of exchange companies manage by our bank Syndicate-e-Remit, Syndicate-eDraft, MT Scheme are implemented.

Customer Care
The bank is committed to transparency and customer friendly approach in its dealing with the public.

May I Help You Counter: May I help you counters are provided at select branches
assistance to the customer in carrying out various banking transactions and to provide the necessary information on the banks products and services.

Immediate Credit of Outstanding/ Local Cheques: The bank extends immediate

credit to the account of the account of the customer for the local/ outstation cheques up to Rs. 15,000/- on payment of normal collection charge after satisfying about the proper conduct of the account
.

Complaint/ Suggestion Box: A complaint/ suggestion box is installed at prominent

place in the branches counter for the convenience of the public for making suggestion or for lodging complaint or for outlining the perceived deficiencies. The will be opened every day and the suggestions/ complaint will receive immediate attention by the bank officials.

Toll Tree Voice Mail System:

The voice mail system is functioning as an intermediately to improve the comfort level of the customer with our bank. This system provides our customer a unique way of reaching the concerned officials of the bank to indicate to the either of their suggestion, feedback, complaints, grievances.

Toll Free Voice Mail Number is 1800 425 66 55. The customer can dial the toll free
number and voice out their complaint, grievances, suggestion. Their message will get recorded. This suggestion, feedback grievances received thro this voice mail system is being sorted out within next 48 hours.

24 Hours Interactive Help Line FOR Credit Card and Debit Card:

We have 24 hours toll free interactive help line numbers 1600 22 5092 exclusively for credit card for hot listing the card reported to be lost and all queries regarding their credit card account, billing and balance. Another 24 hour helps line number 080-22357440 is available exclusively for hot listing the debit card.

Redressal of Grievances:
The bank has constitute customer grievances redressal cells at all regional offices, general managers office and at corporate office Bangalore to ensure prompt redress of customer complaints. The cells besides reviewing the grievances of the constitute, also implement of the betterment of the customer service in the operational area.

Banks web site

The bank display up to date information on its branches, product, services and interest rates etc. on its web site http:// www. Syndicate bank.com. The information covers both domestic and NRI products and services. The web site also hosts banks information of public interest like banks model policy of deposits, banks fair practice code etc. The update financial information related to the bank is also displayed on the web site.

Para banking facilities of Syndicate bank

1. Syndicate bank global debit card

Carry your bank with you. A convenient e-wallet valid in India and abroad with VISA power. Brings you the convenience of accessing your money any time and from anywhere across the world. Over 16,000 ATMs in India and over 10,00,000 ATMs across the global with VISA logo would honour the card round the clock for cash withdrawal and balance enquiry. 24 Hrs access to withdraw cash from all ATMs of Syndicate bank and all ATMs displaying cash tree logo in India. Enables shopping, dining and purchases at over 1,88,000 Merchant

Establishments in India and over 24 million MEs across the globe displaying VISA logo. Transact in any currency anywhere, but pay in India Rupees (INR), No admission fee and no annual fee presently. No transaction fee at all Syndicate bank ATMs.

Syndicate bank global credit cards

Offers extra power in your purse. It is photo / signature card that provides additional security and recognition for you. Have the power for making payment with your card at mere than 1,88,000 Merchant Establishment in India and over 24 Million MEs across the global where VISA cards are accepted. Have the privilege to access, round the clock, over 16000 ATMs in India and over 10,00,000 ATMs across the global displaying VISA logo.

Have access to withdraw cash at all ATMs of Syndicate bank and at all ATMs displaying cash tree logo in India round the clock. Minimum income requirement for issue of credit card is Rs. 60000/- p.a. Free credit period of minimum 20 days and maximum 50 days. Flexible option to pay a minimum of 10% of the outstanding amount every month on due date to avail revolving credit facility that helps you to optimize your resources.

Avail 15% of credit limit as credit limit under classic credit card and 25% of card limit as cash limit under gold credit card. FREE Personal Accident Insurance cover of Rs. 2.00 lakhs for classic card holders available including Add-on cardholders. FREE Personal Accident Insurance cover of Rs. 5.00 lakhs for gold card holders available including Add-on cardholders. Limited Lost Card liability of Rs.1000/-. Facility of Add-on cards.

2. Banc assurance:
Bank as a one stop financial shop to enhance satisfaction is distributing life and non-life insurance products.

Life Insurance Products:

Bank has tried up with M/s. Bajaj Allianz life insurance CO. Ltd. for distribution of their life insurance products. It offers a range of products as follows, at competitive premium.

Saving life cover Risk cover Loan cover Long term investment

Non Life Insurance Products:

To consolidate the business under banc assurance scheme and to provide additional products to the customer, bank has entered into distribution of non-life insurance product by tying up with M/s. United India Insurance Co. Ltd. Bank has obtained IRDA License to act as corporate insurance agent of united India insurance Co. Ltd. A package policy is devised covering the assets against fire and allied perils covering lighting. Explosion/ implosion, aircraft damage, etc. Riot, Strike, Malicious and Terrorism damages are covered at extra premium. The person against death or injoury arising out of accident.

Asset quality
The strategies adopted by the bank in managing nonperforming assets have paid rich dividends.Net NPA declined below the 1%maek going down from Rs. 426 crore to Rs. 313 crore, i.e. from 1.59% to 0.86%. Provision coverage was further strengthened from 67.25% to 76.77%. As announced by the Honble finance minister, the bank has implemented one time settlement scheme for small and medium enterprise accounts as communicated by reserve bank of India. Bank has also put in palace a special OTS scheme for NPAs in smaller accounts up ro 25,000/-to extend an opportunity to settle their dues. The bank id utilizing the securitization and reconstruction of financial assets and enforcement of security interest Act-2002 as an effective tool for recovery of non-performing assets.4430 notices were issued under the Act and bank could recover Rs. 187.32 crore in 2797 accounts.

