Académique Documents
Professionnel Documents
Culture Documents
STATE BANK OF
INDIA
1
OVERVIEW OF STATE BANK OF INDIA
State Bank of India is the largest and one of the oldest commercial bank in India, in
existence for more than 200 years. The bank provides a full range of corporate, commercial
and retail banking services in India. Indian central bank namely Reserve Bank of India
(RBI) is the major share holder of the bank with 59.7% stake. The bank is capitalized to the
extent of Rs.646bn with the public holding (other than promoters) at 40.3%. SBI has the
largest branch and ATM network spread across every corner of India. The bank has a
branch network of over 14,000 branches (including subsidiaries). Apart from Indian
network it also has a network of 73 overseas offices in 30 countries in all time zones,
correspondent relationship with 520 International banks in 123 countries. In recent past,
SBI has acquired banks in Mauritius, Kenya and Indonesia. The bank had total staff
strength of 198,774 as on 31st March, 2006. Of this, 29.51% are officers, 45.19% clerical
staff and the remaining 25.30% were sub-staff. The bank is listed on the Bombay Stock
Exchange, National Stock Exchange, Kolkata Stock Exchange, Chennai Stock Exchange
and Ahmedabad Stock Exchange while its GDRs are listed on the London Stock Exchange.
SBI group accounts for around 25% of the total business of the banking industry while it
accounts for 35% of the total foreign exchange in India. With this type of strong base, SBI
has displayed a continued performance in the last few years in scaling up its efficiency
levels. Net Interest Income of the bank has witnessed a CAGR of 13.3% during the last five
years. During the same period, net interest margin (NIM) of the bank has gone up from as
low as 2.9% in FY02 to 3.40% in FY06 and currently is at 3.32%.
Management
The bank has 14 directors on the Board and is responsible for the management of the
Banks business. The board in addition to monitoring corporate performance also carries
out functions such as approving the business plan, reviewing and approving the annual
budgets and borrowing limits and fixing exposure limits. Mr. O. P. Bhatt is the Chairman of
the bank. The five-year term of Mr. Bhatt will expire in March 2011. Prior to this
appointment, Mr. Bhatt was Managing Director at State Bank of Travancore. Mr. Bhatt has
more than 30 years of experience in the Indian banking industry and is seen as futuristic
leader in his approach towards technology and customer service. Mr. Bhatt has had the best
of foreign exposure in SBI. We believe that the appointment of Mr. Bhatt would be a key to
SBIs future growth momentum. Mr. T S Bhattacharya is the Managing Director of the
2
bank and known for his vast experience in the banking industry. Recently, the senior
management of the bank has been broadened considerably. The positions of CFO and the
head of treasury have been segregated, and new heads for rural banking and for corporate
development and new business banking have been appointed. The managements thrust on
growth of the bank in terms of network and size would also ensure encouraging prospects
in time to come.
Shareholding & Liquidity (Till 30th Sept. 2007)
Reserve Bank of India is the largest shareholder in the bank with 59.7% stake followed by
overseas investors including GDRs with 19.78% stake as on September 06. Indian financial
institutions held 12.3% while Indian public held just 8.2% of the stock. RBI is the
monetary authority and having majority shareholding reflects conflict of interest. Now the
government is rectifying the above error by transferring RBIs holding to itself. Post this,
SBI will have a further headroom to dilute the GOIs stake from 59.7% to 51.0%, which
will further improve its CAR and Tier I ratio.
3
Key Areas of Operations
The business operations of SBI can be broadly classified into the key income generating
areas
such as National Banking, International Banking, Corporate Banking, & Treasury
operations.
4
HISTORY
The origin of the State Bank of India goes back to the first decade of the nineteenth
century with the establishment of the Bank of Calcutta in Calcutta on 2 June 1806. Three
years later the bank received its charter and was re-designed as the Bank of Bengal (2
January 1809). A unique institution, it was the first joint-stock bank of British India
sponsored by the Government of Bengal. The Bank of Bombay (15 April 1840) and the
Bank of Madras (1 July 1843) followed the Bank of Bengal. These three banks remained
at the apex of modern banking in India till their amalgamation as the Imperial Bank of
India on 27 January 1921.
Primarily Anglo-Indian creations, the three presidency banks came into existence either
as a result of the compulsions of imperial finance or by the felt needs of local European
commerce and were not imposed from outside in an arbitrary manner to modernise
India's economy. Their evolution was, however, shaped by ideas culled from similar
developments in Europe and England, and was influenced by changes occurring in the
structure of both the local trading environment and those in the relations of the Indian
economy to the economy of Europe and the global economic framework.
The three banks were governed by royal charters, which were revised from time to time.
Each charter provided for a share capital, four-fifth of which were privately subscribed
and the rest owned by the provincial government. The members of the board of directors,
which managed the affairs of each bank, were mostly proprietary directors representing
the large European managing agency houses in India. The rest were government
nominees, invariably civil servants, one of whom was elected as the president of the
board.
5
Group Photograph of Central Board (1921)
Business
The business of the banks was initially confined to discounting of bills of exchange or
other negotiable private securities, keeping cash accounts and receiving deposits and
issuing and circulating cash notes. Loans were restricted to Rs.one Lakh and the period of
accommodation confined to three months only. The security for such loans was public
securities, commonly called Company's Paper, bullion, treasure, plate, jewels, or goods
'not of a perishable nature' and no interest could be charged beyond a rate of twelve per
cent. Loans against goods like opium, indigo, salt woollens, cotton, cotton piece goods,
mule twist and silk goods were also granted but such finance by way of cash credits
gained momentum only from the third decade of the nineteenth century. All commodities,
including tea, sugar and jute, which began to be financed later, were either pledged or
hypothecated to the bank. Demand promissory notes were signed by the borrower in
favour of the guarantor, which was in turn endorsed to the bank. Lending against shares
of the banks or on the mortgage of houses, land or other real property was, however,
forbidden.
Indians were the principal borrowers against deposit of Company's paper, while the
business of discounts on private as well as salary bills was almost the exclusive
monopoly of individuals Europeans and their partnership firms. But the main function of
the three banks, as far as the government was concerned, was to help the latter raise loans
from time to time and also provide a degree of stability to the prices of government
securities.
6
First Five Year Plan
In 1951, when the First Five Year Plan was launched, the development of rural India was
given the highest priority. The commercial banks of the country including the Imperial
Bank of India had till then confined their operations to the urban sector and were not
equipped to respond to the emergent needs of economic regeneration of the rural areas. In
order, therefore, to serve the economy in general and the rural sector in particular, the All
India Rural Credit Survey Committee recommended the creation of a state-partnered and
state-sponsored bank by taking over the Imperial Bank of India, and integrating with it,
the former state-owned or state-associate banks. An act was accordingly passed in
Parliament in May 1955 and the State Bank of India was constituted on 1 July 1955.
