A

PROJECT ON
EVALUATION OF PERFORMANCE APPRAISAL
AT
ICICI BANK LTD
A Project report submitted to Osmania University In partial fulfillment for the
Award of the Degree of
MASTER OF BUSIUNESS ADMINISTRATION

Submitted by
P. UMA MAHESHWARI

HT NO: 2121-19-672-113

UNDER THE GUIDANCE OF

ARISTOTLE PG COLLEGE (Affliated To Osmania University,Hyderabad) Recognized

By UGC under section 2(f) of UGC Act 1956 Beside Moinabad Police Station,
Chilkur, Moinabad ,Ranga Reddy District, Telangana.
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2019-2021
 CHAPTER-I
INTRODUCTION
INTRODUCTION OF THE STUDY
A performance appraisal is a systematic and periodic process that assesses an individual employee’s job performance and
productivity in relation to certain pre-established criteria and organizational objectives. Other aspects of individual employees are
considered as well, such as organizational citizenship behavior, accomplishments, potential for future improvement, strengths and
weaknesses, etc. To collect PA data, there are three main methods: objective production, personnel, and judgmental evaluation.
Judgmental evaluations are the most commonly used with a large variety of evaluation methods. A PA is typically conducted
annually. The interview could function as “providing feedback to employees, counseling and developing employees, and conveying
and discussing compensation, job status, or disciplinary decisions”. PA is often included in performance management systems.
Performance management systems are employed “to manage and align" all of an organization's resources in order to achieve highest
possible performance. “How performance is managed in an organization determines to a large extent the success or failure of the
organization. Therefore, improving PA for everyone should be among the highest priorities of contemporary” organizations.

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 performance appraisal.
A performance appraisal system functions as definitions of performance.

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Assessment can be used to:
• Provide a 'gap analysis' between personal perception and others' perceptions of individual and team performance.
• Focus managers and staff on performance areas that need development.
• Recognise and maintain areas of individual and team strength.
• Approach performance issues in a non-confrontational, constructive manner (due to the confidentiality and anonymity of the
process).
• Develop performance improvement plans for individuals and teams.
• Develop individual or team based training needs analysis programmes.
Performance appraisal is a method of evaluating the behavior of employees in the work spot, including both qualitative and
quantitative aspects of job performance indicates how an individual is fulfilling the job demands and it is always in terms of results.
Under performance appraisal not only the performance of an employee but also his potential for development is evaluated.

“Performance Appraisal is a systematic description of an employee’s job relevant strengths and weaknesses”.

In performance appraisal or merit rating refers to all the formal procedures used in working organizations to evaluate the
personalities and contributions and potential group members. In appraisal system the employee’s merits like initiatives,
dependability, personality etc., are compared with others and ranked to rated. Appraisals might be based on the criteria of
employee’s skills, educational
Qualifications, knowledge, abilities to delegate plans, supervise; assume responsibility, exercise leadership, personal qualities,
creativity, decision making and interpersonal skills.
An appraisal motivates an employee into increased effort aimed at enhancing the outcome of the assessment. It tells an employee
what set of activities or what qualities are considered desirable by the organization.
It is the systematic method of obtaining, analyzing & recording information about an employee that is needed:
• For effective management of business.
• By the manager to help him improve the jobholders performance and plan his career.
• By the jobholder to assist him to evaluate his own performance and develop himself.
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In performance planning and review, the Reporting Manager is expected to set targets or tasks for the appraise in the beginning of
the year. In the middle of the year, the appraise fills the self-appraisal form, indicating the extent which the target or task has been
completed, the difficulties faced and the suggestions for improvement. At the end of the year, there is the annual review and
targets/tasks set for the next year. Both in the mid-year review and annual review, the self-appraisal is supplemented by a
performance review, discussion, the problems are discussed and the appraiser is given feedback on how he is doing.
The appraisal system is an instrument for improving the work culture by convincing employees that their career growth is linked
with the performance of the company.

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 CHAPTER-II
REVIEW OF LITERATURE

2.2 ARTICLES ARTICLE 1

Title: “Interpersonal Affect: Does It Really Bias Performance Appraisals.”

Authors: Varma and Pichler (2007)

Abstract: state that interpersonal affect has been found, in prior laboratory research, to be related to ratings of job performance.
Such findings have been taken to mean that affect creates bias in ratings. The study was conducted to determine if this relationship

would hold up in a field setting. The study was also designed to examine how structured diary-keeping, and the nature of the

appraisal instrument, might be related to affect-appraisal relationships. The results for 85 raters and 404 rates, suggested that affect

was significantly related to all ratings, but more strongly related to trait-like ratings than task/outcome-like ratings, and that having

raters keep performance diaries actually increased the strength of the relationship between affect and ratings. They concluded that

affect may not be a biasing influence on ratings, but may be a result of better subordinate performance. Results from an analysis of

the diary content supported this conclusion. Implications for the role of effect on ratings and the nature of the relationship between

past performance and interpersonal affect in field settings are discussed.

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ARTICLE 2
Title : Performance appraisal systems Determinants and change”

Authors : Brown and Heywood (2005)

Abstract :It used establishment data from the Australian Workplace Industrial Relations Survey to estimate the determinants of

performance appraisal systems. The results indicate that performance appraisal is associated with workers having shorter expected

tenure and greater influence over productivity. These results reflect those circumstances in which the net benefits of performance

appraisal are likely to be the greatest. The titled, “Interpere results also show that complementary human resource management

practices, such as formal training and incentive pay, are associated with an increased likelihood of performance appraisal, but that

union density is associated with a reduced likelihood of performance appraisal.

