SHRI RAMSWAROOP MEMORIAL GROUP

OF PROFESSIONAL COLLEGES
LUCKNOW

PROJECT REPORT
ON

Performance Appraisal

SUBMITED IN PARTIAL FULFILLMENT OF REQUIRMENT FOR

THE AWARD OF DEGREE OF
MASTER OF BUSINESS ADMINISTRATION
TO
UTTAR PRADESH TECHNICAL UNIVERSITY, LUCKNOW
FOR THE SESSION
2014-15

Under the Guidance of

Mr. Sameer Rastogi
Department of Management
SRMGPC, LUCKNOW

SUBMITTED BY:
Shraddha Singh
Roll No.: 1312270063
MBA IIIrd Sem.

Certificate

ii

DECLERATION

iii

ACKNOWLEDGEMENT

Achievement is finding out what you would be then doing, what you have to do. The higher the
summit, the harder is the climb. The goal was fixed and we began with a determined resolved and
put in ceaseless sustained hard work. Greater challenge, greater was our effort to overcome it.
This project work, which is my first step in the field of professionalization, has been successfully
accomplished only because of my timely support of industry guide. I would like to pay my sincere
regards and thanks to those, who directed me at every step in my project work.
I take this opportunity to extend my sincere gratitude and profound obligation towards my Project
report guide Mr. Sameer Rastogi for giving me valuable suggestions & guidance rendered to me
throughout the Summer Training project without their encouragement and continuing support, this
Summer Training project would not have been possible.
I am highly thankful to other faculty members whose able guidance in this project make my way
simple & easy.

Name- Shraddha
Singh
MBA 3rd Sem
Roll no. 1312270063

iv

PREFACE
The research project program is the integral part of MBA curriculum during the course of
management; the research is expected to use and apply their academic knowledge and gain a
valuable insight into corporate culture with all its environment operational complexities.
The research offers a valuable opportunity to the researcher to meet their academic knowledge to
the real world situation. I have undertaken commercial department to study about the various
activities Performance Appraisal
In this report I have put my finest efforts to compile the data with utmost accuracy and hope this
report will give complete satisfaction regarding the various aspects of recruitment & selection
activity.

TABLE OF CONTENT
1.

Certificate

ii

2.

Declaration

iii

3.

Acknowledgement

iv

4.

Preface

5.

Introduction

6.

Company Profile

7.

Research Methodology

8.

Use and importance

9.

Data Analysis

10.

Findings

11.

Recommendations

12.

Conclusion

13.

Limitation

14.

Bibliography

15.

Annexure

vi

vii

INTRODUCTION
INTRODUCTION

Introduction
Definition of performance appraisal
Performance Appraisal is defined as the process of assessing the performance and
Progress of an employee or a group of employees on a given job and his / their
potential
for future development. It consists of all formal procedures used in working
organizations
and potential of employees. According to Flippo, Performance Appraisal is the
systematic, periodic and an important rating of an employees excellence in matters
pertaining to his present job and his potential for a better job.
According to Dulewicz (1989),
"... A basic human tendency to make judgements about those one is working with,
as well as about oneself."
Any system of determining how well an individual employee has performed
during a period of time, frequently used as a basis for determining merit
increases.
Performance appraisal is a systematic review of a persons work and
achievements over a recent period, usually leading to plans for the future.
In its most basic form, performance appraisal (or review) activities include
documenting achieved results (hopefully, by also including use of examples to
clarify documentation) and indicating if standards were met or not. The appraisal
usually includes some form of a development plan to address insufficient
performance.

In many organizations - but not all - appraisal results are used, either directly or
indirectly, to help determine reward outcomes. That is, the appraisal results are
used to identify the better performing employees who should get the majority of
available merit pay increases, bonuses, and promotions.

This concept have get the recognition the evaluation of work performance,
appraisal really dates from the time of the Second World War - not more than 60
years ago, as a distinct and formal management procedure were used in the
evaluation of the work performance.

Later, the traditional emphasis on reward outcomes was progressively rejected as it

took only into consideration the material outcome but not the morale, enthusiasm,
attitude ability and self-esteem. In the 1950s in the United States, the potential
usefulness of appraisal as tool for motivation and development was gradually
recognized. The general model of performance appraisal, as it is known today,
began from that time.

Yearly performance reviews are critical. Organizations are hard pressed to find
good reasons why they can't dedicate an hour-long meeting once a year to ensure
the mutual needs of the employee and organization are being met. Performance
reviews help supervisors feel more honest in their relationships with their
subordinates and feel better about themselves in their supervisorial roles.
Subordinates are assured clear understanding of what's expected from them, their
own personal strengths and areas for development and a solid sense of their
relationship with their supervisor. Avoiding performance issues ultimately
decreases

morale,

decreases

credibility

of

management,

decreases

the

organization's overall effectiveness and wastes more of management's time to do

what isn't being done properly.
Few issues in management stir up more controversy than performance appraisal.
There are many reputable sources - researchers, management commentators, and
psychometricians - who have expressed doubts about the validity and reliability of
the performance appraisal process. Some have even suggested that the process is so
inherently flawed that it may be impossible to perfect it.

It is deemed as the critical tool for banking sector as for the banking sector the
performance indicators are quit different and the overall structure of the banking
sector is bit complex thus to use this concept effectively and efficiently is quit
difficult for this sector.

Thus, through this report the researcher had tried to find the problem emerging and
to provide them suggestion so as for effective working.

Techniques of performance Appraisal

1-Rating scale
2-Check list
3-Force distribution
4-Forced choice method
5-Critical incident method
6-Essay method
7-360 degree performance appraisal method
Characterstics
1. Performance Appraisal is a process.
2. It is the systematic examination of the strengths and weakness of an employee in
terms of his job.
3. It is scientific and objective study. Formal procedures are used in the study.
4. It is an ongoing and continuous process wherein the evaluations are arranged
periodically according to a definite plan.
5. The main purpose of Performance Appraisal is to secure information necessary
for making objective and correct decision of the employees.

CONCEPT OF PERFORMANCE APPRAISAL

Performance appraisal may be defined as a structured formal interaction between a
subordinate and supervisor, that usually takes the form of a periodic interview
(annual or semi-annual), in which the work performance of the subordinate is
examined and discussed, with a view to identifying weaknesses and strengths as
well as opportunities for improvement and skills development.

In many organizations - but not all - appraisal results are used, either directly or
indirectly, to help determine reward outcomes. That is, the appraisal results are
used to identify the better performing employees who should get the majority of
available merit pay increases, bonuses, and promotions.
By the same token, appraisal results are used to identify the poorer performers who
may require some form of counseling, or in extreme cases, demotion, dismissal or
decreases in pay. (Organizations need to be aware of laws in their country that
might restrict their capacity to dismiss employees or decrease pay.)

Whether this is an appropriate use of performance appraisal - the assignment and

justification of rewards and penalties - is a very uncertain and contentious matter.

Performance appraisals are essential for the effective management and evaluation
of staff. Appraisals help develop individuals, improve organizational performance,
and feed into business planning. Formal performance appraisals are generally
conducted annually for all staff in the organization. Each staff member is appraised
by his or her line manager (Directors are appraised by the CEO, who is appraised
by the chairman or company owners, depending on the size and structure of the
organization). Annual performance appraisals enable management and monitoring
of standards, agreeing expectations and objectives, and delegation of
responsibilities and tasks. Staff performance appraisals also establish individual
training needs and enable organizational training needs analysis and planning.

Performance appraisals data feeds into organizational annual pay and grading
reviews, and coincides with the business planning for the next trading year.
Performance appraisals generally review each individual's performance against
objectives and standards for the trading year, agreed at the previous appraisal
meeting. Performance appraisals are also essential for career and succession
planning. Performance appraisals are important for staff motivation, attitude and
behavior development, communicating organizational aims, and fostering positive
relationships between management and staff. Performance appraisals provide a
formal, recorded, regular review of an individual's performance, and a plan for
future development.
PERFORMANCE REVIEW MEETING
Today, Performance Review Meetings are regarded as conversation with a
purpose. They are considered extremely important for the development and health of the
organization. The purpose of the performance review meetings is to reach mutually agreed
conclusions about the development of the individual and his performance and if
applicable, any areas for improvement, including how such improvements are to be
achieved.
The purpose of Performance and Development reviews is to enable the
employees to engage in a dialogue and get the support of the manager about the
individuals performance and development. They should be more like free- flowing, open
meetings in which views are exchanged so that agreed conclusions can be reached. The
three key elements of performance review meetings are:
1. Feedback - Providing information on how a person has been doing.
2. Measurement assessing results against agreed targets and standards.
3. Exchange of views - Ensuring that the discussion involves a full, free and frank
exchange of views about what has been achieved, what needs to be done to
achieve more and what employees think about their work the way they are
managed and their aspirations.
Performance Appraisal review is the meeting when the employee can be motivated to
perform better in future or reinforce his desirable behaviour. Review discussion meetings
ideally should include the following:
6

Review of progress on tasks and activities in relation to the employees

performance plan,

The developmental initiatives taken by the employee himself and those planned by
the management for the employee.

Identification of variances in terms of delays, requisite quality and shortfall in help

planned for the employee, if any

Analyzing the causes of the delay, the problems faced and the solutions adopted.

Preparation of action steps for solving identified problems and contingency plans
for anticipated problems.

Periodic review meetings become meaningful only when they help pause, reflect, take
stock and strategize in an otherwise active relationship.