Treasury Operations:
The banks net domestic investments decreased by 15.64% from Rs. 20296.91 crore as on 31.03.2005 to Rs. 17122.92 crore as on 31.03.2006. This was primarily due to the conscious decision to shed excess SLR securities and revamp the portfolio to free resources for credit growth. The bank could earn a trading profit of securities other than share of Rs.38.75 crore deposit adverse market condition during the previous year. The bank has strengthened the equity desk and has taken advantage of the buoyant equity market. The bank earned a profit of Rs.61.59 crore in equity trading, as against Rs.45.03 crore in the previous year.

National Priorities:
The bank has maintained its excellent track recode of pre-eminenc in social lending, which it views as a major business opportunity. The priority sector advances of the bank reached a level of Rs.14626.62 crore constituting 44.87% of Net bank credit card and where well above the Mandatory target of 40%. Adequate care has been taken to ensure that the credit needs of the weak and under privileged section such as SC/ST, minority communities and women are fully met.

Rural development initiative:

The bank has been in the forefront in promoting adoption of new technology in the field of agricultural for improving farm productivity and efficiency. As many as 950 rural extensions education programmes were organized by the branches during the year. Syndicate rural development trust was established to promote rural development by fostering rural development by fostering rural entrepreneurship and promoting micro credit as the means of helping the rural Poor, especially women. During the year 214 training programmes were organized benefiting 7272 persons of whom 3933 were women through eight Syndicate institutes of rural entrepreneurship development. The bank, in associations with Canara Bank and Sri Dharmasthala Manjunatheswara educational trust, has sponsored 20 rural development and self-employment training institutes across the country.

Community Concern:
The bank effectiveness participated in implementing government sponsored poverty alleviation and employment generation schemes and organized training programmes for skill development through Syndicate institute of rural entrepreneurship development and rural development self employment training institute. The total credit disbursed under these schemes namely PMRY, SGGSY, SJSRY, and SLRS amounted to Rs.74.10 crore benefiting 13915 persons during the year. Aiming at harnessing solar energy, bank has taken up a project for financing solar home lighting system in Karnataka state with interest subsidy support from United Nations environment programme. The bank financed 2f097 solar water heating system and 669solar home lighting system during the year . The credit support given by the bank during the year for popularizing solar application amounted to Rs.6.65 crore.

Information Technology:
It policy and strategies adopted by the bank aim at achieving operational efficiency. Enhancing customer satisfaction and meeting the market expectations. Bank continues to induct technology to deliver sophisticated product that continuously raise the standards of customer service .The bank is the first among the public sector banks to implement core baking solution .During the year, the bank has further consolidated implementation of CBS by networking 529 branches spread across over 212 centers covering over 60% of the banks business. During the ensuring fiscal the bank has plans to extend CBS to an additional 1000 branches, thereby taking the total number of branches covered under CBS to over 1500 encompassing 80% of the banks business.The CBS project has enabled the bank to deliver banking products and services over multiple delivery channels like network ATMs, Tele banking and internet banking etc. So as to provide Anywhere anytime anyhow banking service to customers.

HUMAN RESOURCE MANAGEMENT:

The HR policy has been geared to meet the corporate objective of accelerate and profitable growth. This includes campus and direct recruitment for replenishing skilled manpower in Agricultural Finance, Information technology, Accounts and Financial management, Internati business, Credit, Marketing, Risk management etc. As always the industrial Relations in the Bank have been harmonious and cordial.

NEW PRODUCTS AND SERVICE:

As part of its innovative strategies in product development process, Bank has constantly reviewed and redefined many of its products to meet ever-changing needs and expectations of the customers. During the year 2005-06 Loan Bank has redefined several exiting Loan

products,namelySyndNivas(Housing

Scheme),

SyndVidya

(Education

System),SyndSwarna(JewelLoanSystem),SyndAgro (mediclaim cum personal accident cover Product).

DIVIDEND:
The board of directors of the bank has declared an interim dividend of 15% during February2006 and proposed a final dividend of 10% aggregating to a total dividend of 25% for the Year 2005-2006. The total dividend payment amount to Rs. 148.79 crore (including interim dividend).

RISK MANAGEMENT:
The bank views risk management as integral to its business for creating and maintaining best Practices in business operations and administration. The banks objectives and strategies for Risk management are designed to complement the organizations vision and goals. The primary Aim of the risk strategy is to maintain the quality of the Assets, while ensuring continuous Profitability.

BASE II COMPLIANCE:
.The bank considers base I as a business imperative and not as a compliance issue. The bank has already initiated steps to implement the Standardized Approach for credit risk and basic indicator approach for operational risk by March 2007.The bank is planning to adopt best International practices in credit risk management and Basel II implementation by outsourcing end to end solution viz., on-line appraisal system, risk assessment, risk inputs estimates, capital computation and RAROC framework. The bank is also in process implement operational risk management.

NEW INITATIVES:
In its continuous quest for new financial partners, Bank has tied up with National Exchange Company of Kuwait and Zenj Exchange Company of Bahrain, two popular money transferring outfits for remittances. Bank signed MOU with SMERA (Small &Medium Enterprises Rating Agency of India Ltd.) to create a platform for banks SME clients to get themselves rated and gain concession in interest rates. Bank entered into a MOU with M/s CMC Ltd with the aim of making Syndicate Institute Of bank management, the Apex training institute of the bank, a center of excellence of global standard. Under the tie-up arrangements, the bank will make available the infrastructure, including faculty support, at SIBM and other Trading Centers and M/s CMC will provide its expertise in course design and training content, developing appropriate learning aids, including software and generate demand for training from external sources.

