hamid project.doc

8/14/2019 hamid project.doc

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SUMMER TRAINING PROJECT REPORT ON

PERFORMANCE MANAGEMENT SYSTEM

OF

THE JAMMU & KASHMIR BANK

For the partial fulfillment of the degree

of

Master of Business Administration

Punjab Technical University

Session: !" # !"$

Under the guidance of: Submitted by:

"


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Shammi Bhatia Ab% &amid 'ar Placement (fficer MBA#) rd Semester MBA MA*+,T-./ *oll no:" 01!2)

DECLARATION

-3 Ab% &amid 4ar student of Masters of Business Administrationfrom SAS--T5* 3Mohali hereby declare that - have completedSummer -nternship on 6P,*F(*MA.7, MA.A/,M,.T S8ST,M

(F T&, 9AMMU 5 +AS&M-* BA.+ as part of the coursere;uirement%

- further declare that the information presented in this project is true andoriginal to the best of my # !") NAME : Ab% &amid 'ar

Enro ! No : " 01!2)" ace: Mohali M#A C a$$ of %&'(


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Ac)no* edgement

(n the very outset of this report3 - 4ould li


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Name: Ab% &amid 'ar Enro ! No: " 01!2)

"rogram : MBA@Mar


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;uality staff 4ithin the organi ations 4ho can shoulder the higher responsibilities ofthe organi ation%

-t is mandatory to


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C+A"TER 'INTRODUCTION

"erformance management $y$tem

=


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Performance management system is the integrated process by 4hich an agencyinvolves its employees in improving organi ational effectiveness in theaccomplishment of agency mission and strategic goals% Performance Managementconsists of: performance planning3 monitoring employee performance3 employeedevelopment3 evaluating employee performance3 and recognition%

Performance management includes activities to ensure that goals are consistently being met in an effective and efficient manner% Performance management can focuson performance of the organi ation3 a department3 processes to build a product orservice3 employees3 etc%

Performance management is the process of creating a 4or< environment or settingin 4hich people are enabled to perform to the best of their abilities% Performancemanagement is a 4hole 4or< system that begins 4hen a job is defined as needed% -tends 4hen an employee leaves the organi ation% Armstrong and baron @"22>defined it as 6A strategic and integrated approach to increasing the effectiveness oforgani ations by improving the performance of the people 4ho 4or< in them and bydeveloping the capabilities of teams and individual contributors

"erformance a,,rai$a is a universal phenomenon in 4hich the organi ation isma


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According to Cule4ic @"2>2 3 JThere is a basic human tendency to ma


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By the same to


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The reasons that support your conclusion%

'hen you have finished 4riting the appraisal3 set up a meeting to discuss it 4ithyour 4or


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Critica Incident$ Method :# This techni;ue is appreciated by many employees andemployers because it is natural and gives a supervisor actual factual incidents todiscuss 4ith the employee% -n this method3 supervisors are as


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the results e?pected at the end of the year% Also3 the 4or< is delegated3 and theauthority responsibility relationship is defined%

MULTI"LE/"ERSON E2ALUATION MET+ODS:

Ran)ing Method :# This method is useful 4hen it becomes necessary to compare

people 4ho 4or< for different supervisors3 4hen there are several individual ratingsan 4hen appraisal forms are not particularly useful% This method is also employed tocompare people in different units of an organi ation%

"aired Com,ari$on :# The superior compares each individual to all the otherindividuals 4or


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A$$e$$ment center$ :# -n assessment centers3 the assessment for future performanceor potential of the employee is assessed in contrast to the past performance%-ndividuals from different departments are brought together and they spend t4o tothree 4or


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"erformance Management Sy$tem at 890 #an)

9 5 + Ban< used to earlier follo4 a traditional PMS system 4hich 4as divided intot4o categories the (perational one for the employees having direct contact 4ith theclients and the .on#(perational one for the employees 4ho 4ere not in directcontact 4ith the clients%

Both the categories had different tiers through 4hich the appraisal 4ent and at eachlevel the *evie4ing Authority had the authority to change the ratings or appraisal ofthe prior appraiser% The different levels through 4hich the appraisals 4ent inoperational and non operational categories 4ere:#

