INTRODUCTION OF HRM Huma Human n Resou Resourc rcee Manag Managem ement ent (HRM) (HRM) is a rela relati tivel vely y new
appro approac ach h to
managing people in any organization. People are considered the key resource in this appr approa oach ch.. it is conc concer erne ned d with with
the the peop people le dim dimensi ension on in mana manage geme ment nt of an
orga organi niza zati tion on.. Sinc Sincee an orga organi niza zati tion on is a ody ody of peop people le!! thei theirr ac"u ac"uis isit itio ion! n! devel developm opment ent of
skil skills! ls! motiva motivatio tion n for higher higher level levelss of attai attainm nment ents! s! as well well as
ensuring maintenance of their level of commitment are all significant significant activities. activities. #hese #hese activities activities fall fall in the domain domain of HRM. HRM.
Human Resource Resource
Management is a process! which consists of four main activities! namely! namely! ac"uisition! development! motivation! as well as maintenance of human resources
DEFINITION OF HUMAN RESOURCE MANAGEMENT $. Coleman has defined defined Human Human Resource Resource manageme management nt as %the %the process process of deter determi minin ning g manpo manpowe werr re"ui re"uire reme ments nts and and the means means for for meet meetin ing g those those re"uirements in order to carry out the integrated plan of the organization. &. Human Human resource resource Managem Management ent is a doule' doule'edge edged d weapon. weapon. f used properly properly!! it leads to the maimum maimum utilization of human resources! reduces ecessive laor turnover and high asenteeism* improves productivity and aids in achieving the o+ectives of an organization. ,aultily used! it leads to disruption in the flow of work! lower production! less +o satisfaction! high cost of production and constant headaches for the management personnel.
NATURE AND SCOPE OF HUMAN RESOURCE MANAGEMENT #he emergence of human resource management can e attriuted to the writings of the human religionists who attached great significance to the human factor.
-awrence pply remarked! %Management is personnel administration‖. #his view is partially true as management management is concerned with the efficient and effective use of oth human as well as non'human resources. #hus human resource management management is only a part of the management process. t the same time! it must e recognized that human resource management management is inherent in the process of management. #his function is performed y all the managers Basic to all Functional Areas / Human Resource Management permeates all the
func functi tion onal al area area of mana manage geme ment nt such such as prod produc ucti tion on mana manage geme ment nt!! fina financ ncia iall management! and marketing management. #hat is every manager from top to ottom! working in any department has to perform the personnel functions Continuous Process: Process: Human Resource Management is not a 0one shot1 function. t
must e performed continuously if the organizational o+ectives are to e achieved smoothly
OBECTI!ES OF HUMAN RESOURCE MANAGEMENT ccordi ccording ng to Scott! Scott! 2lothi 2lothier er and Spiegel Spiegel!! %#he %#he o+ectiv o+ectives es of Human Human Resource Resource Management are/ (i) (i) #o ensure ensure effe effect ctive ive utili utilizat zatio ion n of hum human an resour resources ces!! all all other other orga organiz nizati ationa onall resources will e efficiently utilized y the human resources. (ii) #o estalish and maintain an ade"uate organizational structure of relationship among all the memers of an organization y dividing of organization tasks into func functi tion ons! s! posi positi tion onss and and +os +os!! and and y defi defini ning ng clea clearl rly y the the resp respon onsi sii ili lity ty!! acco accoun unta tai ili lity ty!! auth author orit ity y for for each each +o +o and and its its rela relati tion on with with othe otherr +os +os in the the organization. (iii) #o generate maimum development of human resources within the organization y offering opportunities for advancement to employees through training and education. (iv) #o ensure respect for human eings y providing various services and welfare facilities to the personnel. (v) #o ensure reconciliation of individual3group goals with those of the organization in such a manner that the personnel feel a sense of commitment and loyalty towards it.
"#$ "#$ RO%E RO%E AND IMPO IMPORT RTA ANCE NCE OF HUMA HUMAN N RESO RESOUR URCE CE MANAGEMENT
Human Resource Management has a place of great importance. ccording to Peter ,. 4rucker! %#he proper or improper use of the different factors of production depends on the wishes of the human resources. Hence! esides other resources human resources need more development. Human resources can increase cooperation ut it needs proper and efficient management to guide it‖. mportance of personnel management is in reality the importance of laor functions of personnel department which are indispensale to the management activity itself. 5ecause of the following reasons human resource management holds a place of importance. $. t helps management in the preparation adoption and continuing evolution of personnel programmers and policies. &. t supplies skilled workers through scientific selection process. 6. t ensures maimum enefit out of the ependiture on training and development and appreciates the human assets. 7. t prepares workers according to the changing needs of industry and environment
"#& Per'ormance A((raisal De'inition Performance appraisal is directed toward two fundamental goals/ to create a measure that accurately assesses the level of an individual8s +o performance and to create an evaluation system that will advance one or more operational functions in an organization. lthough all performance appraisal systems encompass oth goals! they are reflected differently in two ma+or research orientations! one that grows out of the measurement tradition! the other from human resources management and other fields that focus on the organizational purposes of performance appraisal.