More than a quarter of the resources of the Indian banking system thus passed under the
direct control of the State. Later, the State Bank of India (Subsidiary Banks) Act was
passed in 1959, enabling the State Bank of India to take over eight former State-
associated banks as its subsidiaries (later named Associates).
The State Bank of India was thus born with a new sense of social purpose aided by the
480 offices comprising branches, sub offices and three Local Head Offices inherited from
the Imperial Bank. The concept of banking as mere repositories of the community's
savings and lenders to creditworthy parties was soon to give way to the concept of
purposeful banking subserving the growing and diversified financial needs of planned
economic development. The State Bank of India was destined to act as the pacesetter in
this respect and lead the Indian banking system into the exciting field of national
development.
7
COMPETITORS AND OTHER PLAYERS IN THE FIELD:-
Andhra Bank
Allahabad Bank
Punjab National Bank
Dena Bank
Vijaya Bank
Top Performing Private Sector Banks
HDFC Bank
ICICI Bank
AXIS Bank
Citibank
Standard Chartered
HSBC Bank
American Express
Strength/ Opportunities:
The growth for SBI in the coming years is likely to be fueled by the following factors:
Continued effort to increase low cost deposit would ensure improvement in NIMs and
hence earnings.
8
Growing retail & SMEs thrust would lead to higher business growth.
Strong economic growth would generate higher demand for funds pursuant to higher
corporate demand for credit on account of capacity expansion.
Weakness/ Threats:
The risks that could ensue to SBI in time to come are as under:
SBI is currently operating at a lowest CAR. Insufficient capital may restrict the growth
prospects of the bank going forward.
Stiff competition, especially in the retail segment, could impact retail growth of SBI and
hence slowdown in earnings growth.
Contribution of retail credit to total bank credit stood at 26%. Significant thrust on
growing retail book poses higher credit risk to the bank.
Slow down in domestic economy would pose a concern over credit off-take thereby
impacting earnings growth.
9
DIFFERENT PRODUCTS OF SBI:
DEPOSIT LOANS CARDS DIFFERENT
CREDIT CARDS
10
11
12
SBI PRODUCTS
Introduction to Advance Product
13
Introduction to Advance Product:
Now a day not all the people have the capacity to fulfill their requirement by their own earning,
thats why they need help from others. For this so many government & private sector bank
provide them money to fulfill their requirement, thats call the Advance Product (loan product)
of the bank. All the banks have so many different types of advance product as per the
requirement of the people or customers. In Bareilly also there are so many banks those provide
loan to the people for different causes.
Home Loan
Educational Loan
Car Loan
Personal Loan
Property Loan
Loan Against Shares\Debentures
Etc.
Now a day a large no. of people are taking loan form different banks. It helps people to fulfill
their need and it really easy to repayment the loan amount with a longer repayment period.
14
SBI Advance Product
Purpose
Eligibility
Maximum age limit for a Home Loan borrower is fixed at 70 years, i.e. the age by which the
loan should be fully repaid.
Availability of sufficient, regular and continuous source of income for servicing the loan
repayment.
Loan Amount
1. Income of your spouse/ your son/ daughter living with you, provided they have a steady
income and his/ her salary account is maintained with SBI.
2. Expected rent accruals (less taxes, cess, etc.) if the house/ flat being purchased is proposed
to be rented out.
3. Depreciation, subject to some conditions.
4. Regular income from all sources
15
Purchase/ Construction of a new House/ Flat/ Plot of land: 15% for loans up to Rs. 1
cr., 20% for loans above Rs. 1 cr.
Repairs/ Renovation of an existing House/ Flat: 15%
* Fixed rate loans will be subject to: 'force maejure' clause and interest reset at the end of
every two years on the basis of fixed interest rates prevailing then.
CAR LOAN:
Purpose
A used car / jeep (not more than 5 years old). (Any make or model).
Take over of existing loan from other Bank/Financial institution (Conditions apply)
Eligibility
16
Individual between the age of 21-65 years of age.
Salient Features
Loan Amount
There is no upper limit for the amount of a car loan. A maximum loan amount of 2.5 times the
net annual income can be sanctioned. If married, your spouse's income could also be
considered provided the spouse becomes a co-borrower in the loan. The loan amount includes
finance for one-time road tax, registration and insurance!
Loan amount for used car is subject to a maximum limit of Rs. 15 lacs.
Type of Loan
1. Term Loan
2. Overdraft - a) For New vehicles only
b) Minimum loan amount: Rs. 3 lacs.
Documents required
you would need to submit the following documents along with the completed application form
if you are an existing SBI account holder:
Margin
Repayment
You enjoy the longest repayment period in the industry with us.
Repayment period:
17
For Salaried: Maximum of 84 months
For Self-employed & Professionals: Maximum 60 months
Repayment period for used vehicles :Up to 84 months from the date of original purchase of the
vehicle (subject to maximum tenure as above).
Prepayment Penalty:
Prepayment fee of 2% of the amount of the loan prepaid will be levied subject to certain
conditions
FLOATING RATES:
A. for Term Loans
1. New Vehicles (Term Loan) Floating only W.E.F. February 27, 2008
B. For Overdrafts: For New Vehicles only W.E.F. February 27, 2008
EDUCATION LOAN:
A term loan granted to Indian Nationals for pursuing higher education in India or abroad where
admission has been secured.
18
Eligible Courses
Examination/Library/Laboratory fees
Purchase of Books/Equipment/Instruments/Uniforms
Caution Deposit/Building Fund/Refundable Deposit (maximum 10% tution fees for the
entire course)
Any other expenses required to complete the course like study tours, project work etc.
Amount of Loan
Interest Rates
(with effect from 1st June 2008)
Deposit of Rs. 5000/- for education loan for studies abroad which will be adjusted in
the margin money
19
Repayment Tenure
Repayment will commence one year after completion of course or 6 months after securing a
job, whichever is earlier.
Security
Margin
o Studies in India: 5%
20
21
Documentation Required
Purpose
The loan will be granted for any legitimate purpose whatsoever (e.g. expenses for domestic or
foreign travel, medical treatment of self or a family member, meeting any financial liability,
such as marriage of son/daughter, defraying educational expenses of wards, meeting margins
for purchase of assets etc.)
Eligibility
You are eligible if you are a Salaried individual of good quality corporate, self employed
engineer, doctor, architect, chartered accountant, MBA with minimum 2 years standing.
Salient Features
Loan Amount
Your personal loan limit would be determined by your income and repayment capacity.
