Chapter ■ IVPERFORMANCE APPRAISAL ^

SYSTEM AND PRACTICES IN BANKS

Chapter Outline

Introduction

HRD in State Bank of India

Recruitment and Selection Process in SBI

Performance Appraisal in SBI

Emergence and Historical Background in J&K Bank

Organizational Structure in J&K Bank

Recruitment and Selection Process in J&K Bank

Performance Appraisal J&K Bank

In the preceding chapter an attempt has been made to review the available literature on performance appraisals

in order to determine the significance o f the essential requirements o f effective performance appraisal system

practices and to know, what strategies can be evolved to make performance appraisal more meaningful, free

from biases and acceptable to the employees and designed in accordance with the available research literature.

In the present chapter, a brief background has been given about the sample study organizations viz. State Bank

o f India (SBI) & Jammu Kashmir Bank (J&K Bank). Accordingly, the first section deals with a brief history o f

SBI Ltd. and its present performance appraisal practices and the second section deals with the brief profile o f

J&K Bank Ltd. and discusses the existing procedure o f PAS for employees respectively.

Introduction

Commercial banks in India have been facing severe competition and change in the past few

years. The liberalization measures have also added a new dimension to the banking industry

through the entry of new competitive players in the market. This has necessitated changes in

the structural and operational policies of the banking industry. The expectations from the

banks and demands made on them, which are increasing in both volume and complexity,

have made the role of banks more challenging, requiring new types of skills and expertise on

the part of bank employees. Given the background of uncertainty as to what the future is

going to unfold, a key ingredient for stability for successfully coping with the changes in the

financial sector would be the contribution of Human Resource Development (HRD). The

J&K Bank & SBI are no more an exception to these realities. Today every organization has

the personnel policies and procedures in one form or the other. These policies have an effect

on the overall performance of the individuals & also of the organization. The task before the

HRD can be better appreciated if viewed in the light of emerging challenges in the banking

industry. An in-depth job content analysis would help generate role directories with

explanations and job descriptions for every role of the employees. Adequate training

programmes, welfare measures and use of counselors and labor relations personnel are

becoming critical in the smooth running of the banking industry. Updating of recruitment

and selection processes and periodic performance appraisal processes are required.

Banking industry viewed from personnel angle has its own peculiarities. The efficacy of

employees determines to a great extent the quality of services rendered. Over the last couple

of years the banking industry has witnessed a paradigm shift in all the facets of manpower

management viz. recruitment, training & development, performance appraisal system,

placement and upward mobility & specialization. In this connection let us have a glance at a

brief profile of and performance appraisal procedure in State Bank of India.

State Bank of India (SBI) Ltd

State Bank of India is the largest bank in the country with 9000 branches in India and

51 foreign offices in 32 countries. At the time of inception of the State Bank of India, it had

only 466 branches. In 1959 State Bank of India (subsidiaries Bank) Act was passed under

which eight subsidiary state banks were also taken over and reconstructed into seven

subsidiaries of the State Bank of India. They are State Bank of Jaipur, State Bank of

Hyderabad, State Bank of Indore, State Bank of Mysore, State Bank of Patiala, State Bank

of Saurashtra, State Bank of Travencore.

The objective of State Bank of India is “Growth with profit”. Growth in terms of

business size, branch expansion, coverage of unbanked areas as well as in terms of the

variety and quality of service rendered. SBI has played a vital role in the economic

transformation of India. The bank has crossed many vissitiludes during last few decades. A

brief review of its performance has been given in exhibit 4.1 which is shown below.

Exhibit 4.1 A brief review of SBI PerformanceNo. o f branches 90,51

Deposit Base » Rs. 19,680.3 crores.

Asset base Rs. 2.61 lack crores.

Net profits Rs. 1,604.19 crores

Total income Rs. 30,021.19 crores.

No. o f people employed 2,39,649

Employee cost 6% o f sales

Operating profits Rs. 3,966. 787 crores

(Source BT- KPMG May, 2006)

1. Mutual funds - 100 percent subsidiary SBI Mutual Fund manages 20 schemes, Rs

3,500 crores in asset.

2. Merchant Banking - SBI capital 100 percent subsidiary is one of the oldest merchant

banks in India.

