1.

1 INTRODUCTION OF THE STUDY

A major concern of every organization should be to

contribute positively towards the achievement of its objective. Organizational
effectiveness is often equated with managerial efficiency. A manager can ensure
organizational effectiveness only by guaranteeing the full utilization of human resource
available through individual employees under his guidance. Hence, it is always required
for a manager to monitor and measure the performance of employees.
Moreover, since the organization exists to achieve the
goals, the degree of success that individual employees have in reaching this individual
goal is important in determining organizational effectiveness. The assessment of how
successful employees have been at meeting their individual goal to come a critical part
of human resource management. This leads to concept of Evaluation of Employee’s
Performance.

Employee Performance Management is a process for

establishing a shared workforce understanding about what is to be achieved at an
organization level. It is about aligning the organizational objectives with the employees’
agreed measures, skills, competency requirements, development plans and the delivery
of results. The emphasis is on improvement, learning and development in order to
achieve the overall business strategy and to create a high performance workforce.

1
1.2 NEED FOR THE STUDY

The need of the Evaluation of Employee’s Performance is to

determine what aspects of performance are required to be evaluated.
 To identify those who are performing their assigned task well and those who
are not and the reason for such performance.

 To provide information about the performance ranks basing on which

decisions regarded salary fixation, conformation, promotion, demotion and
transfer are taken.
 To provide feedback information about the level of achievements and
behavior of an employee.
 To provide information and counsel the employee.
 To compare actual performance with the standards and in out deviations
(positive and negative)
 To create and maintain satisfactory level of performance.
 To prevent grievance and in disciplinary activity.
 To facilitate fair and equitable compensation.
 To ensure organizational effectiveness.
 It guarantees useful information about employees and the nature of their
duties.
Evaluation of Employee’s Performance systems are
necessities to assess performance at regular intervals with consistency to study
improvements, deviation and to take corrective actions to bride gaps and improve
performance over a period of time.

2
 1.3 SCOPE OF STUDY

In the present study an attempt has been made to know the

actual implementation of Evaluation of Employee’s Performance techniques in general
and some other aspects such as awareness of the workers, effectiveness of the
performance appraisal system in particular.
A thorough analysis of the
Evaluation of Employee’s Performance system will help the management to know the
short comings, if any. It also help the company in knowing whether the performance
appraisal techniques are used to full extent or not, there by the researcher can
understand the effective implement of the Evaluation of Employee’s Performance
system

1.4 OBJECTIVES OF STUDY

1) The objective is to know how effective is the execution of Evaluation of Employee’s

Performance in ICICI Limited, Hyderabad.
2) To study the various factors taken into consideration while appraising the individual.
3) To study the challenges faced in employees performance.
4) To suggest measures to improve the performance appraisal system.

1.5 METHODOLOGY

The research methodology is a systematic way to solve the

problem and it is an important component of the study without which researcher may
not be able to obtain the facts and figures from the employees.

3
SOURCE OF DATA:

The study is based on primary as well as secondary data

collected from different sources:

A). Primary Data:

The primary data is collected with the help of

questionnaires, The questionnaires are chosen because of its simplicity and liability.

B). Secondary Data:

Secondary data is collected through the documents

provided by the personnel department. The documents include personnel manuals,
books, reports, journal, etc.

SAMPLING PROCESS:

A). Sample Unit:

The executives and employed at ICICI Limited., Hyderabad constitute

‘universe’ of the present study. A part of it is taken as sample unit for the resent study. It
includes JGMS, AGMS, manager and other employees of ICICI Limited. Hyderabad.

B). Sample Size:

The sample size consists of 100 respondents employed in

ICICI Limited, Hyderabad. Of these 30 are executives, 20 are senior executives and
the remaining 50 are employees.

4
1.6 PERIOD OF THE STUDY

Since so many years ICICI Limited Hyderabad has been

following the same procedure of appraisals for their executives and employees and for
the study of my project last on-year data has collected on performance appraisals.

5
2. Review of Literature

2.1 History of Performance Management

Performance Management began around 60 years ago as a source of income justification

and was used to determine an employee’s wage based on performance. Organizations
used Performance Management to drive behaviors from the employees to get specific
outcomes. In practice this worked well for certain employees who were solely driven by
financial rewards. However, where employees were driven by learning and development
of their skills, it failed miserably. The gap between justification of pay and the
development of skills and knowledge became a huge problem in the use of Performance
Management. This became evident in the late 1980s; the realization that a more
comprehensive approach to manage and reward performance was needed. This approach
of managing performance was developed in the United Kingdom and the United States
much earlier than it was developed in Australia.

In recent decades, however, the process of managing people has become more formalized
and specialized. Many of the old performance appraisal methods have been absorbed into
the concept of Performance Management, which aims to be a more extensive and
comprehensive process of management. Some of the developments that have shaped
Performance Management in recent years are the differentiation of employees or talent
management, management by objectives and constant monitoring and review. Its
development was accelerated by the following factors:

 The introduction of human resource management as a strategic driver and

integrated approach to the management and development of employees; and

The understanding that the process of Performance Management is something that’s

completed by line managers throughout the year – it is not a once off annual event
coordinated by the personnel department.

6
 Figure 2.1 – Graphical view of the difference between Performance Appraisal and
Management

Source: www.peoplestreme.com

2.2 Annual Appraisals are Different but part of Performance Management

Most organizations have some type of employee appraisal system, and many are
experiencing the shortcomings of manual staff evaluation systems. When discussing
workforce performance the most commonly asked question is “How does Performance
Management differ from performance appraisals or staff reviews”? Performance
Management is used to ensure that employees’ activities and outcomes are congruent
with the organization’s objectives and entails specifying those activities and outcomes
that will result in the firm successfully implementing the strategy. An effective
Performance Management process establishes the groundwork for excellence by:

 Linking individual employee objectives with the organization’s mission and

strategic plans. The employee has a clear concept on how they contribute to the
achievement the overall business objective,

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  Focusing on setting clear performance objectives and expectations through the use
of results, actions and behaviors,
 Defining clear development plans as part of the process, and
 Conducting regular discussions throughout the performance cycle which include
such things as coaching, mentoring, feedback and assessment.

Performance appraisal properly describes a process of judging past performance and not
measuring that performance against clear and agreed objectives. Performance
Management shifts the focus away from just an annual event to an on-going process.
Figure 2.1 is a process diagram that provides a graphical view of the major differences
between the two processes.

Typical Outcomes from Annual Appraisals

Most recent research suggests that annual staff reviews are generally perceived as a
difficult and painful process by both managers and employees. As there are typically no
objectives which are set in appraisal systems, there is no link to strategic or operational
outcomes. If the CEO’s objective was to increase margins by 3%, employees may be
aware of the CEO’s intent but they are usually not measured on this objective in their
individual appraisal. Therefore, there is no linkage in the appraisal review and no linkage
at a team or department level.

Misdirected Bonuses

This situation has been illustrated many times where employees and managers have
received favorable reviews and bonuses and yet the organization has not achieved its
goals. The organization may be losing millions of dollars and yet still paying out
bonuses to its managers and employees.

Too Painful, Emotionally Charged

High stress levels for both managers and employees also become a factor. They both
know they will be judged on the outcome of the appraisal and the fallout is often

8
destructive rather than constructive. The reasoning behind this is that there are rarely any
pre-defined mesaures or objectives and the employee review is not based on any
considered evaluation criteria. The employees’ remuneration and future are at stake and
the goodwill of the managers future resources are also at stake. This leads to high stress
in the case of both individuals and this is a poor emotional state in which to have a
thorough discussion about employee performance.

Poor Understanding of Expectations

Where the appraisal system is poorly communicated, both the employee and manager
enter these discussions with low confidence levels. This is due to a lack of “rules” as to
how to go about the appraisal process and a lack of understanding of the expected
outcomes. As this process is infrequent, it is viewed by the employee as an opportunity to
discuss remuneration, promotion prospects and other issues related to the employee. This
means the discussion is dominated by employee content rather than what the manager
needs the employee to do for the next year. This leads to vague definition of performance
goals and perpetuates the system of poorly defined and executed appraisals.

