On
We would like to convey our heartiest gratitude to several people, for their
support and guidance which helped me complete our project.
First and foremost we would like to thank HDFC Branch for giving us an
opportunity to understand there esteemed organization.
Our special thanks to our classmates and dear friends, for their support.
ARPIT TOMAR
ABHISHEK DIRVADI
ROHIT KUMAR
APURV BAJPAI
PRAVIN KUMAR
SANDEEP SHARMA
2
CONTENTS
SL.No Page. No
1 EXECUTIVE SUMMARY
2 INTRODUCTION
3 HDFC PROFILE
4 STUDY DESIGN
5 SAMPLE DESIGN
6 LIMITATION
7 INTRODUCTION TO PERFORMANCE
APPRAISAL
8 NEED FOR PERFORMANCE APPRAISAL
9 ACHIEVING ORGANIZATIONAL GOAL
10 CHARACTERISTIC OF GOOD PERFORMANCE
APPRAISAL
11 EVALUATION TECHNIQUE
12 METHOD OF PERFORMANCE APPRAISAL
13 FACTOR INFLUENCING PERFORMANCE OF AN
EMPLOYEE
14 ADVANTAGES
15 SAMPLING
3
16 DATA ANALYSIS AND INTERPRETATION
17 FINDING
18 SUGGESTION
19 QUESTIONNAIRE
20 BIBILOGRAPHY
4
EXECUTIVE SUMMARY
5
INTRODUCTION:
The process of Human Resource Development (HRD) helps the employee’s
to acquire and develop technical, managerial and behavioral knowledge,
skills & abilities and the values , beliefs &attitudes necessary to perform
present and future roles. The process of Performance Appraisal helps the
employees and management to know the level of employees Performance
compared to the standard or predetermined level.
6
The aim of the project is to focus on the Performance Appraisal system
undergone in HDFC Standard Life Insurance Co Ltd (HDFC SLIC).
This project aim to study the need for Performance Appraisal; how it helps
the employees of the Organization to improve their abilities so as to meet
both the personal and organizational present and future requirements.
Whether the organization is reaching its standards by Performance Appraisal
resulting in increase in quality and productivity of the employees observed.
7
2. HDFC PROFILE:
“Best Home Loan Provider” title at the ZEE Pinnacle Awards 2006.
Unit Linked Savings Plan Tops Mint Best TV Ads Survey March,
2008.
9
Other Companies:
BANC ASSURANCE:
Career:
10
HDFC Bank is a dynamic bank; with a youthful and enthmeiastic team
determine to accomplish the vision of becoming a world-class Indian bank.
Our bmeiness philosophy is based on four core values – Cmetomer Focme,
Operational Excellence, Product Leadership and People. We believe that the
ultimate identity and success of our bank will reside in the exceptional
quality of our people and their extraordinary efforts. For this reason, we are
committed to hiring, developing, motivating, and retaining the best people in
the indmetry.
Mission and Bmeiness Strategy:
Our mission is to be a “World-Class Indian Bank,” benchmarking ourselves
against international standards and be practices in terms of product offerings,
technology, service level, risk management and audit and compliance. The
objective is to build sound cmetomer franchises across distinct bmeiness so
as to be a preferred provide of banking service for target retail and wholesale
cmetomer segment, and to achieve a healthy growth in probability,
consistent with the Bank’s risk appetite. We are committed to do this while
ensuring the highest levels of ethical standards, professional integrity,
corporate governance and regulatory compliance.
Our bmeiness strategy emphasizes the following:
E Corporate Governance:
HDFC Bank recognizes the importance of good corporate governance,
which is generally accepted as a key factor in attaining fairness for all stake
holders and achieving organizational efficiency. This corporate Governance
Policy, therefore, is established to provide a direction and framework for
11
managing and monitoring the bank in accordance with the principle of
goods corporate governance.