3. Credit cards - SBI- GE a 60: 40 joint venture with GE capital has 700,000 cards

members.

4. Consumer Finance - SBI Market consumer finance through its personal loan

schemes and loan has portfolio of Rs 233 crores.

5. Government Securities trading - SBI Gilts a 100 percent subsidiary trades in gilts.

6. Insurance: SBI Life a joint venture with Cardiff SA is entering Banking assurance

business.

Organizational structure

The present organization structure of SBI is a modular structure consisting of four

discrete centers of responsibility: viz,

1. Central office

2. Local Head office

3. Zonal office

4. Branches

The central office of the bank is located at Bombay. These are 13 local Head offices, called

the ‘circles’, one each situated at Bombay, Bhopal , Bhubneshwer, new Delhi , Madras ,

Guwahati, Ahmedabad , Calcutta, Hyderabad, Lucknow , Bangalore and Patna . In addition

to these the bank is having network of Zonal offices, totaling 53 in numbers. Apart from

these, at present, the bank has nearly 9000 branches in India & 51 offices in 32 countries of

world.

Structural arrangements in SBI are a decentralized and administrative structure with

branches as the basics building blocks. The structure has been worked as follows:

1. Branch is placed under a branch manager who in turn is placed under an over all

control of chief manager.

2. 35/40 branches are grouped into a region placed under the administrative control of

Regional / Zonal manager.

3. 4/5 Regional managers are located at a zonal office, coordinated and controlled by a

Deputy General Manager (DGM).

4. 4/5 Zonal offices constitute a circle under local head offices headed by Chief General

Manager (CGM).

5. Local Head offices are coordinated and controlled by central office.

The above structure has been shown diagrammatically in exhibit 4.2

HRD in State Bank of India

A decision to introduce HRD system was taken at a workshop attended by Chairman

of SBI and the Managing Directors of SBI and its associate banks. The workshop was

addressed by an external consultant who explained the HRD philosophy.

The associate banks appointed HRD managers subsequently but could not make

much headway except designing a new appraisal format common to all associate banks, and

conducting periodic surveys on motivational climate, it was in 1979 when SBI appointed a

Chief General Manager personnel & HRD, and a chief officer, HRD, at the central office,

that the HRD started gaining momentum in SBI. Simultaneously, HRD departments were

started and HRD mangers appointed in different circles of the SBI. The HRD efforts started

by introducing a new development - oriented performance appraisal system. Given the size

of the organization, with about 40000 offices to be covered, introduction of the new

appraisal had to be based on adequate experimentation and orientation of all staff to the

philosophy and objectives of the new system. After about 5 years of experimentation and

evolution, the new appraisal system was formally introduced by the bank in 1986. The HRD

department of SBI also started working simultaneously from 1979 in job rotation, training,

OD, career development, feedback and counseling sub systems.

Recruitment & Selection Process in SBI

In SBI the recruitment is done through its known Recruitment Board especially

constituted for the purpose by the bank after a well thought and well conceived human

resource planning for each and every ffosition and then the positions are advertised and

applications are received at the all India level and then the written tests are conducted and

the selection of the candidates is made as per the performance and merits of the case for the

recruitment purposes in the ratio of 4:l.Pos/ managers directly or indirectly. The candidate

becomes eligible for interview after he qualifies the written test. The candidate is tested in

terms of his capabilities, through one’s level of aptitude, attitude of mind and over and

above one’s behavioral patterns. Similarly for TO’s (Training officers) one must have

qualified CIIBA-I with matriculation/ graduation with four years of service and age limit

being 40 years. The Bank has been given the liberty to recruit people in line with its

requirements arising from time to time under the given circumstances.

Performance Appraisal in SBI

Performance appraisal system is a systematic and objective way of judging the relative

worth or performance of an employee in performing his task .It is the process which helps to

identify those who are performing their assigned tasks well and also pinpointing those

whose productivity is low.

In SBI performance appraisal was introduced as a tool for human resource development,

with the following objectives:

1. Creating “openness of culture”

2. Help the employee to overcome his weakness and improve over his strength and

these enable him to improve his performance.

3. Generate significant relevant, free and valid information about employees.

4. Help identifying employees for the purpose of motivating, training and developing

them.