As an annual staff review is so infrequent, both managers and employees find it difficult
to remember what actually happened during the year. Both typically come to the meeting
ill prepared with little meaningful content to discuss. This makes the appraisal more
difficult and frustrates both the employee and manager.

Bad Timing

More often than not, the annual appraisal is executed on the employees’ anniversary
which does not coincide with any particular performance period. If appraisals are
conducted annually on the anniversary date, it is only possible to align at best only 50%
of your staff with future objectives, assuming there is an even distribution of start dates
across themployee workforce. Given that most appraisal systems are not automated, there
is poor reporting and therefore low visibility as to who did or did not achieve their
objectives.

9
Subjective Manager Opinion

This means that an employees’ future is wholly dependent on their manager's highly
subjective opinion. The CEO or other executive management does not have clear vision
as to who achieved their objectives and who did not. The outcome for the CEO is that
they do not have the ability to see failure as it is occurring. Instead, they see failure
after the fact and radical adjustments are then required to repair the situation. By using
standalone appraisal systems, the outcome for the line manager is that they have
additional pressure applied to them, to fix a problem which has become a major issue and
which could have been otherwise identified and fixed in a very timely fashion.

Performance Not Aligned to Promotions

Given that annual appraisals are only conducted once yearly, most line managers only
seriously think and plan once a year. The consequences are poor resource management,
put-out-the-fire management and costly and reactive problem fixing on the fly. Given that
most appraisal systems are manual and on paper, the data arising from an excellent
performance typically does not find its way into the succession planning process.
Employees are therefore often disillusioned to find that they have been passed over for
further development or a promotion when they have performed strongly for several years.

Poor Development Opportunities

This is a primary cause for employees leaving the organization. Most appraisal systems
do not feature a competency assessment or an active development plan that both the
employee and manager have mutually agreed to. Staff often gets disillusioned and leave
the organization if they can see no personal development prospects or if personal
development has not occurred in practice for the last several years, despite numerous
promises.

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No Consequence For Non-Participation

Given that most appraisal systems are manual, reporting is weak and therefore
compliance reporting is not visible. This inevitably means that managers learn that they
do not have to perform reviews and therefore they don’t because there is no negative
consequence for them. Equally, employees learn that there is no consequence to not being
reviewed, they lose faith in management and invariably look for somewhere else to work.
Most manual appraisal systems suffer from sub 30% compliance and can get to this point
after only 18 months of operation i.e. roughly one to one and a half performance terms.

2.3 Typical Outcomes from Performance Management

If Performance Management is implemented correctly with specific objectives tied to the

strategic and operational plan, organizational performance outcomes will likely increase
very quickly. For example, if the CEO asked for a 3% increase in gross margin, this
objective would be cascaded down to every department, team and individual who can
influence the increase in gross margin. Those who are successful at achieving this
objective will get a favorable review, those that could not, will get an unfavorable
performance evaluation in the absence of extenuating circumstances. The process of
Performance Management therefore drives organizational performance outcomes.
Employees that achieve the organizational goals are rewarded with favorable reviews and
bonuses in line with their performance and contribution to the organization.

Communication Improves

The employee and manager communicate more frequently and agree on changed
objectives to suit continuing changes in conditions and priorities. This is an inclusive and
collaborative process, which ensures that the employee has input and does not feel they
have wasted the year. The employee works towards specific objectives that are relevant.
If the organisation is using a Performance Management product that has a performance
diary, both the manager and employee attend the review meeting with copies of their
performance diary notes. This contains content from the performance period to be

11
reviewed. Given that both have content, they feel much better prepared and stress is
lower than if they were attending a meeting not aware of the subject matter.

Everyone Knows the Rules

Where there is a well structured Performance Management system that is effectively

communicated, both the employee and manager enter the process with better levels of
confidence as there are “rules” that clearly stipulate what is being assessed and how.
Employees are assessed on achievement of objectives that have been clearly identified
and agreed to. Managers have a better framework to assess an employees’ performance as
they are familiar with the criteria to assess the employee. The outcome is that both
individuals have an informed discussion and focus on achievement of both personal and
business objectives, not on issues that are irrelevant.

Better Recording Opens Up Communication

If the organization has a system with a performance diary, then both parties are prepared
with relevant content to discuss. They have diary notes that relate to performance during
the entire performance period. This raises confidence and reduces stress levels. Both
parties feel more comfortable and they can have a content rich and factual discussion
about performance.

Frequent Communication Reduces Stress

Given that these performance reviews happen more frequently, the discussion centers on
performance of objectives rather than being dominated by the employees’ needs. The
needs of the business are discussed more frequently to achieve specific performance
outcomes. This means both the employee and manager communicate more effectively
and achieve better outcomes. Emotionally charged discussions tend to be displaced by
business focused discussions on achievement of objective outcomes.

As expectations are modified when a Performance Management system is introduced,

most organizations switch to defined performance periods. This means that strategic and

12
operational objectives are set at the beginning of the performance period. Formal
performance reviews are then conducted quarterly or half yearly and enable management
to direct and fine tune effort in relation to the objectives.

Appraisals Become Relevant for Everyone

By conducting more frequent reviews, objectives can be adjusted and modified to suit
changing business conditions. This dramatically increases the probability that the
objectives are relevant and are able to be acted upon during the performance period.

By performing frequent performance reviews, visibility is increased dramatically. Areas

of non performance receive much more focus and attention and problems can be acted
upon much quicker. Most Performance Management systems provide reporting as to who
has or has not achieved their objectives (departments and individuals). Adjustments to
objectives or strategy can then be made to ensure expectations can be met. Alternately,
expectations can be modified as appropriate. By reviewing more frequently, all managers
and employees start to plan and execute to clearly thought out objectives. This results in
better resource management and enables managers to work on the business, not in the
business.

Employee Learning and Development Starts to Happen

Given that most Performance Management systems require managers and employees to
commit to a development plan, employees experience real personal development and
become more engaged with the organization. They feel part of the organization and start
to understand that they and the organization are interdependent. The organization is
developing the employee and the employee is working towards developing the
organization by achieving its goals. The majority of Performance Management systems
are able to provide graphical compliance reports. Therefore, the setting of objectives and
development plans for employees can no longer be ignored. Employees see real planning,
are involved in setting meaningful objectives and have input into personal development
plans which benefit both themselves and the organization. In all, this results in an

13
engaged workforce who are extremely committed to achieving real outcomes for the
organization.

2.4 Performance Management Research

Several studies have been conducted in Australia that indicates the predominant method
of assessing employees in Australia is appraisal. During 2004, Associate Professor Alan
Nankervis of Royal Melbourne Institute of Technology conducted a study of 992
Australian organisations. One of the outcomes was that only 2.4% of organizations
reviewed their employees against objectives, the remaining 97.5% were a combination of
some type of appraisal.

Furthermore, The Performance Management Institute of Australia conducted a survey of

Australian employees’ attitudes towards Performance Management in the workplace .
Approximately 450 employees responded from a wide variety of businesses and
enterprises. The research found that, over 59% of employees received performance
reviews once per year or less. This implies that the majority of Australian managers are
failing to properly engage their employees. Effective management requires a continual
goal setting and review process which gives employees regular feedback of management
expectations and frequent praise for achievement of desired goals.

What the survey results imply is that Australian managers are performing appraisals, not
performance reviews and objective setting. The results may also mean that managers are
not targeting their teams to achieving strategic goals which are at all time-bound. Usually,
employees who are not formally reviewed for a year or more are expending work effort in
a manner or direction which is not readily visible to their manager. This lack of employee
engagement is leading to disaffection from the employees who can make and want to
make a difference to the organization. In our view, appraisals add very little value to the
performance of an organization and in some circumstances may actually be detrimental to
organizations who wish to move towards Performance Management. A contributing
factor may be that line managers who have been conducting appraisals have also seen

14
little, if any, impact on departmental or team performance as a consequence of
conducting these appraisals.

