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CHAPTER – 1
INTRODUCTION
McGregor says : “Formal performance appraisal plans are designed to meet three needs, one
of the organisation and the other two of the individual, namely;
(i) They provide systematic judgements to back up salary increases, transfers,
demotions or terminations.
(iii) They are used as a base for coaching and counseling the individual by the
superior.
On the basis of merit rating or appraisal procedures of various companies in India, the main
objectives of employee performance appraisal are:
The Lakshmi Vilas Bank Limited, Karur, came into being and was registered as a
Limited concern on 3rd November 1926.
The bank started functioning with a paid up share capital of Rs.71,000/- made up of
shares partly from the above promoters and largely from the public.
1/5th of the net profit declared every year was diverted towards reserve fund which
is steadily build up. The increasing volume of deposits year after year is a sure
indication of the bank’s place in the estimation of the investing public not only in
Karur but also at the places where the bank branches are functioning.
All transactions of the bank are being conducted in such a way that a trust and
confidence of both the borrowing and investing public have been completely
ensured. Mere profit alone is not the end aim of the this Bank. Service to the
public, creation of a feeling of trust and confidence in the depositors and selfless
and impartial management have been the ideals the bank has set before it.
The management was also very particular in adhering to the directives issued by
Reserve Bank of India from time to time on deposits and advances and other
matters.
Today the banks has 163 branches throughout Tamilnadu and also have extended
its activities to other States like Andhra, Karnataka, Kerala and Maharashtra.
HRD CHART
Chairman
General Manager
Chief Manager
Manager
Officers
Clerk
4
DEFINITION
a. Management by objectives.
b. Work planning and review.
d. Behavioural checklists
Easy to use, provides a direct link between job analysis and performance appraisal can
be numerically scored, and facilitates comparison across employees. However, the
meaning of response categories may be interpreted differently by different raters.
e. Critical incidence
Focuses directly on job behaviors, emphasizes what employees did that was effective
or ineffective, but can be very time consuming to develop.
a. Management by objectives
Focuses on results and on identifying each employees contribution to the success of
the unit or organisation.
Dick Grote, president of Grote Consulting Corporation in Dallas and author of "The
Complete Guide to Performance Appraisal.
He discovered during his research that best-practice companies use their performance
management process to:
• Replace a "best-effort" culture with a results-driven one.
• Establish and reinforce the importance of core competencies.
• Target poor performers for termination.
6
DIVULGING SECRETS
Came away with the following tips:
Tip 1: Hold the performance appraisal form in the left hand and your company's mission
statement in the right hand and compare them to see if they share the same words and
philosophy. That's where so many organizations miss the boat. They have performance
appraisals, and they have mission statements, but they don't link the two. The whole purpose
of the performance appraisal is to see if employees are achieving the corporate mission. If a
company wants to have an immediate impact on the corporate culture, all it must do is to
weak the performance appraisal form just a little bit, so that the words in the mission
statement also turn up in the appraisal. That makes it much easier to see if the employee is
actually supporting the company's direction. It also makes it easier for the employee to
understand the connection and perform accordingly.
Tip 2: At the very beginning of the performance appraisal cycle, spend at least an hour with
each of the employee to talk about that person's plans for the next 12 months. During that
meeting, have a blank copy of the performance appraisal form to refer to, and let the
employee take notes on that form about what the discussion is about. At the end of the
meeting, ask the employee to keep the original and make you a copy of those notes. That
form becomes the charter for the employee to operate from for the coming 12 months and it
helps the employee to know where he did a good job and where he didn't deliver.
Tip 3: A week or so before your scheduled performance appraisal with the employee, tell the
employee it is coming up and ask the employee to make list of all the things done in the last
12 months that the employee is really proud of. It doesn't have to be a formal list, and it only
has to contain the good stuff. This immediately puts a positive spin on the entire process, and
it also protects from the possibility of managerial embarrassment.
Tip 4: Instead, give the performance appraisal apart to me it the employee a few hours before
and ask the employee to look over it and make comments on it. Performance appraisals
should be a business discussion, so let the sunshine in on it.