5. Provide inputs to system of rewards comprising salary increments, appreciations,

additional responsibilities, promotions etc.

Like most of other organizations SBI too had a system of confidential reporting. The system

of confidential reporting suffered form many draw backs which are listed below:

1. Firstly, the degree of subjectivity was too high in the system.

2. Secondly, there was no scope for providing feedback to the appraisee on his

performance.

3. Thirdly, the system did not in any way reflect the growth needs of the individuals

being appraised, and so on.

A general data based appraisal system, involving people in the goal identification

process was introduced on experimental basis in Ahmedabad circle of SBI in 1981. The

results of the experiments were quite encouraging and as a result the appraisal system was

extended to whole of the organization in 1986 covering all the levels of organizational

hierarchy.

The objectives of the newly introduced system were:

a) Employee motivation development and growth- in terms of acquisition of new

capabilities, knowledge, skill, experience, attitudes etc, to perform his present job

better and future jobs more effectively.

b) To help the Bank to move towards a culture of mutuality and openness.

c) Generate objective and accurate data about employees that could be used for

personnel decisions like placement, promotion, transfers, training etc.

But, this appraisal system also suffered from many inadequacies. Some of the deficiencies

noticed were as follows:

1. It was subjective in nature.

2. It was difficult to comprehend key performance areas and called for a good deal of

judgment on the part of both appraiser and appraisee.

3. Although the system had been conceived as person specific in actual practice, the

appraisee and appraiser together settled key responsibily areas of the role.

It was due to the above deficiencies in the system, it had to be discarded and on 25th January

1993 a new appraisal system called the assignment appraisal system got finally approved by

the top management, for its introduction all over the bank with effect from 31st March, 1993.

(SBI, “Assignment appraisal report format- Manual of instructions” HRD department,

central office Bombay,).

The present performance appraisal system in SBI is very clear. The reporting

authority should in the beginning of the year set quantitative /physical /financial targets in

consultation with each of the officers with respect to whom he is required to report. In case

of those officers, who have responsibility for achieving growth of business, the settled

budget for the year will be the target. As regards other officers, quantification of the

responsibility in terms of identified key responsibility area (KRAS) may be done by the

appraisee. Even otherwise key responsibility of every functionary is well known to appraisee

as well as appraiser. The targets/goals should be set at the commencement of the year. In

case of officer taking up a new assignment in the course of reporting year, he will take over

the targets set for the officer whom he is replacing. However, while reporting on such officer

it will be necessary to take into consideration his performance in the assignment in which he

has spent maximum period. While fixing the target, priority should be assigned item- wise

taking into consideration the nature and the area of work of the officer to be reported upon.

(State Bank of India‘Annul report’ 1991-92).

The employee under the new performance appraisal system including junior

managerial scale, medium managerial scale II and III officers on three dimensions, viz, key

responsibility areas (KRA’S), qualitative aspect of performance, attributes based appraisal.

The brief description of these factors and their weightage are clear form the table 4.3 as

follows:

Exhibit 4.3: Key responsibility areas (KRAS) of junior and middle level Management

in case of SBI Ltd.

(A) Key responsibility areas (KRAS)

KRA particulars Comments

1. Innovation

2. Team building

3. Public relations

4. Delegation

5. Conflict resolution

6 Staff management

7. Decision making

8. Any other significant area

Over all assessment of performance (Marks to be stated)

Excellent Good Above average Poor

31-40 21-30 11-20 10 and below

Qualitative aspects and attribute based factors and their weightage for

managerial staff in PA in SBI Ltd.

(B) Qualitative aspects Weightage

1. House keeping 3

2. Quality of correspondence 3

3. Follow up of various actions initialed 3

4. Compilation of data & information 3

5. Support to the controller 3

6. Any other significant performance 3

7. Attitude towards SCS/STS weaker sections of society 2

Total 20

(C) Attributes based appraisal Weightage

1. Knowledge of work, performances, rules and

regulations

2

2. Control & supervision 2

3. Decision making 2

4. Diligence 2

5. Sincerity, honesty & intensity 2

6. Under standing & awareness 2

7. Sociability public relations and image building> 2

8. Marketing ability 2

9. Ability to appraise business 2

10 Ability to appraise 2

Total 20

Total = A+B+C = 40+20+20 = 80 Marks

(D) General comments (strengths, potential and suitability for promotion) weightage

= 20 marks.