Minimum: Rs.24,000/- in metro and urban centres
Rs.10, 000/- in rural/semi-urban centres
Maximum: 12 times Net Monthly Income for salaried individuals and pensioners subject to a
ceiling of Rs.10 lacs in all centres
Documents Required
Important documents to be furnished while opening a Personal Loan Account:
22
From salaried individuals
Latest salary slip and Form 16
Margin
We do not insist on any margin amount.
Interest Rates
3.25% above SBAR floating i.e. 15.50% p.a.
Repayment
The loan is repayable in 48 EMI. You are allowed to pay more than the EMI if you wish to,
without attracting any prepayment penalty.
Security
NIL
Processing Fee
Processing charges are 1-2% of the loan amount. This is amongst the lowest fees in the
industry. Processing fees have to be paid upfront. There are no hidden costs or other
administrative charges.
PROPERTY LOAN:
Purpose
This is an all purpose loan, i.e., the loan can be obtained for any purpose whatsoever. If amount
of loan is Rs.25.00 lacs and above then purpose of loan will have to be specified along with an
undertaking that loan will not be used for any speculative purpose whatever including
speculation on real estate and equity shares.
Eligibility
You are eligible if you are:
B. Your Net Monthly Income (salaried) is in excess of Rs.12,000/- or Net Annual Income
(others) is in excess of Rs.1,50,000/-.
Salient Features
Loan Amount
23
Minimum: Rs.25, 000/-
Maximum: Rs.1 crore. The amount is decided by the following calculation:
24 times the net monthly income of salaried persons (Net of all deductions including
TDS) OR
2 times the net annual income of others (income as per latest IT return less taxes
payable)
Margin
We will finance upto 75% of the market value of your property.
Interest
Term Loan 0.75% above SBAR. i.e.13.00% p.a. Floating
Repayment
Maximum of 60 equated monthly installments, upto 120 months for salaried individuals with
check-off facility. You could opt to divert any surplus funds towards prepayment of the loan
without attracting any penalty.
Security
Eligibility
This facility is available to our existing individual customers enjoying a strong relationship
with SBI. This loan could be availed either singly or as a joint account with spouse in 'Either or
Survivor'/ 'Former or Survivor' mode. It is offered as an Overdraft or Demand Loan.
Salient Features:
Purpose
For meeting contingencies and needs of personal nature. Loan will be permitted for subscribing
to rights or new issue of shares / debentures against the security of existing shares / debentures.
Loan will not be sanctioned for (i) speculative purposes (ii) inter-corporate investments or (iii)
acquiring controlling interest in company / companies.
Loan Amount
You can avail of loans up to Rs 20.00 lacs against your shares/debentures.
24
Documents Required
You will be required to submit a declaration indicating:
Details of loans availed from other banks/ branches for acquiring shares/ debentures.
Details of loans availed from other banks/ branches against security of shares/
debentures
Margin
You will need to provide a margin amount of 50% of the prevailing market prices of the shares/
non-convertible debentures being offered as security. (The market prices refer to the prices in
the Stock Exchanges as reported in the Economic Times.)
Interest
At SBAR Floating i.e. 12.25% p.a.
Repayment Schedule
To be liquidated in maximum period of 30 months through a suitable reducing DP programme.
In case of a default or if the outstanding is over Rs.20.00 lacs, the shares/debentures will be
transferred in the name of the Bank.
Security:
Pledge of the demat shares/debentures against which overdraft is granted.
25
PROFILE OF THE
HDFC BANK
26
PROFILE OF THE HDFC BANK
in India as well as in international markets. Since its inception in 1977, the Corporation has
maintained a consistent and healthy growth in its operations to remain the market leader in
mortgages.
Its outstanding loan portfolio covers well over a million dwelling units. HDFC has
developed significant expertise in retail mortgage loans to different market segments and
also has a large corporate client base for its housing related credit facilities. With its
experience in the financial markets, a strong market reputation, large shareholder base and
unique consumer franchise, HDFC was ideally positioned to promote a bank in the Indian
environment.
HDFC Bank is headquartered in Mumbai. The Bank at present has an enviable network of
over 1400 branches spread over 600 cities across India. All branches are linked on an
online real-time basis. Customers in over 120 locations are also serviced through Telephone
Banking. The Bank's expansion plans take into account the need to have a presence in all
27
major industrial and commercial centers where its corporate customers are located as well
as the need to build a strong retail customer base for both deposits and loan products.
The Bank also has a network of about over 200 networked ATMs across these cities.
Moreover, HDFC Bank's ATM network can be accessed by all domestic and international
cardholders.
The Housing Development Finance Corporation Limited (HDFC) was amongst the first
to receive an in-principle approval from the Reserve Bank of India (RBI) to set up a bank
in the private sector, as part of the RBIs liberalization of the Indian Banking Industry in
1994. the bank was incorporated in August 1994 in the name of HDFC Bank Limited.
With its registered office in Mumbai, India. HDFC Bank commenced operations as a
Promoter
HDFC is Indias premier housing finance company and enjoys an impeccable track record
in India as well as in international markets. Since its inception is 1977, the Corporation has
maintained a consistent and healthy growth in its operations to remain a market leader in
mortgages.
Business Focus
HDFC Banks mission is to be a World-Class Indian Bank. The Banks aim is to build
banking services in the segments that the bank operates in and to achieve healthy growth in
28
Capital Structure
The authorized capital of HDFC Bank is Rs.450 crore (Rs.45 billion). The paid-up capital
is Rs282 crore (Rs.28.2 billion). The HDFC Group holds 24.2% of the banks equity while
about 13.1% of the equity is held by the depository in respect of the banks issue of
Distribution Network
HDFC Bank is headquartered in Mumbai. The Bank at present has an enviable network of
over 1400 branches spread over 600 cities across the country. All branches are linked on an
online real-time basis. Customers in 90 locations are also serviced through Phone Banking.
The Banks expansion plans take into account the need to have a presence in all major
industrial and commercial centers where its corporate customers are located as well as the
need to build a strong retail customer base for both deposits and loan products.
Management
Mr.Jagdish Kapoor took over as the banks Chairman in July 2001, Prior to this, Mr.Kapoor
The Managing Director, Mr.Aditya Puri, has been a professional banker for over 25 years.