PeopleStreme conducted several research studies in focus groups over the last four years
and during seminars on Performance Management. To summaries the findings, 87% of
organizations have some type of appraisal system. However, this is usually referred to as
the Performance Management system. Of the 87% that have these systems, 95% were
manual systems without performance objectives or development plans. It was clear from
the research that many organizations incorrectly view manual annual appraisal systems as
Performance Management systems. Organizations are increasingly adopting
Performance Management systems. However, organizations in both Australia and the
USA are experiencing 100% to 300% yearly increases in organizations acquiring
Performance Management systems exceeding the existing forecast rate.

In contrasting Performance Appraisal with Performance Management, it suggests that

performance appraisals are indeed an evaluation of an employees work. However,
Performance Management reflects the continuous nature of performance improvement
and employee development, recognizing the importance of effective management, work
systems and team contributions.

METHODS,TECHNIQUES FOR APPRAISING PERFORMANCE

Several methods and techniques of appraisal are available

for measuring the performance of an employee. They are:
1. Straight rank method
2. Man to man comparison method
3. Grading
4. Graphic rating method
5. Forced choice description method
6. Forced distribution method

15
 7. Checklists
8. Free from easy method
9. Critical incidents
10. Group appraisal
11. Field review method

Modern Methods:
1. Assessment center
2. Appraisal by results or management by objectives
3. Human asset accounting method
4. Behaviorally anchored rating sales
TRADITIONAL METHODS

1. Straight Rank Method:

It is the oldest & simplest method of performance

appraisal, by which the man and his performance are considered as an entity by the
rater. Then ranking of a man in work group is done against may also do that of another
member of a competitive group by placing him as one or two or three in total group, i.e.
persons are tested in order of merit and place in a simple grouping.

2. Man –To-man Comparison Method:

The USA army during the FIRST WORLD WAR used this
technique. By this method, certain factors are selected for the purpose of analysis and a
scale is designed by the rater for each factor. A scale of man is also created for each
selected factor. The each man to be rated is compared with in the scale, and certain
scores for each factor are awarded to him. This method is used in job evaluation, and is
known as the factor comparison method.

16
3. Grading Method:

Under this system, the rater considers certain features and

marks them accordingly to a scale. The selected features may be analytical ability,
cooperativeness, dependability, self-expression, job knowledge, judgment, leadership
and organizing ability, etc. they may be

A – Outstanding,
B – Very good,
C – Good or average,
D – Fair,
E – Poor,
-B (or B-) very poor or hopeless.
The actual performance of an employee is then compared
with these grade definitions; such type of grading is done in semester examinations and
also in the selection of candidates by the public service commissions.

4. Graphic or Linear Rating scale:

This is most commonly used method of performance

appraisal. Under it, a printed forms one of each person to be rated. According to juices,
these factors are employee characteristics ad employee contribution. In employee
characteristics are included such qualities and initiative, leadership, cooperativeness,
dependability, industry, attitude, enthusiasm, loyalty, creative ability, decisiveness,
analytical ability, emotional ability and co-ordination. In the employee contribution are
quantity and quality of work, the responsibility assumed specific goals achieved
regularity of attendance, leadership offered, attitude towards supervisors and associates,
versatility etc.

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 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.

5. Forced Choice Description Method:

This method was evolved after great deal of research

conducted for military services during World War II. It attempts to correct a rater’s
tendency to give consistently high or consistently low ratings to all employees. The use
of this method calls for objective reporting and minimum subjective judgment. Under
this method the rating elements are several sets of pair phrases or adjectives (usually
sets of four phrases two of which are positive, two negative) relating to job proficiency
Or personal qualifications. The rater is asked to indicate which of the four phrases is
most and least descriptive of the employee.

6. Forced Description Method:

Joseph Tiffin evolved this method after statistical work.

This system is used to eliminate or minimize rater’s bias, so that all personnel may not

be placed at the higher end or at the lower end of the scale. It requires the rater to
appraise an employee according to a predetermined distribution scale. Under this
system, it is assumed that it is possible and desirable to rate only to factors, viz., job
performance and promotability. For this purpose, a five point performance scale is used
without any descriptive statement. Employees are placed between the two extremes of
‘good’ and ‘bad’ job performance.

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7. Check List:

Under this method, the rater does not evaluate employee

performance; he supplies report about it and the personnel department does the final
rating. A series of questions are presented concerning an employee to his behaviour. The
rater, the checks to indicate if the answer to a question about an employee is positive or
negative. An example of check list is given below:

1. Is the employee really interested in his job? Yes/No

2. Is regular on his job? Yes/No
3. Does he follow instructions properly? Yes/No
4. Is he always wiling to help other employees? Yes/No
5. Does he ever make mistakes? Yes/No

8. Free Easy Method:

Under this method, the supervisor makes a free from, open-

ended appraisal of an employee in his own words and puts down his impressions about
the employee. He takes not of these factors.
a.General Organization and planning ability.
b. Job knowledge and potential.
c.Employee characteristics and attitudes.
d. Understanding and application of company policies and procedures.
e.Production, quality and cost control.
f. Physical conditions.
g. Development needs for future.

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 8. Critical Incident Method:

The essence of this system is that I attempts to measure

workers performance of certain ‘events’ or ‘episodes’ that occur in the performance of
the rate’s job. The supervisor keeps a written record of the events that can easily be
recalled and used in the course of periodical of formal appraisal. Feedback is provided
about the incidents during performance review session. Various behaviors are recorded
under such categories as the type of job, requirements for employees, judgment,
learning ability, productivity and precision in work, responsibility and initiative.

9. Group Appraisal Method:

Under this method, an appraisal group rates employees,

Consisting of their supervisor and three or four other supervisors who have knowledge
of their performance. The supervisor explains to the group the nature of his subordinates
duties. The group then discusses the standards of performance for that job, the actual
performance of the job holder, and the causes of their particular level of performance,
and offers suggestions for future improvement, if any.

11.Field Review Method:

Under this method, trainer employees from the personnel

department interview line supervisors to evaluate their respective subordinates. The
appraiser is fully equipped with definite test questions, usually memorized in advance,
which he puts to the supervisors. The supervisor is required to give his opinion about the
progress of his subordinates, the level of the performance of each subordinate, his
weakness, good points, outstanding ability, and promotability, and the possible plans of
action in cases requiring further consideration.

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 2.5 RESEARCH DESIGN OF THE STUDY

The research design in preliminary design of research work

to be carried out and is in agreement to the condition for collection and analysis of data
in manner that aims to combine prevalence of research design with respect to work
carried data, techniques used to interpret and analyze the data and finally concluding on
certain with the help of findings and recommendations.

STATEMENT OF THE PROBLEM:

Employees, executives and mere workers are the backbone

of every organization. In fact, questions like do the organization achieve the said goals?
Does the organization work smoothly? Will be answered by the efficiency, commitment,
contentment, dedication, inclination to work and such other positive tendencies of the
employees. Bet whether the employees are committed, dedicated, willing to work hard
etc. depends on few factors viz., employee’s feelings about the nature of work, yearning
for recognition, cordial relations and above all a well guided and properly designed
personnel appraisal system is implemented to achieve the said goal. This has led to the
researcher to choose the topic.
In the present study an attempt has been made to throw a
beacon of light on the various aspects related to performance appraisal system as
witnesses ICICI Limited, Hyderabad. Based on the analysis it needs to be probed how
performance appraisal practices help in achieving the organizational goal?

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PERFORMANCE APPRAISAL SYSTEM IN ICICI Limited.,
HYDERABAD:

Performance appraisal system serves the organizational

objectives and goals besides encouraging high level performance. This evaluation
system is useful in identifying employees, rewarding performance equitably and
determining employee needs for development. These are some of the activities that
support the organizations strategic orientation.
In ICICI Limited., Hyderabad, performance appraisal
system was carried out in two ways. For executives grading system is carried out and
for workers they implement merit rating system. These systems are carries on at
different intervals. For executives the grading system is carried out once in a year and
for workers if his done ever six months. These systems have the following procedures.

PERFORMANCE RAING SYSTEM FOR DIRECT WORKMEN:

Stages of Appraisal:

1). The appraisal consists of the following stages:

 Job knowledge.
 Mental ability.
 Attitude.
 General disposition.
 Efficiency.
 Leadership (for supervisory staff).