In case of clerical staff SBI has different performance appraisal format which is

shown in exhibit 4.4 as under:

S.No Particulars Reporting

authority

Reviewing

authority

1. Conduct (behaviour with customers,

press juniors and seniors)

2. Quality of work (including comfort with

technology and adherence to time

schedules)

3. Time discipline (leave punctually)

4. Special contribution to work/business

5. General remarks (with potential for

shouldering higher responsibility

As evident from the above given details, there are different performance appraisals

formats for the managerial and clerical staff. The appraisal format in SBI lags behind in

certain important aspects, which need to be taken care of. There is no scope for self

appraisal especially in case of clerical staff. The appraisal format should provide the

employees an opportunity to identify the factors which facilitate or hinder their performance.

There should be a provision in the appraisal format to ask an employee whether an employee

is satisfied with the type of assignment he/ she is handling. There is no scope for potential

appraisal in SBI’s appraisal format. The potential appraisal provides a measure of the

employees’ strengths and weaknesses and specific training needs could be recommended

accordingly. Additionally clerical staff seems to be neglected when it comes to appraisal. As

can be observed from the format given there are only few aspects on the basis of which

clerical appraisal is done. Clerical staff is not given an opportunity to participate in the

appraisal process. It seems there is an essential system requirement to given the clerks a

detailed feedback on their strengths, weaknesses and developmental needs after the appraisal

process is over. The perception xof the employees will be analyzed and discussed in the

following chapters.

The Jammu and Kashmir Bank Ltd

The Jammu & Kashmir Bank Ltd. Is today one of the fastest growing banks in India

with a network of 487 branch offices spread across the country offering world class banking

products /services to its customers. Today the Bank has a status of value driven organization

and is always working towards building trust with share holders, employees, customers,

borrowers, regulators and other diverse stake holders, for which it has adopted a strategy

directed to developing a sound foundation of relationship and trust aimed at achieving

excellence, which of course comes from the womb of good corporate governance. Good

governance is a source of competitive advantage and a critical input for achieving excellence

in all pursuits.

The Jammu & Kashmir Bank considers good corporate governance as the “Since qua

non” of a good banking system has adopted a policy based on all the four pillars of good

governance- transparency, disclosures, accountability and value, enabling it to practice

trusteeship, transparency, fairness and control, leading to stakeholders delight, enhanced

shareholder value & ethical corporate citizenship. The bank is managed by an independent

& highly qualified Board following best globally accepted practices, transparent disclosures

and improvement of shareholders, besides ensuring to shareholders’ aspirations and societal

expectations following the principles of managements’ execute freedom to drive the bank

forward without undue restraints but with the framework of effective accountability.

Emergence & Historical Background

Entire banking of the State of J&K was performed by the traditional lenders till

1920-30 and that too at exorbitant interest rates. At the same time some banks functioned at

a very limited scale, such as Punjab National Bank, Grindleys Bank and Imperial Bank of

India. The role of these banks was reduced to the acceptance of deposits, as they could not

grant loans and advances to the people of the state owing to the statutory limitations. Under

this scenario batiks could not ameliorate the financial and social position of the state. To

overcome this critical situation the Maharaja of the State conceived an idea of setting up a

Bank in the State of J&K. After a prolonged exercise and deliberations the assignment for

establishment of “The J&K Bank Ltd”, was given to the late “Sir Sorabji NpochKanwala,

the then Managing Director of the Central Bank of India.

Mr. Npochkanwala, formulated a scheme on 24-09-1930, suggesting establishment

of semi State Bank with participation in capital by State and the public, under the control of

State government. Thus the Bank was formally incorporated on the 1st of October 1938, and

commenced business from the 4th July 1939, at its registered office, Residency Road,

Srinagar, Kashmir.