And before joining HDFC Bank in 1994 was heading Citibanks operations in Malaysia.
executive representing HDFC are also on the Board Senior banking professionals with
substantial experience in India and abroad head various businesses and functions and report
29
The bank has three key business areas:
Here our target market is primarily large, blue-chip companies and to a lesser extent,
emerging mid-sized corporate. For these corporate, we provide a wide range of services,
including working capital finance, trade services, transactional services, cash management,
etc. We are a leading provider of structured solutions, which combine cash management
services with vendor and distributor finance, for facilitating superior supply chain
management for our corporate customers. We are also recognized as a leading provider of
cash management and transactional banking solutions to mutual funds, stock exchange
30
2. Retail Banking Services
The objective of the Retail Bank is to provide our target market customers a full range of
financial products and banking services, giving the customer a one-stop window for all
his/her banking requirements. The products are backed by world-class service and
delivered to the customers through the growing branch network, as well as through
alternative delivery channels like ATMs, Phone Banking, Net Banking and Mobile
Banking. The HDFC Bank Preferred program for high net worth individuals, the HDFC
Bank Plus and the Investment Advisory Services programs have been designed keeping in
mind needs of customers who seek distinct financial solutions, information and advice on
various investment avenues. We have a wide array of retail loan products including Auto
Loans, Loans against Securities, Personal Loans and Loans for Two-wheelers.
3. Treasury Operations
Within this business, the bank has three main product areas -
With the liberalization of the financial markets in India, corporate need more sophisticated
risk management information, advice and product structures. These are provided through
the bank's Treasury team. The Treasury business is responsible for managing the returns
31
Audit & Compliance
Human Resources
Information Technology
Operations
The Bank uses state-of-the-art technology for both internal and external customers.
a) Banking Applications
In terms of software, the Corporate Banking business is supported by UBS, while the Retail
Banking business by Finware. These world-class systems have been specially customized
for HDFC Bank by i-flex Solutions Ltd. which is a Citigroup company. The Bank also uses
b).Lotus Notes
Lotus Notes is the system that HDFC bank uses for internal communication.
c) Facilities Management
Wipro is the company appointed to give HDFC Bank the on-site support required at
32
ORGANIZATION STRUCTURE AND ORGANIZATION CHART
33
ORGANIZATION CHART
Chairman
34
PRODUCT AND SERVICE PROFILE OF THE ORGANIZATION
Deposits:
1) Savings Account
These accounts are primarily meant to inculcate a sense of saving for the future,
accumulating funds over a period of time. Whatever your occupation, we are confident that
you will find the perfect banking solution. Open an account in your name or register for
one jointly with a family member today. Some of its features are:
Debit-cum-ATM card
Internet Banking
Phone banking
Anywhere Banking
Standing Instruction
Nomination facility
Doorstep service
Mobile banking
35
3) Personal Loan
Further, there are additional privileges for HDFC Bank account holders like:
For existing Auto Loan customers with a clear repayment of 12 months or more
from even any of the approved financiers of HDFC Bank, a hassle free personal
For existing HDFC Bank Personal Loan customer with a clear repayment of 12
5) Fixed deposits
36
37
6) Easy deposit
7) Recurring deposit
Encourage savings
Bank @ campus
38
PRODUCTS OFFERED
HOME LOAN :
Purpose : Purchase of
First Power of Attorney purchases in Delhi for DDA flats allotted before
1992.
Self Construction
Features :
Maximum loan upto 85% of the cost of the property (including the cost
Purpose :
External repairs
39
Grills and aluminum windows
Waterproofing on terrace
Borewell
Features:
Maximum loan
Purpose :
Features :
Short-Term Bridging loan makes customer realise their dream of buying a bigger
and better home and gives them time to sell their existing property to pay off the loan. This
is a short term loan to help customers with the interim period between the sale of your old
40
Maximum loan utpo 90% of cost of new property
Fee in this case is 0.50% of the loan amount plus applicable service
Security for the loan is a first mortgage of the new property to be financed
Features :
Minimum Term :
Non Residential
Home Equity Loans :
HDFC Home Equity Loans helps its customers to encash the present market value
Purpose :
41
Loan can be for any purpose. However, the funds should not be used for speculation
requirements
Education
Marriage Expenses
Eligible :
Doctors
Chartered Accountants
Lawyers
Features :
42
COMPANY
PROFILE OF
ICICI
43
COMPANY PROFILE OF ICICI:
44
ICICI BANK | khayaal aapka
Khayaal Aapka:
Over the past decade ICICI Bank has redefined the banking landscape. Through a deep
understanding of customer needs, it has leveraged technology to introduce several
innovations to make banking simple and convenient for the consumer. Continuing with our
commitment towards deepening our relationship with our customers, we have undertaken
many initiatives to strengthen the customer experience through multiple touch points such
as bank branches, internet banking, mobile banking and phone banking. In addition we
have continued to offer products and services that have been thoughtfully designed,
keeping the consumer in mind.
Khayaal aapka is a reflection of this commitment that we have towards our customers.
Khayaal aapka embodies our relationships with customers that go beyond transactions it is
our commitment to treat our customers fairly, show empathy towards customer needs and
create and deliver products and services that make a difference to our customers' lives.
ICICI Bank is India's second-largest bank with total assets of Rs. 3,849.70 billion (US$ 82
billion) at March 31, 2010 and profit after tax Rs. 40.25 billion for the year ended March
31, 2010. The Bank has a network of about 2,529 branches and 6,000 ATMs in India and
presence in 19 countries.
ICICI Bank offers a wide range of banking products and financial services to corporate
and retail customers through a variety of delivery channels and through its specialized
subsidiaries and affiliates in the areas of investment banking, life and non-life insurance,
venture capital and asset management.
The Bank currently has subsidiaries in the United Kingdom, Russia and Canada, branches
in United States, Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar and Dubai International
Finance Centre and representative offices in United Arab Emirates, China, South Africa,
Bangladesh, Thailand, Malaysia and Indonesia. Our UK subsidiary has established
branches in Belgium and Germany.
ICICI Bank's equity shares are listed in India on Bombay Stock Exchange and the National
Stock Exchange of India Limited and its American Depositary Receipts (ADRs) are listed
on the New York Stock Exchange (NYSE).
45
HISTORY
ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financial
institution, and was its wholly-owned subsidiary. ICICI's shareholding in ICICI Bank was
reduced to 46% through a public offering of shares in India in fiscal 1998, an equity
offering in the form of ADRs listed on the NYSE in fiscal 200, ICICI Bank's acquisition of
Bank of Madura Limited in an all-stock amalgamation in fiscal 2001, and secondary
market sales by ICICI to institutional investors in fiscal 2001 and fiscal 2002. ICICI was
formed in 1955 at the initiative of the World Bank, the Government of India and
representatives of Indian industry. The principal objective was to create a development
financial institution for providing medium-term and long-term project financing to Indian
businesses. In the 1990s, ICICI transformed its business from a development financial
institution offering only project finance to a diversified financial services group offering a
wide variety of products and services, both directly and through a number of subsidiaries
and affiliates like ICICI Bank. In 1999, ICICI become the first Indian company and the first
bank or financial institution from non-Japan Asia to be listed on the NYSE.