"#) O*+ecti,es o' Per'ormance A((raisal #he main o+ective of performance appraisals is to measure and improve the performance of employees and increase their future potential and value to the company. 1. Providing ,eedack. Providing feedack is the most common rustication for
an organization to have a performance appraisal system.
2. Encoura-in- Per'ormance Im(ro,ement . How can anyone improve if he
doesn9t know how he9s doing right now: good performance appraisal points out areas where individuals need to improve their performance. 3. Settin- an. Measurin- Goals# ;oal setting has consistently een demonstrated as a management process that generates superior performance. #he performance appraisal process is commonly used to make sure that every memer of the organization sets and achieves effective goals.
"#/ Nee.s o' Per'ormance A((raisal# ($) Provide information aout the performance ranks asing on which decision regarding
salary
fiation!
confirmation!
promotion!
transfer
and
demotion
are taken. (&) Provide feedack information aout the level of achievement and ehavior of suordinate. #his information helps to review the performance of the suordinate! rectifying performance deficiencies and to set new standards of work! if necessary. (6) Provide information which helps to counsel the suordinate.
(7) Provide information to diagnose deficiency in employee regarding skill! knowledge! determine training and development needs and to prescrie the means for employee growth provides information for correcting placement.
(<) #o prevent grievances and in disciplinary activities. dvertisements
"#0 NATURE AND SCOPE =ature and scope of any performance appraisal should include the following/ provide employees with a etter understanding of their role and responsiilities* increase confidence through recognizing strengths while identifying training needs to improve weaknesses* improve working relationships and communication etween supervisors and suordinates* increase commitment to organizational goals* develop employees into future supervisors* assist in personnel decisions such as promotions or
allocating rewards* and allow time for self'reflection! self'appraisal and personal goal setting.
"#"1 IMPORTANCE OF PERFORMANCE APPRAISA% "# Performance
appraisal helps
supervisors
to assess
the
work
performance of their suordinates. 2.Performance
appraisal
helps
to
assess
the
training
and development needs of employees. 3. Performance appraisal provides grounds for employees to correct their
mistakes! and it also provides proper guidance and criticism for employee8s development. 4# Performance appraisal provides reward for etter performance. $. Performance appraisal helps to improve the communication system of
the organization
"#"" A.,anta-es o' (er'ormance a((raisals:
#hey provide a document of employee performance over a specific period of time.
#hey provide a structure where a manager can meet and discuss performance with an employee.
#hey allow a manager the opportunity to provide the employee with feedack aout their performance and discuss how well theemployee goals were accomplished.
#hey provide a structured process for an employee to clarify epectations and discuss issues with their manager.
OBECTI!ES OF THE STUD5:
#o identify the actual performance of the employees and performance standards used in performance appraisal program (opinion! satisfaction! enefit! outcome! etc.).
#o create and maintain a satisfactory level of performance.
#o identify the awareness level of performance appraisal techni"ue among the employees.
#o identify the strength and weakness of employee to place right men on right +o.
#o maintain and assess the potential present in a person for further growth and development.
#o provide feedack to employees regarding their performance and related status.
SCOPE OF THE STUD5:
#his study provide appraisal feedack to employees and therey serve as vehicles for personal and career
development and allow the management to take effective decision against drawacks for the well eing of the employee9s development.
#o improve employee work performance y helping them realize and use their full potential in carrying out their firms mission. #he main aim of the study is to find ‟
out the effectiveness of performance appraisal > development programmed conducted at ?@ipro nfrastructure AngineeringB.
NEED OF THE STUD5:
#o ensure organizational effectiveness through correcting the employee for standard and improved
Performance and suggesting the changes in employee ehavior.
t provides information aout the performance ranks.
#o provide information this helps to counsel the suordinates.
#o facilitate fair and e"uitale compensation ased on performance
%IMITATION OF THE STUD5:
#his study is only limited to H4,2 5ank pvt ltd.