"$


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.on (perational -nitiating officer

Appraising authority

*eceiving authority

Accepting authority

&*C @President &*

(perational

-nitiating officer

Appraising authority

*eceiving authority

Accepting authority @&*C

All though this process 4as a good one but the number of tiers through 4hich theappraisals 4ent in operational and non operational levels 4as sometimes different%At a time 4hen the non operating officer 4as being appraised by $#1 people anoperating officer in some cases 4as being appraised by just )#$ people or tiers% Thisdifference in the tiers through 4hich the appraisal 4ent through made the &*department of the ban< to thin< and shift from traditional to ne4 appraisal method%Besides3 in order to bring transparency and to have more methodical and scientificapproach of the appraisal System3 ban< decided to adopt ne4 PerformanceManagement system based on latest methods adopted across the sector%

The latest tool of performance management system being follo4ed by organi ationsacross is being# 6get paid according to 4hat you contribute # the focus of theorgani ations is turning to performance management and specifically to individual

performance%

Ban< is in constant mould of adopting best possible 4ays to ma


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For ma


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A literature revie4 is a body of te?t that aims to revie4 the critical points of current


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/etting employees to ta


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among the group of employees 4ho already provide the best 4or< performance andta


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Be proactive% .ip issues in the bud and avoid the messy interpersonal tanglesthat result from neglected communication% Meeting 4ith employees on amonthly or ;uarterly basis instead of annually%

Be specific% -tHs never easy to provide negative feedbac< regardingsomeoneHs 4or


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necessarily at odds 4ith accurate appraisals% Minimi ing the politics that cannegatively affect the process can help a manager turn a potentially useful vehicle for

performance improvement into an instrument for achieving performanceeffectiveness%

F4 Thi$ re$earch *a$ conducted by 7i $on .era d L! .ooda +! L oyd 8r! onThe "erformance A,,rai$a Inter-ie*;

A performance appraisal intervie4 is a primary and important conte?t for thesupervisor and employee to 4or< together to achieve superior performance% Asurvey of the research literature reveals that the appraisal intervie4 functions to

provide feedbac< on performance3 to counsel and provide help3 to discover 4hat the

employee is thin


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main contribution is the theoretical underpinning used to develop the performanceframe4or


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difficulty of obtaining true scores3 criteria are discussed for e?amining the suitabilityof e?pert ratings as surrogate true score measures% Dast3 the usefulness of usingaccuracy measures in performance#rating research is e?amined to highlightsituations in 4hich accuracy measures might be desirable criterion measures inrating research%

'(4 Thi$ re$earch *a$ conducted by 0in 1ai E ic) 7ong 8e$$ica ! ! 0*ongon UNCO2ERIN. T+E +IDDEN .OALS IN "ER1ORMANCEA""RAISALS;

Based on: ,ffects of *ater /oals on *ating Patterns: ,vidence from an,?perimental Field Study%

There are times 4hen managers present their evaluations and their vie4s differ4idely% *esearches regard this as rating errors3 suggesting that this may be due toeither

@a People are not able to ma


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achieve different goals% Specifying rater goals in a performance evaluation may be auseful 4ay to minimi e goal discrepancies among raters%

'


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1actor : Out$ide 1actor$Performance can be reduced due to factors beyond the control of the individual%The organi ation itself may be setting barriers to performance3 or uncooperative co#4or


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commercial ban


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Act "21=%

-t 4as in the year "20" that 9ammu and +ashmir Ban< 4as granted the status of aIScheduled Ban


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and at the same time3 see% BravingPolitical and /eographical obscurities3 it has been a brilliant and inspiring success

story% (ne can candidly accept this success story by the fact that today ban< ishaving more than )1 thousand crore deposits and around ) thousand crore credit portfolio% The functions of the ban< revolves around the t4ofold developmentalstory#one for itself and second for the entire state% Probably3 one can easily say thatthe ban< has 4or


