An organisation’s goals can be achieved only when people put in their best efforts. How to ascertain whether employee has shown his or her best
performance on a given job? The answer is performance appraisal. Employee assessment is one of the fundamental job of Human Resource Management, but
not an easy one though. Performance appraisal is an objective assessment of an individual’s performance against well defined benchmarks. It is a systematic and periodic evaluation or rating on an executive’s performance in his existing job and on his potentiality of taking up greater responsibilities.
Banking organisation with highly educated employees at all levels is fertile ground for experimentation and exploration of new modalities.
So far banks were recruiting large number of persons at the clerical and probationary office level. However it seems that this pattern might change.
Because of the diversity in services banks have to start introducing people with specific competencies and not necessary to groom them from general pool of clerks or probationary officers. Banks will require not only Computer specialists but Economists who have done special studies of other countries to work in Merchant banking or Export, Import business departments. So the recruitment programmes shall also have to be diversified and selection strategies will have to be appropriately different than that of selecting persons in general stream.
Some managers are unwilling to “play god” by judging others. The tendency to complete the appraisal forms at the last moment when they are due and to treat the entire process casually may well be necessary to relieve the anxiety of evaluation in the role of “Judge”.
Since the supervisor’s appraisal influences the employee’s most vital job concern – promotions, transfer and dismissal – the employee’s defensiveness during an appraisal interview often makes the procedure unproductive for both the supervisor and the subordinates.
However in the banking business the existence of Human Resource Department is very much abnormal. Human Resource seems to be only a formality in a banking business. As per the organisational rules the presence of Human Resource as a department is mandatory in any organisation so Human Resource exists in the banking and which is ruled by the owners / top level management. The quality of performance appraisal is one such qualitative factor of importance to service oriented business like banking.
It is people who possess skill, abilities and aptitudes that offer competitive advantage to the firm. It is only human resource that is capable of deciding, implementing and controlling activities. No computer can substitute human brain, no machine can without human interventions and no organisation has mandate to exist if it cannot serve people’s needs. Human Resource is a study about people in organisations – how they are hired, trained, compensated, motivated and maintained. HRM offers a comprehensive picture about the people in organisations.
Human Resource should be an ultimate entity having a statute of their own laying down the complete process / rules of handling the individuals working in the organisation. Also Human Resource department should be the power of all the individuals working in the company. Individuals should look towards Human Resource as a final point of justice.
But in practice the top level authorities and the owners rule the HR department as per their wishes and vim’s. The Human Resource practices and rules are broken and moulded by these people for their own benefits which should not be the case.
Relevance of this Article:
Banks have to focus on professionalism in performance appraisal system, employee satisfaction and participative decision making. The policies and
practices should be such that they augment core competencies of the employees, motivate and retain the employees for a longer period, increase power and autonomy in work etc. Banks should make use of human resources in such a way that the employees can give their best to the organisation and at the same time the employees should be treated as a valuable asset to fulfil the objectives.
The Human resource plays most crucial role in the management of an organisation and conversion process of inputs into outputs. Performance Appraisals, Product design, quality maintenance, rendering services, working conditions etc., depend upon the efficiency of the human resources. Human resource also plays significant role in managing finances and managing information systems. The current status of HRD in Indian banks is not very inspiring. Human Resource Development activities are ritualised which means they are not taken seriously. Human Resource Development receives country cousin treatment and so Human Resource Development is generally understood as synonymous in training.
Presently it is clear that only the sales performance (business performance) along with good relations with boss influence the appraisal. General and job intelligence and initiative have no place in appraisal. Appraisal system fails to serve the purpose for which it should be designed. Also the placement decisions in banks are claimed to be taken on the basis of career growth need and skill-requirements of each role are found to be based on none. Appraisal system is a mere ritual and formal exercise which serve no purpose except a little weight-age at the time of promotion.
In a way the system of appraisal in banks should be less formal open and continuous. A formal system of self-appraisal must be substituted for better results.