Some of the respondents were afraid to give true information in some cases.
#here may e ias on the part of employees while answering to the "uestions.
#he sample size of the study is limited to some etent not the entire employees of the organization.
COMPAN5 PROFI%E 2#" COMPAN5 INTRODUCTION HDFC Bank Limited
"We understand your world" T6(e
Pulic
Tra.e. as
5SA/
In.ustr6
5anking! ,inancial services
Foun.e.
ugust $7
Hea.7uarters
Mumai! Maharashtra ndia
8e6 (eo(le
ditya Puri (M4)I$J
9e*site
H4,25ank.com
2#" O!ER!IE9 OF HDFC COMPAN5 HDFC Ban %imite. is an ndian anking and financial services company
head"uartered in Mumai! Maharashtra. t is the fifth largest ank in ndia y assets! incorporated in $7. t is the largest private sector ank in ndia ymarket capitalization as of &7 ,eruary &C$7. s on Kan & &C$7! the market cap value of H4,2 was around LS&N.DD illion! as compared to 2redit Suisse ;roup with LS7O.N6 illion. #he ank was promoted y the Housing 4evelopment ,inance 2orporation! a premier housing finance company (set up in $OO) of ndia ccording to the 5rand #rust Report &C$7! H4,2 was ranked 6&nd among ndia8s most trusted rands. s of 6$ March &C$6! the ank had assets of =R 7.CD trillion. ,or the fiscal year &C$&'$6! the ank has reported net profit of =R N illion! up 6$ from the previous fiscal year. ts customer ase stood at &D.O million customers on 6$ March &C$6
#he Housing 4evelopment ,inance 2orporation -imited (H4,2) was amongst the first to receive an 1in principle9 approval from the Reserve 5ank of ndia (R5) to set up a ank in the private sector! as part of R59s lieralization of the ndian 5anking ndustry in $7. #he ank was incorporated in ugust $7 in the name of 1H4,2 5ank -imited9! with its registered office in Mumai! ndia. H4,2 5ank commenced operations as a Scheduled 2ommercial 5ank in Kanuary $<.
2#2 ACHIE!EMENTS OF HDFC BAN8 n the anking sector! H4,2 5ank has one of the lowest cost of funds in ndia and disciplined growth strategy. t maintains a healthy asset "uality and seeks to consistently match revenues with growth and profits. #he ank9s usiness momentum remained risk and competitive in oth its retail and wholesale customer franchises. s at 6$st March &CCD! the 5ank9s distriution network was well spread with ON$ranches and $OO #Ms in 6&O cities as against ND7 ranches and $NC< #Ms in 6&C cities as at 6$st March &CCO. Portfolio "uality as of March &CCD remained worthy of emulation with net non'performing assets at C.7 Q well elow the industry average. n Kuly &CCO! the ank made a pulic offeringof N!<7!
2#3 A9ARDS AND RE9ARDS OF THE COMPAN5
utlook Money award &C$6
5est 5ank in -arge 5anks 2ategory
5 nnovation wards
Most nnovative Lse of #echnology
sia Money &C$6
M22 wards &C$6
5est 4omestic 5ank in ndia Mr. ditya Puri/ 5est Aecutive in ndia
5est in ,inancial Services/ 5ank 2ategory
Skoch ,inancial nclusion wards &C$6 rganization of the Fear
;uinness @orld Record
,or #he nnual 5lood 4onation 4rive
Best Online Bank Best Use o Business Intelligence IBA Banking Technology Awards 2011
Best !ustoer #elationshi$ Initiati%e Best #isk &anageent ' (ecurity Initiati%e Best Use o &o)ility Technology in Banking
2#4 MISSION AND !ISION OF HDFC BAN8 MISSION
ur mission is to e a @orld 2lass ndian 5ank! enchmarking ourselves against international standards and est practices in terms of product offerings! technology! service levels! risk management and audit > compliance.
ncrease our market share in ndia9s epanding anking and financial services industry y following a disciplined growth strategy focusing on "uality and not on "uantity and delivering high "uality customer service.
2ontinue to develop products and services that reduce our cost of funds
,ocus on high earnings growth with low volatility
!ISION
#o e customer driven est managed enterprise that en+oys market leadership in providing housing related finance.
ur vision and values that we oserve at work $. Acellence &.
People Angagement
6.
ntegrity
7.
2ustomer 2entricity
<.