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economy% So one can say that the mantra of the ban< has been 6 1or the ,eo, e bythe ,eo, e and of the ,eo, e % As far as the ision3 Policy and the developmentalrole of the ban< is concerned: it can be enumerated as under:

The main visionary and developmental role of the ban< has been revolving aroundthe philosophy of 7orporate Social *esponsibility% -n fact 7orporate Social

*esponsibility @7S* of the 95+ Ban< see


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at the holy cave% People in general and pilgrims in particular all over the countryhave appreciated this effort and 4on lot of applause for the Ban


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7onstructs and develops the public utility services li


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MA8AS&A.+,* ,*MA

SUC&A.S&U PA.C,8

AS&(+ +UMA* M,&TA

ABCUD MA9-C M-*

B% D% C(/*A

M% -% S&A&CAC

-+*A.T +UT&-ADA

P*(F% .-SA* AD-

M% MATT(

*A+,S& +UMA* /UPTA

.-&AD /A*'A*,

A*.AB *(8

Management EGecuti-e$

&AS,,B A C*ABU @7hairman 5 7hief ,?ecutive

A + M,&TA @,?ecutive Cirector 5 7hief (perating (fficer

ABCUD MA9-C M-* @,?ecutive Cirector 5 7hief Financial (fficer

A9-T S-./& @Sr% President

+UDC,,P +UMA* S&A*MA @President

SA&-B ACA /& M(&-#UC#C-. @President

TAFA UD &USSA-. @President

PA* , A&M,C @President

/ A *,/(( @President

ABCUD *AS&-C @President

))


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7hairmanIs Profile +a$eeb A! Drabu 7hairman 5 7hief ,?ecutive of the Ban


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C+A"TER/>RESEARC+ MET+ODOLO.

Ob5ecti-e of the $tudy

To study the performance appraisal system in The 9ammu 5 +ashmir Ban


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g

satisfying

Frequency Percent Valid PercentCumulative

PercentValid strongly agree 33 5 .6 55.0 55.0

agree !6 40.6 43.3 "#.3stronglydisagree .6 .$ 00.0

%otal 60 "3.# 00.0Missing &ystem 4 6.3%otal 64 00.0

B%4 7ou d you recommend your friend or re ati-e your organiHation a$ a good

, ace to *or)

recommend

definitely yesyesmay 'edefinitely no

Statistics

recommendN Valid 60

Missing 4

)0


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recommend


PercentValid definitely

yes !0 3 .3 33.3 33.3

yes 30 46." 50.0 #3.3may 'e " 4. 5.0 "#.3definitely no .6 .$ 00.0%otal 60 "3.# 00.0

Missing &ystem 4 6.3%otal 64 00.0

B(4 Are the goa $ of your com,any c ear y $,ecified=

goals

strongly agreeagree

disagree

Statistics

goalsN Valid 60

Missin 4

)>


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g

goals


PercentValid strongly

agree 3 !0.3 ! .$ ! .$agree 44 6#.# $3.3 "5.0disagree 3 4.$ 5.0 00.0%otal 60 "3.# 00.0


B


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standards



agree $ 0." ." ."

agree 50 $#. #4.$ "6.6

disagree .6 .$ "#.3neit(er .6 .$ 00.0%otal 5" "!.! 00.0

Missing &ystem 5 $.#%otal 64 00.0

B>4 +o* often i$ your ,erformance a,,rai$a done=

a))raisal

fortnig(tlyannuallynot fi*ed

Statistics

a))raisal

$!