The J&K Bank Ltd. Has been the first of its nature and composition as a state owned

Bank in the country. The state government besides contributing half of the issue capital also

appointed it as its bankers for general Banking and treasury businesses. In its formative

years, the Bank had to encounter several problems, particularly around the time of

independence, when out of its total of 10 branches, 2 branches of Muzaffar- abad and

Mirpur fell to the other side of the line of control along with cash and assets in 1947.

However the state government came to its rescue and with the assistance of Rs. 6 lac to

meet the claims, however the Bank overcame its difficulties and kept growing.Following the

extension of central laws of the state of J&K, the bank was defined as a government

company as per the provisions of Indian Companies Act 1956. The bank had its first full

time chairman in 1971, following social central measures in Banks. Year 1971 was a

turning point for the bank on conferment of scheduled bank status and witnessed remarkable

progress in all the vital fields of operations. The bank was declared as “A” class bank by

Reserve Bank of India (RBI) in 1976, in recognition of dominant role and exalted

performance, RBI appointed the bank as its agent for performing the general banking

business of central government especially in maintaining currency and collection of taxes.

The J&K Bank ltd. Has a vast network of branches across the country. The Bank has

487 branches spread over the country. The bank has been able to computerize upto 452

branches i.e. 93% of the total business. The J&K Bank has been performing its functions in

urban, rural and far flung areas of the State. Besides these branches it has 170 ATM

(Automated Teller Machines) counters located at the various branches /centers throughout

the country, providing 24 hour service. It has also launched the mobile ATM facility to its

customers.

The challenges facing Indian Banking System that emerged from the significant and

far reaching changes over the last few years have been under taken successfully by Jammu

& Kashmir Bank. Despite the changing and challenging environments, characterized by

deregulation, competition with new banks and non banking finance companies, coupled with

increasing customer expectations, the performance of J&K Bank has significantly improved

in all the areas of operation till date. The performance of J&K Bank Ltd. In key areas can be

discussed under the following headings

S. No. Year Unit 2000 2001 2002 2003 2004 2005 2006

1. Paid up

capital

LRS 4801.24 4810.64 4816.01 4820.00 4824.55 4849.21 4849.21

2. Reserves LRS 48015.24 65140.54 88891.62 119379.62 154549.10 161691.00 175097.94

3. Deposits

(amount)

LR S 942208.80 1116808.26 1 2 9 1111.17 1467489.96 1866138.38 2164497.27 2348463.71

4. Deposit a/c

No.

.000 23.36 25.62 27.58 29.62 30.99 33.04 N .A

5. Advance

(Amt)

LRS 351806.96 476289.58 642388.51 801094.95 928493.62 115 17 14 .13 1448310.51

6. Advance

A/c N o

.000 1.23 1.75 2.09 2.44 2.57 2.82 N .A

7. Credit D.R % age 37.34 42.65 49.75 54.59 49.75 53.21 N .A

8. Investment LRS 425432.09 542494.68 575254.44 673782.11 845110.28 908923.45 900234.66

9. Capital

A .R

% age 18.82 17.99 15.46 16.48 16.88 15.15 N .A

10. Total

income

LR S 98972.44 115727.8* 161086.33 171455.86 182294.64 163125.77 183942.96

11. Total

Expenses

LR S 75764.00 88448.29 114962.14 116083.45 119452.57 127579.17 166258.62

12, Net profit LR S 12017.14 16756.19 25980.09 33775.09 40633.00 11506.90 1768434

13. Dividend % age 35 40 50 60 100 80 80

LRS = lacks of rupees.

The Jammu & Kashmir Bank Ltd has a four tier organizational structure comprising of

Corporate office, Zonal offices, District /Area offices and branch offices with its head office

at Srinagar. The Bank is headed by Chairman and Chief Executive Officer who is assisted

by one Chief General Manager and five General Managers. Chief General Manager is

looking after the portfolio of Administration. General Managers are looking after the

portfolios of corporate credit, ALM and Investments, Law and Company Affairs and

Accounts, Retail Credits and Stationary, I&V and Insurance, Estates & Card Business. The

General Managers are assisted by seven Joint General Managers & eight Deputy General

Managers who in turn have the support of Assistant General Managers in offices and the

Area Managers /District Managers. District and Area Managers supervise the functioning of

branches falling under their relative jurisdictions. Branches are headed by Branch Managers.

