Performance appraisals in banking sector
Having working to a leading private bank in the country & with the gained exposure, performance appraisal plays a vital role in banking environment.
Mainly, performance appraisals decided our absorption in to permanent cadre, enhancement of salary scale, portion of the bonus payments & most importantly our promotions as well.
At the time of absorption the banking trainees in to permanent cadre, manager has to prepare a performance appraisal on relevant employee based on duties carried out by them during the tenor.
If the manager is not satisfied with the duties of such trainee, manager has the power to extend that employee for the same position up to 06 months period of time. However, transparency of relevant appraisals are highly doubtful since it is a confidential performance appraisal.
Upon absorbing to the permanent cadre, employees are eligible for annual salary increment based on the rating model they are obtain. This is purely based on performance appraisal carried out by immediate officer of the employee with the communication of the manager as well.
This system is handled in a transparent way since the rating module is visible for the employee at the time of finalization of the performance appraisals.
Further, executive officers are eligible for annual bonus payment at the month of April based on the grading of the employee. Bonus portion is fluctuates with compared to the rating.
This is the occasion where intense competition could observe among employees to grab the rating module upon completing their annual targets.
These performance appraisals are finalized by involvement of the Regional Managers.
This system has motivated the employees to achieve their targets and ultimately to achieve the branch targets as well.
At the time of promotions, it has allocated major portion of score for the employees based on their last 03 years performance appraisals.
Hence, scoring system allows the huge chance to be promoted those who have well performed during last 03 years period of time.
Considering to aforesaid facts, performance appraisals in banking industry is critical item to climb up the ladder.
But, few areas to be improved with regard to the transparency & criteria’s appeared in performance appraisals which are not reasonable.
Further, performance appraisals has paved the way to develop the career path of employees where bank has provide adequate training programmes to improve the required knowledge.
Moreover, performance appraisals bound the organization values with employees to achieve bank’s vision & mission in coming years.
Bank has awarded with many titles based on the foundation created through performance appraisals which could create a satisfied employee.
An effective performance appraisal at work place improves in employee’s performance. The study of Lalita Rani, Naveen Kumar and Sushil Kumar (2014), explains that most of the banks uses 360 Degree Appraisal Method and it helps in improving performance, achieving organization goals, helps in increasing motivation and employee satisfaction.
ReplyDeleteComment noted & when it comes to the banking sector, the performance appraisal process has an impact on five important organizational outcomes:
ReplyDeletefinancial performance, productivity, product and service quality, customer satisfaction, and
employee satisfaction. Effective performance management is recognized as the development
of staff skills and abilities, improving customer service and quality of the process, achieving
both financial and non-financial objectives (de Waal, 2007, p. 120).
Furthermore, as bankers, it is important for staff to believe that in the performance evaluations, there is a great opportunity for them to improve their work and the assessments are just (Weick & stucliffe, 2001). Without fairness, the performance appraisal system, rewards, motivations and development have a negative impact on staff (Gilliland and Langdon, 1998)
I agree with your viewpoint on performance appraisals. As you mentioned in your post, "Mainly, performance appraisals decide our absorption into the permanent cadre, the enhancement of the salary scale, the portion of the bonus payments, and, most importantly, our promotions as well." When it comes to proposal appraisal, proper training and development are also crucial factors. Employee training and development is one of the most significant motivators used to help both individuals and organizations achieve their short-term and long-term goals and objectives (Nassazi 2013). Apart from that, intrinsic and extrinsic motivation both play a significant role in the improvement and enhancement of organizational success, and these facts have an impact on performance appraisal.
ReplyDeleteNoted your comments. Since i have prepared this blog based on banking environment & experience this not cover the overall picture of performance appraisals.
ReplyDeleteFurther, i have already addressed for the importance of training and development by stating that "performance appraisals has paved the way to develop the career path of employees where bank has provide adequate training programmes to improve the required knowledge".
When it comes to the motivation, Pinder (2012) refers the motivation construct as the set of internal and external forces that trigger a behavior related to work and that determine the shape, direction, intensity and duration of that behavior. Therefore, the difficulty in answering the above question comes from the multitude of factors that may affect motivation:
(1) The characteristics of each employee
(2) The characteristics of the organization’s environment, whether internal or external
(3) The specific characteristics of each job and its execution
Highlighting, from among these, the appraisal of individual performance, the clarity of objectives to be attained or the level of challenge required by the job. (Perry and Porter, 1982; Porter and Miles, 1974)