How to Complete Performance Appraisal Form

Performance Appraisal form provides the basis for the performance review, providing
the feedback to the employees and the final rating of the employee. It also facilitates
various other HR decisions and career development plans and decisions of the employees.
Therefore, performance appraisal from should be filled with utmost care and objectivity.

The Performance appraisal form should be filled by the immediate supervisor or manager
of the employee in order to ensure that the appraiser if fully acquainted with the
performance, responsibilities, targets and standards of the employee. All the instructions
and guidelines on the appraisal form should be read and followed carefully.

Be prepared with all the details of the performance, the standards, job description
and the past appraisals of the employee.

Clear and unambiguous description of the employee performance should be given

in terms of average, above average, good and excellent performance.

The focus should be on the employees behaviour throughout the year and not just
his recent performance.

Quantify the ratings, wherever possible, to ensure easy comparability.

Substantiate and support your rating, and attach all the necessary documents (if
required).

Apart from the defined performance objectives and results, discuss the related
issues as well covering all the aspects of the performance.

When filling the appraisal form, be honest and objective.

ANALYSIS FOR IMPROVING PERFORMANCE
Any performance review process is incomplete without the feedback to the employees.
The feedback could be given in the review discussion. Review discussions are semi
formal, scheduled, periodic interactions usually bimonthly or quarterly between a
manager and his employee. The basic purpose of the review discussion is to analyze the
performance of the employee in the past to improve the performance of the employee in
future.
A review discussion is an opportunity to coach, mentor, learn and understand. The
manager encourages his/her employees to critically reflect over progress made on the
Performance appraisal plan and to develop creative, yet feasible alternatives for problem
areas.The manager uses this opportunity to:

Review the performance of the each employee individually.

Discuss the problems faced by the employees during the course of action.

The solutions tried, and the degree of success achieved in solving the problems
faced.

Revisit with the employee, his/ her annual plan for the remaining time period and
develop revised action plans, if necessary.
Review discussions reassure the employees that each one of them has structured

opportunities for one to one interaction with the manager once every two or three months
during the year. These opportunities are important as they provide an important chance for
performance monitoring or development mentoring. The aim of the performance review
discussions is to share perceptions, solve the problem faced during the course of the
8

action, decide on the new goals jointly and provide a feedback to the employee for the past
performance i.e. to look at his strengths and weaknesses and also help to chart out a career
plan for the employee. The focus of these performance review discussions should not bet
o judge the employees past performance; rather it should be to motivate the employee to
improve his future performance and reinforce his good behaviour.

Active Performance Appraisal Conversation

1. Active conversation plays an important part in the performance review meeting.
The appraiser should ensure that the meeting has a two way conversation and
that the employee should get a fair chance
To speak. The "manner" of giving the feedback of the performance of the
employee is very important. The conversation should have an optimistic and
motivating tone.
Some important points that should be taken care of in the active
Performance Appraisal Conversation are:
Make it a two-way conversation. An effective Performance appraisal review
requires an interactive discussion with an open agenda. Try to formulate
questions that seek the employees ideas and input. This will help the employee
feel you value his or her opinions. Give the employee a fair chance to put
forward his ideas; let him speak.
2. Be a good listener. Remember to be an active listener and to pick up on your
employees verbal and nonverbal cues. Listen to his ideas and problems.
3. Address whats important to the employee. Since job satisfaction is the most
important factor affecting an employees attitude (and therefore his or her level
of performance and value to your company), an effective review should delve
into areas that include issues most important to that employee.
4. Lead with the positive. Its important to reaffirm the employees strengths at the
beginning of the review. Since job security is the number one concern of most
people, the performance review is a good time to tell an employee how much
you value their contributions to your business.
5. Dont be confrontational. Its important not to criticize the employee in general
terms. The goal is to evaluate job performance and not the person. A
9

performance review that turns into a gripe session misses the opportunity to
raise employee morale.
6. Positive reinforcement emphasizing what has been done well so that it will be
done even better in the future and making only constructive criticisms (i.e. those
that point the way to improvement).
7. Exchange of views - Ensuring that the discussion involves a full, free and frank
exchange of views about what has been achieved, what needs to be done to
achieve more and what the appraiser think about their work the way they are
managed and their aspirations.
Agreement - jointly coming to an understanding about what has to be done by both parties
to improve performance, knowledge and skills and overcome any work problems raised
during the discussion
Performance Appraisal Feedback
Performance appraisal process is incomplete without the feedback given to the employee
about his appraisal and his performance. But the way of giving as well as receiving the
feedback differs from person to person and their way of handling and their outlook
towards the issue.

According to a popular saying:

"A SUCCESSFUL MAN IS ONE WHO CAN LAY A FIRM FOUNDATION WITH
THE BRICKS OTHERS HAVE THROWN AT HIM."

Therefore, On the part of the person receiving the feedback, the following points are
important to be taken care of:
o

The employee should have a positive attitude towards the feedback process

He should listen to the suggestions of the appraiser calmly and try to incorporate
them in his plans.

He should not hesitate to ask for the help of his superiors.

Should have a co-operative attitude during the feedback meeting.

Dont judge the appraiser as a person.

10

Should take the feedback objectively.

Should not judge the appraiser as a person on the basis of the feedback.

On the part of the appraiser or the manager / person giving the feedback, the following
points are to be taken care of:

The appraiser should make the receiver feel comfortable during the feedback
meeting.

The appraiser should make it a two way conversation i.e. let the employee
speak.

Listen to the employee and note his points, suggestions, problems etc.

The appraiser should not adopt a confrontational approach towards the meeting.
The goal is not to criticize the employee.

Provide a constructive feedback to the employee i.e. in a way which will motivate
him to perform better.

Have a positive attitude towards the process

Try to understand the reasons of his failure.

Be fair and objective

Prepare yourself for what to say and how to say.

11

COMPANY
COMPANY PROFILE
PROFILE

12

COMPANY PROFILE

Sarva UP Gramin Bank is result of amalgamation of the four RRBs they are:

Kisan Gramin Bank of Budaun,

Uttar Pradesh Gramin Bank of Meerut,

Devi Patan Kshetriya Gramin Bank of Gonda and

Rani Laxmibai Kshetriya Gramin Bank of Jhansi.

This event of amalgamation and creation of Sarva UP Gramin Bank took place on
30 November 2007 under Sub-Section (1) of section 23A of the Regional Rural
Bank Act, 1976 (21 of 1976).
The bank has 214 branches around 12 districts of Uttar Pradesh, it will also have
one branch in Haridwar District of Uttarakhand. The Bank is sponsored by Punjab
National Bank
The Bank has share Capital of Rs 6.00 Crore, subscribed by Central Govt,
Punjab National Bank and Govt of Uttar Pradesh in the ratio of 50:35:15.
The Bank has its Head Office in Meerut.
Bank is also functioning in the western zone of Uttar Pradesh well-known for Sugar
production, Handicrafts, Steel Plants, Paper Mills and Sports Goods manufacturing
Bank's Head Office is situated in Historic City of Meerut well-known for first
Independence Movement of 1857.
Historic City of Jhansi is well-known for Brave Queen of Jhansi, Rani Laxmi
Bai for Major Role in first Independence Movement of 1857.
13

Budaun is Ancient Education center for historic 'Four Veadas' in Gurukul

System which is present now at Dataganj Road in Budaun city, Previously
Known as Vedamau established by Mantri Surya Dhawaz of Lord Buddha
also known for Tapsthali of Lord Parsuram at Sahaswan the Holy Pond
Sarsota From historic 'Ramayan Kaal'.
Meerut is also known for historic 'Ramayan Kaal',being the parental home of
Queen 'Mandodari',and was named after her father 'Maya Danav'.
meerut is also related to historic Mahabharat Kaal.It was karmabhoomi of
Pandavas and Lord Krishna at Hastinapur(Meerut) being the capital of
Pandavas.Bijnor is famous for Vidur Kuti,the residence of Mahatma Vidur.
Gonda is related to historic Swami Narayan Mandir of Lord Vishnu situated
in Chhapia Village. Saharanpur is related to historic 51 Sidha Peeth of
goddess Durga.One of

them Shakumbari Devi situated near Behat

Tehsil(Saharanpur).
Balrampur is related to historic 51 Sidha Peeth of goddess Durga. One of
them situated in a village named as Devipatan(Tulsipur).
Baghpat is also related to historic Pura Mahadev Temple of Lord SHIVA situated in
Pura Village. Balmiki Rishi Ashram in Baleni Village Ratoul Mangoes are world
Famous Mango cultivated in Ratoul Village (Baghpat)

14

OUR GOAL " To cater the Banking needs of the people in our operational area
with excellence".

Sarva U.P.Gramin Bank, sponsored by Punjab National Bank one of the

leading commercial Bank of India, came into existence by amalgamation of 4
RRBs Viz ( Uttar Pradesh Gramin Bank Meerut, Kisan Gramin Bank
Budaun,Rani Laxmi Bai Gramin bank Jhansi AND Davi Patan Gramin bank
Gonda) working in the area spread in whole Uttar Pradesh "East to West"under
subsection (1) of section 23 A of the Regional Rural Bank Act, 1976 (21 of
1976) vide Govt. of India Notification dated 30.11.2007. The Bank has share
Capital of Rs 6.00 Crore, subscribed by Central Govt, Punjab National Bank and
Govt of Uttar Pradesh in the ratio of 50:35:15. The Bank has its Head Office in
Meerut. The Bank's operational area spreads in 17 Districts viz.Bulandshahar,
15

Ghaziabad,Meerut,

Gautam

Bijnor,Gonda,Balrampur,Bhim

Budh

Nagar,

Nagar,Budaun

Shamli
Holy

,
Distt

Hapur
of

Haridwar,Bagpat,Sharanpur,Jhansi,Lalitpur and Muzaffaranagar.The Bank has

345 Branches. Bank is going to open its Branches in Meerut,Baghpat,Sharanpur
District very soon.

Bank's Total Business as on the date of amalgamation was

Rs 221.13 Crore .