Exhibit 4.6: O rganizational H ierarchy in J& K Bank Ltd.

Chairman

▼

General M anger

▼

Deputy General M angers >

▼Assistant G eneral M angers

▼M anagers

▼Clerical S taff

y

Subordinates

J&K Bank has own recruitment policy and procedures for all the categories of

employees. All appointments in and promotions to the officers service shall be made by the

competent authority which will be the appointing authority, in accordance with the policy or

guidelines, if any, laid down in this behalf by the Board of Directors of JK Bank.

No person shall be eligible for appointment unless he/she is a permanent resident of

State, is within the prescribed age group, possesses the prescribed qualifications, and has

passed the prescribed tests or any other qualifications as are deemed fit by the Board. In

addition the candidate has not been convicted for any offence and satisfies the appointing

authority that his or her character and antecedents are such, as to qualify him for such

service.

As far as J&K Bank is concerned, after applying for the post, the candidate is

required to through a written test which is normally conducted by IBPS or any other

organization as may be decided by the Bank management. Those candidates who qualify the

written test are subsequently called for viva-voce generally in the ratio of 4:1. Selection

committee appointed by the competent authority carries out the interviews. One who

qualifies both the tests gets selected for the desired board.

Procedure of Performance Appraisal in Jammu & Kashmir Bank Ltd.

The appraisal system for officers and workmen has come into force from 1st Jan

1987. The revised form is self- oriented*and the concerned officer is himself the initiating

authority in case of officers. The initiating authority is required to submit the annual

appraisal report to the reporting authority by 10th of January every year and the reporting

authority forwards the same to the reviewing authority by 20th January and the latter

forwards it to the accepting authority 30th January. The following exhibit 4.7 depicts the

Reporting/ Reviewing and Accepting authorities.

S.No Category of officer Reporting authority Reviewingauthority

Acceptance

1. Deputy General Manager General Manager Chairman

2. Secretary to chairman & secretary to Board

Chairman Chairman . . .

3. Officers I/C sections and Chief Managers who work

under DGM S’.

Deputy General Manager

General manager . . .

4. Officers 1/C sections, Chief Managers who are not under

DGMS.

General Manager Chairman . . .

5. Branch Managers who are not under District Managers

Deputy General Manager

General Manager . . .

6. Area Managers /District Managers/ Officers attached to Deputy General Manager

Deputy General Manager

General Manager —

7. Branch Managers & officers under District Managers

/Area Managers

District Managers/ Area Managers

Deputy General Managers

GeneralManagers

8. Officers working under 1/C sections

1/C sections Branch Manager

Deputy General Manager

GeneralManagerChairman

9. Managers under Branch Manager

Branch Manager District Manager DeputyGeneralManager

10. Workmen working in branches/offices

BranchM anagers’immediate

officer

District Manager . . .

Existing performance appraisal system in J&K Bank Ltd.

The employees under the existing performance appraisal system have two different

formats for performance appraisal, one for managers and the other for clerical staff. Under

this system, the managers are appraised on business dimensions, qualitative aspects of

business dimensions, managerial dimensions, key responsibility areas (KRAS). A brief

description of these factors and their weight age are given in the exhibit 3.7 as follows:

Exhibit: 4.8 Rating of overall assessment /performance

For Operational Assignment Total Marks out o f 100

a) Business Dimensions

1) Deposits2) Advances3) Profit/loss4) Recovery performance of Non Performing Assets5) Reconciliation of Books

30

b) Qualitative Aspects o f Business Dimensions

1) House Keeping2) Customer Service3) Inspection/ Audit & rectification of irregularities4) Submission of periodical returns

20

c) Managerial Dimensions

1) Job knowledge2) Leadership/Teambuilding3) Decision making/Problem solving4) Administrative skill Planning and organizing ability5) Public relations/Marketing skills6) Integrity & Honesty •»7) Communication Skills8) Innovativeness and Creativity9) Commitment and Involvement10) Discipline

40

X II) Outstanding Performance 10

Total 100

For Non- Operational Assignment Total Marks out o f 100

1) Key Responsibility Areas 50

2) Managerial Dimensions 40

3) Outstanding Performance 10

Total Marks awarded 100

b) Descriptive Comments on:1) Self-appraisal2) Potential3) Training needs

In case of clerical staff J&K bank has a different appraisal format which is given in the

exhibit 3.8 as under:

Exhibit 3.8: Assessment report of clerical staff

Duties performed during the year1. Across the counter2. As cashier3. As clerk in advance department4. Any other, specify

Efficiency appraisal1. Posting of cheques2. Drawing of balances in individual accounts.3. Calculation of interest4. Charging of commission /exchange5. Balancing of books of accounts >6. Preparation of statements7. Any other

Altitude appraisal1. Behavior towards customers2. Behavior with colleagues3. Behavior with superiors4. Willingness to perform duties5. Enthusiasm towards achieving goals and branch

IV) Potential appraisal

2. Sense o f responsib ly3. L eadersh ip qualities4. C risis management

VII) A ssessm ent o f knowledge

1. K now ledge abou t banks deposit and o ther schem es2. K now ledge abou t advance schem es & procedures3. K now ledge o f insurance products4. K now ledge o f com putes and bank ing so ftw are’s

VIII) General

1) Appearance and dress

2) Cleanliness

3) Speed and accuracy

4) Attendance and punctuality

IX) Others

1) Upright ness

2)Aptitude to pick up

3 prom ptness

4)Integrity

X ). Details o f explanation during the y e a r ...................................................................

XI). Complaints, received if a n y .....................................................................................

XII) Requirement o f training (suggestions)..................................................................

(Ratings Excellent /very good /good /average /unsatisfactory).

Again in case of JK Bank, there are certain aspects which seem to be neglected. Even

though the self-appraisal is provided in JK Bank’s managerial appraisal but it does not

cover the factors which hinder or facilitate employee performance, or the type of

training that an employee would prefer during the next appraisal period. Additionally

there is no proper scale to measure the aspects on the basis of which clerks are

assessed. So there is an immediate need to probe into the loopholes of the existing

PAS format and try to make it improved, efficient and result-oriented.

Purpose of appraisal reports:

The various purposes of appraisal reports of the sample organization are follows:-

1. As an aid to promotions.

2. For the purpose of placement

3. To consider extension in service

4. To help an employee to know his weaknesses and strengths and enable him to

improve his performance etc.

Guidelines for the completion of appraisal reports

The guidelines for reporting /reviewing officers as has been laid down in the officer’s

service manual are:-

1. The reporting officer should quote from the actual performance of the employee,

give statistics wherever possible, or brief specific instances instead of rarely writing

average, good and excellent.

2. Before writing the report it may be useful for the reporting officers to have a

discussion with the concerned officer about his performance during the year.

To sum up, in the present chapter an attempt was made to provide a brief background of the

sample study organizations viz. SBI and JK Bank Ltd. Accordingly the chapter starts with a

brief history of SBI . A brief review of SBI’s performance over last few years is given.

SBI’s organizational structure has been discussed consisting of central office, local head

offices, zonal offices and branches. Organizational structure is followed by evolution of

HRD in SBI with a discussion regarding recruitment and selection process in this banking

organization. A brief discussion related to performance appraisal in SBI is provided

followed by SBI’s appraisal format in which various aspects which provide a basis for the

employee appraisal in SBI has been provided. After throwing light on aspects of SBI’s

performance appraisal format, the emergence and historical background of J&K Bank Ltd.

has been discussed. A chart has been given in which performance of J&K Bank in key areas

has been discussed over the last few years. An organizational structure in JK Bank has been

provided giving a view of organizational hierarchy followed by recruitment and selection

process in this banking organization. Finally procedure of performance appraisal in J&K

Bank Ltd. has been discussed with an appraisal format of both the managerial and the

clerical staff. And few limitations regarding the appraisal formats have also been discussed.

This chapter highlighted the history o f study organizations and also the old well as existing performance

appraisal system being followed in SBI and J&K Bank Ltd. The succeeding chapter i.e. (chapter V) shall focus

on the analysis o f survey results and their interpretation part, as have been ascertained from the two sample

study organizations viz. J&K Bank Ltd. & State Bank o f India in order to see as to how far the employees of

the sample study organizations are satisfied with the existing performance appraisal practices in the sample

study banks.