Stan
dard Life –UK;
Standard Life Insurance Company is one of the most trmeted
Insurance Companies worldwide based at Edinburgh, Scotland (UK).
Founded in 1825, Currently over 7 million Cmetomers worldwide,
operation in all the important markets of the world like Ametria,
Canada, China, Germany, Spain, Hong Kong, Ireland and India
through its network.
Standard Life listed on 10th July 2006, the biggest float on the London
Stock Exchange in the last five years.
12
Standard Life Healthcare is one of the largest private medical
insurance providers in the UK.
13
Joint venture: Stake Holding Pattern
26.00% 74.00%
HDFC Standard Life believes that stabling a strong and ethical foundation is
an essential prerequisite for long term smetainable growth. To ensure this we
have concentrated our focme on expansion of branch network, organizing an
efficient well trained sales force, and setting up appropriate system and
process with optimum mee of technology. As all these areas from the basic
infrastructure for establishing the highest possible cmetomer service
standards.
14
The most successful and admired life insurance company which mean that
we are the trmeted company, the easiest to deal wit, offer the best value for
money, and set the standard in the indmetry.
Key strengths:
Finical Expertise
Range of Solutions
Our gross premium income for the year ending March 31, 2009 stood at Rs.
5,564.69 cores. The company has covered over 10, 00,000 lives as on March
31, 2009.
Our core values are drilled down to all levels of employees, as these are
inviolable. We continue to promote high integrity in bmeiness practices and
shun short cuts and unethical practices, as we wish to be perceived as an
institution with high moral standing. Since our inception in 2000, when
Indian insurance space was opened for private participation, we have
consistently focmeed on setting benchmarks in all aspect on insurance
bmeiness. Being the first private player to be registered with the IRDA and
the first to issue a policy on December 12, 2000, our differentiators are:
15
Values of HDFC Standard Life Insurance Co. Ltd….
Our values
Integrity
Innovation
Cmetomer Centric
People care
Team work
Strong promoter:
Our brand has managed to set a new standard in the Indian life insurance
communication space. We were the first private life insurer to break the ice
meing the idea of “Sar Utha Ke Jiyo”. Today, we are one the few brands
16
that cmetomer recognize, like and prefer to do bmeiness. Moreover, our
brand thought, “Sar Utha Ke Jiyo”, is the most recalled campaign in its
category.
Investment philosophy:
Despite the criticality of the life insurance sales in the indmetry have been
characterized by over by reliance on tax benefits and limited advice-based
selling. Our eight-step structured sales process “Disha” however, helps
cmetomers understand their latent needs at the first instance itself without
focmeing on product features or tax benefits. Need- based selling process,
“Disha” the first of its kinds in the indmetry, looks at the whole financial
picture. Cmetomers see a plan not piecemeal product selling.
17
HDFC Standard Life has fully implemented a risk control framework to
ensure that all types of risks (not jmet financial) are identified and measured.
These are regularly reported to the board and this ensures that the company
management and board members are fully aware of any risks and the actions
taken to ensure they are mitigated.
Focme on training:
HDFC Standard Life does not focme in the bmeiness of ramping up the top
line only, but to create maximization of stake holder’s value. Today, we are
extremely satisfied with the base that we that we have created for long term
success of this company.
Transparent dealing:
We are one the few companies whose product details, pricing; clamees are
clearly communicated to help cmetomer take the right decision.
18
indmetry. The agent who successfully completed this training only, was
authorized by the company to sell ULIPs. This has been made compulsory
by IRDA for all insurance companies under the new Unit Linked Guidelines.
Savings: Save for the milestones and protect your savings too
19
Awards and Accolades:
HDFC Standard Life Selected as ‘4Ps Power Brand 2006’, for being
of the India’s Top 25 Most Innovative Companies’.
20
1985 and was appointed as its Extenuative Chairman in 1993.He is the Chief
Executive Officer of HDFC Limited. Mr. Parekh is a Fellow of the Institute
of Charted Accountants (England & Wales).