2ollaoration
THEORETICA% STRAM 9OR8 3#"DEFINITION OF PERFORMANCE APPRAISA%
performance appraisal needs to e a series of constructive! developmental discussions! etween line managers and their reports. #hey should focus on helping people to realize their potential. #o e effective! appraisals need to e a series of conversations that culminate in the performance appraisal review. t9s much more effective (and easier) to appraise performance y regular meetings to discuss progress and provide support! rather than to wait for a single! annual appraisal meeting.
3#2THEORIES OF PERFORMANCE APPRAISA% Performance management is a concept in the field of human resource management. ?Performance management is a continuous process of identifying! measuring and developing the performance of individuals and aligning performance with the strategic goals of the organizationB (guinis! &CC). Performance management is many times mistaken as performance appraisal ut the latter is +ust a part of the former.
$. Setting of o+ectives. &. Measuring the performance. 6. ,eedack of performance results. 7. Reward system ased on performance outcomes <. nd amendments to o+ectives and activities (Maey et al! $).
3#3 TECHNI;UES OF PERFORMANCE APPRAISA% S5STEM T
$.Esta*l is< (er 'ormanc e stan.a r.s 'or eac< (ositi on an. cr iteria 'or e,aluation
n setting o+ectives to e followed y the employee to e evaluated! the following Principles are to e met.
Specific. Measurale chievale (occasionally agreed etween the line manager >employee Result orientate in a company. #imes framed (with a set date for competition)
3#4 METHODS OF PERFORMANCE APPRAISA%
#here are two types9 traditional methods and modern methods TRADITIONA% METHODS:
ndividual evaluation methods/ ndividual evaluation methods are those techni"ues when the standards of performance are defined individually! without references to other person. GRAPHIC RATING SCA%E:
s the oldest > still most used method of evaluation: n case the case the rate is presented with set of traits > is asked to rate the Amployee on each it. #here are certain advantages in using methods
3#$ 3&1 DEGREES APPRAISA%:
=owadays various tools are availale for evaluating employee performance. Some organizations have even taken to 6NC degree evaluation techni"ues.
#ill such time managing human resources gives way to Human Resource Management in anks! performance management systems including 6NC degree evaluation techni"ues shall remain a distant dream.
f only anks are to tweak the performance appraisal systems they have to make it a more meaningful one therey contriuting to the development of the individual and the organisation as a whole! they will e taking a giant step forward.
t is in this contet that one should look at revamping the performance appraisal systems in pulic sector anks.
s a first step of course! one should e clear as to what purposes it should serve.
n general a performance appraisal system should serve as a tool for work' performance +udgemental and provide a asis for reward allocation (none at present in pulic sector anks)! promotions! transfers! lay'offs etc.
t should help the organisations to identify high potential employees9
developmental!
fostering
work
improvement!
identifying training and development opportunities and develop ways to overcome ostacles and arriers.
t should help the organisations to identify high potential employees9
developmental!
fostering
work
improvement!
identifying training and development opportunities and develop ways to overcome ostacles and arriers.
t should provide for a two'way communication etween the employee and the supervisor and help diagnose strengths and weaknesses therey enaling a development plan for improving +o performance.
3#& AD!ANTAGES OF PERFORMANCE APPRAISA%:
Performance appraisal system can e put to several uses converting the entire spectrum of human resource function in the organization. #he uses which performance appraisal serves are/
#o take decision on termination.
4iagnosing individual and organizational prolem.
#o identify individuals with high potential.
Systematic efforts to tone up performance results! corrective actions and appropriate feedack.
nput for an array of professional decision such as placement! promotion! transfer! and reward.
DATA ANA%5SIS AND INTERPRETATION
$. re you aware aout the organization performance appraisal system: a) FAS ) =
OPINION
NO# OF RESPONDENTS
PERCENTAGE
5ES
$1
"11
NO
1
1
TOTA%
$1
"11
INTERPRETATION: ,rom the aove it is evident that $CC of the employees feel that performance appraisal is "uit essential for any organization.
&.4oC you think that performance appraisal is essential:
a)
FAS
)
=
OPINION
NO#OF RESPONDENTS
PERCENTAGE
5ES
4/
0&
NO
2
4
TOTA%
$1
"11
INTERPRETATION: ,rom the aove data it is evident that N of the respondents
feel that performance appraisal is very essential in the organization* where as 7< employees feel it is not essential in organization.
6. 4oes appraisal system of your organization facilities career growth > learning:
a) FAS
) =
OPINION
NO#OF RESPONDENT
PERCENTAGE
FAS
42
/4
=
/
"&
##-
$1
"11
INTERPRETATION: ,rom the aove data it shows that D7 of employees feel that
organization facilitate growth > learning due to performance appraisal! where as $N of employees feel that organization does not provides growth > learning of employees.