.
Our Worthy Chairman Sh. D.S. Bainola Introducing Bank Rupay Debit
Card.

16

Our Worthy Chairman Sh. D.S. Bainola Welcoming PNB CMD Sh.
K.R.KAMATH .

PNB CMD Sh. K.R.KAMATH while addressing our bank Staff.

17

18

19

 The Banks operational area spreads in 17 Districts viz.Bulandshahar,

Ghaziabad,

Meerut,

Gautam

Bijnor,Gonda,Balrampur,Bhim

Budh

Nagar,

Nagar,Budaun

Shamli
Holy

,
Distt

Hapur
of

Haridwar,Bagpat,Sharanpur,Jhansi,Lalitpur and Muzaffaranagar.

The Bank has 345 Branches.

Bank is going to open its Branches in Meerut,Baghpat,Sharanpur District

very soon.

20

Regional Rural Banks are local level banking organizations operating in

different States of India. They have been created with a view to serve primarily the
rural areas of India with basic banking and financial services. However, RRB's
may have branches set up for urban operations and their area of operation may
include urban areas too.
Functions
The main purpose of RRB's is to mobilize financial resources from rural / semiurban areas and grant loans and advances mostly to small and marginal farmers,
agricultural laborers and rural artisans. The area of operation of RRBs is limited to
the area as notified by Government of India covering one or more districts in the
State. RRB's also perform a variety of different functions. RRB's perform various
functions in following heads Providing banking facilities to rural and semi-urban
areas. Carrying out government operations like disbursement of wages of
MGNREGA workers, distribution of pensions etc. Providing Para-Banking
facilities like locker facilities, debit and credit cards
History
Regional Rural Banks were established under the provisions of an Ordinance
passed on 26 September 1975 and the RRB Act. 1976 to provide sufficient banking
and credit facility for agriculture and other rural sectors. These were set up on the
recommendations of The Narasimham Working Group[1] during the tenure of Indira
Gandhi's government with a view to include rural areas into economic mainstream
since that time about 70% of the Indian Population was of Rural Orientation. The
development process of RRBs started on 2 October 1975 with the forming of the
first RRB, the Prathama Bank. Also on 2 October 1976 five regional rural banks
were set up with a total authorised capital of Rs. 100 crore ($ 10 Million) which
later augmented to 500 crore ($ 50 Million). The Regional Rural Bank were owned
by the Central Government ,the State Government and the Sponsor Bank(There
were five commercial banks, Punjab National Bank, State Bank of India, Syndicate
Bank, United Bank of India and United Commercial Bank, which sponsored the
regional rural banks) who held shares in the ratios as follows Central Government50%, State Government- 15% and Sponsor Banks- 35%.. Earlier, Reserve Bank of
India had laid down ceilings on the rate of interest to be charged by these RRBs.
21

However from August 1996 the RRBs have been granted freedom to fix rates of
interest, which is usually in the range of 14-18% for advances.
Recapitalization of Regional Rural Banks (RRBs)
Subsequent to review of the financial status of RRBs by the Union Finance
Minister in August, 2009, it was felt that a large number of RRBs had a low
Capital to Risk weighted Assets Ratio (CRAR). A committee was therefore
constituted in September, 2009 under the Chairmanship of K C Chakrabarty,
Deputy Governor, RBI to analyse the financials of the RRBs and to suggest
measures including re-capitalisation to bring the CRAR of RRBs to at least 9% in a
sustainable manner by 2012. The Committee submitted its report in May, 2010.
The following points were recommended by the committee:

RRBs to have CRAR of at least 7% as on 31 March 2011 and at least 9%

from 31 March 2012 onwards. recapitalisation requirement of Rs. 2,200.00
crore for 40 of the 82 RRBs. This amount is to be released in two
installments in 2010-11 and 2011-12. .

The remaining 42 RRBs will not require any capital and will be able to
maintain CRAR of at least 9% ifs on 31 st March 2012 and thereafter on
their own.

A fund of Rs. 100 crore to be set up for training and capacity building of
the RRB staff.

The Government of India recently approved the recapitalization of Regional Rural

Banks (RRBs) to improve their Capital to Risk Weighted Assets Ratio CRAR) in
the following manner:

Share of Central Government i.e. Rs.1, 100 crore will be released as per
provisions made by the Department of Expenditure in 2010-11 and 201112. However, release of Government of India share will be contingent on
proportionate release of State Government and Sponsor Bank share.

A capacity building fund with a corpus of Rs.100 crore to be set up by

Central Government with NABARD for training and capacity building of
the RRB staff in the institution of NABARD and other reputed institutions.
The functioning of the Fund will be periodically reviewed by the Central
22

Government. An Action Plan will be prepared by NABARD in this regard

and sent to Government for approval.

Additional amount of Rs. 700 crore as contingency fund to meet the

requirement of the weak RRBs, particularly those in the North Eastern. and
Eastern Region, the necessary provision will be made in the Budget as and
when the need arises.

Organizational Structure
The Organizational Structure for RRB's varies from branch to branch and depends
upon the nature and size of business done by the branch. The Head Office of an
RRB normally had three to seven departments.
The following is the decision making hierarchy of officials in a Regional Rural
Bank.

Board of Directors

Chairman & Managing Director

General Manager

Chief Manager/Regional Managers

Senior Manager

Manager

Officer / Assistant Manager

Assistants

Amalgamation
Currently, RRB's are going through a process of amalgamation and consolidation.
25 RRBs have been amalgamated in January 2013 into 10 RRBs. This counts 67
RRBs till 1st week of June 2013. On 31 March 2006, there were 133 RRBs (postmerger) covering 525 districts with a network of 14,494 branches. All RRBs were
originally conceived as low cost institutions having a rural ethos, local feel and pro
poor focus. However, within a very short time, most banks were making losses.
The original assumptions as to the low cost nature of these institutions were belied.
23

This may be again amalgamated in near future. At present there are 56 RRBs in
India.
Legal Existence and Protection
RRB's are recognized by the law and they have legal significance.The Regional
Rural Banks Act, 1976 Act No. 21 Of 1976 [9 February 1976.] reads
"For the incorporation, regulation and winding up of Regional Rural Banks with a
view to developing the rural economy by providing, for the purpose of
development of agriculture, trade, commerce, industry and other productive
activities in the rural areas, credit and other facilities, particularly to the small and
marginal farmers, agricultural laborers, artisans and small entrepreneurs, and for
matters connected therewith and incidental thereto".
List of Regional Rural banks
1. Allahabad UP Gramin Bank
2. Andhra Pradesh Grameena Vikas Bank
3. Andhra Pragathi Grameena Bank
4. Arunachal Pradesh Rural Bank
5. Gramin Bank of Aryavart
6. Assam Gramin Vikash Bank
7. Baitarani Gramya Bank
8. Bangiya Gramin Vikash Bank
9. Baroda Gujarat Gramin Bank
10. Baroda Rajasthan Kshetriya Gramin Bank
11. Baroda Uttar Pradesh Gramin Bank
12. Bihar Gramin Bank is the result of the merger on 15 Oct 2012 between
Samastipur Kshetriya Gramina Bank and Bihar Kshetriya Gramina
Bank.
13. Chaitanya Godavari Grameena Bank
24

14. Chhattisgarh Gramin Bank

15. Deccan Grameena Bank
16. Dena Gujarat Gramin Bank
17. Durg-Rajnandgaon Gramin Bank
18. Ellaquai Dehati Bank
19. Sarva Haryana Gramin Bank
20. Himachal Gramin
21. Jhabua Dhar Kshetriya Gramin Bank
22. Jharkhand Gramin Bank
23. JK Gramin Bank
24. Kalinga Gramya Bank
25. Karnataka Vikas Grameena Bank
26. Kashi Gomti Samyut Gramin Bank
27. Kaveri Grameena Bank
28. Kerala Gramin Bank
29. Krishna Grameena Bank - Amalgamated with PGB on 23 Aug 13 New name: Pragathi Krishna Gramin Bank
30. Langpi Dehangi Rural Bank
31. Madhumalti Building Gupte Marg
32. Madhya Bihar Gramin Bank
33. Mahakaushal Kshetriya Gramin Bank
34. Maharashtra Gramin Bank
35. Malwa Gramin Bank
25

36. Manipur Rural Bank

37. Marudhara Gramin Bank
38. Meghalaya Rural Bank
39. Mewar Anchalik Gramin Bank
40. Mizoram Rural Bank
41. Nagaland Rural Bank
42. Narmada Jhabwa Gramin Bank
43. Neelachal Gramya Bank
44. Pallavan Grama Bank
45. Pandyan Grama Bank
46. Parvatiya Gramin Bank
47. Paschim Banga Gramin Bank
48. Pragathi Gramin Bank; after amalgamation on 23 August 2013 the
bank became Pragathi Krishna Gramin Bank
49. Prathama Bank
50. Puduvai Bharathiar Grama Bank
51. Punjab Gramin Bank
52. Purvanchal Bank merged with Ballia Etawa Gramin Bank on 1 July
2013.
53. Rushikulya Gramya Bank
54. Saptagiri Grameena Bank
55. Sarva Haryana Gramin Bank
56. Sarva UP Gramin Bank

26

57. Satpura Narmada Kshetriya

58. Saurashtra Gramin Bank
59. Mandhyanchal Grameen Bank
60. Surguja Kshetriya Gramin Bank
61. Sutlej Kshetriya Gramin Bank
62. Tripura Gramin Bank
63. Utkal Grameen Bank
64. Uttar Banga Kshetriya Gramin Bank
65. Uttar Bihar Gramin Bank
66. Uttarakhand Gramin Bank
67. Vananchal Gramin Bank
68. Vidharbha Kshetriya Gramin Bank
69. Wainganga Krishna Gramin Bank
70. Odisha Gramya Bank
Financial Sector Reforms set in motion in 1991 have greatly changed the face of
Indian Banking. The banking industry has moved gradually from a regulated
environment to a deregulated market economy. The market developments kindled
by liberalization and globalization have resulted in changes in the intermediation
role of banks. The pace of transformation has been more significant in recent
times with technology acting as a catalyst.