46
the High Court of Judicature at Mumbai and the Reserve Bank of India in April 2002.
Consequent to the merger, the ICICI group's financing and banking operations, both
wholesale and retail, have been integrated in a single entity. ICICI bank has formulated a
Code of Business Conduct and Ethics for its directors and employees.
ICICI bank (formerly Industrial Credit and Investment Corporation of India) is India's
largest private sector bank in market capitalization and second largest overall in terms of
assets. Bank has total assets of about USD 100 billion (at the end of March 2010), a
network of over 2,529 branches, 22 regional offices and 49 regional processing centers,
about 6000 ATMs (at the end of March 2010), and 24 million customers (at the end of
March 2010). ICICI bank offers a wide range of banking products and financial services to
corporate and retail customers through a variety of delivery channels and specialized
subsidiaries and affiliates in the areas of investment banking, life and non-life insurance,
venture capital and asset management. (These data are dynamic.) ICICI Bank is also the
largest issuer of credit cards in India. ICICI Bank has got its equity shares listed on the
stock exchanges at Kolkata and Vadodara, Mumbai and the National Stock Exchange of
India Limited, and its ADRs on the New York Stock Exchange (NYSE).
The Bank is expanding in overseas markets and has the largest international balance sheet
among Indian banks. ICICI Bank now has wholly-owned subsidiaries, branches and
representatives offices in 18 countries, including an offshore unit in Mumbai. This includes
wholly owned subsidiaries in Canada, Russia and the UK, offshore banking units in
Bahrain and Singapore, an advisory branch in Dubai, branches in Belgium, Hong Kong and
Sri Lanka, and representative offices in Bangladesh, China, Malaysia, Indonesia, South
Africa, Thailand, the United Arab Emirates and USA. Overseas, the bank is targeting the
NRI (Non-Resident Indian) population in particular.
1. Personal Banking:
47
Deposits
Loans
Cards
Investments
Insurance
Demat services
Wealth management
Mobile banking
Internet banking
ICICI Bank has designed a gamut of accounts and deposits to cater to your unique banking
needs. Add this to our extensive branch & ATM network and facilities like mobile, phone,
internet and doorstep banking, and experience banking at its best.
a) Current Account
ICICI Current Bank Account has the facility of unlimited cash deposit and cash
withdrawal and comes with an unlimited cheque book facility. This account of the ICICI
bank is suitable for: Stockiest or businessmen, partnership firms or joint stock companies,
public corporations or public authorities etc.
ICICI Bank offers you a suite of current account products that meet all your banking
requirements, these are.
Standard Current Account: Minimum Balance Rs. 10,000 (QAB)
Classic current Account: Minimum Balance Rs. 25,000 (QAB)
Premium Current Account: Minimum Balance Rs. 50,000 (QAB)
Gold Current Account: Minimum Balance Rs. 1,00,000 (QAB)
Gold Plus Current Account: Minimum Balance Rs. 3,00,000 (QAB)
48
Platinum Current Account: Minimum Balance Rs. 5,00,000 (QAB)
*QAB - Quarterly Average Balance
Benefits of current account:
*Unlimited Withdrawal and Deposit
* Unlimited Cheque book
* Demand Drafts and Pay orders
* Funds Transfer ( Local or Anywhere)
* Collection of Cheques/ Drafts
* Statements, Advices, Daily statement by e-mail
* Cash withdrawal and Deposits
* Call center
* Internet Banking
* Multicity Cheque payment facility at over 155 centers
* Anywhere Banking facility
* Doorstep Banking Pickup and delivery of Currency / Cheque
* Mobile Banking
b) Saving Account
49
B. Loans
ICICI Bank offers wide variety of Loans Products to suit your requirements. Coupled with
convenience of networked branches/ATMs and facility of E-channels like Internet and
Mobile Banking, ICICI Bank brings banking at your doorstep. Select any of our loan
product and provide your details online and our representative will contact you for getting
loans.
a) Home Loan
ICICI Bank Home Loans, offer unbeatable benefits to ensure that you get the best deal
without any hassles .As one of the leading home loan provider, ICICI Bank understands
how special building a new home is for you and our Home Loan help you lay the
foundation for your dream home.
ICICI offers you the most convenient home loan plans to suit your needs. With so many
attractive features in every type of home loan we offer, creating the home you always
wanted is no longer a distant dream. Some of our key benefits are:
Simplified documentation.
50
Free Personal Accident Insurance.
51
b) Car Loan
Turn your dream into reality. Own that new car you have always desired, with a little help
from us. ICICI offer loans up to 90% of the ex-showroom price of the car. Our interest rates
would pleasantly surprise you. What's more, you can take up to 5 years to repay the loan.
Worried about paperwork? Relax. The process for getting a loan involves only a few simple
steps and we will tailor-make the loan to suit your needs.
Loan on the Strength of Your Income: Submit income proofs as required and avail
finance up to 90% of the ex-showroom price of the car.*
Car Loans with Fixed Interest Rates: ICICI Bank offers new car loans with fixed
rate option only.
C. INSURANCE:
ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank - one of
India's foremost financial services companies-and Prudential plc - a leading international
financial services group headquartered in the United Kingdom. Total capital infusion stands
at Rs. 47.80 billion, with ICICI Bank holding a stake of 74% and Prudential plc holding
26%.
52
We began our operations in December 200 after receiving approval from Insurance
Regulatory Development Authority (IRDA). Today, our nation-wide reach includes 1,900
branches over 210,000 advisors; and 6 banc assurance partners.
For three years in a row, ICICI Prudential has been voted as India's Most Trusted Private
Life Insurer, by The Economic Times - AC Nielsen ORG Marge survey of 'Most Trusted
Brands'. As we grow our distribution, product range and customer base, we continue to
tirelessly uphold our commitment to deliver world-class financial solutions to customers all
over India.
ICICI Prudential Life Insurance offers wide range of Insurance Plan. These are-
Term Plan
Wealth Plan
Child Plan
Health Plan
Retirement Plan
53
PERFORMANCE
APPRAISAL
SYSTEM
54
PERFORMANCE APPRAISAL SYSTEM
Human Resource (or personnel) management, in the sense of getting things done through
people, is an essential part of every managers responsibility, but many organizations find it
advantageous to establish a specialist division to provide an expert service dedicated to
ensuring that the human resource function is performed efficiently.
People are our most valuable asset is a clich, which no member of any senior
management team would disagree with. Yet, the reality for many organizations are that
their people remain under valued, under trained and under utilized.
Human Resource (or personnel) management, in the sense of getting things done through
people, is an essential part of every managers responsibility, but many organizations find it
advantageous to establish a specialist division to provide an expert service dedicated to
ensuring that the human resource function is performed efficiently.