2). General comments are overall assessment including development needs

of the appraised leading to the final assessment.
3). Review discussion between appraised.
4). Follow up action, if any, to be taken.

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Appraisal Ratings:

Factor Score:
ach of these factors has to be assessed on a 5-point scale multiplied
by the specified weight age from each other factor. Assessment of each factor will be
done separately by the reporting officer and the reviewing officer.

GENERAL COMMENT AND OVERALL ASSESSMNT:

A general description along with a development plan is

provided for assessment. In this the reporting as well as reviewing officers well mention
the contribution, achievements, strength and weakness of the appraised, the areas in
which he needs improvement and the plan of action there on.

REVIEW DISCUSSION:

A review discussion between appraise n the reporting

officer will take place after the appraisal of the employee is completed both by the
reporting and reviewing officers.

FOLLOW UP ACTION:

The personnel department in consultation with the head of

the department concerned will take the necessary follow up- action.

EFFECTIVE DATE AND FREQUENCY:

The officers are required to evaluate the performance of the

workers every 6 months in a year.

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PERFORMANCE RATING FOR INDIRECT EMPLOYEES IN ICICI
Limited., HYDEARBAD.

In ICICI Limited., Hyderabad the performance appraisal is

mainly done through rating method. In this method they provide some kind of a scale
for measuring absolute difference between individuals. In ICICI Limited indirect
employees are in WG I, II, III and IV for them there is a separate appraisal from through
their work is assessed.

STAGES OF APPRAISAL:
The appraisal system consists of the following stages:
1. Appraisal rating of the workmen on job:
1. job knowledge
2. efficiency of work
3. volume of output
4. Quality of output.
2. General comments and overall assessment including development of the appraisal
leading to the final assessment.
3. A review discussion between the appraiser and appraise.
4. Follow up action, if any, to be taken.

GENERAL COMMENTS AND OVERALL ASSESSMENT:

A general descriptive assessment is provided along with a

development plan. In this, the reporting officer will mention the contribution,
achievement, strengths and weakness of the appraise, in the areas in which he needs
improvement and training.

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A Final overall assessment should be arrived at as under:
Total appraisal score:
200 and above - outstanding
180 and above - very good
150 and above - marginal
120 and above - poor

Review Discussion:
A review discussion between the appraisee and the
reporting officer will the place after the appraisal of the employee is completed both by
the reporting and reviewing officers.
During the review discussion, the appraisee should give a
list of the factors to the appraisal of the employee is completed him approximately on
the areas of strengths and weaknesses. He should specially indicate the lines on which
the appraisee should make improvements and give him proper guideline. The response
of the appraisee should there after be recorded.

PERFORMANCE REVIEW COMMITTEE:

Outstanding appraisals of executives shall be subject to

review in detail by performance review committees constituted as under. The above
committees shall examine these ratings on objective basis keeping in view the
significant contributions of the assesses in relation to the unit/company performance.
A). PS I THROUGH PS VI:
Chief of unit
Chief of finance not below the rank of DGM
Chief of personnel
Chief of works/division
B). PS VII and PS VIII:
Functional director

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 Business group director
Executive director not below the rank of GM
Chief of unit
Representative of director, finance
Representative of director, personnel

C). Unit chief and above- chairman, managing director and functional director:
The above performance shall also review the ratings of low
performers with the reference to the constraints, if any, faced by the appraisee. The
committees may also recommend development through training or change of job to
enable such low performers to improve their performance.

FOLLOW-UP ACTION:

The appraisal format shall be filled each financial year

before 30th April, with effect from 1987-88.

REPORTING AND REVIEWING OFFICERS:

 The reporting officer shall normally be the immediate superior of the

assesses.
 One executive of one group should write no appraisal for another in the same
group. The reporting officer shall in these cases de from the next group.
 The reviewing officer should be one step above the reporting officer.

26
 CHAPTER-3
INDUSTRY PROFILE

A bank is a financial institution that accepts deposits and channels those deposits into
lending activities. Banks primarily provide financial services to customers while
enriching investors. Government restrictions on financial activities by banks vary over
time and location. Banks are important players in financial markets and offer services
such as investment funds and loans. In some countries such as Germany, banks have
historically owned major stakes in industrial corporations while in other countries such as
the United States banks are prohibited from owning non-financial companies. In Japan,
banks are usually the nexus of a cross-share holding entity known as the keiretsu. In
France, bancassurance is prevalent, as most banks offer insurance services (and now real
estate services) to their clients.

The level of government regulation of the banking industry varies widely, with countries
such as Iceland, having relatively light regulation of the banking sector, and countries
such as China having a wide variety of regulations but no systematic process that can be
followed typical of a communist system.

The oldest bank still in existence is Monte dei Paschi di Siena, headquartered in Siena,
Italy, which has been operating continuously since 1472.

History

3.1 Origin of the word

The name bank derives from the Italian word banco "desk/bench", used during the
Renaissance by Jewish Florentine bankers, who used to make their transactions above a
desk covered by a green tablecloth. However, there are traces of banking activity even in
ancient times, which indicates that the word 'bank' might not necessarily come from the
word 'banco'.

27
In fact, the word traces its origins back to the Ancient Roman Empire, where
moneylenders would set up their stalls in the middle of enclosed courtyards called
macella on a long bench called a bancu, from which the words banco and bank are
derived. As a moneychanger, the merchant at the bancu did not so much invest money as
merely convert the foreign currency into the only legal tender in Rome—that of the
Imperial Mint.

The earliest evidence of money-changing activity is depicted on a silver drachm coin

from ancient Hellenic colony Trapezus on the Black Sea, modern Trabzon, c. 350–325
BC, presented in the British Museum in London. The coin shows a banker's table
(trapeza) laden with coins, a pun on the name of the city.

In fact, even today in Modern Greek the word Trapeza (Τράπεζα) means both a table and
a bank.

3.2 Traditional Banking Activities

Banks act as payment agents by conducting checking or current accounts for customers,
paying cheques drawn by customers on the bank, and collecting cheques deposited to
customers' current accounts. Banks also enable customer payments via other payment
methods such as telegraphic transfer, EFTPOS, and ATM.

Banks borrow money by accepting funds deposited on current accounts, by accepting

term deposits, and by issuing debt securities such as banknotes and bonds.

Banks lend money by making advances to customers on current accounts, by making

installment loans, and by investing in marketable debt securities and other forms of
money lending.

Banks provide almost all payment services, and a bank account is considered
indispensable by most businesses, individuals and governments. Non-banks that provide

28
payment services such as remittance companies are not normally considered an adequate
substitute for having a bank account.

Banks borrow most funds from households and non-financial businesses, and lend most
funds to households and non-financial businesses, but non-bank lenders provide a
significant and in many cases adequate substitute for bank loans, and money market
funds, cash management trusts and other non-bank financial institutions in many cases
provide an adequate substitute to banks for lending savings to.

3.3 Entry regulation

Currently in most jurisdictions commercial banks are regulated by government entities

and require a special bank licence to operate.

Usually the definition of the business of banking for the purposes of regulation is
extended to include acceptance of deposits, even if they are not repayable to the
customer's order—although money lending, by itself, is generally not included in the
definition.

Unlike most other regulated industries, the regulator is typically also a participant in the
market, i.e. a government-owned (central) bank. Central banks also typically have a
monopoly on the business of issuing banknotes. However, in some countries this is not
the case. In the UK, for example, the Financial Services Authority licences banks, and
some commercial banks (such as the Bank of Scotland) issue their own banknotes in
addition to those issued by the Bank of England, the UK government's central bank.

29
3.4 Definition

The definition of a bank varies from country to country.

Under English common law, a banker is defined as a person who carries on the business
of banking, which is specified as:

 conducting current accounts for his customers

 paying cheques drawn on him, and
 collecting cheques for his customers.

In most English common law jurisdictions there is a Bills of Exchange Act that codifies
the law in relation to negotiable instruments, including cheques, and this Act contains a
statutory definition of the term banker: banker includes a body of persons, whether
incorporated or not, who carry on the business of banking' (Section 2, Interpretation).
Although this definition seems circular, it is actually functional, because it ensures that
the legal basis for bank transactions such as cheques do not depend on how the bank is
organised or regulated.