CORPORATE GOVERNANCE:
The bank has adopted a highly effective system of corporate governance to ensure continued Growth of shareholder value keeping in view the interests of all stokeholds. The system Permits adequate autonomy to the board of directors and the top management to take decision that can further the progress of the bank within the framework of regulatory prescriptions, corporate goals and social responsibility. The audit committee of the board oversees the quality of the internal audit systems and monitoring mechanism apart from reviewing the

financial accounts. The bank has been actively promoting greater transparency as a part of its measures through wider disclosure of information that reflects the quality of governance.

Awards Won by the Bank over the Years:

1972 INDIAN MERCHANTS' CHAMBER AWARD for outstanding contributions towards

welfare of community
1974 INDIAN MERCHANTS CHAMBER AWARD for outstanding contribution in

promotion of savings
1975 FICCI AWARD For outstanding achievements in agriculture 1975 LAGHU UDYOG SAHAKARI AWARD by the national alliance of young

entrepreneurs for bank's significant contributions to the development of small scale industries and assistance to the young entrepreneurs through self employment clinics
1975 INTERNATIONAL AWARD by JAYCEE INTERNATIONAL for self employment 1975 FICCI AWARD in recognition of corporate initiative in industrial relations 1975 CERTIFICATE OF MERIT for Bank's house journal "GIANT" 1976 INTERNATIONAL AWARD by JAYCEE international for outstanding contribution to

the cause of the JAYCEE movement

1977 ASSOCHAM AWARD for promotion of rural and agricultural activities of Syndicate

Agriculture Foundation sponsored by the bank

1978 INDIAN MERCHANTS CHAMBER AWARD for outstanding contribution towards

welfare of the community

1978 NATIONAL TROPHY For outstanding export performance

1981 NATIONAL INVESTMENT AND FINANCE AWARD for Priority Sector lending. 1990 CHAUDHARI CHARAN SINGH MEMORIAL NATIONAL AWARD for Rural

Development
1999 FICCI AWARD for institutional initiative in the field of "Rural Development" to

RUDSETI jointly sponsored by Syndicate Bank 2001 Banking Technology Award for innovative use of Banking Applications on INFINET awarded by IDRBT, Hyderabad 2003 Banking Technology Award conferred on Syndicate Bank by IDRBT, Hyderabad for 2003 2006 "Special Award for Use of IT for Customer Service in Semi-Urban and Rural Areas", conferred by IDRBT, Hyderabad for 2006 2006 Best Core Banking Project Award for Large Banks in 2006 awarded by The Asian Banker 2009 Best Performer award by NABARD for Highest Average Loan Size under SHG -Bank linkage programme among commercial banks operating in Karnataka.

Memorable Milestones in a 82- Year Journey:

1925 On 10.11.1925, the business of the Bank commenced in Udupi with the name "Canara

Industrial and Banking Syndicate Ltd.," a joint Stock Company with just one employee.
1928 First branch of the Bank opened at Brahmavar in Dakshina Kannada District 1937 Bank became a member of the Clearing House for the first time at Bombay. 1946 29 branches opened in a single day in rural areas. 1953 Took over the assets and liabilities of 2 Local Banks viz. Maharashtra Apex Bank Ltd.

and Southern India Apex Bank Ltd. 20 Banks merged with the Bank during the period

1953-1964.
1957 100th branch opened at Ilkal in Karnataka 1962 Entered Foreign Exchange business by opening Foreign Exchange Department at

Bombay.
1963 Name of the Bank changed from "Canara Industrial & Banking Syndicate Ltd." To

"Syndicate Bank Limited". Head Office was shifted to Manipal on 19.4.1964.

1966 Economic Research Department set up. One of the first few Banks to emphasize on

research in Banking even before nationalization.

1969 Bank had 306 branches at the time of nationalization of which 66% were in Rural and

Semi Urban centre. Opened a branch at Port Blair in Andaman and Nicobar islands
1970 First Staff Training College started at Head Office 1971 First specialized branch in Foreign Exchange opened at Delhi. 1972 Opened a branch at Lakshadweep islands 1976 First overseas branch opened at London on 17.8.76. 1983 Took up management of Al Shabei Finance and Exchange Co. in Doha 1984 Took up management of Musandam Exchange Co. in Muscat 1984 1000th branch opened at Delhi Hauz Khas 1989 1500th branch opened at Kanakumbi 1991 First Specialized Industrial Finance Branch opened at Mumbai. 1995 First Specialized Housing Finance Branch opened at Mangalore 1999 Bank raised Capital of Rs.125 Crore in Oct.1999 from more than 4 lakh shareholders 2000 First Specialized Capital Market Services branch opened at Mumbai

2001 First branch under CBS (Core Banking Solution) started operation at Bangalore. 2002 Centralised Banking Solution under the brand name "Syndicate-e-banking" launched at

Delhi, Mumbai, Bangalore and Manipal.

2003 Bank enters into MOU with Bajaj Allianz for distribution of Life Insurance products. 2003 Toll Free Voice Mail System for redressal of grievances introduced. 2004 Bank ties up with United India Insurance Co. Ltd. for distribution of Non-Life

Insurance products
2004 Utility bill payment services through Internet banking introduced. 2005 Introduced On-line reservation of Railway Tickets through Indian Railway Catering &

Tourism Corporation Ltd. (IRCTC) for Internet banking customers of our Bank.
2005 Bank approached the Capital Market with Rs.5 Crore equity shares at a premium of

Rs.40 through Book building route Bank collected Rs.250 Crore and the issue was oversubscribed by 29.275 times.
2005 Amalgamation of 4 Regional Rural Banks of Karnataka to form Karnataka Vikas

Grameena Bank with Head Office at Dharwad.