While the banking system has done

fairly well in adjusting to the new market dynamics, greater challenges lie ahead.
Financial sector would be opened up for greater international competition under
WTO. Banks will have to gear up to meet stringent prudential capital adequacy
norms under Basel II.

In addition to WTO and Basel II, the Free Trade

Agreements (FTAs) such as with Singapore, may have an impact on the shape of
the banking industry. Banks will also have to cope with challenges posed by
technological innovations in banking. Banks need to prepare for the changes. In
27

this context the need for drawing up a Road Map to the future assumes relevance.
The idea of setting up a Committee to prepare a Vision for the Indian Banking
industry came up in IBA, in this background.

Managing Committee of Indian Banks Association constituted a Committee under

the Chairmanship of Shri S C Gupta, Chairman & Managing Director, Indian
Overseas Bank to prepare a Vision Report for the Indian Banking Industry. The
composition of the Committee is given at the end of the report.
The Committee held its first meeting on 23rd June 2003 at Mumbai. Prior to the
meeting the members were requested to give their thoughts on the future landscape
of the banking industry. A discussion paper based on the responses received from
members was circulated along with a questionnaire eliciting views of members on
some of the specific issues concerning anticipated changes in the banking
environment. In the meeting, which served as a brainstorming session, members
gave their Vision of the future. A second meeting of the Committee was held at
Chennai on 7th August 2003 to have further discussions on the common views,
which emerged in the first meeting, and also to examine fresh areas to be covered
in the study.

The Vision Statement prepared by the Committee is based on common thinking

that crystallized at the meetings. In the Chennai meeting it was decided to form a
smaller group from among the members to draft the report of the Committee. The
group met thrice to finalize the draft report. The report was adopted in the final
meeting of the Committee held at Mumbai.
When we talk about the future, it is necessary to have a time horizon in mind. The
Committee felt, it would be rather difficult to visualize the landscape of banking
industry say, 20 years hence due to the dynamic environment. While Government
of India brought out India Vision 2020, the Committee is of the view that the pace
of changes taking place in the banking industry and in the field of Information
Technology would render any attempt to visualize the banking scenario in 2020,
inconceivable.

The entire financial services sector may undergo a dramatic

28

transformation. It was, therefore, felt that we should set our goals for the near
future say, for 5-10 years hence and appropriately call this exercise Banking
Industry Vision 2010.
I am confident that India will become a Developed Nation by 2020. Come, let us
strive together to turn this resolve into reality Atal Bihari Vajpayee
EMERGING ECONOMIC SCENE
The financial system is the lifeline of the economy. The changes in the economy
get mirrored in the performance of the financial system, more so of the banking
industry. The Committee, therefore felt, it would be desirable to look at the
direction of growth of the economy while drawing the emerging contours of the
financial system. The India Vision 2020" prepared by the Planning Commission,
Government of India, is an important document, which is likely to guide the policy
makers, in the years to come. The Committee has taken into consideration the
economic profile drawn in India Vision 2020 document while attempting to
visualise the future landscape of banking Industry.
India Vision 2020 envisages improving the ranking of India from the present 11th
to 4th among 207 countries given in the World Development Report in terms of the
Gross Domestic Product (GDP). It also envisages moving the country from a lowincome nation to an upper middle-income country. To achieve this objective, the
India Vision aims to have an annual growth in the GDP of 8.5 per cent to 9 per cent
over the next 20 years. Economic development of this magnitude would see
quadrupling of real per capita income. When compared with the average growth in
GDP of 4-6% in the recent past, this is an ambitious target. This would call for
considerable investments in the infrastructure and meeting the funding
requirements of a high magnitude would be a challenge to the banking and
financial system.
India Vision 2020 sees a nation of 1.3 billion people who are better educated,
healthier, and more prosperous. Urban India would encompass 40% of the
population as against 28 % now. With more urban conglomerations coming up,
only 40% of population would be engaged in agricultural sector as against nearly
two thirds of people depending on this sector for livelihood. Share of agriculture in
29

the GDP will come down to 6% (down from 28%). Services sector would assume
greater prominence in our economy. The shift in demographic profile and
composition of GDP are significant for strategy planners in the banking sector.
Small and Medium Enterprises (SME) sector would emerge as a major contributor
to employment generation in the country. Small Scale sector had received policy
support from the Government in the past considering the employment generation
and favourable capital-output ratio. This segment had, however, remained
vulnerable in many ways. Globalization and opening up of the economy to
international competition has added to the woes of this sector making bankers wary
of supporting the sector. It is expected that the SME sector will emerge as a vibrant
sector, contributing significantly to the GDP growth and exports.
Indias share in International trade has remained well below 1%. Being not an
export led economy (exports remaining below 15% of the GDP), we have
remained rather insulated from global economic shocks. This profile will undergo a
change, as we plan for 8-9% growth in GDP.

Planning Commission report

visualizes a more globalised economy. Our international trade is expected to

constitute 35% of the GDP.
In short, the Vision of India in 2020 is of a nation bustling with energy,
entrepreneurship and innovation. In other words, we hope to see a market-driven,
productive and highly competitive economy. To realize the above objective, we
need a financial system, which is inherently strong, functionally diverse and
displays efficiency and flexibility. The banking system is, by far, the most
dominant segment of the financial sector, accounting for as it does, over 80% of
the funds flowing through the financial sector. It should, therefore, be

our

endeavor to develop a more resilient, competitive and dynamic financial system

with best practices that supports and contributes positively to the growth of the
economy.
The ability of the financial system in its present structure to make available
investible resources to the potential investors in the forms and tenors that will be
required by them in the coming years, that is, as equity, long term debt and
medium and short-term debt would be critical to the achievement of plan
objectives. The gap in demand and supply of resources in different segments of the
30

financial markets has to be met and for this, smooth flow of funds between various
types of financial institutions and instruments would need to be facilitated.
Governments policy documents list investment in infrastructure as a major area
which needs to be focused. Financing of infrastructure projects is a specialized
activity and would continue to be of critical importance in the future. After all, a
sound and efficient infrastructure is a sine qua non for sustainable economic
development.
Infrastructure services have generally been provided by the public sector all over
the world in the past as these services have an element of public good in them. In
the recent past, this picture has changed and private financing of infrastructure has
made substantial progress. This shift towards greater role of commercial funding in
infrastructure projects is expected to become more prominent in coming years. The
role of the Government would become more and more of that of a facilitator and
the development of infrastructure would really become an exercise in publicprivate partnership. India Infrastructure Report (Rakesh Mohan Committee 1996) placed financing of infrastructure as a major responsibility of banks and
financial institutions in the years to come. The report estimated the funding
requirements of various sectors in the infrastructure area at Rs 12,00,000 crore by
the year 2005-06. Since the estimated availability of financing from Indian
financial institutions and banks was expected at only Rs 1,20,000 crore, a large gap
is left which needs to be filled through bilateral/multilateral/government funding.
It has been observed globally that project finance to developing economies flows
in where there is relatively stable macro-economic environment. These include
regulatory reforms and opening of market to competition and private investment.
Liberalized financial markets, promoting and deepening of domestic markets,
wider use of risk management tools and other financial derivative products,
improved legal framework, accounting and disclosure standards etc are some of the
other aspects which would impact commercial funding of infrastructure projects.
The India Vision document of Planning Commission envisages Foreign Direct
Investments (FDI) to contribute 35% (21% now) to gross capital formation of the
country by 2020. Government has announced a policy to encourage greater flow of
FDI into the banking sector. The recent amendment bill introduced in Parliament to
31

remove the 10% ceiling on the voting rights of shareholders of banking companies
is a move in this direction. The working group expects this to have an impact on
the capital structure of the banks in India in the coming years.
Consequent to opening up of the economy for greater trade and investment
relations with the outside world, which is imperative if the growth projections of
India Vision 2020 were to materialize, we expect the banking Industrys business
also to be driven by forces of globalization. This may be further accentuated with
the realisation of full convertibility of the rupee on capital account and consequent
free flow of capital across the borders. An increase in the income levels of the
people would naturally lead to changes in the spending pattern also. This could
result in larger investments in the areas like entertainment and leisure, education,
healthcare etc and naturally, these would attract greater participation of the banking
system.
On the basis of the projection made by the Draft 10th Five Year Plan on relevant
macro indicators such as GDP and extending the trend for a further period of three
years, it is estimated that GDP at current market prices during 2009-10 would be
Rs.61,40,000 crore. Taking into account the on-going reform measures, expected
Basel II needs, and financial dis-intermediation, the pace of expansion in the
balance sheets of banks is likely to decelerate. Thus total assets of all scheduled
commercial banks by end March 2010 may be taken as Rs.40,90,000 crore as a
working estimate. At that level, the annual composite rate of growth in total assets
of Scheduled Commercial Banks would be about 13.4 per cent to be over 2002-03
as compared to 16.7 per cent between 1994-95 and 2002-03. It will form about 65
per cent of GDP at current market prices as compared to 67 per cent in 2002-03.
On the liability side, there may be large augmentation to capital base. Reserves are
likely to increase substantially. Banks will relay more on borrowed funds. Hence,
the pace of accretion to deposits may slow down.
On the asset side, the pace of growth in both advances and investment may
slacken. However, under advances, the share of bills may increase. Similarly,
under investment, the share of others may increase. The Macro-magnitude of
Indian banking sector visualized for the year 2010 is given in Annexure