The business of banking is in many English common law countries not defined by statute
but by common law, the definition above. In other English common law jurisdictions
there are statutory definitions of the business of banking or banking business. When
looking at these definitions it is important to keep in mind that they are defining the
business of banking for the purposes of the legislation, and not necessarily in general. In
particular, most of the definitions are from legislation that has the purposes of entry
regulating and supervising banks rather than regulating the actual business of banking.
However, in many cases the statutory definition closely mirrors the common law one.
Examples of statutory definitions:

 "banking business" means the business of receiving money on current or deposit

account, paying and collecting cheques drawn by or paid in by customers, the
making of advances to customers, and includes such other business as the

30
 Authority may prescribe for the purposes of this Act; (Banking Act (Singapore),
Section 2, Interpretation).

 "banking business" means the business of either or both of the following:

1. receiving from the general public money on current, deposit, savings or other
similar account repayable on demand or within less than [3 months] ... or with a
period of call or notice of less than that period;
2. paying or collecting cheques drawn by or paid in by customers[6]

Since the advent of EFTPOS (Electronic Funds Transfer at Point Of Sale), direct credit,
direct debit and internet banking, the cheque has lost its primacy in most banking systems
as a payment instrument. This has led legal theorists to suggest that the cheque based
definition should be broadened to include financial institutions that conduct current
accounts for customers and enable customers to pay and be paid by third parties, even if
they do not pay and collect cheques.

3.5 ACCOUNTING FOR BANK ACCOUNTS

Bank statements are accounting records produced by banks under the various accounting
standards of the world. Under GAAP and IFRS there are two kinds of accounts: debit and
credit. Credit accounts are Revenue, Equity and Liabilities. Debit Accounts are Assets
and Expenses. This means you credit a credit account to increase its balance, and you
debit a debit account to decrease its balance.

This also means you debit your savings account every time you deposit money into it
(and the account is normally in deficit), while you credit your credit card account every
time you spend money from it (and the account is normally in credit).

However, if you read your bank statement, it will say the opposite—that you credit your
account when you deposit money, and you debit it when you withdraw funds. If you have
cash in your account, you have a positive (or credit) balance; if you are overdrawn, you
have a negative (or deficit) balance.

31
The reason for this is that the bank, and not you, has produced the bank statement. Your
savings might be your assets, but the bank's liability, so they are credit accounts (which
should have a positive balance). Conversely, your loans are your liabilities but the bank's
assets, so they are debit accounts (which should also have a positive balance).

32
 CHAPTER-4
COMPANY PROFILE

ICICI Bank is India's largest private sector bank with total assets of Rs. 5,946.42

billion (US$ 99 billion) at March 31, 2014 and profit after tax Rs. 98.10 billion (US$

1,637 million) for the year ended March 31, 2014.ICICI Bank currently has a network of

3,839 Branches and 11,943 ATM's across India.

History

1955

The Industrial Credit and Investment Corporation of India Limited (ICICI) incorporated

at the initiative of the World Bank, the Government of India and representatives of Indian

industry, with the objective of creating a development financial institution for providing

medium-term and long-term project financing to Indian businesses. Mr.A.Ramaswami

Mudaliar elected as the first Chairman of ICICI Limited.

ICICI emerges as the major source of foreign currency loans to Indian industry. Besides

funding from the World Bank and other multi-lateral agencies, ICICI was also among the

first Indian companies to raise funds from international markets.

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 2000, ICICI Bank's acquisition

of Bank of Madura Limited in an all-stock amalgamation in fiscal 2001, and secondary

33
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.

After consideration of various corporate structuring alternatives in the context of the

emerging competitive scenario in the Indian banking industry, and the move towards
universal banking, the managements of ICICI and ICICI Bank formed the view that the
merger of ICICI with ICICI Bank would be the optimal strategic alternative for both
entities, and would create the optimal legal structure for the ICICI group's universal
banking strategy. The merger would enhance value for ICICI shareholders through the
merged entity's access to low-cost deposits, greater opportunities for earning fee-based
income and the ability to participate in the payments system and provide transaction-
banking services. The merger would enhance value for ICICI Bank shareholders through
a large capital base and scale of operations, seamless access to ICICI's strong corporate
relationships built up over five decades, entry into new business segments, higher market
share in various business segments, particularly fee-based services, and access to the vast
talent pool of ICICI and its subsidiaries.
In October 2001, the Boards of Directors of ICICI and ICICI Bank approved the merger
of ICICI and two of its wholly-owned retail finance subsidiaries, ICICI Personal

34
Financial Services Limited and ICICI Capital Services Limited, with ICICI Bank. The
merger was approved by shareholders of ICICI and ICICI Bank in January 2002, by the
High Court of Gujarat at Ahmedabad in March 2002, and by 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

Ms. Chanda Kochhar

Managing Director & CEO
ICICI Bank Limited

Profile

Ms. Chanda Kochhar is the Managing Director & CEO of ICICI Bank Limited. She is
widely recognised for her role in shaping the retail banking sector in India and for her
leadership of the ICICI Group, as well as her contributions to various forums in India and
globally.

Ms. Kochhar began her career, with the erstwhile ICICI Limited in 1984 and was
elevated to the Board of Directors of ICICI Bank in 2001. She was instrumental in
establishing ICICI Bank during the 1990s. She subsequently went on to head the
infrastructure finance and corporate banking business at the Bank. In 2000, she took on

35
the challenge of building the nascent retail business, focusing on technology, innovation,
process reengineering and scaling up of distribution and taking the Bank to a leadership
position in this business. During 2006-2007, she led the Bank’s corporate and
international banking businesses during a period of heightened activity and global
expansion by Indian companies. From 2007 to 2009, she was the Joint Managing
Director & Chief Financial Officer of the Bank. This was a critical period which saw
rapid change in the global financial landscape. She was elevated as the Managing
Director & CEO of ICICI Bank in 2009 and since then has been responsible for the
Bank’s diverse operations in India and overseas. She also chairs the boards of most of the
Bank’s principal subsidiaries, which include India’s leading private sector life and general
insurance companies.

In addition to her responsibilities at the ICICI Group, Ms. Kochhar is a member of the
India – Japan Business Leaders Forum, the US-India CEO Forum and the Board of Trade.
She is also the Deputy Chairman of the Indian Banks Association.

Ms. Kochhar is the chairperson of the board of governors at IIIT Vadodara. She is also
on the boards of the National Institute of Securities Markets and Institute of International
Finance.

She was the President of the International Monetary Conference, an organization that
annually brings together the chief executives of approximately 70 of the world’s largest
financial institutions from 30 countries, along with officials from government institutions
in 2015-16.

Ms. Kochhar has been a member of the Prime Minister’s Council on Trade & Industry,
the Board of Trade and High-Level Committee on Financing Infrastructure. She was also
the co-chair of the World Economic Forum’s Annual Meeting in 2011.

Ms. Kochhar received an honorary Doctor of Laws from Carleton University, Canada in
2014. The university conferred this award on Ms. Kochhar in recognition of her
pioneering work in the financial sector, effective leadership in times of economic crisis
and support for engaged business practices.

36
She was conferred with the Padma Bhushan, one of India's highest civilian honours, in
2011.

Ms. Kochhar has been recognised time and again in many of the prestigious power lists.
She has been featured in ‘The World’s 100 Most Powerful Women’ list by Forbes
International for seven consecutive years and the ‘Most Powerful Women in Business’ list
by Fortune India for five consecutive years. She was also named among TIME
magazine’s ‘100 Most Influential People in the world’ in 2015.