2005 Implementation of Venture Capital Scheme of SMALL FARMERS AGRI-BUSINESS

CONSORTIUM (SFAC) Entered into MOU with SFAC for promoting of investments in Agri-business products.
2006 Bank signs MOU with M/s.CMC Ltd., for making Syndicate Institute of Bank

Management (SIBM) a center of excellence of global standards and provide quality management education.
2006 500th Branch of Syndicate Bank in Karnataka opened at Navnagar, Bagalkot. 2006 2000th Branch of Syndicate Bank opened at Tondiarpet, Chennai on 23.03.2006. 2006 Inauguration of Sandbank Services Limited, the 1st BPO outfit of a Nationalized Bank,

a wholly owned subsidiary of Syndicate Bank & 525th CBS Branch by Hon'ble Union

Minister of Finance, Sri P Chidambaram on 24.03.2006 at Bangalore.

2006 2006th Branch of Syndicate Bank opened at Gangtok, Sikkim on 27.03.2006 2006 First Branch opened in Arunachal Pradesh at Ita Nagar on 16th October 2006 2006 Branches opened for the first time in 19 additional districts

2007 First Branch opened in Nagaland at Dimapur on 17.03.2007 2007 First Branch opened in Mizoram in Aizawl on 29.03.2007 2007 Branches opened for the first time in 13 additional districts 2008 First Branch opened in Tripura at Agarthala on 11.01.2008 2008 Branch network expanded to all States and UTs except Manipur & Daman Diu 2008 Branches opened for the first time in 6 new districts

PIONEER IN RURAL DEVELOPMENT 1926 Established in a rural milieu to financially assist handloom weavers 1964 First Bank to venture into agricultural financing when the Banking system considered it risky and unconventional. 1966 Promoted Syndicate Agriculture Foundation - a voluntary organization of farmers - to disseminate scientific farming techniques. 1967 Agri Card - a ready credit facility for farmers - launched. 1973 Bio Gas finance scheme introduced in collaboration with Khadi and Village Industries Commission to popularize non conventional source of energy. Farm Clinics established. 1974 Syndicate Farmers' Service Society was organized by the Bank in Hiriadka in South Kanara based on the recommendations of the National Commission on Agriculture. 1975 Sponsored the country's first Regional Rural Bank - Prathama Bank opened on 2.10.1975 - in Moradabad in U.P. Bank has so far sponsored 10 such RRBs which are all profit making and act as trend setters in energizing the rural economy. After amalgamation there are now 5 Grameena Banks in 5 states, covering 30 districts 1982 Jointly sponsored the first RUDSETI (Rural Development and Self Employment Training Institute) at Ujire in Dakshina Kannada (Karnataka). There are 23 such Institutes in 14 States today providing free entrepreneurship training to unemployed youth. Intensive Rural Development branches established. 1989 Bank adopted Service Area Villages to bring about around development. 1998 Kisan Credit Card launched 2000 In commemoration of Platinum Jubilee, Syndicate Rural Development Trust established (to mark the Platinum Jubilee of the Bank) for pursuing rural development initiatives with initial corpus of Rs. 50 lacs. Opened 8 Rural Entrepreneurship Development Institutes at Manipal, Kumta, Bellary, Belgaum, Moradabad, Kadapa, Kurnool and Kollam. Scheme for financing Solar Water Heating system Launched. 2001 Syndicate Laghu Udyami Credit Card launched. 2003 SSCC: Sind Swarozgar Credit Card- A new product for financing Small Artisans, Handloom weavers, Fisherman, Service sector, Self employed persons, Rickshaw owners and other Micro entrepreneurs to meet working capital or block capital or both

and also consumption needs has been launched. 2004 SKSCC: Syndicate Kissan Samrudhi Credit Card- A new product launched for meeting production and investment credit needs of farmers for agriculture & allied activities and also to meet their consumption requirements. 2005 Scheme for financing Commercial Horticulture Projects under the schemes of National Horticulture Board has been launched to encourage farmers to go in for diversification in agriculture essential for increasing their income level.

Scheme for financing SC/STs for rainwater harvesting has been launched. 2006 Syndicate General purpose Credit Card launched.

Scheme for financing tenant farmers: Two separate schemes have been launched to provide need based credit to tenant farmers through Joint Liability Group (JLG) approach as well as individual approach. 2007 "SyndSmallCredit"- an innovative scheme with doorstep banking facility to provide need-based credit to entrepreneurs of small means. The product part of financial inclusion, by bringing all eligible entrepreneurs into bank's fold.

"Financial Inclusion:" Launched a campaign to achieve 100% financial inclusion. A booklet containing comprehensive guidelines to augment the process of total financial inclusion released.

"Water Conservation initiatives:" To promote Water Management and conservation measures among the villagers, Bank started initiatives for clearing and cleaning of village ponds in the selected service area villages.