32

FUTURE LANDSCAPE OF INDIAN BANKING

Liberalization and de-regulation process started in 1991-92 has made a sea change
in the banking system. From a totally regulated environment, we have gradually
moved into a market driven competitive system. Our move towards global
benchmarks has been, by and large, calibrated and regulator driven. The pace of
changes gained momentum in the last few years. Globalization would gain greater
speed in the coming years particularly on account of expected opening up of
financial services under WTO. Four trends change the banking industry world
over, viz. 1) Consolidation of players through mergers and acquisitions, 2)
Globalisation of operations, 3) Development of new technology and 4)
Universalisation of banking. With technology acting as a catalyst, we expect to
see great changes in the banking scene in the coming years. The Committee has
attempted to visualize the financial world 5-10 years from now. The picture that
emerged is somewhat as discussed below. It entails emergence of an integrated
and diversified financial system. The move towards universal banking has already
begun. This will gather further momentum bringing non-banking financial
institutions also, into an integrated financial system.
The traditional banking functions would give way to a system geared to meet all
the financial needs of the customer. We could see emergence of highly varied
financial products, which are tailored to meet specific needs of the customers in the
retail as well as corporate segments. The advent of new technologies could see the
emergence of new financial players doing financial intermediation. For example,
we could see utility service providers offering say, bill payment services or
supermarkets or retailers doing basic lending operations. The conventional
definition of banking might undergo changes.
The competitive environment in the banking sector is likely to result in individual
players working out differentiated strategies based on their strengths and market
niches. For example, some players might emerge as specialists in mortgage
products, credit cards etc. whereas some could choose to concentrate on particular
segments of business system, while outsourcing all other functions. Some other
banks may concentrate on SME segments or high net worth individuals by

33

providing specially tailored services beyond traditional banking offerings to satisfy

the needs of customers they understand better than a more generalist competitor.
International trade is

an area where Indias presence is expected to show

appreciable increase. Presently, Indian share in the global trade is just about 0.8%.
The long term projections for growth in international trade is placed at an average
of 6% per annum. With the growth in IT sector and other IT Enabled Services,
there is tremendous potential for business opportunities. Keeping in view the
GDP growth forecast under India Vision 2020, Indian exports can be expected to
grow at a sustainable rate of 15% per annum in the period ending with 2010. This
again will offer enormous scope to Banks in India to increase their forex business
and international presence. Globalization would provide opportunities for Indian
corporate entities to expand their business in other countries. Banks in India
wanting to increase their international presence could naturally be expected to
follow these corporates and other trade flows in and out of India.
Retail lending will receive greater focus. Banks would compete with one another to
provide full range of financial services to this segment. Banks would use multiple
delivery channels to suit the requirements and tastes of customers. While some
customers might value relationship banking (conventional branch banking), others
might prefer convenience banking (e-banking).
One of the concerns is quality of bank lending. Most significant challenge before
banks is the maintenance of rigorous credit standards, especially in an environment
of increased competition for new and existing clients. Experience has shown us
that the worst loans are often made in the best of times. Compensation through
trading gains is not going to support the banks forever. Large-scale efforts are
needed to upgrade skills in credit risk measuring, controlling and monitoring as
also revamp operating procedures. Credit evaluation may have to shift from cash
flow based analysis to borrower account behaviour, so that the state of readiness
of Indian banks for Basle II regime improves.

Corporate lending is already

undergoing changes. The emphasis in future would be towards more of fee based
services rather than lending operations. Banks will compete with each other to
provide value added services to their customers.

34

Structure and ownership pattern would undergo changes. There would be greater
presence of international players in the Indian financial system. Similarly, some of
the Indian banks would become global players. Government is taking steps to
reduce its holdings in Public sector banks to 33%. However the indications are that
their PSB character may still be retained.
Mergers and acquisitions would gather momentum as managements will strive to
meet the expectations of stakeholders. This could see the emergence of 4-5 world
class Indian Banks. As Banks seek niche areas, we could see emergence of some
national banks of global scale and a number of regional players.
Corporate governance in banks and financial institutions would assume greater
importance in the coming years and this will be reflected in the composition of the
Boards of Banks.
Concept of social lending would undergo a change. Rather than being seen as
directed lending such lending would be business driven. With SME sector expected
to play a greater role in the economy, Banks will give greater overall focus in this
area. Changes could be expected in the delivery channels used for lending to small
borrowers and agriculturalists and unorganized sectors (micro credit). Use of
intermediaries or franchise agents could emerge as means to reduce transaction
costs.
Technology as an enabler is separately discussed in the report. It would not be out
of place, however, to state that most of the changes in the landscape of financial
sector discussed above would be technology driven. In the ultimate analysis,
successful institutions will be those which continue to leverage the advancements
in technology in re-engineering processes and delivery modes and offering stateof-the-art products and services providing complete financial solutions for different
types of customers.
Human Resources Development would be another key factor defining the
characteristics of a successful banking institution. Employing and retaining skilled
workers and specialists, re-training the existing workforce and promoting a culture
of continuous learning would be a challenge for the banking institutions.

35

CHANGES IN THE STRUCTURE OF BANKS

The financial sector reforms ushered in the year 1991 have been well calibrated
and timed to ensure a smooth transition of the system from a highly regulated
regime to a market economy. The first phase of reforms focused on modification in
the policy framework, improvement in financial health through introduction of
various prudential norms and creation of a competitive environment. The second
phase of reforms started in the latter half of 90s, targeted strengthening the
foundation of banking system, streamlining procedures, upgrading technology and
human resources development and further structural changes. The financial sector
reforms carried out so far have made the balance sheets of banks look healthier
and helped them move towards achieving global benchmarks in terms of prudential
norms and best practices.

Under the existing Basel Capital Accord, allocation of capital follows a

one-size-fit-all approach. This would be replaced by a risk based approach to
capital allocation. While regulatory minimum capital requirements would still
continue to be relevant and an integral part of the three pillar approach under Basel
II, the emphasis is on risk based approach relying on external ratings as well as
internal rating of each asset and capital charge accordingly. The internal risk based
approach would need substantial investments in technology and development of
MIS tools. For a rating tool for internal assessment to be effective, past data for 3
to 5 years would be required and as such, Indian banking system will have to build
up the capabilities for a smooth migration to the new method.

Another aspect which is included in Basel II accord is a provision for capital

allocation for operational risk. This is a new parameter and even internationally
evaluation tools are not yet fully developed. This would be another area where
banking system will have to reckon additional capital needs and functioning of its
processes.
The financial sector reforms have brought in the much needed competition in the
market place. The competition to the existing banks came mainly from the techno36

savvy private sector banks. In the coming years, we expect to see greater flow of
foreign capital to come into the Indian banking sector. Opening up of banking
sector to global players would see banks facing global competition.
Technology is expected to be the main facilitator of change in the financial sector.
Implementation of technology solutions involves huge capital outlay. Besides the
heavy investment costs, technology applications also have a high degree of
obsolescence.

Banks will need to look for ways to optimize resources for

technology applications.

In this regard, global partnerships on technology and

skills sharing may help.

The pressure on capital structure is expected to trigger a phase of consolidation in
the banking industry. Banks could achieve consolidation through different ways.
Mergers and acquisitions could be one way to achieve this. In the past, mergers
were initiated by regulators to protect the interests of depositors of weak banks. In
recent years, market led mergers between private banks have taken place. It is
expected that this process would gain momentum in the coming years. Mergers
between public sector banks or public sector banks and private banks could be the
next logical thing / development to happen as market players tend to consolidate
their position to remain in competition.
Consolidation could take place through strategic alliances / partnerships. Besides
helping banks to achieve economy of scale in operations and augment capital base,
consolidation could help market players in other ways also to strengthen their
competitiveness. The advantage could be in achieving better segmentation in the
market. Strategic alliances and collaborative approach, as an alternative to mergers
and acquisitions, could be attempted to reduce transaction costs through
outsourcing, leverage synergies in operations and avoid problems related to
cultural integration. If consolidation is taken too far, it could lead to misuse of
dominant market positions. Rapid expansion in foreign markets without sufficient
knowledge of local economic conditions could increase vulnerability of individual
banks.
Public Sector Banks had, in the past, relied on Government support for capital
augmentation. However, with the Government making a conscious decision to
reduce its holding in Banks, most Banks have approached the capital market for
37

raising resources.

This process could gain further momentum when the

government holding gets reduced to 33% or below.

It is expected that pressures

of market forces would be the determining factor for the consolidation in the
structure of these banks.