Awards and Recognition

2017

 Received the Woodrow Wilson Award for Global Corporate Citizenship by the
Woodrow Wilson Centre located in Washington, U.S.A. She is the first leader to
receive this award.
 Featured in Business World magazine’s ‘BW’s Most Influential Women’ list as an
Evergreen Woman Leader
 Voted the ‘Favorite Female Business Icon’ by women professionals aged 29 years
and above, according to a nationwide survey conducted by Talentedge, a Delhi
based education technology firm

2016

 Ranked 5th in Fortune’s list of 'Most Powerful Women International 2016'

comprising of 50 influential women outside the U.S.
 Featured in Forbes list of 'The Worlds 100 Most Powerful Women 2016'
 Ranked 10th on Forbes list of 'The Worlds Most Powerful Women In Finance
2016'
 Ranked 40th on India Today's 'High and Mighty Power List 2016'
 Ranked 22nd in the Forbes Asias '50 Power Businesswomen 2016' list

37
2015

 Named as one of TIME magazines 100 Most Influential People in the world
 Ranked 36th in the Forbes list of World's 100 Most Powerful Women
 Featured in Forbes list of Asia's Power Women 2015
 Ranked 1st in Fortune's list of 'Most Powerful Women of Asia- Pacific'.
 Ranked 2nd in Fortune India's list of 'Most Powerful Women in Business'.
 Awarded the 'Asia Game Changer Award' by the Asia Society
 Featured in CNBC TV18's 'Top 15 Indian Business Icons'

2014

 Awarded the 'Banker of the Year' by Zee Business

 Ranked 2nd in Fortune's list of 'Most Powerful Women of Asia – Pacific'. She is
the highest ranked woman from India, on this list.
 The highest ranked woman featured in India Today's 'High and Mighty Power List
2014'
 Featured in The Telegraph (UK) list of 11 most important women in finance
 Ranked 2nd in Fortune India's list of 'Most Powerful Women in Business'.
 Ranked 43rd in the Forbes list of 'The World's 100 Most Powerful Women'
 Awarded for 'Excellence in Banking' at the 'Mumbai Women of the Decade
Achievers Awards' organized by ASSOCHAM

2013

 Ranked 1st for the third consecutive year, in Fortune India's list of most powerful
business women
 Conferred with the 'Best CEO – Private Sector' at the Forbes India Leadership
Awards
 Ranked 4th, in Fortune's international list of '50 Most Powerful Women in
Business'
38
  Awarded the Transformation Leader Award by NDTV Profit Business Leadership
Awards 2012
 Ranked 65th in the Forbes list of 'The World's 100 Most Powerful Women'
 Featured in the Power List of 25 most powerful women in India, by India Today,
for the third year in a row
 The only Indian to be featured in the Dow Jones list of Most Influential Female
Executives in the World of the last decade. She is ranked 12th in the global list.
 Awarded the Businessperson Of The Year 2012 by Business India. She is the first
woman recipient of this award in 31 years
 Recipient from India of the 4th Asian Corporate Director Recognition Awards
2013

2012

 Topped the list of '50 Most Powerful Women in Business' by Fortune India
 Ranked 18th in Fortune's list of 2012 Businesspersons of the Year'. This is
Fortune's annual ranking of 50 global leaders who are 'the best in business'.
 Ranked 5th, for the second consecutive year in Fortune's international list of '50
Most Powerful Women in Business'
 Ranked 59th in the Worlds 100 Most Powerful Women by Forbes
 Named amongst the nine Indian women in the Forbes' inaugural 'Asia Power
Businesswomen' list
 Conferred with CNBC Asias India Business Leader of the Year award
 Named the 'Business Person of the Year' by Business India. Ms. Kochhar is the
first woman to receive this award that was instituted 31 years ago.
 Named amongst the '25 most powerful professional women' in the country by
India Today for the second year

39
2011

 Ranked 5th by Fortune in the International list of '50 Most Powerful Women in
Business'
 Ranked 17th among the '25 Most Powerful CEOs' in Asia by Fortune
 Ranked 43rd 'Most Powerful Woman' in the world by Forbes
 Named among the '50 most influential people in global finance” by Bloomberg
Markets magazine
 Named among the 'Two best Indian CEOs' in an annual poll by Finance Asia
 Ranked 10th by Financial Times in the 'Top 50 Women in World Business'
 Received the 'Global Leadership Award' from the US-India Business Council
 Named 'Most Powerful Woman in Indian Business' by Fortune India
 The first woman to be named as the 'Business Leader of the Year' by The
Economic Times
 Featured in the 'Hall Of Fame - Most Powerful Women in Indian Business' by
Business Today

2010

 Ranked 10th in the list of 'Most Powerful Women in Business' by Fortune

 Ranked 92nd in the list of 'Most Powerful Women' in the world by Forbes
 Conferred with the 'Outstanding Woman Business Leader of the Year' award by
CNBC TV18
 Conferred with the 'Banker of the Year Award' by Financial Express
 Featured in the list of '30 Most Powerful Women Leaders' in Business Today for
eight consecutive years from 2002 to 2010

40
Mr. N. S. Kannan
Executive Director, ICICI Bank Limited

Mr. N.S. Kannan is Executive Director of ICICI Bank. His responsibilities include
Finance, Treasury, Corporate Legal, Operations, Risk Management, Secretarial,
Corporate Communications, Corporate Branding and Strategic Solutions Group. He also
has the responsibility for day-to-day administration of the Compliance and Internal Audit
functions. Additionally, the President of ICICI Foundation for Inclusive Growth also
reports to Mr. Kannan.

Mr. Kannan has been with the ICICI group for over 25 years. He joined the group as a
project officer. During his tenure at the ICICI group, he also handled Project Finance,
Infrastructure Finance, Structured Finance and Treasury functions. Mr. Kannan was
Executive Director & CFO of ICICI Bank from May 1, 2009 to October 25, 2013. Prior
to this, he was Executive Director of ICICI Prudential Life Insurance Company. Before
his tenure at ICICI Prudential Life Insurance Company, Mr. Kannan was the Chief
Financial Officer and Treasurer of ICICI Bank.

Mr. Kannan is a postgraduate in management from the Indian Institute of Management,

Bangalore with a gold medal for best all-round performance. He is also a Chartered
Financial Analyst from the Institute of Chartered Financial Analysts of India and an

41
Honours graduate in Mechanical Engineering from National Institute of Technology
(formerly Regional Engineering College), Tiruchirappalli.

In 2015, Mr. Kannan was inducted as a member of the CFO Hall of Fame by CFO India
publication for an exemplary career and contribution to the world of finance. In 2013, he
was voted the Best CFO in India in a poll conducted by Finance Asia. In 2012 & 2013, he
was awarded the Best CFO in the Indian banking/financial services sector at the CNBC
TV 18 CFO Awards.

Mr. Vijay Chandok

Executive Director, ICICI Bank Limited

Mr. Vijay Chandok is an Executive Director on the Board of ICICI Bank. Mr. Chandok
joined the ICICI Group in 1993. In his 23 years with the ICICI Group, he has worked in
corporate banking, prior to leading the SME business and the International Banking
Group. He was also the Head of ICICI Bank’s Retail Assets and Rural & Agri Banking
Group and Vice Chairman of ICICI Home Finance Company Limited in 2008-2009. He
also led the integration of the erstwhile Sangli Bank with ICICI Bank. He is on the Board
of ICICI Investment Management Company Limited, ICICI Bank UK PLC and ICICI
Bank Canada. He also chairs the ICICI Investment Management Company which
managed the Emerging India Fund and Private Equity Fund.

Under Mr. Chandok’s leadership, ICICI Bank has won awards for being India’s Best
Bank in SME financing (private sector) in 2008 (by Dun & Bradstreet) and the Asian

42
Banker Award for Excellence in SME Banking in Asia Pacific, Central Asia and Gulf
Region in 2009.

In the International Banking space (IBG), Mr. Chandok has been focusing on
strengthening the Bank’s franchise across overseas locations (16 locations including
subsidiaries in UK & Canada) through leveraging the economic corridors between India
and the rest of the world, initiating and developing banking relationships with MNC
corporates and building a stable and diversified international funding base. During his
tenure, IBG has won several awards including The Best Borrower from India by Finance
Asia for four consecutive years (2012-2015) & Dun & Bradstreet’s Best Bank in Private
sector for International Business Development consecutively for five years (2011-2015).

