Relevance of Performance appraisal Performance appraisal is necessary to measure the performance of the employees and the organization to check the progress towards the desired goals and aims. The latest mantra being followed by organizations across the world being – “get paid according to what you contribute” – the focus of the organizations is turning to performance management and specifically to individual performance. Performance appraisal helps to rate the performance of the employees and evaluate their contribution towards the organizational goals.

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If the process of performance appraisals is formal and properly structured, it helps the employees to clearly understand their roles and responsibilities and give direction to the individual’s performance. It helps to align individual performances with organizational goals and also review their performance. Performance appraisal takes into account the past performance of the employees and focuses on the improvement of the future performance of the employees. Behaviorally Anchored Rating Scales The performance appraisal method, behaviorally anchored rating scales is used for evaluating the job performance of employees.

It involves disaggregating a particular job into its key tasks, identifying a range of possible behaviors that can be displayed by an employee undertaking each task, placing these behaviors on a scale ranging from ineffective to excellent performance, and assessing the jobholder against these scales for each of the tasks. This allows a total profile of job performance to be created for each employee, covering the various dimensions of his or her work. Proponents of BARS claim that this system differentiates among behavior, performance and results and consequently is able to provide a basis for setting developmental goals for the employee.

It is job specific and identifies observable and measurable behavior; it is more reliable and valid method for performance appraisal. The growth in the Indian Banking Industry has been more qualitative than quantitative and it is expected to remain the same in the coming years. Based on the projections made in the “India Vision 2020” prepared by the Planning Commission and the Draft 10th Plan, the report forecasts that the pace of expansion in the balance-sheets of banks is likely to decelerate.

The total assets of all scheduled commercial banks by end-March 2010 are estimated at Rs 40, 90,000 crores. That will comprise about 65 per cent of GDP at current market prices as compared to 67 per cent in 2002-03. Bank assets are expected to grow at an annual composite rate of 13. 4 per cent during the rest of the decade as against the growth rate of 16. 7 per cent that existed between 1994-95 and 2002-03. It is expected that there will be large additions to the capital base and reserves on the liability side. The Indian Banking Industry can be categorized into non-scheduled banks and scheduled banks.

Scheduled banks constitute of commercial banks and co-operative banks. There are about 67,000 branches of Scheduled banks spread across India. The Public Sector Banks (PSBs), which are the base of the Banking sector in India account for more than 78 per cent of the total banking industry assets. Unfortunately they are burdened with excessive Non Performing assets (NPAs), massive manpower and lack of modern technology. On the other hand the Private Sector Banks are making tremendous progress. They are leaders in Internet banking, mobile banking, phone banking, ATMs.

As far as foreign banks are concerned they are likely to succeed in the Indian banking industry. In the Indian Banking Industry some of the Private Sector Banks operating are IDBI Bank, ING Vyasa Bank, SBI Commercial and International Bank Ltd, Bank of Rajasthan Ltd. and banks from the Public Sector include Punjab National bank, Vijaya Bank, UCO Bank, Oriental Bank, Allahabad Bank among others. ANZ Grindlays Bank, ABN-AMRO Bank, American Express Bank Ltd, Citibank are some of the foreign banks operating in the Indian Banking Industry. Company Profile

Federal Bank Limited was founded as Travancore Federal Bank Limited in the year 1931, with an authorized capital of Rs. 5000. It was established at Nedumpuram, a place near Tiruvalla, in Central Travancore (a princely state later merged into Kerala), under Travancore Company’s Act. Thirteen years later, in 1944, Shri K P Hormis and his close relatives /friends took over the controlling interest in the bank. The following year, the paid-up capital of the bank went up to 71,000 and its registered office shifted to Aluva. With the opening of its first branch at Aluva, Travancore Federal Bank commenced its business.

It was in the Board Meeting of March 1947 that the name of the bank was changed to Federal Bank Limited. After a gap of 12 years i. e. in 1959, the bank was licensed under Sec. 22 of the Banking Companies Act 1949, after which it floated several kuries and launched various deposit schemes. In 1964, it took over the liabilities of Chalakudy Public Bank Ltd. (Chalakudy), Cochin Union Bank Ltd. (Trichur) and Alleppey Bank Ltd. (Alleppey). In the next five year, Federal Bank took over St. George Union Bank Ltd. Puthenpally (1965) and Marthandom Commercial Bank Ltd. Trivandrum (1968).

In 1970, it became a Scheduled Bank. Two years later, it became an authorized dealer in Foreign Exchange. Thereafter, Federal Bank came in an expansion mode and opened 53 branches in 1975 and 42 branches in 1976. In 1984, Federal Bank set up an Agricultural Finance Department in its head office, improving its performance in the field of agricultural and priority sector lending. The year 1985 saw Federal Bank opening a Personnel and Industrial Relations Department and a Computer Department. Four year later, the bank had entered the arena of Merchant Banking Operations.

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