Performance Management At Union Bank Of India

PM & IR PROJECT

PERFORMANCE MANAGEMENT AT UNION BANK OF INDIA

Submitted To Prof. PANKAJ KUMAR

GROUP

Anup Gupta ABM02003

Arjun Balaji PGP21062

Harish Narayanan S PGP21071

Kaushik Prasad PGP21073

Navneet Bhaiyya PGP20185

Ramachandran R PGP21091

Sameer Bhat PGP21093

Shaktie Prakash PGP21094

Shashi Kant Ranjan PGP20195

Sumit Takkar PGP21096

TABLE OF CONTENTS

1. PURPOSE OF STUDY 3

2. PROBLEM DEFINITION 4

3. METHODOLOGY 4

4. CURRENT PERFORMANCE APPRAISAL SYSTEM 5

4.1 Appraisal Methodology 5

4.2 Incentivization 9

5. DEFICIENCIES OF THE CURRENT SYSTEM 10

5.1 Current Methodology 10

5.2 Current Performance Appraisal Report: 11

6. SUGGESTIONS AND CONTRIBUTIONS FOR IMPROVEMENT 12

6.1 Increase in evaluation frequency 12

6.2 Individual Parameters 13

6.3 Reducing Subjectivity 14

6.4 Involving the appraisee in the process 15

6.5 Making the appraisal form concise 16

6.6 Focus on future 16

6.6.1 Changing roles of HR Management 16

6.6.2 Focus on Innovative practices and innovation 18

6.7 Self Evaulation 18

7. CONCLUSION 20

8. REFERENCES 21

APPENDICES:

 EXSTING APPRAISAL FORMS: APA-1 TO APA-8

 KEY RESPONSIBILITY AREAS (KRAs)

1. PURPOSE OF STUDY

After employee selection, performance appraisal is the most important management tool for the success and growth of any organization. The performance appraisal, when properly carried out, can help to fine tune and reward the performance of present employee and align the personal goals of the employee with the organizational goals.

Performance appraisal for evaluation using the traditional approach has served the following purposes:

 Promotion, separation, and transfer decisions

 Feedback to the employee regarding how the organization viewed the employee's performance

 Evaluations of relative contributions made by individuals and entire departments in achieving higher level organization goals

 Criteria for evaluating the effectiveness of selection and placement decisions, including the relevance of the information used in the decisions within the organization

 Reward decisions, including merit increases, promotions, and other rewards

 Ascertaining and diagnosing training and development decisions

 Criteria for evaluating the success of training and development decisions

The age old performance appraisal systems in many of India's public sector banks play the traditional role well. But the present situation demands much more from the performance appraisal system, because of which the system need to be dynamic and needs to be revamped over a period of time. Hence the purpose of this study is to analyze the current appraisal system, and suggest some changes in the methodology and in the performance appraisal form which can address the problems enumerated in this study.

2. PROBLEM DEFINITION

The traditional performance appraisal system present in union bank of India (with about 26000 employees) serves the regular purposes of control, promotion decisions, reward decisions, feedback etc. But the fallacies in the appraisal system like subjectivity, definition of the key responsibility areas (KRAs), lack of transparency etc are evident. Primary goals are assumed to be to measure and rate performance, while the reality is that the goals are to sustain, improve performance and correct poor performance.

The problem here is, on the basis of analysis and literature review, to suggest improvements and modifications to the current performance appraisal program.

3. METHODOLOGY

The methodology followed here was the in-depth interviews of HR and Personnel Managers of Administrative offices of Union Bank of India. This was followed by analysis of the performance management formats, the hierarchy, and the patterns followed in Union Bank of India. This was supplemented by literature review of many performance management related papers. Taking pointers from the current system and the research papers, some changes are suggested.

4. CURRENT PERFORMANCE APPRAISAL SYSTEM

4.1 Appraisal Methodology

The performance appraisal system in the Union Bank of India is an annual three-tiered system. The appraisal reports need to be submitted by the 30th of April each year.

The system is outlined as given below:

The Annual Performance Appraisal is a three tiered one:

 Bio-data and self appraisal

 Appraisal by the Appraising Authority

 Appraisal by the Reviewing Authority