People are our most valuable asset is a clich, which no member of any senior
management team would disagree with. Yet, the reality for many organizations are that
their people remain under valued, under trained and under utilized.
The market place for talented, skilled people is competitive and expensive. Taking on new
staff can be disruptive to existing employees. Also, it takes time to develop cultural
55
awareness, product / process / organization knowledge and experience for new staff
members.
Following are the various functions of Human Resource Management that are essential for
the effective functioning of the organization:
1. Recruitment
2. Selection
3. Induction
4. Performance Appraisal
Recruitment
The process of recruitment begins after manpower requirements are determined in terms of
quality through job analysis and quantity through forecasting and planning.
Selection
The selection is the process of ascertaining whether or not candidates possess the requisite
qualifications, training and experience required.
Induction
Induction is the technique by which a new employee is rehabilitated into the changed
surroundings and introduced to the practices, policies and purposes of the organization.
56
What Is Performance Appraisal?
Performance Appraisal is defined as the process of assessing the performance and progress
of an employee or a group of employees on a given job and his / their potential for future
development. It consists of all formal procedures used in working organizations and
potential of employees. According to Flippo, Performance Appraisal is the systematic,
periodic and an important rating of an employees excellence in matters pertaining to his
present job and his potential for a better job.
Characteristics
3. It is scientific and objective study. Formal procedures are used in the study.
Process
3. Measuring Performance
57
METHODS OF PERFORMANCE APPRAISAL
The foregoing list of major program pitfalls represents a formidable challenge, even
considering the available battery of appraisal techniques. But attempting to avoid these
pitfalls by doing away with appraisals themselves is like trying to solve the problems of life
by committing suicide. The more logical task is to identify those appraisal practices that are
(a) most likely to achieve a particular objective and (b) least vulnerable to the obstacles
already discussed.
Before relating the specific techniques to the goals of performance appraisal stated at the
outset of the article, I shall briefly review each, taking them more or less in an order of
increasing complexity.
Essay appraisal
In its simplest form, this technique asks the rater to write a paragraph or more covering an
individual's strengths, weaknesses, potential, and so on. In most selection situations,
particularly those involving professional, sales, or managerial positions, essay appraisals
from former employers, teachers, or associates carry significant weight.
This technique may not yield the depth of an essay appraisal, but it is more consistent and
reliable. Typically, a graphic scale assesses a person on the quality and quantity of his work
(is he outstanding, above average, average, or unsatisfactory?) and on a variety of other
factors that vary with the job but usually include personal traits like reliability and
cooperation. It may also include specific performance items like oral and written
communication.
Field review
The field review is one of several techniques for doing this. A member of the personnel or
central administrative staff meets with small groups of raters from each supervisory unit
and goes over each employee's rating with them to (a) identify areas of inter-rater
58
disagreement, (b) help the group arrive at a consensus, and (c) determine that each rater
conceives the standards similarly. .
Forced-choice rating
Like the field review, this technique was developed to reduce bias and establish objective
standards of comparison between individuals, but it does not involve the intervention of a
third party.
Management by objectives
To avoid, or to deal with, the feeling that they are being judged by unfairly high standards,
employees in some organizations are being asked to set - or help set - their own
performance goals. Within the past five or six years, MBO has become something of a fad
and is so familiar to most managers that I will not dwell on it here.
Ranking methods
For comparative purposes, particularly when it is necessary to compare people who work
for different supervisors, individual statements, ratings, or appraisal forms are not
particularly useful. Instead, it is necessary to recognize that comparisons involve an overall
subjective judgment to which a host of additional facts and impressions must somehow be
added. There is no single form or way to do this.
The two most effective methods are alternation ranking and paired comparison ranking.
1. Alternation ranking:
Ranking of employees from best to worst on a trait or traits is another method for
evaluating employees. Since it is usually easier to distinguish between the worst and the
best employees than to rank them, an alternation ranking method is most popular. Here
subordinates to be rated are listed and the names of those not well enough to rank are
crossed. Then on a form as shown below, the employee who is highest on the characteristic
being measured and the one who is the lowest are indicated. Then chose the next highest
and the next lowest, alternating between highest and lowest until all the employees to be
rated have been ranked.
59
2. Paired-comparison ranking:
This technique is probably just as accurate as alternation ranking and might be more so.
But with large numbers of employees it becomes extremely time consuming and
cumbersome.
Both ranking techniques, particularly when combined with multiple rankings (i.e., when
two or more people are asked to make independent rankings of the same work group and
their lists are averaged), are among the best available for generating valid order-of-merit
rankings for salary administration purposes.
Assessment centers
So far, we have been talking about assessing past performance. What about the assessment
of future performance or potential? In any placement decision and even more so in
promotion decisions, some prediction of future performance is necessary. How can this
kind of prediction be made most validly and most fairly?
Many firms have expanded the idea of upward feedback into what the call 360-degree
feedback. The feedback is generally used for training and development, rather than for pay
increases.
Most 360 Degree Feedback system contains several common features. Appropriate parties
peers, supervisors, subordinates and customers, for instance complete survey,
questionnaires on an individual. 360 degree feedback is also known as the multi-rater
feedback, whereby ratings are not given just by the next manager up in the organizational
hierarchy, but also by peers and subordinates. Appropriates customer ratings are also
included, along with the element of self appraisal. Once gathered in, the assessment from
the various quarters are compared with one another and the results communicated to the
manager concerned.
Another technique that is useful for coaching purposes is, of course, MBO. Like the
critical incident method, it focuses on actual behavior and actual results, which can be
60
discussed objectively and constructively, with little or no need for a supervisor to "play
God."
Improves understanding and relationship between the employee and the reporting
manager and also helps in resolving confusions and misunderstandings.
Leniency or severity: - Leniency or severity on the part of the rater makes the assessment
subjective. Subjective assessment defeats the very purpose of performance appraisal.
Ratings are lenient for the following reasons:
a) The rater may feel that anyone under his or her jurisdiction who is rated unfavorably
will reflect poorly on his or her own worthiness.
61
b) He/She may feel that a derogatory rating will be revealed to the rate to detriment the
relations between the rater and the ratee.
c) He/She may rate leniently in order to win promotions for the subordinates and
therefore, indirectly increase his/her hold over him.
Central tendency: - This occurs when employees are incorrectly rated near the average or
middle of the scale. The attitude of the rater is to play safe. This safe playing attitude stems
from certain doubts and anxieties, which the raters have been assessing the rates.