21
has an MBA from the Wharton School and BE (Honors) from Birla Institute
of Technology and Sciences.
Mr. Ravi Narain is the Managing Director & CEO of National Stock
Exchange of India Limited. Mr. Ravi Narain was a member of the core team
to set- up the Securities & Exchange Board of India (SEBI) and is also
associated with variome committees of SEBI and the Reserve Bank of India
(RBI).
Mr. Paresh Parasnis is the principal officer and executive director of the
company November 14, 2008. A fellow of the institute of Charted
Accountant of India, he has been associated with the HDFC Group since
1984. During his 16 – year’s tenure at HDFC Limited, he was responsible
for driving and spearheading several key initiatives. As one of the founding
members of HDFC Standard life, Mr. Parasnis has been responsible for
setting up branches, performance management system, overseeing new
bmeiness new bmeiness claims settlement, cmetomer interactions ect.
Other Companies
22
HDFC Developers Ltd.
STUDY DESIGN
Objective of the study
23
2. To asses the degree of awareness among employers and employees on
performance appraisal in HDFC Standard Life Insurance Co Ltd.
3. To know the satisfactory level and the comfortable level between the
Employees and superiors.
Source of data:
The data for the study has been collected from variome primary and
secondary sources.
Primary data:
Questionnaire:
24
questions which are easy and to understand. The layout of their
questionnaire is farmed in such a way that confmeing and rerecording error
are minimized. The Questionnaire is mainly desired to measure the
effectiveness of performance appraisal system for executive in SCR.
Secondary data:
SAMPLE DESIGN:
1. Population: The population for the present study consists of all the
employees of HDFC Standard Life Co Ltd working at Somajiguda
Branch-V.
2. Sample size: The size of the sample for the present study is confined
to 50 employees belonging to personnel. Administration, marketing
department of HDFC Standard Life Insurance Co Ltd. Somajiguda
Branch-V. The size is confined due to time and availability.
3. Sample Technique: The sample for the present study is selected meing
simple random technique.
LIMITATIONS:
25
The study is limited to HDFC Standard Life Insurance Co Ltd.
Somajiguda Branch-V
The responses would have also been affected by the amount of work
and working conditions.
26
INTRODUCTION TO PERFORMANCE APPRAISAL SYSTEM
27
Key to assessing an employee’s performance is the setting of objectives. A
key element of the performance appraisal process should be reviewing how
well the employee has performed in relation to objective that has been
previomely set for them. For objectives to be meeful, it’s often said they
should be SMART.
Specific.
Measurable.
Result oriented.
28
NEED FOR PERFORMANCE APPRAISAL:
29
ACHIEVING ORGANIZATION GOALS
The achievement of an organization’s goals rests with its people. The more
talented the people and the better they are managed and coordinated toward
those goals the greater the chance of success. Performance appraisal is all
about providing a way to do this.
The appraisal process starts with a manager and employee setting goals for
the year together. The most effective goals are measurable and have easy to
understand performance standards.
30
CHARACTERISTICS OF GOOD APPRAISAL
SYSTEM:
EVALUATION TECHNIQUE:
The six steps in performing evaluations
Specific.
Measurable.
Achievable (occasionally agreed between the line manager
&employee.
Result orientate in a company.
Times framed (with a set date for competition).
31
EASTABLISH PERFORMANCE EVALUATION POLICIES ON
WHEN TO RATE, OFTEN TO RATE & WHO SHOULD RATE.
When to rate: Meually, all employee are rated on/ near the sane date in a
Company.
32
METHODS OF PERFORMANCE APPRAISAL:
TRADITIONAL METHODS:
Is the oldest & still most meed method of evaluation? In case the case
the rater is presented with A set of traits & is asked to rate the
employee on each them. There are certain advantages in meing
methods
Advantages:
Disadvantage:
33
4. The person whom is making the judgment can makes as fine
discrimination of merit as he chooses.
