Project report of Performance Appraisal and Employee Satisfaction in JK Bank

Performance appraisal systemand Employee Satisfaction
With reference to J&K Bank
1
Project Report
On
“Performance Appraisal System
&
Employee Satisfaction”
Undertaken at J&K Bank
Corporate Headquarters, M.A. Road Srinagar
Submitted to the Shaheed Udham Singh College of Research and Technology,
Chandigarh, Mohali, Tangori
In partial fulfillment of the requirements for the Award of the Degree of
Bachelor of Business Administration (BBA) 2016-19
By
Mohammad Muzaffar Malik
BATCH 2016-19

2
Project Report
On
“Performance Appraisal System
&
Employee Satisfaction”
Undertaken at J&K Bank
Corporate Headquarters, M.A. Road Srinagar
Submitted to the Shaheed Udham Singh College of Research and
Technology,
Chandigarh, Mohali, Tangori
In partial fulfillment of the requirements for the Award of the Degree of
Bachelor of Business Administration (BBA)
By
Under the guidance of
Mr. Arif Gulzar

3
CERFICATE
This is to certify that MohammadMuzaffar Malikthe student of
Department Of Management,(SUSCRT) has carriedout a project entitled
“Performance appraisal system andEmployee SatisfactionWith
reference to J&K Bank”
This has been performedin partial fulfillment of the requirement for the
award of the degree of “Bachelor of Business Administration” by
Punjabi University Patiala.The project finds less scope for duplication
and plagiarism andhas not been submittedfor award ofany other
degree, diplomaor course in any university or institute. The study has
been completedwithin the time schedule as prescribedunder the
University Statutes.
We wish them all the success intheir future endeavors.
Place: Signature
Date: Mr. ArifGulzar
Associate Executive (HRDD)
HRD DivisionCorporate Headquarters
Jammu & Kashmir Bank
M.A.Road, Srinagar

4
DECLARATION
I hereby declare that the project entitled “Performance appraisal system and
Employee Satisfaction With reference to J&K Bank” has been pen-locked by us
during our Summer InternshipProgram at Jammu and Kashmir Bank,
under the valuable guidance of Mr.Arif Gulzar in partial fulfillment for
the degree of the BBA from Punjabi University Patiala.
I also declare that this project report is the result of my own efforts and
has not been submittedto any other university before.
MohammadMuzaffar Malik
Roll no: 12423
Place:
Date:

5
ACKNOWLEDGEMENT
All praises to Almighty Allah alone, the compassionate and merciful, who has always
blessed me and guided me on the right path of righteousness.
First and Foremost, I express my gratefulness to Allah, whose presence has been a
source of courage and confidence to fight against hardships encountered in life. I always felt
him standing with me through thick and thin.
At the completion of my BBA project, it is a pleasant task to express our thanks to “Ms.
Sunanda” for giving me an opportunity of doing internship program in “Jammu And Kashmir
Bank”
I have no words to express my deepest gratitude to my supervisor, “Mr. Arif Gulzar”,
Executive, “Jammu & Kashmir bank”, under whose supervision I completed this research work.
I pay my homage and sincere thanks to him, for the valuable suggestions. I always received
enlightens, inspiration, and encouragement through his guidance. Actually this work owes to
him as he guided me generously and cultivated an inquisitive approach in me.
I pay my sincere thanks to Ms.Sunanda, lecturer, Department of management studies,
(SUSCRT), for her co-supervision and help to boost our morale during the course of study.
In the end I would like to thank all those people who in some way or the other way
helped me during the course of this study. May Allah bless them?
Place:
Date:

6
LETTER OF TRANSMITTAL
Dated:
Mr. Arif Gulzar
Executive J&KBank
Sir/Madam,
Withdue respect, I am submitting the report on“Performance appraisal
systemand Employee SatisfactionWith referencetoJ&K Bank” All the
procedures have beentakentoabide by withthe terms of confidentiality &with
the assertionthat noconfidential informationsharedhas beenleakedduring
the course of the internshipor in the following report.
The report was requestedon& has beencompleted&submittedwithin
45 days’ time.
Sincerely,
Signature of Student

7
CERTIFICATE
This is to certify that MohammadMuzaffar Malik , the student of Department of
management , SUSCRT Group of Institution have carriedout a project Entitled
“Performance appraisal system and Employee Satisfaction With reference to J&K Bank“
This has been performedinpartial fulfillment of their BBA degreefrom
Punjabi University Patiala. The project finds less scope for duplicationand
plagiarismand has not beensubmittedfor award of any other degree, diploma
or course inany university or Institute. The study has beencompletedwithin
the time schedule as prescribedunder the University Statutes.
I wishthem all the success intheir future endeavors.
Signature and Stump
Mr. Arif Gulzar
Executive (J&KBank)
Place:- Srinagar
Date:-