TECHONOLOGY INITIATIVES 1926 Established in a rural milieu to financially assist handloom weavers 1964 First Bank to venture into agricultural financing when the Banking system considered it risky and unconventional. 1966 Promoted Syndicate Agriculture Foundation - a voluntary organization of farmers - to disseminate scientific farming techniques. 1967 Agri Card - a ready credit facility for farmers - launched. 1973 Bio Gas finance scheme introduced in collaboration with Khadi and Village Industries Commission to popularize non conventional source of energy. Farm Clinics established. 1974 Syndicate Farmers' Service Society was organised by the Bank in Hiriadka in South Kanara based on the recommendations of the National Commission on Agriculture. 1975 Sponsored the country's first Regional Rural Bank - Prathama Bank opened on 2.10.1975 - in Moradabad in U.P. Bank has so far sponsored 10 such RRBs which are all profit making and act as trend setters in energising the rural economy. After amalgamation there are now 5 Grameena Banks in 5 states, covering 30 districts 1982 Jointly sponsored the first RUDSETI (Rural Development and Self Employment Training Institute) at Ujire in Dakshina Kannada (Karnataka). There are 23 such Institutes in 14 States today providing free entrepreneurship training to unemployed youth. Intensive Rural Development branches established. 1989 Bank adopted Service Area Villages to bring about around development. 1998 Kisan Credit Card launched 2000 In commemoration of Platinum Jubilee, Syndicate Rural Development Trust established (to mark the Platinum Jubilee of the Bank) for pursuing rural development initiatives with initial corpus of Rs. 50 lacs. Opened 8 Rural Entrepreneurship Development Institutes at Manipal, Kumta, Bellary, Belgaum, Moradabad, Kadapa, Kurnool and Kollam. Scheme for financing Solar Water Heating system Launched. 2001 Syndicate Laghu Udyami Credit Card launched. 2003 SSCC: Synd Swarozgar Credit Card- A new product for financing Small Artisans, Handloom weavers, Fisherman, Service sector, Self employed persons, Rickshaw owners and other Micro entrepreneurs to meet working capital or block capital or both

and also consumption needs has been launched. 2004 SKSCC: Syndicate Kissan Samrudhi Credit Card- A new product launched for meeting production and investment credit needs of farmers for agriculture & allied activities and also to meet their consumption requirements. 2005 Scheme for financing Commercial Horticulture Projects under the schemes of National Horticulture Board has been launched to encourage farmers to go in for diversification in agriculture essential for increasing their income level.

Scheme for financing SC/STs for rainwater harvesting has been launched. 2006 Syndicate General purpose Credit Card launched.

Scheme for financing tenant farmers: Two separate schemes have been launched to provide need based credit to tenant farmers through Joint Liability Group (JLG) approach as well as individual approach. 2007 "SyndSmall Credit"- an innovative scheme with doorstep banking facility to provide need-based credit to entrepreneurs of small means. The product part of financial inclusion, by bringing all eligible entrepreneurs into bank's fold.

"Financial Inclusion:" Launched a campaign to achieve 100% financial inclusion. A booklet containing comprehensive guidelines to augment the process of total financial inclusion released.

"Water Conservation initiatives:" To promote Water Management and conservation measures among the villagers, Bank started initiatives for clearing and cleaning of village ponds in the selected service area villages.

Competition
Last Price Market (Rs. cr.) SBI PNB Bank of Baroda Canara Bank Bank of India Union Bank IDBI Bank Indian Bank Allahabad Bank Oriental Bank Syndicate Bank
SB9 SB9

Cap.Net Income 70,993.92 21,466.91 16,698.34 18,751.96 17,877.99 13,302.68 15,272.63 7,857.06 8,369.20 10,257.12 10,047.17

InterestNet Profit

Total Assets

2,596.90 1,125.35 836.80 607.05 460.90 326.60 151.05 220.35 211.85 359.50 106.85
price

164,902.66 35,482.57 30,587.55 24,889.05 24,239.19 16,497.15 14,871.34 9,469.98 9,463.34 9,006.90 5,577.23
SB9

9,166.05 3,905.35 3,058.33 3,021.43 1,741.07 2,074.92 1,031.13 1,554.99 1,206.33 1,134.68 813.32

1,053,413.74 296,632.79 278,316.71 264,741.09 274,966.46 195,161.85 233,572.01 101,389.32 121,699.21 137,431.00 139,050.94

Comparison with Competitors

SB9

Balance Sheet

------------------- in Rs. Cr. ------------------Syndicate Bank Mar '10 SBI PNB Bank of Baroda

Canara B

Mar '10

Mar '10

Mar '10

Mar '10

Capital and Liabilities: Total Share Capital Equity Share Capital 521.97 521.97 634.88 634.88 315.30 315.30 365.53 365.53 410.00 410.00

Share Application Money Preference Share Capital Reserves Revaluation Reserves Net Worth Deposits Borrowings Total Debt Other Liabilities & Provisions Total Liabilities

0.00 0.00 4,700.89 404.19 5,627.05

0.00 0.00 65,314.32 0.00 65,949.20

0.00 0.00 15,915.63 1,491.99 17,722.92

0.00 0.00 14,740.86 0.00 15,106.39

0.00 0.00 12,129.11 2,132.68 14,671.79

117,025.79 804,116.23 12,172.69 103,011.60 129,198.48 907,127.83 4,225.42 80,336.70

249,329.80 241,044.26 19,262.37 13,350.09

234,651.44 8,440.56

268,592.17 254,394.35 10,317.69 8,815.97

243,092.00 6,977.30

139,050.95 1,053,413.73 296,632.78 278,316.71 Syndicate Bank Mar '10 SBI PNB Bank of Baroda

264,741.09

Canara B

Mar '10

Mar '10

Mar '10

Mar '10

Assets Cash & Balances with RBI Balance with Banks, Money at Call Advances Investments Gross Block Accumulated Depreciation Net Block Capital Work In Progress Other Assets Total Assets Contingent Liabilities Bills for collection Book Value (Rs) 7,189.12 5,544.73 61,290.87 34,892.98 18,327.58 5,145.99 13,539.97 21,927.09 15,719.46 3,933.75

90,406.36 631,914.15 33,010.93 285,790.07 1,279.20 596.72 682.48 18.95 2,198.37 11,831.63 7,713.90 4,117.73 295.18 35,112.76

186,601.21 175,035.29 77,724.47 4,215.21 1,701.74 2,513.47 0.00 6,320.07 61,182.38 4,266.60 1,981.84 2,284.76 0.00 4,347.22