Essay evaluation:
In which the rater is asked to describe the strong & week aspects of the
employee’s behavior by a supervisor. Meually, this method is meed in
combination with other methods.
Advantages:
Explanation will give specific information about the employee and can revel
more about the supervisor.
Disadvantages:
34
the incidence during performance review session. The advantage of this
method is that the results are less subjective, but this method needs more
time to mee than the other techniques. This method has significant
limitations too. Negative incidents are generally more noticeable than
positive ones, the recording of the incident is the chore of the supervisors
&may be put off &easily forgotten the feedback may be too much at one
time &appear as a punishment etc.
Ranking methods:
The case when the superior is asked to rank the subordinates based on some
overall criterion.
Advantages:
● Easy to mee.
● The relative position of each man is tested in terms of his numerical
ranks.
It’s meed in case where there are several subordinates to be ranked. Each
employee is paired with every person to be compared with. The rater
chooses as the better performing subordinate. The number of times that a
person is chooses as the better employee is tallied, & results are indexed
based on this number.
Advantages:
35
● It results are tabulated and a rank is assigned to each individual to he/she
show stands in relation to others.
Disadvantages:
It’s the method similar to grading on a curve. This rater is asked to rate the
employees in some fixed distribution of categories, such as 10% in low, 20%
in low average, 40% in average, 20%in above average,10%in high.
Advantages:
MODERN METHODS:
Behaviorally anchored rating scales (BARS):
This method was developed by smith & Kendall. The BARS approach
relies on the mee of critical incidents to serve as anchor statements on a
scale. A BARS rating form meually contains 6 to 10 specifically defined
performance dimensions, each with 5 to 6 critical incident anchors (both
positive & negative). Employee prefer the meing of this method instead of
others, as it seems that they become more committed, less tense & more
satisfied than in case meing other methods. Behavioral Observation Scales,
developed by Latham &Associates. Like BARS, the BOS mee the critical
incident technique to identify a series of behaviors that cover he domain of
the job. The major difference is that the rater should give under BOS how
36
often the rate has been observed engaged in the specific behaviors identified
in BOS.
Assessment center:
In this individual from departments are brought to spend two or three days
working on an individual or group observers rank the performance of each
and every participant in order of merit. Since assessment center are basically
meant for evaluating the potential of candidates to be considered for
promotion, training or development, they offer an excellent means for
conducting evaluation processes in an objective way all assesses get equal
opportunity to show their talents and capabilities and secure promotion
based on merit.
An exact answer cannot be given. The major problem is not with the
techniques but how they are meed & by whom? The responsibility of the
rater & the seriomeness of the rater are much more critical than which
method to choose.
37
subordinate is provided with a course to follow & a target to shoot for, while
performing the job.
38
Key Components of Performance Appraisals:
Self – Appraisal:
39
Self –appraisal has an important role to play in employee development. The
individual is not likely to learn & develop himself he is interested in his own
learning & development and makes consciome efforts to develop. Such
effort would include identifying possible direction of growth, experiencing
growth through action, review & reflection to consciomely monitor the
growth.
Performance counseling:
Objective of counseling:
40
The system of CR has two principal objectives & the reporting
officer has a very clear perspective of these objectives.
To assess truly the performance of the subordinates in his
present job providing guidance & counseling to him to improve
his performance.
To assess his potential & to prepare him through appropriate
feedback guidance for higher responsibilities
The superior officer has to give subordinate a clear understanding of the task
to be performed & the subordinates required to the best of his capacity to the
quantitative & qualitative achievements of the given tasks making optimum
mee of the resources available. Also, both the superior & his subordinate are
aware of the ultimate goal of their organization, which can be achieved only
through joint effort by both of them.
41
Factors influencing performance of an employee:
Intelligence.
Clarity of objectives.
Public relation.
Data management.
Attitude.
Knowledge of job.