Ms. Vishakha Mulye

Executive Director, ICICI Bank Limited

Ms. Vishakha Mulye is an Executive Director of ICICI Bank. She is presently the head of
Wholesale Banking Group. Ms. Mulye, is a qualified Chartered Accountant, joined the
ICICI Group in 1993, and carries vast experience in the areas of strategy, treasury &
markets, proprietary equity investing and management of long-term equity investments,
structured finance, management of special assets and corporate & project finance. She led
the team that planned and executed the merger of ICICI and ICICI Bank in 2002. From
2002 to 2005, she was responsible for the Bank's structured finance and global markets
businesses, and its financial institutions relationships. From 2005 to 2007, Ms. Mulye
was the Group Chief Financial Officer of ICICI Bank. She was elevated to the Board of
43
ICICI Lombard General Insurance Company in 2007. In 2009, she assumed leadership of
ICICI Venture Funds Management Company as its Managing Director & CEO.

She is also a member of the Aspen Institute for 'India Leadership Initiative'. Ms. Mulye
was selected as 'Young Global Leader' for the year 2007 by World Economic Forum. She
was featured in the list of 'Most Powerful Women in Indian Business' by Business Today
in 2011. She received the India CFO Award in 2006 from IMA for 'excellence in finance
in a large corporate' and CA Corporate Leader Award in 2008 from ICAI. In February
2012, she received the GR8! Women awards from ITA for her contribution as "an
Eminent Personality in the field of Banking".

Mr. Anup Bagchi

Executive Director, ICICI Bank Limited

Mr. Anup Bagchi is an Executive Director of ICICI Bank effective February 1, 2017.
Prior to this, Mr. Bagchi was the Managing Director & CEO of ICICI Securities Limited
(I-Sec), where he led capital raising by corporates. Under his leadership, the organisation
won the prestigious Outlook Money - India’s Best e-Brokerage House for seven
consecutive years. It also won the CNBC Awaaz Consumer Award for the Most Preferred
Brand of Financial Advisory Services.

44
Mr. Bagchi joined the ICICI Group in 1992 and has worked in the areas of retail banking,
corporate banking and treasury. He has a management degree from the Indian Institute of
Management, Bangalore and an engineering degree from the Indian Institute of
Technology, Kanpur.

Mr. Bagchi has been honoured with The Asian Banker Promising Young Banker Award
as well as Business Today has recognised him as one of India's Hottest Young Executives.

45
 5. DATA ANALYSIS AND INTERPRETATION

Data analysis has been done by arranging the data in a simple table form and percentages
are calculated. The quantitative data has been represented by drawing out the charts
where ever necessary.

5.1 Do you think Evaluation of Employee’s Performance is needed in a company?

(a ) YES (b) NO
Table: 5.1 Necessity of Evaluation of Employee’s Performance in a company
S.no Options No. of Responses Percentage
1 YES 100 100
2 NO 0 0
TOTAL 100 100

Figure: 5.1 Necessity of Evaluation of Employee’s Performance in a company

Interpretation: To above question, almost 100% of the employees thought that the
Evaluation of Employee’s Performance is needed in a company.

5.2. Evaluation of Employee’s Performance rating is used to

46
 (a) Identify areas of improvement
(b) Identifying quality for unit of work
(c) Set performance target
(d) All the above
Table: 5.2 Evaluation of Employee’s Performance rating
s.no Options No. of Responses Percentage
Identify areas of
1 improvement 28 28
Identify areas of training
2 & development 48 48
3 Set performance target 8 8
4 All the above 16 16
Total 100 100

Figure: 5.2 Evaluation of Employee’s Performance rating

Interpretation:
About the useful of Evaluation of Employee’s Performance, 28% have said
that appraisal system helped them to identify areas of improvement, to 48% it helped
in identifying training & development needs, to 8% it helped in setting performance
targets and to 16% it was helpful in all the above areas. By this we can say that P.A is
helpful in one way or the other for the employees.
5.3. In your experience the outstanding Performance of an employee is due to:

47
 (a) Actual Performance (b) Qualification
(c) Experience (d) All the above

Table: 5.3 Reasons for the outstanding Performance of an employee

s.no Options No. of Responses Percentage
1 Actual Performance 28 28
2 Qualification 0 0
3 Experience 52 52
4 All the above 20 20
total 100 100

Figure: 5.3 Reasons for the outstanding Performance of an employee

Interpretation:
Above 28% of the employees responded that the outstanding Performance
appraisal is due to Actual Performance, 52% of the employees is due to Experience and
20% of the employees is due to all the above.

48
5.4. Do you think that a good workman gets motivated with frequent Evaluation of
Employee’s Performance?
(a) YES (b) NO
Table: 5.4 Motivation for Employee’s Performance with frequent evaluation
No. of
S.no Options Responses Percentage
1 YES 88 88
2 NO 12 12
TOTAL 100 100

Figure: 5.4 Motivation for Employee’s Performance with frequent evaluation

% of respondents

12% NO

88% YES

Interpretation:

A majority of 88% of the employees said that a good workman gets

motivated with frequent Evaluation of Employee’s Performance and 12% of the
employees are not satisfied with above.

49
5.5. What are the factors taken into consideration while evaluating the Performance
an individual?
(a) Interpersonal effectiveness (b) Team building skills
(c) Self motivate skills (d) leadership

Table: 5.5 Factors considered while evaluating the Performance an individual

S.no Options No. of Responses Percentage

Interpersonal
1 effectiveness 20 20
2 Teambuilding skills 24 24
3 Self motivate skills 44 44
4 Leadership 8 8
Total 100 100
Figure: 5.5 Factors considered while evaluating the Performance an individual

Interpretation:
About 20% of employees considered interpersonal effectiveness while
Evaluating an individual, 24% of employees considered Teambuilding skills, 22% of
employees considered self motivate skills and 8% of employees considered Leadership.
By this we can say that these are the factors taken into consideration while appraising an
individual.

50
5.6. In your opinion an employee should be:
(a) Effective (b) Moderate (c) Both A & B
Table: 5.6 Opinions on an employee

S. no Options No. of Responses Percentage

1 Effective 80 80
2 Moderate 0 0
3 Both A & B 20 20
Total 100 100

Figure: 5.6 Opinions on an employee

Interpretation:
About 80% of the employees opinion is that the employee should be
effective and rest 20% of the employees opinion is that the employee should be
Effective and moderate.

51
5.7. Which method you are using for evaluating Performance?
(a) MBO (b) 360 degree appraisal (c) Assessment centre
(d) BARS (e) Any other
Table: 5.7 Method used for evaluating Performance
s.no Options No. of Responses Percentage
1 Mgmt By Objects 48 48
2 360 degree appraisal 24 24
3 Assessment centre 8 8
4 BARS 12 12
5 Any other 8 8
Total 100 100

Figure: 5.7 Method used for evaluating Performance

Interpretation:
About 48% of the employees using Mgmt by objects method for
evaluating Performance, 24% of the employees using 360 degree appraisal, 8% of the
employees using Assessment centre, 12% of the employees using BARS, 8% of the
employees using other method.

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5.8. Is Appraisal process expensive and time consuming?
(a) YES (b) NO
Table: 5.8 Is Appraisal process expensive and time consuming
s.no Options No. of Responses Percentage
1 YES 64 64
2 NO 36 36
Total 100 100

Figure: 5.8 Is Appraisal process expensive and time consuming

Interpretation:
About 64% of the respondents said that the performance appraisal is
expensive and time consuming. And 36% of the respondents said that the Performance
appraisal is not expensive and time consuming.

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5.9. Do you agree with the assessment of your reviewing/reporting officers?
(a) Agree (b) Disagree
Table: 5.9 The assessment of reviewing/reporting officers
s.no Options No. of Responses Percentage
1 Agree 92 92
2 Disagree 8 8
Total 100 100

Figure: 5.9 The assessment of reviewing/reporting officers

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Interpretation:
Majority of 92% of the employees responded that reporting officer was
good at grading the performance. Nearly 8% were disagreeing his duties as per the
guidelines laid down.