7. Performance appraisal system really assesses the "uality of an employee. 4o you agree: a)
FAS
)
=
OPINION
NO#OF RESPONDENTS
PERCENTAGE
5ES
4&
02
NO
4
/
TOTA%
$1
"11
INTERPRETATION: ,rom the aove data it is evident that & of the employees
feel that the performance appraisal system really assesses the "uality of an employee! where as D< feel that it does not assesses the "uality of an employee.
<. Periodicity of performance appraisal should e on a) Tuarterly asis
) Half'yearly asis
c) nnual asis
INTERPRETATION: ,rom the aove data it is evident that NCof the
employees feel that performance appraisal should e done on annual asis > &7 of the employees feel should e in done on half yearly asis $N< of the employees feel should e done in "uarterly asis
;UESTIONNAIRE FOR A STUD5 ON PERFORMANCE APPRAISA% S5STEM: 1. 4o you think that Performance ppraisal is essential: a) Fes
)
=o
&. Performance ppraisal System really assesses the "uality of an employee. 4o you agree: a) Fes
)
=o
6. Periodicity of Performance ppraisal should e on a) Tuarterly c)
)
Half'yearly asis
nnual asis
7. #he present Performance ppraisal of your organization 4istinguishes the performer > non performers: a) Strongly agree
)
c)
d)
4isagree
gree strongly disagree
<. #he Periodical Performance ppraisal of employee is re"uired for Maintaining efficiency of individual > organization: a)
Fes
)
=o
FINDINGS AND SUGGESTIONS
t has een found that most of the employees think that the performance appraisal is essential and they think it is used as a tool to improve performance! to determine organization needs! and to asis for pay increase! promotions! and transfer.
#he appraisal system facilitates growth > learning of employees and it is used to distinguish performers.
#he eisting appraisal system helps the management to identify potentiality of employees as well as useful for maintaining efficiency of the individual > organization.
#he performance appraisal supports to eperiment with new ideas as asis for promotion.
#he short coming of employees should e informed to them after performance appraisal.
Promotion should e ased on performance rather than seniority or any other factors.
Performance appraisal should e appraised y granting awards3 merit certificate.
=ew performance appraisal techni"ues such as 6NC degree performance appraisal system should e used.
#he performance appraisal should not e assessed y iased mind and personal grudge.
,eedack should not e given to the employees more fre"uently.
CONC%USION t @as ,ound #hat ndian 5anks re =ot Sound s ,ar s #heir ,inancial Health s 2oncerned. #his s 5ecause ll #he Sample ndian 2ommercial 5anks @ere Rated 6 n #he 2amel Scale. Aven #he State 5ank f ndia nd #he cici5ank! #he -argest 5ank n #he Pulic Sector nd #he Private Sector Respectively! @ere lso Rated 6. However! #he =ew ;eneration Private Sector 5anks -ike #he is 5ank! Hdfc 5ank! cici 5ank nd Eotak Mahindra 5ank Aach Had Alevated #hemselves #o Rating f ove 6 t -east n ne ,inancial Fear (ver #he Seven Fear Period f Study) 5ut @ere =ot Successful n Retaining #his Position nd Aventually Reverted #o Rating f 6 n #he Uery =et ,inancial Fear tself. n #he ther Hand mongst #he Pulic Sector 5anks! di 5ank n #he Uery ,irst Fear f ts #ransformation s 5ank Showed Positive Sign @ith Rating f ove 6 (t $DC @as n 5etween & nd 6) n #he ,y &CC7'C<. However! Similar #o #he ther Private Sector 5anks! #his Pulic Sector 5ank9s 2amel Rating Had lso 4egraded #o 6 n Suse"uent Fears. However! in order to have a strong financial system that would e capale of supporting the country9s economic growth! we need more anks to move higher up the 2MA- scale. lthough the composite score on the positioning scale of the sample anks were somewhat satisfactory! with all the anks having a score of aove 6.
BIB%IOGRAPH5
Assential of HRM and ndustrial Relations' P. Sua Rao.
Roert 5ascal ?Performance ManagementB to help 2ompanies! mprove their Performance Management Systems.
?2H. ParamanandaB! rticle on Performance Management.
9EBSITES: @@@.H4,2.2M H##P/33@@@.M=AF2=#R-.2M3 @@@.H4,2.=A# @@@.HR';L4A.2M