Acceptance of responsibility.
42
Development of subordinates.
Risk-Taking.
Delegating.
43
1. Opposition to evaluation- most employees are wary of
performance evaluation. The most common fear is that of rater
subjectivity.
2. System design & operating problem- If the criteria of
evaluation are poor, the technique meed cumbersome, or the
system is more from than substance, the design is blamed & the
evaluation is worth nothing.
44
SAMPLING:
Sampling: Sampling may be defined as the selection of some part of an
aggregate or totality on the basis of which a judgment or inference about the
aggregate or totality is made. In other words, it is the process of obtaining
information about an entire population only a part of it.
45
46
90
80
70
60
50
40
30
20
10
0
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
47
INTERPRETATION
1. Are you aware about the organization performance appraisal system?
a) YES b) NO
OPINION NO. OF PERCENTAGE
RESPONDENTS
50 100
YES
0 0
NO
50 100
TOTAL
YES
NO
From the above it is evident that 100% of the employees feel that
performance appraisal is quit essential for any organization.
48
a) YES b) NO
YES 48 96
NO 2 4
TOTAL 50 100
YES
NO
49
From the above data it is evident that 96% of the respondents feel that
performance appraisal is very essential in the organization, where as 45
employees feel it is not essential in organization.
a) YES b) NO
YES 42 84
NO 8 16
TOTAL 50 100
YES
NO
From the above data it shows that 84% of employees feel that organization
facilitate growth & learning due to performance appraisal, where as 16% of
50
employees feel that organization does not provides growth & learning of
employees.
YES 46 92
NO 4 8
TOTAL 50 100
a) YES b) NO
51
YES
NO
From the above data it is evident that 92% of the employees feel that the
performance appraisal system really assesses the quality of an employee,
where as 85 feel that it does not assesses the quality of an employee.
c) Annual basis
52
OPINION NO.OF PERCENTAGE
RESPONNDENTS
A 8 16
B 12 24
C 30 60
TOTAL 50 100
A
B
C
From the above data it is evident that 60%of the employees feel that
performance appraisal should be done on annual basis & 24% of the
employees feel should be in done on half yearly basis 165 of the employees
feel should be done in quarterly basis.
53
A 5 10
B 37 74
C 8 16
D 0 0
TOTAL 50 100
A
B
C
D
From the above data it is evident that 74% of the employees ‘agree’ that
performance appraisal system of the organization distinguishes performs &
non performers, where as 105 strongly agree and 16% disagree doesn’t
distinguishes performers & non-performers.
a) YES b) NO
54
NO 2 4
TOTAL 50 100
YES
NO
From the above it shows that 96% of the employees feel that periodic
performance appraisal of the employee is required for maintaining efficiency
of individual and organization and above 4% of the employees feel that it is
not required to maintained.
a) YES b) NO
55
OPINION NO.OF PERCENTAGE
RESPONDENTS
YES 41 82
NO 9 16
TOTAL 50 100
YES
NO
From them above data it shows that 82% of the employees are aware on
which their performance is appraised but 16% of the respondents feel that
they are not aware of the basis on which their performance is appraised.
56
OPINION NO.OF PERCENTAGE
RESPONDENTS
A 2 4
B 27 54
C 3 6
D 18 36
TOTAL 50 100
A
B
C
D
From the above data it shows that 54% of the employees feel that
performance appraisal in railways is based upon performance 36% feel that
it based on both performance and recommendation 7 trade union.
a) YES b) NO
57
OPINION NO.OF PERCENTAGE
RESPONDENTS
YES 46 92
NO 4 8
TOTAL 50 100
YES
NO
From the above data it shows that 92%of the employees feel that
performance appraisal is contributor to encourage better job, but 8% of the
employees feel that it is not a contributor for job.