Tip 5: There is a very simple way to determine the final rating for each section of the
performance appraisal. Most of these forms are in a three-tier fashion: The employee either
"fails to meet expectations," "fully meets expectations," or "exceeds expectations." Deciding
7
whether an individual is at the high end of "fully meets expectations" or is actually over the
line into "exceeds expectations" can be a very tough call for a manager.
CHAPTER – 2
To find out the satisfaction level for the performance appraisal system of the Lakshmi Vilas
Bank.
CHAPTER – 3
RESEARCH METHODOLOGY
The sources are both primary and secondary sources. Primary data were collected
by means of administered questionnaire. The questionnaire consists of particulars like
recognition, opportunity, training, communication, etc.
A great deal of primary data were collected through direct survey. The survey
method includes personal interview with questionnaire.
Secondary data were collected through internal records and internal sources.
Internal Records
• Employee data
8
• Employee feedback report
• Annual report
External Sources
This is the most commonly used method of performance appraisal. Under it, a printed form,
one for each person to be rated. The factors are: employee characteristics and employee
contribution. The traits are then evaluated on a continuous scale, wherein the other places a
mark discontinuous or multiple type of scale is used, one factor is used along a discontinuous
scale.
The rating scale method is easy to understand and easy to use and permits a statistical
tabulation of scores. A ready comparison of scores among the employees is possible. These
scores indicate the worth of every individual. It is the most common evaluation tools in use
today. Besides, when ratings are objectively given they can provide useful feedback.
Questionnaire
The questionnaire includes closed ended questions with multiple choice.
Multiple choice questions are easier to respond. To tabulate and to analyse.
Census Survey
The survey had been conducted with managerial grade employees in the Lakshmi Vilas Bank
Limited.
The survey is limited to Regional office alone and the study cannot be
generalized to other branches.
CHAPTER - 4
TABLE 4.1.2
INFERENCE
It is found from the above table that 29.7% of the respondents have been working in
ITD department, 27.7% of the respondents have been working in Accounts department,
16.8% of the respondents have been working in Audit and inspection department, 9.9% of the
respondents have been working in HRD department, 7.9% of the respondents have been
working in P&D department, 5.0% of the respondents have been working in Research
department and 3.0% of the respondents have been working in Bank Assurance department.
TABLE 4.1.3
INFERENCE
It is identified from the above table that 34.7% of the respondents belongs to below 35
years and 36-45 years of age level, 30.6% of the respondents belongs to above 45 years of
age level.
TABLE 4.1.4
11
INFERENCE
From the above table it is inferred that 98.0% of the respondents are male employees
and 2.0% of the respondents are female respondents.
TABLE 4.1.5
Experience Percentage
S.No. No. of Respondents
(in years) (%)
1 Upto 5 years 29 28.7
2 6-10 years 27 26.7
3 Above 10 years 45 44.6
Total 101 100.0
INFERENCE
From the above table it is found that 44.6% of the respondents have above 10
years of experience, 28.7% of the respondents have upto 5 years of experience and 26.7% of
the respondents have 6-10 years of experience.
TABLE 4.1.6
Educational Percentage
S.No. No. of Respondents
qualification (%)
1 UG Level 40 39.6
2 PG Level 61 60.4
Total 101 100.0
INFERENCE
12
From the above table it is found that 60.4% of the respondents have qualified in PG
level and 39.6% of the respondents have qualified in UG level.
TABLE 4.1.7
INFERENCE
It is found from the above table that 46.5% of the respondents have their monthly
income of above Rs. 15000, 25.7% of the respondents have their monthly income of upto Rs.
12000 and 27.8% of the respondents have their income in the range of Rs. 12001 – Rs.
15000.
13
TABLE 4.1.8
Level of Percentage
S.No. No. of Respondents
Effectiveness (%)
1 Low 32 31.7
2 Medium 34 33.7
3 High 35 34.7
Total 101 100.0
INFERENCE
It is observed from the above table that 34.7% of the respondents have high level of
effectiveness, 33.7% of the respondents have medium level of effectiveness and 31.7% of the
respondents have low level of effectiveness, with respect to performance appraisal.