If the process of consolidation through mergers and

acquisitions gains momentum, we could see the emergence of a few large Indian
banks with international character. There could be some large national banks and
several local level banks.
Opening up of the financial sector from 2005, under WTO, would see a number of
Global banks taking large stakes and control over banking entities in the country.
They would bring with them capital, technology and management skills. This will
increase the competitive spirit in the system leading to greater efficiencies.
Government policy to allow greater FDI in banking and the move to amend
Banking Regulation Act to remove the existing 10% cap on voting rights of
shareholders are pointers to these developments.
The cooperative banks have played a crucial part in the development of the
economy. The primary agricultural societies which concentrate on short-term
credit and rural investment credit institutions supported by District / State level
cooperative banks have played a crucial role in the credit delivery in rural areas.
The Urban Cooperative Banks have found their own niche in urban centres. These
institutions in the cooperative sector need urgent capital infusion to remain as
sound financial entities. Cooperative sector comes under State jurisdiction while
commercial banking operations are regulated by the Reserve Bank of India. The
duality in control had weakened the supervisory set up for these institutions. It is
expected that certain amendments to the Banking Regulation Act introduced
recently in the Parliament with the objective of strengthening the regulatory
powers of the Reserve Bank of India would pave the way for strengthening of
cooperative / financial institutions. It is expected that these banks would upgrade
skills of their staff and improve the systems and procedures to compete with
commercial bank entities.

Consolidation would take place not only in the structure of the banks, but also in
the case of services. For instance, some banks would like to shed their non-core
38

business portfolios to others. This could see the emergence of niche players in
different functional areas and business segments such as housing, cards, mutual
funds, insurance, sharing of their infrastructure including ATM Network, etc.

Rationalization of a very large network of branches, which at present has rendered

the system cost ineffective and deficient in service would take place. Most of the
banks would have adopted core-banking solutions in a fully networked
environment. Back office functions would be taken away from branches to a
centralized place. While brick and mortar branches would continue to be relevant
in the Indian scenario, the real growth driver for cost cutting would be virtual
branches viz., ATMs, Internet Banking, mobile banking, kiosks etc., which can be
manned by a few persons and run on 24 x 7 basis to harness the real potential of
these technological utilities, there will be strategic alliances / partnership amongst
banks and this phenomenon has already set in.

As we move along, the concept of branch banking will undergo changes. Banks
will find that many of the functions could be outsourced more profitably without
compromising on the quality of service. Specialized agencies could come forward
to undertake Marketing and delivery functions on behalf of banks. This could see
banking products being sold outside the four walls of a branch. Banks would then
concentrate on developing new products and earning fee based income.

The composition of bank staff will change. As total computerization will render a
part of the workforce surplus, banks will go for a rightsizing exercise. Some may
resort to another round of VRS to shed excess flab while some other may go for redeployment to strengthen marketing arms. With greater use of technology and
outsourcing of services in different areas, the manpower recruitment will mostly be
in specialized areas and technology applications. With commitment shifting from
the organization to the profession, we could see greater lateral movement of
banking personnel. Training and skill development will, however, continue to be
key HR functions. With the age profile of staff undergoing changes, banks will
39

have to focus on leadership development and succession planning. Knowledge

management will become a critical issue.
Management structure of banks will also undergo drastic changes in the coming
years. Instead of the present pyramid structure, the banks will move towards
reduction in tiers to ultimately settle for a flat structure.

Product-wise

segmentation will facilitate speedier decision-making.

(The existing structure of banks in India, their balance sheet composition and
working results as on 31st March, 2003 are given in Annexures II, III and IV.)

PRODUCT INNOVATION AND PROCESS RE-ENGINEERING

With increased competition in the banking Industry, the net interest margin of
banks has come down over the last one decade. Liberalization with Globalization
will see the spreads narrowing further to 1-1.5% as in the case of banks operating
in developed countries. Banks will look for fee-based income to fill the gap in
interest income. Product innovations and process re-engineering will be the order
of the day. The changes will be motivated by the desire to meet the customer
requirements and to reduce the cost and improve the efficiency of service. All
banks will therefore go for rejuvenating their costing and pricing to segregate
profitable and non-profitable business. Service charges will be decided taking into
account the costing and what the traffic can bear. From the earlier revenue = cost +
profit equation i.e., customers are charged to cover the costs incurred and the
profits expected, most banks have already moved into the profit =revenue - cost
equation. This has been reflected in the fact that with cost of services staying
nearly equal across banks, the banks with better cost control are able to achieve
higher profits whereas the banks with high overheads due to under-utilisation of
resources, un-remunerative branch network etc., either incurred losses or made
profits not commensurate with the capital employed. The new paradigm in the
coming years will be cost = revenue - profit.
As banks strive to provide value added services to customers, the market will see
the emergence of strong investment and merchant banking entities. Product
innovation and creating brand equity for specialized products will decide the
40

market share and volumes. New products on the liabilities side such as forex
linked deposits, investment-linked deposits, etc. are likely to be introduced, as
investors with varied risk profiles will look for better yields. There will be more
and more of tie-ups between banks, corporate clients and their retail outlets to
share a common platform to shore up revenue through increased volumes.

Banks will increasingly act as risk managers to corporate and other entities by
offering a variety of risk management products like options, swaps and other
aspects of financial management in a multi currency scenario. Banks will play an
active role in the development of derivative products and will offer a variety of
hedge products to the corporate sector and other investors.

For example,

Derivatives in emerging futures market for commodities would be an area offering

opportunities for banks. As the integration of markets takes place internationally,
sophistication in trading and specialized exchanges for commodities will expand.
As these changes take place, banking will play a major role in providing financial
support to such exchanges, facilitating settlement systems and enabling wider
participation.
Bancassurance is catching up and Banks / Financial Institutions have started
entering insurance business. From mere offering of insurance products through
network of bank branches, the business is likely to expand through self-designed
insurance products after necessary legislative changes. This could lead to a spurt
in fee-based income of the banks.
Similarly, Banks will look analytically into various processes and practices as these
exist today and may make appropriate changes therein to cut costs and delays.
Outsourcing and adoption of BPOs will become more and more relevant,
especially when Banks go in for larger volumes of retail business. However, by
increasing outsourcing of operations through service providers, banks are making
themselves vulnerable to problems faced by these providers.

Banks should

therefore outsource only those functions that are not strategic to banks business.
For instance, in the wake of implementation of 90 days delinquency norms for
classification of assets, some banks may think of engaging external agencies for
recovery of their dues and in NPA management.
41

Banks will take on competition in the front end and seek co-operation in the back
end, as in the case of networking of ATMs. This type of co-opetition will become
the order of the day as Banks seek to enlarge their customer base and at the same
time to realize cost reduction and greater efficiency.
TECHNOLOGY IN BANKING
Technology will bring fundamental shift in the functioning of banks. It would not
only help them bring improvements in their internal functioning but also enable
them to provide better customer service. Technology will break all boundaries and
encourage cross border banking business. Banks would have to undertake
extensive Business Process Re-Engineering and tackle issues like a) how best to
deliver products and services to customers b) designing an appropriate
organizational model to fully capture the benefits of technology and business
process changes brought about. c) how to exploit technology for deriving
economies of scale and how to create cost efficiencies, and d) how to create a
customer - centric operation model.

Entry of ATMs has changed the profile of front offices in bank branches.
Customers no longer need to visit branches for their day to day banking
transactions like cash deposits, withdrawals, cheque collection, balance enquiry
etc.

E-banking and Internet banking have opened new avenues in convenience

banking. Internet banking has also led to reduction in transaction costs for banks
to about a tenth of branch banking.
Technology solutions would make flow of information much faster, more accurate
and enable quicker analysis of data received. This would make the decision
making process faster and more efficient. For the Banks, this would also enable
development of appraisal and monitoring tools which would make credit
management much more effective. The result would be a definite reduction in
transaction costs, the benefits of which would be shared between banks and
customers.
While application of technology would help banks reduce their operating costs in
the long run, the initial investments would be sizeable. IT spent by banking and
42

financial services industry in USA is approximately 7% of the revenue as against

around 1% by Indian Banks. With greater use of technology solutions, we expect
IT spending of Indian banking system to go up significantly.
One area where the banking system can reduce the investment costs in technology
applications is by sharing of facilities.

We are already seeing banks coming

together to share ATM Networks. Similarly, in the coming years, we expect to see
banks and FIs coming together to share facilities in the area of payment and
settlement, back office processing, data warehousing, etc. While dealing with
technology, banks will have to deal with attendant operational risks. This would be
a critical area the Bank management will have to deal with in future.
Payment and Settlement system is the backbone of any financial market place.
The present Payment and Settlement systems such as Structured Financial
Messaging System (SFMS), Centralised Funds Management System (CFMS),
Centralised Funds Transfer System (CFTS) and Real Time Gross Settlement
System (RTGS) will undergo further fine-tuning to meet international standards.
Needless to add, necessary security checks and controls will have to be in place. In
this regard, Institutions such as IDRBT will have a greater role to play.

43

RESEARCH
RESEARCH
METHODOLOGY
METHODOLOGY

44

Research Objectives
The present study on impact of performance appraisal system was
undertaken with the following objectives:
1.To study the performance appraisal system in surva up gramin bank.
2.To acess the degree of awareness among employers and employees
on performance appraisal in surva up gramin bank.
3.To know the satisfactory level and the comfortable level between the
Employees and superiors
4.To asses whether the appraisal is done without any bias the employees.
5.To know and identify merits and demerits of performance appraisal in surva
up gramin bank.