Halo error: - A halo error takes place when one aspect of an individual's performance
influences the evaluation of the entire performance of the individual. The halo error occurs
when an employee who works late constantly might be rated high on productivity and
quality of output as well as on motivation. Similarly, an attractive or popular personality
might be given a high overall rating. Rating employees separately on each of the
performance measures and encouraging raters to guard against the halo effect are the two
ways to reduce the halo effect.
Rater effect: -This includes favoritism, stereotyping, and hostility. Extensively high or low
score are given only to certain individuals or groups based on the rater's attitude towards
them and not on actual outcomes or behaviors; sex, age, race and friendship biases are
examples of this type of error.
Primacy and Regency effects: - The rater's rating is heavily influenced either by behavior
exhibited by the ratee during his early stage of the review period (primacy) or by the
outcomes, or behavior exhibited by the ratee near the end of the review period (regency).
For example, if a salesperson captures an important contract/sale just before the completion
of the appraisal, the timing of the incident may inflate his or her standing, even though the
overall performance of the sales person may not have been encouraging. One way of
guarding against such an error is to ask the rater to consider the composite performance of
the rate and not to be influenced by one incident or an achievement.
62
Spillover effect: - This refers lo allowing past performance appraisal rating lo unjustifiably
influence current ratings. Past ratings, good or bad, result in similar rating for current
period although the demonstrated behavior docs not deserve the rating, good or bad.
63
RESEARCH
METHODOLOGY
64
RESEARCH METHODOLOGY
RESEARCH.
DOCTRINAIRE
EMPIRICAL
65
In doctrinaire method secondary data is used to find out the result from
collected data. I used the data which was collected by survey before two years
by the company. So I applied the method of Doctrinaire Research.
SECONDARY DATA
Secondary data are statistics not gathered for the immediate study at hand but
for some other purposes
In other words they may be described as those data have been compiled by
some agency other than the user.
PRIMARY DATA
Primary data may be described as those data that have been observed and
recorded by the researchers for the first time to their knowledge.
In other words primary data is concerned with facts, knowledge and opinions
through which results are found out.
66
RESEARCH PROBLEM
o Errors in Rating.
Lack of reliability.
67
Negative approach.
Multiple objectives.
Lack of knowledge.
Incompetence.
68
RESEARCH IS AN ORGANIZED AND SYSTEMATIC WAY OF
FINDING ANSWERS TO QUESTIONS.
69
Problem identification: - The main motive of the project was to find out
the problem of employees or employees group and solve the problem.
Aim of the research: - To find out the opportunities to improve
employees performance for the benefit of organization.
Data collection method: - the main source of data collection was primary
data, which I found after making a questionnaire related to the points for
analysis of employees opinion and the other source of data collection was
secondary data which was provided by the company.
Routine Task: - Daily around 4-5 hr. stay at the company. Therefore the
whole exercise took around 45 days. Almost all the employees were very
helpful and forthcoming with the information.
70
Observations.
Experts opinions.
QUESTIONNAIRE (I used).
2. Secondary data sources: -
Certain secondary data sources are also used.
Books.
Journals.
Business magazines.
News papers.
Web sites.
SURVEY DATA (I used).
71
TYPES OF QUESTIONNAIRE
72
Questionnaire construction is still much more of an art than a science. For
constructing a questionnaire I followed the given steps-
Determine what information is wanted.
Determine the type of questionnaire to use.
Determine the content of an individual question.
Determine the type of question to use.
Deciding on wording of questions.
Decide on questions sequence.
Decide on layout.
Pretest.
Revision and final draft.
I used CENSUS METHOD because total population units were only 100.
Sampling is used where population is large and then population is divided in
different segment and from those segments samples are selected.
But the data which I got was only of 100 units so I
used census method. Census method also gives more accuracy and reliability
on which results are much stronger than doing sampling.
73
Census data have become very comprehensive source of information, this
concentrated only one population census but now extends to many areas:
Census of population.
Census of agriculture.
Census of cattle.
Census of trade.
Census of transport.
Census of industry.
Census of banking and finance
In various researches census data is used because it gives more accuracy and
true findings. And above given areas more accurate results are important.
And I did census it is related to CENSUS OF INDUSTRY.
74
DATA INTERPRETATION,
FINDING AND
GRAPHICAL
REORESENTATION
18-22 10
23-25 13
26-30 18
31-35 32
above 35 37
75
40
35
30
25
18-22 23-25 26-30 31-35 above 35
20
15
10
5
0
INTERPRETATION:-
1- As show in graph most of the employees of BANKS in age group of
31 35 and above to 35.
2- Whereas in age group of 18-22 most of the employees are
76
2- According to you how important is the work you do to organization?
Respondent
1- Very important, 36
2- Important, 39
3- Unimportant 13
4- Very unimportant, 5
5- Neither important nor unimportant. 7
40
35
1- Very 2- Important,
30 important,
25
20 3- Unimportant 4- Very
15 unimportant,
5- Neither
10 important nor
5 unimportant.
0
Respondent
77
3-How important to you is the performance appraisal system of the
organization?
Respondent
1- Very important, 53
2- Important, 39
3- Unimportant 5
4- Very unimportant, 0
5- Neither important nor unimportant. 3
60
50
1- Very 2- Important,
40 important,
30 3- Unimportant 4- Very
unimportant,
20 5- Neither
important nor
10 unimportant.
0
Respondent
78
4-How do you rate the overall relationship between the organization and its
employees?
Respondent
1 Excellent 23
2 very good 47
3 typical 13
4 fair 10
5 poor 7
50
45
40
35
30
1 Ex cellent
25 2 very good 3 typical 4 fair 5 poor
20
15
10
5
0
Respondent
79
5-How do you rate the organizations salary structure?
Respondent
1 Excellent 37
2 very good 39
3 typical 8
4 fair 10
5 poor 6
40
35
30
25
1 Ex cellent 2 very good 3 typical 4 fair 5 poor
20
15
10
5
0
Respondent
80
6-How do you feel about the quantity of work you are asked to perform?
Responde
nt
1 much too much 23
2 too much 27
3 just right 33
4 too little, much too little. 17
35
30
1 much too much 2 too much
25
20
15
103 just right 4 too little, much too little.
5
0
Respondent
81
7- Awareness of technique of Performance Appraisal being followed at
BANKS among Employees
Options Response
Yes 72
No 28
80
70
60
50 Yes No
40
30
20
10
0
Response
INTERPRETATION:-
As show in the graph most of the employees of BANKS
Aware from the technique of the performance appraisal.
The percentage of the yes is 72% and the percentage of the no is 28%.
82
8- Do Employees being appraised during their service period?