TABLE 4.2.1
AGE AND LEVEL OF EFFECTIVENESS OF PERFORMANCE APPRAISAL (TWO-WAY
TABLE)
Level of Effectiveness
Age Total
Low Medium High
Below 35 years 12 17 6 35
36-45 years 10 7 18 35
Above 45 years 10 10 11 31
Total 32 34 35 101
Null Hypothesis (H0) : There is no significant relationship between age and level of
effectiveness of performance appraisal.
Alternative Hypothesis (H1): There is close significant relationship between age and
level of effectiveness of performance appraisal.
Calculated χ 2
value = 10.400
Degree of Freedom = 4
14
Table value = 9.488
Result = Significant at 5% level
INFERENCE
It is found from the above table that calculated value is greater than the table value
at 4 degree of freedom. So, Null hypothesis (H0) rejected. Hence it is concluded that there is
close significant relationship between age and level of effectiveness of performance appraisal.
TABLE 4.2.2
Level of Effectiveness
Designation Total
Low Medium High
Manager 1 1 6 8
Officer 31 33 29 93
Total 32 34 35 101
Calculated χ 2
value = 6.246
Degree of Freedom = 2
Table value = 5.991
Result = Significant at 5% level
INFERENCE
It is found from the above table that calculated value is greater than the table value
at 2 degree of freedom. So, Null hypothesis (H0) rejected. Hence it is concluded that there is
close significant relationship between Designation and level of effectiveness of performance
appraisal.
TABLE 4.2.3
Calculated χ 2
value = 6.911
Degree of Freedom = 2
Table value = 5.991
Result = Significant at 5% level
17
INFERENCE
It is found from the above table that calculated value is greater than the table value
at 2 degree of freedom. So, Null hypothesis (H0) rejected. Hence it is concluded that there is
close significant relationship between educational qualification and level of effectiveness of
performance appraisal.
TABLE 4.2.4
Level of Effectiveness
Monthly Income Total
Low Medium High
Upto Rs.12000 8 12 6 26
Rs.12000-Rs.15000 14 7 7 28
Above Rs. 15000 10 15 22 47
Total 32 34 35 101
18
Calculated χ 2
value = 10.213
Degree of Freedom = 4
Table value = 9.488
Result = Significant at 5% level
INFERENCE
It is found from the above table that calculated value is greater than the table value
at 4 degree of freedom. So, Null hypothesis (H0) rejected. Hence it is concluded that there is
close significant relationship between monthly income and level of effectiveness of
performance appraisal.
19
TABLE 4.2.5
Level of Effectiveness
Experience Total
Low Medium High
Upto 5 years 13 7 9 29
6-10 years 11 11 5 27
Above 10 years 8 16 21 45
Total 32 34 35 101
Calculated χ 2
value = 10.270
Degree of Freedom = 4
Table value = 9.488
Result = Significant at 5% level
INFERENCE
It is found from the above table that calculated value is greater than the table value
at 4 degree of freedom. So, Null hypothesis (H0) rejected. Hence it is concluded that there is
close significant relationship between experience and level of effectiveness of performance
appraisal.
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CHAPTER – V
FINDINGS
Most (34.7%) of the respondents belongs to below 35 years and 36-45 years of age level.
Most (46.5%) of the respondents have their monthly income of above Rs. 15000.
CHAPTER – VI
It is suggested to consider the current appraisal system and there is a need for
improvement.
CHAPTER – VII
CONCLUSION
In every organization, job satisfaction plays a vital role. Employees tend to satisfy if
they meet their needs, wants, requirements and most of all job recognition and
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encouragement from the top management is expected so their work has to be appreciated by
a method of performance appraisal. So by enhancing these appraisal techniques, it helps in
level of job satisfaction and healthy work atmosphere.
QUESTIONNAIRE
Name :
Designation :
Department :
Age :
Service in years :
Educational Qualification:
Monthly Income :
Agree : A
Disagree : DA
Text: 1-16,18,20,22,24,26,28,30,32-47