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N Valid 5#Missing 6

appraisal


PercentValid fortnig(tly .6 .$ .$

annually 44 6#.# $5." $$.6not fi*ed 3 !0.3 !!.4 00.0%otal 5# "0.6 00.0

Missing &ystem 6 ".4%otal 64 00.0

B64 On *hat ba$i$ i$ ,erformance a,,rai$a done=

'asis

merit cum seniorityseniority cum merit

merit onlyseniority only

ot(er

$"


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Statistics

'asisN Valid 60

Missing 4

basis


PercentValid merit cum

seniority 3 !0.3 ! .$ ! .$

seniority cummerit !3 35." 3#.3 60.0

merit only 4 ! ." !3.3 #3.3seniority only 5 $.# #.3 " .$ot(er 5 $.# #.3 00.0%otal 60 "3.# 00.0


B 4 7hat method$ are being u$ed for "erformance A,,rai$a =

$


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met(od

critical incidentessay met(od

ran+ing met(odot(er

Statistics

met(odN Valid 5

Missing 3

method


PercentValid critical

incident 3 4.$ 5." 5."

essaymet(od !0 3 .3 3".! 45.

ran+ingmet(od !4 3$.5 4$. "!.!

ot(er 4 6.3 $.# 00.0%otal 5 $".$ 00.0

Missing &ystem 3 !0.3%otal 64 00.0

$)


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B 4 +o* do you rate the o-era a$$e$$ment of "erformance A,,rai$a =

rate

outstandinge*cellentvery goodgood

Statistics

rateN Valid 5$

Missing $

rate


PercentValid outstandin

g 4 6.3 $.0 $.0

e*cellent $ !6.6 !".# 36.#very good ! #.# ! . 5$."good !4 3$.5 4!. 00.0%otal 5$ #". 00.0

Missing &ystem $ 0."%otal 64 00.0

$$


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BF4 I$ com,en$ation in)ed *ith "erformance A,,rai$a =

lin+ed

agree

disagreestrongly disagreeneit(er

Statistics

lin+edN Valid 5!

Missing !

linked


PercentValid agree !! 34.4 4!.3 4!.3

disagree !! 34.4 4!.3 #4.6stronglydisagree 4 6.3 $.$ "!.3

neit(er 4 6.3 $.$ 00.0%otal 5! # .3 00.0

Missing &ystem ! #.#

%otal 64 00.0

$1


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B'&4 Do you find "erformance Management Sy$tem tran$,arent and$cientific=

trans)arent

strongly agreeagreedisagreeneit(er

Statistics

trans)arent

N Valid 5"Missing 5

transparent



agree 4 6.3 6.# 6.#

agree 3$ 5$.# 6!.$ 6".5disagree 4 ! ." !3.$ "3.!neit(er 4 6.3 6.# 00.0%otal 5" "!.! 00.0


$=


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B''4 7hy do you ha-e ,erformance management $y$tem$ in yourOrganiHation=

,(y

retention strategyre,ard allocationtraining -develo)ment)romotion.transfer.termination

/o' requirements'arriers to)erformanceall of t(e a'ove

Statistics

,(yN Valid 60

Missing 4

why


PercentValid retention strategy 4 6.3 6.$ 6.$

re,ard allocation .6 .$ #.3training -develo)ment " 4. 5.0 !3.3

)romotiontransfertermination

4 ! ." !3.3 46.$

/o' requirements 6 ".4 0.0 56.$'arriers to 5 $.# #.3 65.0

$0


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)erformanceall of t(e a'ove ! 3!.# 35.0 00.0%otal 60 "3.# 00.0


B'%4 The ,re$ent "erformance A,,rai$a of your organiHation di$tingui$he$the ,erformer$ and non ,erformer$=

distinguis(es

strongly agree

agree

disagree

strongly disagree

neit(er

Statistics

distinguis(esN Valid 5"

Missing 5

distinguishes


PercentValid strongly agree 4 6.3 6.# 6.#

agree 36 56.3 6 .0 6$.#disagree 5 !3.4 !5.4 "3.!stronglydisagree ! 3. 3.4 "6.6

$>


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neit(er ! 3. 3.4 00.0%otal 5" "!.! 00.0


B'(4 Doe$ recognition gi-en to high ,erformer he ,$ in moti-ating theem, oyee$=

motivation

strongly agreeagree

disagreeneit(er

Statistics

motivationN Valid 5#

Missing 6

motivation



agree 6 !5.0 !$.6 !$.6

agree 34 53. 5#.6 #6.!