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ARTICLE 3

TITLE: “Wage and performance appraisal systems in flux AUTHOR : Shibata(2002)

ABSTRACT:

A Japan-United States Comparison”, states that unionized Japanese and American firms made changes in their wage and performance

appraisal systems during the 1990s that were inspired by features of each other’s' traditional employment systems. Although Japanese

firms made greater changes in the wage-setting process compared to American firms, outcomes in Japan changed little. Even with

these changes, the wage and performance appraisal systems in the two countries retain distinctive characteristics. In the American

firms' "segregation" between white- and blue-collar employees and high- and low-performers remains a feature of wage and

performance appraisal systems; the Japanese system maintained its characteristic "integrated" form, but underwent moderate

modifications.

Once a topic has been decided, it is essential to review all relevant materials which have a bearing on the topic. In fact, review of

literature begins with a search for suitable topic and continues throughout the duration of the research work. Since a research report,

either a dissertation or a thesis, is supposed to be an in-depth study of and contribution to existing knowledge, a careful check should

be made that the proposed study has not previously been carried out. The study of performance appraisal and training programmes

has attracted many of the researchers and practitioners.

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ARTICLE - 4

TITLE : Current State Of Performance Appraisal AUTHOR: Robert d. Bretz & George t. Milkovich ABSTRACT:

On the surface, it is not readily apparent how some performance research issues inform performance appraisal practice because

performance appraisal is an applied topic, it is useful to periodically consider the current state of performance appraisal literature

published in both academic and practitioner outlets between 1985 & 1990,briefly discusses the current state of performance appraisal

practice, highlights the juxtaposition of research and practice.

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ARTICLE - 5

TITLE : Performance Appraisal And Management

AUTHOR : Clive Fletcher

ABSTRACT:
Performance appraisal has widened as a concept and as a set of practices and in the form of performance management has become

part of a more strategic approach to integrating HR activities and business policies. As a result of this, the research on the subject has

moved beyond the limited confines of measurement issues and accuracy of performance ratings and has began to focus more of social

and motivational aspect of appraisal. This article identifies and discusses a number of themes and trends that together make up the

developing research agenda for this field.

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 CHAPTER-III
RESEARCH METHODOLOGY

NEED FOR THE STUDY-

The need of the study of performance appraisal 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.

We can briefly say that performance appraisal 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.

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SCOPE OF THE STUDY

In the present study an attempt has been made to know the actual implementation of performance appraisal techniques in general
and some other aspects such as awareness of the workers, effectiveness of the performance appraisal system in particular.

Human resource projections are valid on appraisals. By improving job skills, the employees have lot of scope for development and
prepare themselves for higher responsibilities.

A thorough analysis of the performance appraisal 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 performance appraisal system.

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OBJECTIVE OF THE STUDY

• The objective is to know how effective is the execution appraisal system in ICICI BANK LTD. (ICICI ).,
KHAIRATHABAD.
• The aim of most performance appraisal programming is to encourage the employees to set his own objective for the next
time period following the review of his past performance. It enables the management to make effective decisions/ to
modify earlier decisions based on the evaluation of the existing plans, information system, job analysis, and internal and
external environment factors influencing employee performance.
• The objectives is to identify the common goals of the organization, define each individuals major areas of responsibility in
terms results expected of him, review the individual performance progress in a job and his potential for future
improvement. It aims at providing data to managers with whom they may judge future job assignments and
compensation.
• To establish an objective basis from the different levels of performance and to identify executives with potential to grow
in the organization.
• To counsel the employees appropriately regarding their strengths and weaknesses and asses in developing them to realize
they are full potential in line with the company’s objectives and goals. Always emphasize that the role of a manager is to
offer constructive support and not condemn. Give the employees many opportunities to ask guidance to air grievances
and discuss anxieties

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METHODOLOGY & DATABASE:

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.

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, which consists of twenty questions each. The questionnaires are
chosen because of its simplicity and liability. Researcher can expect straight answers to the questions. The respondents are
informed about the significant of the study and requested to give their fair opinions.

B). Secondary Data:

Secondary data is collected through the documents provided by the personnel department of ICICI BANK LTD. (ICICI ). The
documents include personnel manuals, books, reports, journal, etc.

SAMPLING PROCESS:

A) . Sample Unit:
The executives and employed at ICICI BANK LTD. (ICICI ). 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 (ICICI ).Hyderabad.

B) . Sample Size:
The sample size consists of 100 respondents employed in ICICI (ICICI ), Hyderabad. Of these 30 are executives, 20 are senior
executives and the remaining 50 are employees.

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PERIOD OF THE STUDY:

Since so many years ICICI BANK LTD (ICICI )Hyderabad has been following the same procedure of
appraisals for their executives and employees and for the study of my project last one-year data has collected on performance
appraisals.

Statistical tools used

Percentage method:

Percentage method is used in making comparison between two or more series of data. This is used to
describe relationship.
Percentage of respondents = No of respondents x 100
Total respondents

The method of study followed in this project (in brief):

Sample size Data collection : 100
method Duration of study Primary and Secondary.
Analysis : 45 days.
Through percentage method.

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LIMITATIONS:

❖ Due to time constraints the study was limited only for 45days.

Random sampling method has been adopted and all limitations applicable to that method are applicable here also.

❖ The authenticity of information provided by the New Entrant Manager cannot be assured.

❖ Analysis of the data has been done based on the assumptions that the information provided by the respondents is genuine.

❖ The sample size is small when compared to total universe, Hence the capability of study to the whole universe is constraint.

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 CHAPTER-IV
3.2 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, 2019 and

profit after tax Rs. 98.12 billion (US$ 1,637 million) for the year ended March 31, 2019.ICICI Bank currently has a network of 3,839

Branches and 13,943 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 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
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objective was to create a development financial institution for providing medium-term and long-term project financing to Indian
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 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.
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