45

RESEARCH METHODOLOGY
RESEARCH PROBLEM
I have selected that PERFORMANCE APPRAISAL as research problem for my
summer training project.
As a research problem is the situation that causes the researcher to feel
apprehensive, confused and ill at ease. It is the demarcation of a problem area
within a certain context involving the WHO or WHAT, the WHERE, the WHEN
and the WHY of the problem situation.
RESEARCH OBJECTIVE
How productivity relates with performance appraisal. In addition, the major factors
of performance appraisal, which have taken a part in increasing productivity of the
organization.
RESEARCH DESIGN USED

As research design is simply the framework or plan for a study i.e. used as a
guide in collecting and analyzing the data. Research design can be grouped into
three categories-exploratory research, descriptive research and casual research.
I have used exploratory research design in my project.
As research design is simply the framework or plan for a study i.e. used as a guide
in collecting and analyzing the data. Therefore, we used exploratory research
design in our project. Exploratory research design consists;

1. Search of secondary data and literature

2. Survey

46

ANALYTICAL TOOLS USED

The term analysis refers to the computation of certain measures along with
searching for patterns of relationship that exists among data group. Therefore, we
used tabulation, graphs & charts in our project.

EXPLORATORY RESEARCH
Exploratory research studies are also termed as formulating studies. The main
purpose of such studies that of formulating of the problem for more precise
investigation or of developing the working hypotheses from an operational point of
view. An Exploratory Research focuses on the discovery of ideas and is generally
based on secondary data. It consists;
Search of secondary data and literature
Survey

SEARCH OF SECONDARY DATA AND LITERATURE:-

The quickest and most economical way is to find possible hypotheses from the
available literature. The past researcher may be suitable sources of information to
develop new hypotheses. The researcher can search them for his research purposes.
SURVEY REPORT:Survey means the survey of people who have had practical experience with the
problem to be study. These individual can be top executives, sales manager,
wholesaler and retailer processing valuable knowledge and information about the
problem environment.
RESEARCH INSTRUMENT USED
I have used the following research instruments in my project:-

47

 QUESTIONNAIRE: -

The term questionnaire usually refers to a self-administered process where by

the respondent himself read the question and records without the assistance of
an interviewer.

INTERVIEW: The interview method of collection data involves presentation of oral-verbal

stimuli and reply in terms of oral- verbal response.
SAMPLING TECHNIQUE USED
When field studies are under taken in practical life, consideration of time cost and
some other factors almost invariably lead to a selection of respondents. The
selected respondents constitute a sample and the selection process is called
sampling technique.

A sample design is definite plan determined before any data are actually collected
for obtaining a sample from a given population. Samples can be either probability
sample or non-probability sample.
I have selected simple random sampling in my project,
SIMPLE RANDOM SAMPLING
This type of sampling is also known as chance sampling or probability sampling
where each item in the population has an equal chance of being selected in the
sample.
SAMPLE SIZE
When a survey is undertaken and when it is not possible to cover the entire
population the researcher has to answer the basic question how large should be
sample be? The sample size decision is related directly to research cost.
48

The intended sample size is the number of participants planned to be included

in the trial, usually determined by using a statistical power calculation. The
achieved sample size is the number of participants enrolled, treated, or analyzed in
the study.
I have taken 50 people in my sample size, as the sample size should be neither
so small nor so large.
METHOD USED FOR DATA COLLECTION
The task of data collection begins after a research problem has been defined and
research design chalked out. While deciding about the method of data collection to
be used for the study the researcher should keep in mind two types of data1.

Primary data

2.

Secondary data

1. PRIMARY DATAThose data that have been observed and recorded by the researchers for the first
time in their knowledge.
Sources;
Questionnaire
Interview method

2. SECONDARY DATAThose data that have been compile by some agency other than user.
Sources;
Company profile
Magazine
Internet
Books
49

 Previous report
ANALYTICAL TOOLS USED
The term analysis refers to the computation of certain measures along with
searching for patterns of relationship that exists among data group. Analysis is
essential for a scientific study and for ensuring that we have all relevant data for
making contemplated comparisons. Therefore, I have used Tabulation, Graphs &
Charts in my project.

50

Use and
Importance of
the study

51

Use And Importance Of The Study

Performance Appraisal is defined as the process of assessing the
performance and progress of an employee or a group of employees on a
given job and his / their potential for future development. It consists of all
formal procedures used in working organizations and potential of
employees. According to Flippo, Performance Appraisal is the systematic,
periodic and an important rating of an employees excellence in matters
pertaining to his present job and his potential for a better job.

The importance of the project is fully dependent upon the

objectives of the project.

This study can be helpful to the company for conducting any

further research.

The study is also helpful in finding out the respondents

opinion towards certain attributes.

It is also helpful in finding out the reach and effectiveness of

the performance appraisal system.

This study also serves as a base for understanding the

perception about the employees regarding their performance
appraisal.

With the results of the study the company can improve their standards of
their appraisal system

1. Performance Appraisal is the primary enabler of successful execution of

any business strategy. An engaged workforce is your only true competitive
advantage. It is almost impossible to copy and, without it, execution of most
corporate initiatives becomes difficult, if not impossible.

52

2. Performance Appraisal is not a short-term initiative. Because Performance

Appraisal is simple in concept but difficult in execution, it is never achieved or
finishedonly improved. It might take years of steady progress to build high
levels of employee Performance Appraisal, and without the proper care and
feeding, these gains can wither and fall away surprisingly quickly.

3. Performance Appraisal must be driven from the top. Performance Appraisal

is a business imperative, not an HR initiative, though HR should be a key player in
driving higher levels of Performance Appraisal. Support from the top also means
senior leaders must be highly engaged themselves. Believe it or not, only one in
four senior leadersand only one in six frontline leadersis highly engaged. Its
hard to imagine highly engaged employees without highly engaged leaders.

4. One of the best ways to have highly engaged employees is to hire them! Certain
people have a set of characteristics or attributes that increase their propensity for
Performance Appraisal(for example, some employees are more likely to have
higher levels of Performance Appraisal than others, regardless of the jobs they
choose or assignmentsthey receive). Companies should pay close attention to these
characteristics in their hiring process.

5. Performance Appraisal is all about fit.People are more likely to be engaged if

their jobs and the culture of the organization match both their abilities and skills,
and their motivation and values. Most organizations hire or promote only for the
ability and skill match, ignoring the motivation and value match.

6. No one impacts the state of Performance Appraisal more than an employees

immediate leader. While this might be a slight exaggeration, we believe most
people do not leave their jobs; they leave their bosses. Show us a highly engaged
team, and theres a strong likelihood we can show you a leader who is coaching for
success, setting clear goals, empowering others, providing open and honest
feedback, and making the winners feel valued.
53

7. Measuring Performance Appraisal and demonstrating its business impact is

crucial, but its only a small part of winning the battle. Far too many
organizations pour hundreds of thousands of dollars into measuring and measuring
Performance Appraisal, leaving little energy or budget for actually improving
Performance Appraisal levels. Keep your Performance Appraisal measures simple
and cost-effective. Instead, spend your resources and energy moving the needle in
the right direction!

8. Performance Appraisal means reaching the heart. Highly engaged employees

give that extra effortbecause inside they care. And, they care becausethey feel
someone is caring for them. A vice president for customer service at Progress
Energy, for example, insists that his managers really get to know the individuals on
their teams as people, not just employees. He wants to know about their
aspirations, interests, and families. The recognition of the whole person sends a
powerful message to employees that the organization understands and appreciates
that they have a life outside work.

54

DATA
DATAANALYSIS
ANALYSIS
AND
AND
INTERPRETATION
INTERPRETATION

55

DATA ANALYSIS AND INTERPRETATION

56

FINDINGS
FINDINGS

57

FINDINGS

The superior knows and understands the problems faced by the employees.

The superiors show confidence and trust in employees.

The superiors show supportive behavior towards employees.

The superiors share information with the employees to high extent.

The superiors seek information and inputs from employees towards

achieving organizations objectives.

The employees have confidence and trust in the superior.

The Banking organization makes an effort to communicate about the

organizational policies and practices.

58

SUGGESTIONS
SUGGESTIONS AND
AND
RECOMMENDATIONS
RECOMMENDATIONS

59

SUGGESTIONS AND RECOMMENDATIONS

The main implication of this research is that the management should involve
manager appraisees & appraisers and

non-managerial

staff

in

overall

performance planning and review processes. The survey results of both

manager appraisers & appraisees including non-managerial staff feel that PAS
should have an important role and accomplish a number of objectives vital to the
organizational effectiveness. The research also shows that performance appraisal
system is an important tool in the management of human resources, which
facilitates overall organizational effectiveness by defining performance tasks
and goals, by providing avenues

for the quality of informal and formal

feedback, appraisal participation and grievance redressal mechanism, bysetting

clear performance standards and distributing rewards and other personnel and
developmental decisions fairly and equitably with respect to the status of
employees regarding their promotion, transfer, career planning, employee
training and developmental needs, salary increases , termination or demotion.
Therefore, PAS should be a key link in overall human resource management
climate, strategy and its policies.

60

CONCLUSION
CONCLUSION

61

CONCLUSION
This study suggests that 360 degree appraisal system including multiple appraisal
and developmental value based appraisal system can overcome the threat of
personal bias. The developmental oriented PAS is expected more likely to
produce positive and less likely to produce negative outcomes than the existing
PAS in both the sample study organizations that are used for control and
administration

purposes. This

developmental-oriented PAS if implemented

effectively is expected to improve the performance appraisal climate which

will have a positive impact on overall organizational climate and job satisfaction
of banking human resources. The need to improve the human resources of this
service sector to face the emerging challenges and high competition arising out of
present techno economic scenario can be met only through the implementation of
development-oriented and free from human errors 360 degree performance
appraisal system.