169,334.63 69,676.95 4,480.37 1,620.99 2,859.38 0.00 3,216.92

139,050.94 1,053,413.74 296,632.79 278,316.71 49,817.68 429,917.37 4,993.24 100.06 166,449.04 1,038.76 68,124.47 33,215.78 514.77 77,997.01 27,949.60 414.71

264,741.09

110,627.02 21,206.47 305.83

SWOT ANALYSIS:
STRENGHT: Pan India presence. Strong rural presence: This is key strength of Syndicate Bank as has strong presence in the rural India. Rural India is having big growth potential as the urban areas are becoming saturated and is facing stiff competition. Implemented IT across the branches. Centralized banking system. Government owned bank: This guarantees in todays circumstances the safety of the deposit and excessive regulations of the government prevent it from taking speculative position. WEAKNESS: Not present in big way in urban areas. Bureaucratic culture still prevailing in the bank. Excessive movement regulation is hindering the pace of expansion OPPORTUNITY: Liberalization of banking sector in 2009 will force the government to deregulate the sector. Indian bank will have the opportunity to go abroad. As investors are scurry of private bank in todays circumstances. They prefer PSU bank, this could be an opportunity.

THREAT: Coming of MNC bank post April 2009. Ongoing economic recession. Government regulation

Chapter-2

PERFORMANCE APPRISAL

Literature View
Aim Objective Purpose Structure Limitation Method Factor that can distort appraisal

Company View
Evidence recording KRA PDS

THE OBJECTIVE PERFORMANCE APPRAISAL FALLS INTO TWO CATEGARIES

1. Administration Objective
Promotion Transfer Training and Development Wage and Salaries Administration Personal Research

2. Self Improvement

Performance appraisal is an ancient art-dulewicz (1981) basic Human tendency to make judgment about those one is working with as well as about on self.

Ethics of performance appraisal

I understand it in the Gandhian sense of All life is a trust and all power carries with its obligation. Performance appraisals are an ongoing process and not an isolated art.

Aims:
An appraisal has been seen as an issue in isolation to be held over a mans head like a sword Damocles. As humble rightly affirms, appraisals are not optional extras, or merely tools of administration, they must be seen as one part of the total process of improving management performance which stress a managers role as a helper rather than judge of his subordinates.

Purpose of performance appraisal 1. To establish and uphold the principle of accountability. 2. Performance appraisal can protect the organization todays society is litigious formal
documentation of employees performance is an important protection device. It helps counter claim of bias as a case of dismissed worker.

3. Performance appraisal offers a valuable opportunity To focus on work activities and goals. To identify and correct existing problem. To encourage better and future performance through effective planning. 4. Recruitment and induction Appraisal data monitors success of organizations
recruitment and induction practices e.g. how well are the employee performing? Who were hired in the past two years? Monitor effectiveness of change in recruitment strategy. 5. Performance appraisal determines employees compensation.

STRUCRUE OF PERFORMANCE APPRAISAL

Establish performance standard

Communication performance expectation to employee

Erasure critical performance

Compare actual performance with standard

Discuss appraisal with the employee

If necessary initiate corrective action

LIMITATIONS1. If the factor included in assessment is irrelevant the result of performance appraisal ail not is accurate. 2. Different qualities to be rated may not be given proper weighted certain in cases. 3. Some of the factors are subjective like initiative and personality of the employees. So the actual rating may to be on scientific lines. 4. Supervisors often do not have critical ability assessing the staff. Sometimes they are guide by third personal emotions and likes. So the rating is likely to be biased.

There are various methods of merits rating which may be classified into
1. TRADING METHODS Unstructured appraisal. Employee rating. Forced distribution. Graphic rating scale. Check lists. Critical incidents. Field review.

2. MODERN METHOD M.B.O Behaviorally anchored rating scale

TRADITIONAL METHODS:
Traditional methods are very old technique of performance of performance appraisal. They are based on trade oriented appraisal. Evaluation of employee is done on the basis of standards of personal traits or qualities such as attitude, judgments, veracity, initiative, dependability, leadership, loyalty, punctuality, knowledge of job etc. are seven traditional method of appraisal as shown above.

MODERN METHOD M.B.O

1. Superior set objective and issue instruction with no prior discussion with subordinates. 2. Superior and subordinate agree objective and the jointly. 3. Self generating objective with minimal reference to sourer.

A METHOD USED NOW A DAYS IN ORGANISATIONAL:360 DEGREE APPRAISAL An appraisal device that seeks performance feedback from such sources as one self bosses, peers, teams, member, customer, suppliers and the like regaining in popularity . It is called 360- degree appraisal.

USES OF PERFORMANCE APPRAISAL

1. Compensation 2. Counseling 3. Training and development 4. Promotion 5. Planning 6. Retention and discharge 7. Validation

FACTORS THAT CAN DISTORT APPRAISAL

Error free performance appraisal can only be an idealized model with all being something less than the optimum errors made during appraisal are:1. LENIENCY ERROREvery evaluator has his/ her own value system which acts as a standard against which appraisals are made relative to the true or actual performance an individual exhibits some evaluators mark high and other low. The former is referred to as positive; eniency error and the latter as negative leniency error. 2. HALO ERRORThe halo error is a tendency to rate high or low on all factors due to the impression of high or low rating on some specific factors.

3. LOW APPRAISAL MOTIVATION What are the consequences of appraisal? If evaluator knows that a poor appraisal could significantly hurt the employees the futures particularly opportunities for promotion or salaries increase the evaluator may be reluctant to give a realistic approval. 4. CENTRAL TENDENCY It is reluctance to make extreme ratings the ability to distinguish between and among the rates a form of range restriction Rates who are prone to the central tendency error are those who continuously rate all employees as an average.