Options Response
Yes 68
No 32
70
60
50
Yes No
40
30
20
10
0
Response
83
9- Employees opinion as to the present appraisal system
Options Responses
Fully Satisfied 2
Satisfied 24
Cant Say 44
Dissatisfied 30
45
40
35
30
25Fully Satisfied Satisfied Cant Say Dissatisfied
20
15
10
5
0
Responses
84
10- Employee perception as to the frequency of appraisal
Options Response
Continuous 92
Never 0
Cant Say 6
100
90
80
Once During The Service Period Continuous Never
70
60
50
40
30
Cant Say
20
10
0
Response
85
11- If continuous appraisal what should be the gap between two appraisal
period?
Options Response
Quarterly 20
Half Yearly 44
Yearly 36
45
40
35
30
25 Quarterly Half Yearly Yearly
20
15
10
5
0
Response
86
12- How Performance Appraisal affects the productivity of the employees?
+ Feedback
38 12 -
- Feedback
12 10 28
Neutral 24 21 5
90
80
70
60
50
40 East West North
30
20
10
0
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
87
13- Who should do the appraisal?
Options Response ( in % )
Superior 24
Peer 0
Subordinate 0
Self Appraisal 8
Consultant 4
Superior + Peer 16
50
45
Superior Peer Subordinate
40
35
30
Self Appraisal
25 Consultant All of the above
20
15
10
Superior + Peer
5
0
Response( in % )
88
.14- Does appraisal help in polishing skills and performance area?
Options Response ( in % )
Yes 74
No 10
Somewhat 16
80
70
60
50
Yes No Somewhat
40
30
20
10
0
Response( in % )
If the process of appraisal does not lead to the improvement of the skills and proficiency of
the employees, the very purpose of appraisal becomes illogical. In the survey conducted it
was observed that nearly 74 % of the respondents agree that Performance Appraisal does
leads to polishing the skills of the employees. Nearly 10 % of the respondents view that it
does not serve this purpose and around 16 % were not able to respond as to whether it serve
any such purposes or not.
89
15- Does personal bias creeps-in while appraising an employee?
Options Response ( in % )
Yes 82
No 18
90
80
70
60
Yes No
50
40
30
20
10
0
Response( in % )
In the process of appraising, both the parties are human being, that is,
the one who is being apprised and the other who is appraising. Thus,
there bound to be subjectivity involved, be it an objective way of
appraising.
90
16- For given a chance, would employees like to review the current
appraisal technique?
Options Response ( in % )
Yes 72
No 4
Cant Say 24
80
70
60
50
Yes No Cant Say
40
30
20
10
0
Response( in % )
91
92
FINDING,
SUGGESTIONS
AND
CONCLUSION
93
FINDINGS OF STUDY
Findings are 1 percent inspiration while 99 percent perspiration it takes a lot of time and
labor but also gives a potential returns for our problem in the form solutions.
I am sure that the findings which I found during my project about employees performance
will be beneficial for the company. This study brought the strength and weaknesses about
employees performance in the company. On the basis of these findings major actions or
decisions can be taken by the company for employees performance.
This project was about to improve employees performance thats why this project was
named as performance appraisal. But this study was having more objectives too. This
project is proved beneficial for the company. Essentials of this study which I came to know
were brightened here:
1. Mutual trust.
2. Clear objective.
3. Standardization.
4. Training.
5. Job relatedness.
7. Individual differences.
94
SUGGESTIONS AND CONCLUSION
After having analyzed the data, it was observed that practically there was no appraisal in
the organization. To be an effective tool, it has to be on the continuous basis. This is the
thing that has been mentioned time and again in the report, as, in the absence of continuity,
it becomes a redundant exercise. Before actually deciding drafting what should be the kind
of appraisal the following things should be taken care of:
2. To market such a concept, it should not start at bottom; instead it should be started by
the initiative of the top management. This would help in percolating down the concept to
the advantage of all, which includes the top management as well as those below them. This
means that the top management has to take a welcoming and positive approach towards the
change that is intended to be brought.
3. Further, at the time of confirmation also, the appraisal form should not lead to
duplication of any information. Instead, detailed appraisal of the employees work must be
done which must incorporates both the work related as well as the other personal
attributes that are important for work performance.
4. It should be noted that the appraisal form for each job position should be different as
each job has different knowledge and skill requirements. There should not be a common
appraisal form for every job position in the organization.
5. The job and role expected from the employees should be decided well in advance and
that too with the consensus with them.
6. A neutral panel of people should do the appraisal and to avoid subjectivity to a marked
extent, objective methods should be employed having quantifiable data.
7. The time period for conducting the appraisal should be revised, so that the exercise
becomes a continuous phenomenon.
8. Transparency into the system should be ensured through the discussion about the
employees performance with the employee concerned and trying to find out the grey areas
so that training can be implemented to improve on that.
95
9. Ideally in the present day scenario, appraisal should be done, taking the views of all the
concerned parties who have some bearing on the employee. But, since a change in the
system is required, it cannot be a drastic one. It ought to be gradual and a change in the
mindset of both the employees and the head is required.
I would like to give some other suggestions which are given here:
7. Validate selection techniques and human resource policies to meet federal Equal
Employment Opportunity requirements.
96
BIBLIOGRAPHY
BOOKS
Human Resource Management by C.B.GUPTA.
(Sultan Chand & sons. Publication.)
WEB SITES
97
QUESTIONNAIRE
Date: ----------
Name of the company :
Address of the company : Bareilly (U.P.)
1. Age of employee
(a) 18-22
(b) 23-25
(c) 26-30
(d) 31-35
(d) Above 35
2- According to you how important is the work you do to organization?
1-very important
2-Important
3-Unimportant
4-Very unimportant
5-Neither important nor unimportant
3-How important to you is the performance appraisal system of the organization?
1-very important
2-Important
3-Unimportant
4-Very unimportant
5-Neither important nor unimportant
4-How do you rate the overall relationship between the organization and its employees?
1-Excellent
2-Very good
3-Typical
4-Fair
5-Poor
98
1-Excellent
2-Very good
3-Typical
4-Fair
5-Poor
6-How do you feel about the quantity of work you are asked to perform?
2-Too much
3-Just right
1- Yes
2- No
1- Yes
2- No
1-Fully satisfied
2-Satisfied
3-Cant say
4-Dissatisfied
2-continuous
3-Never
99
4-Cant say
11- If continuous appraisal what should be the gap between two appraisal period?
1- Quarterly
2-Half yearly
3-Yearly
1- +Feedback
2- -Feedback
3- Neutral
1- Superior
2- Peer
3- Subordinate
4- Self-Appraisal
5- Consultant
7- Superior +Peer
1-Yes
2- No
3- Somewhat
1-Yes
2- No
100
16- For given a chance, would employees like to review the current appraisal technique?
1-Yes
2- No
3- Cant say
101