$2


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disagree 4 6.3 6." "3.neit(er 4 6.3 6." 00.0%otal 5# "0.6 00.0


B'


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agree 4" $6.6 #4.5 #$."disagree 6 ".4 0.3 "#.3neit(er .6 .$ 00.0%otal 5# "0.6 00.0


B'>4 +o* do you *ant your ,erformance to be communicated to you=

communication

,ritten formo)encommunicationcounselling

Statistics

communicationN Valid 5"

Missing 5

communication


Percent

1"


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Valid ,ritten form 33 5 .6 55." 55."o)encommunication " !".$ 3!.! ##.

counselling $ 0." ." 00.0%otal 5" "!.! 00.0


B'64 Shou d -ariab e ,ay be in)ed *ith "MS in order to bring more efficiencyin the *or)=

efficiencyyesnocan0t comment

Statistics

efficiencyN Valid 60

Missing 4

1


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efficiency


PercentValid yes 40 6!.5 66.$ 66.$

no 4 6.3 6.$ $3.3can tcomment 6 !5.0 !6.$ 00.0

%otal 60 "3.# 00.0Missing &ystem 4 6.3%otal 64 00.0

B' 4 Shou d "erformance Management Sy$tem of your organiHation be in)ed*ith re*ardJ incenti-e mode a $o=

s(ouldstrongly agreeagreemay 'eno comments

Statistics

s(ouldN Valid 5"

1)


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Missing 5

should


Percent

Valid stronglyagree 5 !3.4 !5.4 !5.4

agree 3$ 5$.# 6!.$ ##.may 'e 3 4.$ 5. "3.!nocomments 4 6.3 6.# 00.0

%otal 5" "!.! 00.0Missing &ystem 5 $.#%otal 64 00.0

B' 4 +o* far are you $en$iti-e and reacti-e to*ard$ "MS $y$tem of yourorganiHation=

sensitive

stronglyaverage

no comments

1$


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Statistics

sensitiveN Valid 5"

Missing 5

sensitive


PercentValid strongly !0 3 .3 33." 33."

average 34 53. 5$.6 " .5nocomments 5 $.# #.5 00.0

%otal 5" "!.! 00.0Missing &ystem 5 $.#%otal 64 00.0

B'F4 Do you fee your ,er$ona goa $ are fu fi ed through fu fi ment oforganiHationa goa $

11


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fulfilled

strongly agree

agree

sometimes

disagree

Statistics

fulfilledN Valid 5$

Missing $

fulfilled



agree !0 3 .3 35. 35.

agree !4 3$.5 4!. $$.!sometimes $.! ".3 "6.5disagree ! 3. 3.5 00.0%otal 5$ #". 00.0

Missing &ystem $ 0."%otal 64 00.0

1=


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B%&4Do you fee ,re$ent "MS $y$tem of your organiHation i$ com, ete and$ati$factory in a Re$,ect$

com)letestrongly agreeagreedisagreeno comments

Statistics

com)leteN Valid 5$

Missing $

complete



agree 3 4.$ 5.3 5.3

agree !" 45.3 50." 56.disagree 4 ! ." !4.6 #0.$nocomments $.! ".3 00.0

%otal 5$ #". 00.0Missing &ystem $ 0."%otal 64 00.0

10


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C+A"TER/1INDIN.S

-t has been found that most employees thin< that performance appraisal isimportant and very useful for their career planning%

The appraisal system facilitates gro4th 5 learning of employees and it is

used to distinguish performers from non performers% Although most of the employees donHt


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C+A"TER/SU..ESTIONS

The performance appraisal system should facilitate career gro4th 5 learningof the employees%

The short coming of employees should be informed to them after performance appraisal and that too in the 4ritten form as they 4ant%

The performance appraisal should not be assessed by biased mind and personal grudge%

(n 4hat basis performance is appraised should be informed to theemployees and 4hat method is used should also be told to them%

7ompensation and other variable pays should be lin


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C+A"TER/FLIMITATIONS

The stud( is limited to /or'orate Head 0uarters of the +ank anddoes not in*lude other +ran*hes! Stud( is limited to sele*ted %rou' from the main stream of

the or%ani)ation Sam'le si)e is limited to 42 res'ondents$ as some of the

0uestionnaires were not returned or were lost +( theem'lo(ees and 'ro+lems with *onfidential information!