EVIDENCE RECORDING
The immediate superior records both the favorable and unfavorable behavior of the subordinate.

Objective of evidence recording

Identify the development need of the subordinate. Since everything is put on paper the superior does not have to rely in the memory. At the time of annual evaluation, the superior will be able to define the rating he has given to the subordinate. Evidence recording when consistent removes the regency effect.

Content of evidence recording Date of the incident. Critical incidents ( should be a trend and not an exception) Remarks.

Sources of evidence
Direct- observed by superior Indirect- evidence collected from the colleagues, supervisors and manager.

The four golden rules of evidence recording

1. Evidence must be valid. 2. It has to authentic 3. Evidence must be in a consistent tern. 4. Evidence has to be sufficient.

The annual performance evaluation

It has four parts. Part A-self evolution. Part B-soupier evaluation. Part C-recommended potential/ performance strategy. Part D-overall performance summary.

Midyear review and feedback

The solid line superior does this with inputs taken from the functional superior.

Who rates?
The current supervisor with inputs taken from the functional superior in case of dual reporting.

For the superiors performance appraisal

1. Help them to know the employee better. 2. Identify high performers for advantage and reward 3. Identify poor performance for counseling. 4. Improve individual productivity. 5. Identify training areas. 6. Improve teamwork.

For the employees performance appraisal

1. Provide employee with recognition for their work efforts social recognition is incentive in itself. 2. It is a motivational tool existence of a performance appraisal system indicates that organization is genuinely interested in their individual performance and development. 3. Provide regular and efficient training needs audit for the entire organization and scope for personal development of employees. 4. Evaluate employees. 5. Help in clear communication of workers experience.

Element of edge
1. KRA measures. 2. Target setting. 3. Evaluation and review mechanism. 4. Feedback.

KRA Measures
These are the focus areas to which an officer is accountable to and has to deliver during the year apart from his/ her normal deliverables. KRA measures are identified by cascading the annual business plan and the balance score card of the respective division department. Maximum of 5-10 KRA measure need to be defined for each manager with indicative weight age attached to ensure prioritization. All KRA measures should have weighted assigned to them totally to 100%.

Objective
To offer feedback and guidance for the next six year months. To review performance contracts. To signal for performance improvement. To raise bottle necks if any. To raise alarms. Helps in preparing for the final year review.

Purpose
Provides basis of improvement in employee performance. Provides input for compensation decision.

Serves as an input for various rotation and development decisions.

Midyear review and feedback

The solid line superior does this with inputs taken from the functional superior.

THE PROCEDURE Steps-1(self evaluation)

Each offer shall receive a performance evolution form. After filling up part a, the form is sent back the superior.

Step-2(Performance evaluation dialogue)

The superior discusses the performance of the subordinate with him/ her performance of the entire period is reviewed against the agreed KRAs

Step-3(Superior evaluation)
The superior rates the individual KRAs 1. Rating given by functional / previous superior (if applicable) 2. Discussion held with the evaluate. Own face based judgments

Individual KRA performance potential rating category.

5. Outstanding potential 4. Very good potential 3. Good potential 2. Fair demonstrate 1. Inadequate Improvement needed 5. Exceptional 4. Advanced 3. Competent 2. Improvement needs 1.major potential 5. Very high 4. High 3. Some 2. Yet to 1.Inadequate improvement needed

Step -4 (talent review)

The performance rating and potential it is during the performance appraisal performer categories are finalized. The individual may also be recognized as a functional expert.

Step-5(Feedback)
After the performance appraisal superior gives a feedback to the subordinate on his key strength area of improvement. The evaluate after receiving the feedback signs the document. Discount if any case resolved in a months time.

Performance contracting
This takes place in detailed discussion between the superior and the subordinate. The target for the various KRAs are decided upon the HR manager is also involved. The performance contract form is a signal document.

All the KRAs divided into 5 areas

1. Finance 2. Customer 3. Internal business process 4. People development 5. Special project

Normalization
At end of performance appraisal we arrive at a normal distribution of posterities & performance category. Such a distribution is not always possible. He curves come be sked depending on the composition of cares being discussed.

Performance Management System

1-PDS

2-KRA *Stretch target *Midyear fixation *Talent review *Feedback *Result *PDS- Performance development system *KRA-KEY result area.

CHAPTER-3

RESEARCH METHODOLOGY
Objective Data Collection Sample Techniques used Used for Data Analysis

Research Methodology
Research means scientific search for pertinent information on a specific and specific topic. According to Clifford woody research comprises defining a redefining problems formulating hypothesis or suggest solution collecting organizing and evaluating data making deduction and researching conclusion and at carefully testing the conclusion to determine whether they fit the formulating hypothesis.

Objectives of a Research
To gain familiarity with phenomenon or to achieve new insight in to it. To portray accurately characteristics of a particular. To determine the frequency with which something occur or with which it is associated with something else. To test a hypothesis of a relationship between variables.

Data Collection
After research problem has been defined and research design is chalked out, data is collected through different sources. Basically data collection is two types

Primary Data Questions Observations Personal interview Schedule depth interview

Secondary Data
For secondary data I referred to the to the company profiles, literatures, periodicals, internet etc.

Data Collection Techniques Used

The analysis is based on purely on primary data collection for the purpose, data collection was help of following technique. 1. Through personal interviews method Offer gives relevant fact concerning the topic by conversing with them. 2. Through questionnaire method The relevant figure was collected by securing the answer to the question after distribution of questionnaire to the offer.