62

LIMITATIONS
LIMITATIONS

63

LIMITATIONS OF STUDY
oThe sample size was confined to 50 employees so this study cannot be
regarded as full proof one.
oSome respondents hesitated to give to give actual responses; they feared that it
wont be kept confidential & management may take any action against
them.
oFew employees were not taking interest in filling the questionnaires.
oAs seen few of them do not take part in Performance Appraisal activities.
oThe findings and conclusions are based on knowledge and experience of the
respondents sometime may subject to bias.

Access -- if your study depends on having access to people, organizations,

or documents and, for whatever reason, access is denied or otherwise limited, the
reasons for this need to be described.

Longitudinal effects -- unlike your professor, who can literally devote

years [even a lifetime] to studying a single research problem, the time available to
investigate a research problem and to measure change or stability within a sample
is constrained by the due date of your assignment. Be sure to choose a topic that
does not require an excessive amount of time to complete the literature review,
apply the methodology, and gather and interpret the results. If you're unsure, talk to
your professor.

Cultural and other type of bias -- we all have biases, whether we are

conscience of them or not. Bias is when a person, place, or thing is viewed or

shown in a consistently inaccurate way. It is usually negative, though one can have
a positive bias as well. When proof-reading your paper, be especially critical in
64

reviewing how you have stated a problem, selected the data to be studied, what
may have been omitted, the manner in which you have ordered events, people, or
places and how you have chosen to represent a person, place, or thing, to name a
phenomenon, or to use possible words with a positive or negative connotation.
Note that if you detect bias in prior research, it must be acknowledged and you
should explain what measures were taken to avoid perpetuating bias.

Fluency in a language -- if your research focuses on measuring the

perceived value of after-school tutoring among Mexican-American ESL [English

as a Second Language] students, for example, and you are not fluent in Spanish,
you are limited in being able to read and interpret Spanish language research
studies on the topic. This deficiency should be acknowledged.

Sample size -- the number of the units of analysis you use in your study is

dictated by the type of research problem you are investigating. Note that, if your
sample size is too small, it will be difficult to find significant relationships from the
data, as statistical tests normally require a larger sample size to ensure a
representative distribution of the population and to be considered representative of
groups of people to whom results will be generalized or transferred.

Lack of available and/or reliable data -- a lack of data or of reliable data

will likely require you to limit the scope of your analysis, the size of your sample,
or it can be a significant obstacle in finding a trend and a meaningful relationship.
You need to not only describe these limitations but to offer reasons why you
believe data is missing or is unreliable. However, dont just throw up your hands in
frustration; use this as an opportunity to describe the need for future research.

65

Lack of prior research studies on the topic -- citing prior research studies

forms the basis of your literature review and helps lay a foundation for
understanding the research problem you are investigating. Depending on the
currency or scope of your research topic, there may be little, if any, prior research
on your topic. Before assuming this to be true, consult with a librarian! In cases
when a librarian has confirmed that there is a lack of prior research, you may be
required to develop an entirely new research typology [for example, using an
exploratory rather than an explanatory research design]. Note that this limitation
can serve as an important opportunity to describe the need for further research.

Measure used to collect the data -- sometimes it is the case that, after

completing your interpretation of the findings, you discover that the way in which
you gathered data inhibited your ability to conduct a thorough analysis of the
results. For example, you regret not including a specific question in a survey that,
in retrospect, could have helped address a particular issue that emerged later in the
study. Acknowledge the deficiency by stating a need in future research to revise the
specific method for gathering data.

Self-reported data -- whether you are relying on pre-existing self-reported

data or you are conducting a qualitative research study and gathering the data
yourself, self-reported data is limited by the fact that it rarely can be independently
verified. In other words, you have to take what people say, whether in interviews,
focus groups, or on questionnaires, at face value.

66

BIBLIOGRAPHY
BIBLIOGRAPHY

67

BIBLIOGRAPHY
BOOKS:Parek.Udai & Rao T.V., 1997, 5TH edition HUMAN RESOURCE MANAGEMENT
(SULTAN CHAND AND SONS PUBLICATION)

Mamoria C.B & Gankar G.V., 1995 , 4th edition PERSONNEL MANAGEMENT
(Himalya publication)
...
WEBSITE:1.

http://www.rbi.org.in/scripts/BS_SpeechesView.aspx?
Id=820

2.

http://www.rbi.org.in/scripts/AboutUsDisplay.aspx?
pg=RegionalRuralBanks.htm

3.

http://time4education.com/bankexams/List_of_RRBs.aspx
Reserve Bank of
India:http://www.rbi.org.in/scripts/AboutUsDisplay.aspx?
pg=RegionalRuralBanks.htm

NABARD Website
http://www.nabard.org/pdf/report_financial/Chap_V.pdf

AAPTGYAN http://aaptgyan.com/regional-rural-banks-conceptionpresent-

68

scenario#Regional_Rural_Banks_CONCEPTION_AND_THE_BRIEF_H
ISTORY_PRESENT_SCENARIO-1

NABARD DEPARTMENTS
http://www.nabard.org/departments/rrbs.asp

Legal Existence of RBI http://indiacode.nic.in/fullact1.asp?

tfnm=197621

Organizational Structure and Human Resource Management in

RRB's: http://www.nabard.org/pdf/rrb/chap%205.pdf

http://sify.com/finance/fullstory.php?id=14573295

http://upgb.com/index.htm

http://www.thehindubusinessline.com/blnus/17081705.htm

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71

ANNEXURE
ANNEXURE

72

73

ANNEXURE
Dear Respondent,
As part of the partial fulfillment of the requirement for awarding the
Degree of Post graduation in MBA, a study is been carried out on the topic
Employee Performance Appraisal at AIRCEL. So, in that concern, I need your
kind co-operation and support with your valuable views on the topic to accomplish
the work. I assure you that all the information given by you will be kept secret and
will be used only for research purpose and not for any other matter. I shall be
highly obliged if you do the needful in this regard.
Occupation/Designation:-_________________________
Department:-___________________________________
Educational qualification:-________________________
Age:_____________

Sex: a) Male

Work experience:_____________________

Note Please tick the appropriate option

QUESTIONNAIRE
1.How do you rate AIRTEL as an Organisation?
Caring
Comfortable workplace
Learning place

74

b) Female

2.How do u find fun and serious Performance Appraisal activities equilibrium

at AIRTEL?
Excellent
Average
Good
Satisfactory
3.How long you are with AIRTEL?
.

..........

4. How do you feel is R & R at AIRTEL?

Perfect..
Average
Satisfactory
Any suggestion

....................

..
5.Are you clear about your roles and responsibilities?
Yes
Updated
Aware
No

75

6.How do you rate Performance Appraisal activities at AIRTEL out of 10?

7.what should be the frequency of evaluation of your performance ?

3 months
6 months
9 months
1 year
8. Have your boss ever appreciated you,if yes what is the frequency?if no why?

..
9.If you have any shortcoming or problem,how many times your immediate
supervisor helped you?

10.What are the most popular Performance Appraisal activities at AIRTEL?

Skip-level meeting
One and one
Coffee with CBH
Coffee with HRM
Town-hall
11. Career path and developing plan has ever been discussed?

76

12. Which is your favourite fun activity in AIRTEL.Why?

Anniversary & Birthday celebration
Outdoor Sports Day
Yoga health secrets
Quiz
Fun Friday

13. Do you think job rotation helps an employee to learn about different
department and help gain confidence and skills in the Company?
Yes
No
14.How often do you think Job rotation is reasonable as an employee?

15.Have you ever undergone Job enrichment process?If yes do you think that job
enrichment has a good effect on skill improvement of employee?
Yes, majorly
Yes,quite a bit
Not really
Not at all
77

16.What all techniques of Job enrichment is most suitable and result

oriented according to you?
Change in nature of work
Change in department of work
More work with less manpower
Other
17.What is your overall feedback about AIRTEL,at the end of the day?
Excellent
Good
Average
18.Does Fun at work happen regularly?

A. Strongly Disagree
B. Disagree
C. Slightly Disagree
D. Agree
E. Strongly Agree
F. No Opinion

19.Do I get Feedback regularly from my supervisor for improving my

performance?

A. Strongly Disagree
B. Disagree
C. Slightly Disagree
D. Agree
E. Strongly Agree
F. No Opinion
78

20.Do I feel like coming to office regularly?

A. Strongly Disagree
B. Disagree
C. Slightly Disagree
D. Agree
E. Strongly Agree
F. No Opinion

21.Do I get sufficient opportunities to improve my skills?

A. Strongly Disagree
B. Disagree
C. Slightly Disagree
D. Agree
E. Strongly Agree
F. No Opinion

22.Do I receive any recognition for my contributions in last 3 months?

A. Strongly Disagree
B. Disagree
C. Slightly Disagree
D. Agree
E. Strongly Agree
F. No Opinion

23.Are my thoughts and feelings given due respect at work place?

79

A. Strongly Disagree
B. Disagree
C. Slightly Disagree
D. Agree
E. Strongly Agree
F. No Opinion

24.Does my manager demonstrate a personal commitment to my continuous

learning and development?

A. Strongly Disagree
B. Disagree
C. Slightly Disagree
D. Agree
E. Strongly Agree
F. No Opinion

25.Do I get encouraged to learn from my mistakes?

A. Strongly Disagree
B. Disagree
C. Slightly Disagree
D. Agree
E. Strongly Agree
F. No Opinion

80

26.Do I enjoy my work?

A. Strongly Disagree
B. Disagree
C. Slightly Disagree
D. Agree
E. Strongly Agree
F. No Opinion

27.Am I aware of the career opportunities that are available to me at my

company?

A. Strongly Disagree
B. Disagree
C. Slightly Disagree
D. Agree
E. Strongly Agree
F. No Opinion

81