The res'onses would ha e also +een affe*ted +( the amountof work and workin% *onditions!

Stud( in*ludes +oth *olle*tions of data from 'rimar( as wellas se*ondar( sour*es!

There is a hi%h *han*e of sam'lin% error!

=!


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C+A"TER/'&CONCLUSION

,ffective performance management relies on systems and people 4or


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)% *egular discussions of performance%$% Cevelopment of appropriate action plans as a conse;uence of the appraisal%

Those elements 4ill help to ensure that performance appraisals conducted in anyorgani ation 4ill yield the desired benefits and be more readily accepted by allconcerned%

#ib iogra,hy

Author$ : ,dson Pinheiro de Dima 3Sergio ,% /ouvea da 7osta3 9annis 9%Angelis 38ourna : Measuring Business ,?cellence3 "ub i$her: ,merald/roup Publishing Dimited

Author$: Steven &% Appelbaum3 Cavid .adeau3 Michael 7yr3 8ourna : -ndustrial and 7ommercial Training3 "ub i$her : ,merald /roup PublishingDimited%

Author$ : ,% Soltani3 *%B% van der Meer3 9% /ennard38ourna : Management*esearch .e4s3 "ub i$her : M7B UP Dtd

Author$ : Ceborah F% Boice3 Brian &% +leiner3 8ourna : 'or< Study3"ub i$her : M7B UP Dtd

Author$: Tom 7oens and Mary 9en


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,ssential of &*M and -ndustrial *elations# P% Subba *ao%

&*M# 7%B% Mamoria and S% /an


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ANNEKUREBue$tionnaire

C-S7DA-M,* : the data collected through this ;uestionnaire 4ill be used only foreducational purpose

" .ameEEEEEEE%%EEEEEEEEEEEEEEEEEEEE

/ender Male Female

) Age

1#)! )!#)1 )=#$1

$=R

$ CesignationEEEEEEEEEEEEEEEEEEEEEEEEE%

1 ,?perience

Dess than ) year $#0 years

=$


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>#"" years More than " years

= 8our 4or< is satisfying 5 4orth4hile and helps contribute to the success of thecompany

Strongly Agree Agree

Cisagree Strongly Cisagree

.either

0 'ould you recommend your friend or relative your organi ation as a good place to 4or<

Cefinitely 8es 8es

May Be .o

Cefinitely .o

> Are the goals of your company clearly specified



.either

2 Co you have an annual set of performance standards



.either

"! &o4 often is your performance appraisal done

Fortnightly Monthly

=1


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&alf 8early Annually

.ot Fi?ed

"" (n 4hat basis is performance appraisal done

Merit cum Seniority Seniority cum Merit

Merit (nly Seniority (nly

Any other please specifyEEEEEEEEEEEEEEEEEE%%

" 'hat methods are being used for Performance Appraisal

Forced 7hoice Method 7ritical -ncident Method

,ssay Method *an


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.either

"= 'hy do you have performance management systems in your (rgani ationN

*etention strategy

*e4ard allocation

-dentification of training and development needs

Facilitates Promotions 5 Transfers 5 Termination decisions

To clarify an employeeHs job re;uirements

-dentifying barriers to performance

All of the above

"0 The present Performance Appraisal of your organi ation distinguishes the performers and non performers



.either"> Coes recognition given to high performer helps in motivating the employeesN



=0


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.either

"2 -s PMS system of your organi ation very useful for career planningN



.either

! &o4 do you 4ant your performance to be communicated to you

'ritten Form (ral form

(pen 7ommunication 7ounseling

.o .eed

" Should variable pay be lin


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.o 7omments

$ Co you feel your personal goals are fulfilled through fulfillment oforgani ational goals


Sometimes Cisagree

.o 7omments

1 Co you feel present PMS system of your organi ation is complete andsatisfactory in all respects



.o 7omments

Documents

hamid project.doc