5.10. Do you want any change in frequent between the appraisals?

(a) YES (b) NO
Table: 5.10 Need of Frequent change between the appraisals
s.no Options No. of Responses Percentage
1 YES 72 72
2 NO 28 28
Total 100 100

Figure: 5.10 Need of Frequent change between the appraisals

Interpretation:

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 About 72% of the employees want to change in frequent between the
appraisals. And 28% of the employees don’t want to change between the appraisals.

5.11. Have you been able to express all difficulties & problems which you have been
facing
Regarding your job & achievement of your performance area?
(a) YES (b) NO
Table: 5.11 Difficulties & problems regarding job & achievement
s.no Options No. of Responses Percentage
1 YES 100 100
2 NO 0 0
Total 100 100

Figure: 5.11 Difficulties & problems regarding job & achievement

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Interpretation:

About 100% of the employees are able to express all difficulties &
problems which they have been facing regarding their job.

5.12. Frequency at which merit rating/Performance appraisal is conducted?

(a) 1year (b) 2years (c) half yearly (d) Quarterly

Table: 5.12 Frequency of conducting Performance appraisal

s.no Options No. of Responses Percentage
1 1YEAR 36 36
2 2YEARS 0 0
3 HALF YEARLY 52 52
4 QUATERTLY 12 12
TOTAL 100 100

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Figure: 5.12 Frequency of conducting Performance appraisal

Interpretation:
About 36% of the employees conducted merit rating/performance
appraisal at the frequency 1year, 52% of the employees conducted at half yearly,12% of
the employees conducted at quarterly.

5.13. Do you think the reward system is fair and adequate?

(a) YES (b) NO
Table: 5.13 Fairness and adequacy of Reward systems

s.no Options No. of Responses Percentage

1 YES 72 72
2 NO 28 28
TOTAL 100 100

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Figure: 5.13 Fairness and adequacy of Reward systems

Interpretation:

About 72% said that the reward system is fair and adequate and 28%
responded that it is not fair.

5.14. Do you have a good relationship with appraiser after Evaluation of Employee’s
Performance?
(a) YES (b) NO
Table: 5.14 Relationships with appraiser after Evaluation of Employee’s
Performance

s.no Options No. of Responses Percentage

1 YES 96 96

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 2 NO 4 4
TOTAL 100 100

Figure: 5.14 Relationships with appraiser after Evaluation of Employee’s Performance

Interpretation:

A Majority 96% of the respondents have the good relationship with

appraiser after Evaluation of Employee’s Performance. Rest 4% of the respondents is not
having a good relationship with appraiser after Evaluation of Employee’s Performance.

5.15. Do you feel Evaluation of Employee’s Performance promote you?

(a) YES (b) NO
Table: 5.15 Evaluation of Employee’s Performance for promotion
s.no Options No. of Responses Percentage
1 YES 76 76
2 NO 24 24
TOTAL 100 100

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Figure: 5.15 Evaluation of Employee’s Performance for promotion

Interpretation:

About 76% of the respondents feel that the Evaluation of Employee’s

Performance can promote the employee. Remaining 24% of the respondents are not
agreed with the above sentence.

6. FINDINGS, SUGGESTIONS AND CONCLUSION

6.1 FINDINGS

1. In the light of the above discussion the following findings and conclusions are
made.

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 1. It is revealed that the executive are getting feedback on their performance though
which they can review their performance. Sort on the problems and can overcome
the difficulties.
2. The management has a clear understanding about the problem that the workers are
the best with moreover, they are eager to solve the problems of the workers as and
when they arise.
3. The management was giving requisite training to workers in the areas where they
are weak.
4. Workers awareness about the fact that the appraisal is one of the factor for
promotion was cent percent.
5. Evaluation of Employee’s Performance system is considered as a means that aim
at identifying the areas of improvement, identifying areas of training and
development setting performance target for future.
6. The management desire having cordial relations with the work to hold mutual
discussions.
7. The Evaluation of Employee’s Performance system it exists as it exist now, is
properly worked out and appropriately evolved. This revealed from the opinion
given by the majority of the employees.

6.2 SUGGESTIONS

Based on the findings of the study and personal discussions held

with various executives and employees at ICICIs Limited., Hyderabad possible
suggestions and recommendations are given:

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 It is recommended that employees should be immediately communicated.
 The result of the appraisal particularly when they are negative.
 It is recommended that the supervisor should try to analyze the strengths and
weaknesses of an employee and advise him on correcting the weakness.
 It is commended to counsel the employees appropriately regarding their strength
and weaknesses and assist in developing them to realize their full potential in line
with the company’s goals.
 The top management is very much committed in implementing the Evaluation of
Employee’s Performance as it is. The Evaluation of Employee’s Performance
system is consider as an essential tool for bridging gap between the top
management and the executives it thus helps them to develop cordial relations and
mutual understanding.
 It is recommended that the employees should be communicated information about
his performance, again his acceptance of it and draw up a plan for future
improvement, if necessary.
 It is recommended that the rater must be thoroughly well versed in the philosophy
and of the rating system. Factor sales must be thoroughly defined, analyzed and
discussed.

6.3 CONCLUSION

 Workers awareness about the fact that the appraisal is one of the factors for
promotion was cent percent.

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  Performance appraisal system is considered as a means that aim at identifying the
areas of improvement, identifying areas of training and development setting
performance target for future.
 The management desire having cordial relations with the work to hold mutual
discussions.
 The performance appraisal system it exists as it exists now is properly worked
out and appropriately evolved. This revealed from the opinion given by the
majority of the employees.
 Because of lack of communication, employees may not know how they are rated.
The standards by which employees think they are being judged are sometimes
different from those their superiors actually use.
 Proper communication of these ratings can help the employers achieve the level
of acceptability and commitment which is required from the employ.
 From the survey we can also derive that the appraisee’s expect a post appraisal
interview to be conducted wherein they are given a proper feedback on their
performance and they can also put forward their complaints if any.

To conclude, it is imperative to immunize of the problems or hindrances to strengthen

the system.

BIBLIOGRAPHY

S.NO AUTHOR NAME OF THE BOOK

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1. SUBBA RAO.P : Personnel/Human resource Management.

2. ASWATAPPA : Human Resource Management

3. T.V.RAO : Appraising Performance

4. C.B.MAMORIA : Human Resource Management.

ICICI Limited PERSONNEL MANUAL

WEBSITES:
WWW.hrindia.com
www.icici.com
www.indianbanking.com
www.rbi.com
www.performencemanagement.com

QUESTIONNAIRE
PERSONAL DATA

NAME :

65
 DESIGNATION :
DEPARTMENT :
EXPERIENCE :

1. Do you think Evaluation of Employee’s Performance is needed in a Company ?

(a) YES (b) NO

2. Evaluation of Employee’s Performance rating is used to

(a) Identify areas of improvement
(b) Identify areas of training and development
(c) Set performance target
(d) All the above

3. In your experience the outstanding Performance of an employee is due to :

(a) Actual Performance (b) Qualification
(c) experience (d) All the above

4. Do you think that a good workmen gets motivated with frequent Evaluation of
Employee’s Performance is conducted?
(a) YES (b) NO

5. What are the factors taken into consideration while appraising an individual?
(a) Interpersonal effectiveness (b) Teambuilding skills
(c) Self motivate skills (d) Leadership
6. In your opinion an employee should be :
(a) Effective (b) Ineffective (c) Both A & B

7. Which method you are using for evaluating Performance?

(a) MBO (b) 360 degree appraisal (c) Assessment centre
(d) BARS (e) Any other

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 8. Is it expensive and time consuming?
(a) YES (b) NO

9. Do you agree with the assessment of your reviewing/reporting officers?

(a) Agree (b) Disagree

10. Do you want any change frequency between the appraisals?

(a) YES (b) NO

11. Have you been able to express all difficulties & problems which you have been
facing regarding your job & achievement of your performance area ?
(a) YES (b) NO

12. Frequency at which Evaluation of Employee’s Performance is conducted

(a) 1year (b) 2years (c) half yearly (d) Quarterly

13. Are you satisfied with present Evaluation of Employee’s Performance system
(a) YES (b) NO

14. The appraisal is an opportunity for self review & reflection

(a) YES (b) NO

(SIGNATURE)

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