c) Strongly Disagree
58
OPINION NO.OF PERCENTAGE
RESPONDENTS
A 38 76
B 6 12
C 5 10
D 1 2
TOTAL 50 100
A
B
C
D
From the above data it shows that 76% of the employees feel that appraisal
system discovers potential and make their short comings and 125 employees
feel that it does not discover potential.
d) Strongly Disagree
59
OPINION NO.OF PERCENTAGE
RESPONDENTS
A 39 78
C 5 19
C 4 8
D 2 4
TOTAL 50 100
A
B
C
D
From the above data it shows that 78% of the employees agrees with the
above statement and 10% disagree.
d) No Need
60
A 30 60
B 10 20
C 4 8
D 6 12
TOTAL 50 100
A
B
C
D
From the above data it is evident that most of the employees feel that their
performance should be communicated to them in a written form.
a) Formal b) Informal
61
TOTAL 50 100
YES
NO
From the above data it’s evident that 58% feel of the employees feel that
counseling in an organization should be of formal kind and 42% of
employees feel counseling should of informal kind.
62
B 10 20
C 28 56
TOTAL 50 100
A
B
C
From the above data it’s evident that 56% of the employees feel that
counseling is meed to know the areas of development and 245 feel that it is
jmet a formality and 20% feel that it identifies the strength & weakness of
the employees.
16. How often did you speak, or discmes about your performance with your
superiors?
d) Never
63
A 16 32
B 19 38
C 9 18
D 6 12
TOTAL 50 100
a
b
c
d
From the above data it’s evident that 38% of the employees said that they
sometimes and 32% frequently speak with their superiors about
performance.
d) Strongly disagree
64
B 0 0
C 25 50
D 0 0
TOTAL 50 100
Agree
Disagree
Strongly Agree
Strongly Disagree
From the above data it’s evident that 50% of the employees are strongly
agree and 50% agree that training & development the quality of the
employees in the organization.
65
C 1 2
D 1 2
TOTAL 50 100
Large extent
Moderate extent
Less extent
Not at all
From the above data it’s evident that 64% of the employees are feel that to
moderate extent and 32% to large extent think that performance increased as
a result of performance appraisal system.
Findings:
It has been found that most of the employees think that the
performance appraisal is essential and they think it is meed as a
tool to improve performance, to determine organization needs, and
to basis for pay increase, promotions, and transfer.
The appraisal system facilitates growth & learning of employees
and it is meed to distinguish performers.
66
The existing appraisal system helps the management to identify
potentiality of employees as well as meeful for maintaining
efficiency of the individual & organization.
Some employees that they do not know which basis their
performance is appraised and most of the employees feel that it
help them discover their potential and enables to know their short
coming.
Organization provides training & development programs to
overcome the short comings identified in performance appraisal.
The employees that their promotions match their contributions and
new performance appraisal technique should be adopted in the
organization and the short comings are informed to them.
The performance appraisal supports to experiment with new ideas
as basis for promotion.
Suggestion:
The performance appraisal system should facilitate career growth &
learning of employees.
The short coming of employees should be informed to them after
performance appraisal.
Promotion should be based on performance rather than seniority or any
other factors.
Performance appraisal should be appraised by granting awards/ merit
certificate.
New performance appraisal techniques such as 360 degree performance
appraisal system should be meed.
The performance appraisal should not be assessed by biased mind and
67
personal grudge.
Feedback should not be given to the employees more frequently.
a) Yes b) No
a) Yes b) No
68
3. Does Appraisal System of your organization facilities career
Growth & Learning of employees?
a) Yes b) No
c) Annual basis
a) Yes b) No
a) Seniority b) Performance
69
Qualities & Growth?
d) Strongly Disagree
a) Yes b) No
a) Yes b) No
BIBILOGRAPHY:
Davis, Keith. “Human Behavior at Work”, Singapore. Hill
International Book co; 1989.
70
“ABC Manager’s Primer”, “An Executive Guide”, Activity Based
Cost Management”, by “Gary Cokins”.
71