Data analysis
Data analysis is very important for any research work this is because any mistake in the analysis part will make the whole interpretation wrong and the finding will be vague we have used linkers technique for scaling of question number one charged scen

Questionnaire
Personal identification:1. Name 2. Age 3. Sex 4. Year of service. 5. Department. 6. Designation.

1. Performance appraisal is given adequate important in your department. Always/ sometime /never/ mostly/ most of time 2. Is it being used as a tool for development for development of subordinates? Always/ sometime / never/ mostly/ most of time 3. To what extent did the performance appraisal program meets the career advancement needs of the subordinates. Always/ sometime / never/ mostly/ most of time 4. Do you have a clear idea of your job requirement & job responsibility? Always/sometime/ never/ mostly/ most of time 5. To what extent do you about personal & behavioral factor provide superior basis for improving work relationship and team effectiveness. Always/ sometime / never/ mostly/ most of time 6. Does age or seniority giving any weight age for performance appraisal? Always/ sometime /never/ mostly/ most of time 7. Do you have freedom to introduce any change or innovations in the department? Always/ sometimes/ never/ mostly/ most of time 8. Are you fully satisfied in your present job?

Always/ sometime/ never/ mostly/ most of time 9. Does your superior frank enough to tell you what he thinks about your performance? Always/ sometime/ never/ mostly/ most of time 10. Do you get the support of your superior about responsibility on which you need to improve? Always/ sometime/ never/ mostly/ most of time 11. Do you feel a need that your development is essential for the improvement in performance of the department? Always/ sometime/ never/ mostly/ most of time 12. Do your superiors take care of your development need through the appraisal system? Always/ sometime/ never/ mostly/ most of time 13. Do you feel that it the responsibility of your superior to look after your development need? Always/ sometime/ never/ mostly/ most of time 14. Does the present appraisal system fulfill the objective of the organization? Always/ sometime/ never/ mostly/ most of time 15. The best performance is identifiable in department. Is everyone is clear about the judgment of their performance? Always/ sometime/ never/ mostly/ most of time 16. Do you believe that self development is the best way of development? Always/ sometime/ never/ mostly/ most of time 17. Do you like to suggest any change in the present appraisal system available in the organization?

Q. Does performance appraisal is given adequate in your department?

aiways mostly most of time some time never

Q.To what extent did the performance appraisal programme meets the career advancement needs of the subordinates?

aiways mostly most of time some time never

Q. To what extent do your personal and behavioral factors provide superior a basis for improving work relationship and team effectiveness?

aiways mostly most of time some time never

Q. Does age or seniority given any weight age for performance appraisal?

aiways mostly most of time some time never

Q. Do you have freedom to introduce any changes or innovations in your department?

aiways mostly most of time some time never

Q. Are you fully satisfied in your personal job?

aiways mostly most of time some time never

Q. Does your superiors frank enough to tell you what he thinks about your performance?

aiways mostly most of time some time never

Q. Do you get support of your superiors about responsibilities on which you need to improve?

aiways mostly most of time some time never

Q. Do your superior take care of your developmental need through the appraisal system?

aiways mostly most of time some time never

Q. Do you feel that it is the responsibilities of your superior to look after your developmental needs?

aiways mostly most of time some time never

Q. Does the present appraisal system fulfill the objective of the organization?

aiways mostly most of time some time never

Q. The best performers are clearly identifiable in department. Is everyone is clear about the judgment of their performance?

aiways mostly most of time some time never

Q. Do you believe that self- development is the best way of development?

Always mostly most of time sometime never

Findings
1. Formal and specific finding need to be given at an interval of a months 2. Employees are likely to feel more satisfied with their appraisal result if they have change to talk freely and discuss their superior. 3. Feedback should take place an informal and congenial atmosphere and sufficient time should be kept a side for it. 4. Employees must recognize must recognize that negative appraisal is provided with a construction intention. 5. Feedback should be discussed on ongoing basis throughout the year.

CHAPTER-4

Conclusion
An effective appraisal system helps the employees to see the an effective appraisal system help the employees to see the linking between efforts & performance and between performance and reward they value. When performance appraisal are conducted properly both supervisors & subordinates have reported the experience as positive & beneficial. The present performance appraisal system answers the following questions by the following question asked by all employees: Tell me what you want me to do? Tell me how well I have done it? Help me improve my performance? Reward me for doing well.

The concept of higher level review is a resent on, so the process will take time to mature. However, HR has a major role to play in insuring that there is timely & uniform adherence to the process.

SUGGESION
The performance appraisal system could be made consistent in order to bring about stabilized standard of rating.

Objective of the system:

The result of performance rather than personality traits should be given due with suggestion for improvement should be directed toward objective facts of the job (such as work schedules, output, reports completed, accomplishment etc.) the individual as a person never be criticized. The superior play as a dual and conflicting role of both judge as well as a guide / mentor to the appraise. At a times appraiser also feel that subordinate appraisal is not rewarding. This comes the way of an effective system. To avoid this leader could function more as collogues rather than judges. Subordinates officers could also give their feedback on their superiors to create an atmosphere of confidence and trust so that both appraiser and appraise can discuss matters can frankly and offer suggestions which may be beneficial for the organization and for an improvement of both the officers. Thus transparency in every aspect of the system is maintained. A post appraisal interview should be arranged for all officers so that the organization by the difficulties under which officers workers, so the proper training needs may be discovered. Counseling session should be held not only while providing feedback appraisal, but as frequently as possibly as possible aiming at support and encouragement. Such session must include discussion on career development, which could be conducted in group or a one to one basis.

Bibliography
1. Human Resource Management By T.N.Chabra. 2. The Management of Human Resource. By Robbins,Stephen P. 3. Personal Management By Mamoria. 4. Personal Management & Industrial Relation. By Yoder, Dale 5. SB Magazines

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