8
Bank ScenarioinIndia
 Early History
 From WorldWar Ist to Independence
 Post-Independence
 Nationalization
 Liberalization
 Current Situation
 Functionsof Reserve Bank of India
 Corporative Banking
Company Profile
 Organization Profile ofJammu and Kashmir Bank
 Infrastructure: Global Standards of J&K Bank
 Board of Directors
 Corporate Headquarters
 Products / ServicesofferedbyJ&K Bank
 Financials
 Vision
 Mission
Performance Appraisal System
 Performance Appraisal Process
 ElementsOfPerformance Appraisal
Part II
ghhCONTENTS
CONTENTS
Part I
ghhCONTENTS
Part III
ghhCONTENTS

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 ObjectivesOfPerformance Appraisal
 Appraisal Interview
 Employee Feedback
 Performance Appraisal Failures
 PAS in the J&K Bank
 Traditional PAS in the Bank
ResearchMethodology
 Research Objective
 SamplingPlan
 Research Design
 Tools & Techniques
Analysis &Findings
 Questionnaire
 Pie Charts
Conclusion
Suggestions
Bibliography
Part IV
ghhCONTENTS
Part V
ghhCONTENTS
Part VI
ghhCONTENTS

10
Executive Summary:
As a part of our curriculum, it is necessary to conduct a grand project report. It provides us an
opportunity to understand the particular topic in depth. Our topic for the project entitled as
“Performance appraisal system and Employee Satisfaction With reference to Jammu &
Kashmir Bank”
Title
 Performance appraisal system and Employee Satisfaction With reference to Jammu &
Kashmir Bank
Organization
 The JammuAndKashmir Bank
Reporting Officer
 Mr. Arif Gulzar
 AssociateExecutive HRD Division,CorporateOffice,Jammu& KashmirBank
Name of the Student
 MohammadMuzaffarMalik
Project Duration
 45 Days

11
Introduction about the bank
In modern age, Banking constitutes the fundamental basis of economic growth.
The term bank is being used since long time but there is no clear conception
regarding its beginning. According to one viewpoint, in good old days, Italian
moneylenders were known as Bane chi or Banacheri, because these people kept
special type of table to transact their business, called Banchi. Origin of the word,
Bank belongs to the word Banchi or to the Greek word Banque. Both these words
refer to some kind of banking. According to another viewpoint, bank originated
from the German word (Italy) Banque meaning Joint Fund.Casa De SanGiorgio
was the first bank to be established in 1148.TheFirstPublic bank of Venice. It was
established in 1157.
As per Banking Regulation Act. 1949, “Banking” means:
“Accepting for the purposeof lending or investment of deposit of money from the
public, repayable on demand or otherwise and withdraw able by cheque, draft,
order or otherwise” In simple words, bank refers to an institution that deals in
money. This institution accepts deposits from the people and gives loans to those
who are in need. Besides dealing in money, banks these days perform various
other functions such as credit creation, agency job and general service.
Bank, therefore, is such an institution, which accepts deposits from the people,
gives loans, creates credit and undertakes agency.

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A brief history of Banking in India
In the modern sense banking was originated in the last decades of the 18th
century. The first banks were Bank of Hindustan (1770-1829) and The General
Bank of India, established 1786 and since defunct. The largest bank, and the
oldest still in existence, is the State Bank of India, which originated in the Bank of
Calcutta in June 1806, which almost immediately became the Bank of Bengal. This
was one of the three presidency banks, the other two being the Bank of Bombay
and the Bank of Madras, all three of which were established under charters from
the British East India Company. The three banks merged in 1921 to form the
Imperial Bank of India, which, upon India's independence, became the State Bank
of India in 1955. For many years the presidency banks acted as quasi-central
banks, as did their successors, until the Reserve Bank of India was established in
1935.In 1969 the Indian government nationalized all the major banks that it did
not already own and these have remained under government ownership. They
are run under a structure known as 'profit-making public sector undertaking'
(PSU) and are allowed to compete and operate as commercial banks. The Indian
banking sector is made up of four types of banks, as well as the PSUs and the
state banks; they have been joined since 1990s by new private commercial banks
and a number of foreign banks. Banking in India was generally fairly mature in
terms of supply, product range and reach-even though reach in rural India and to
the poor still remains a challenge. The government has developed initiatives to
address this through the State bank of India expanding its branch network and

13
through the National Bank for Agriculture and Rural Development
with things like microfinance.
Bank ScenarioinIndia
 Early History
 From WorldWar Ist to Independence
 Post-Independence
 Nationalization
 Liberalization
 Current Situation
 Functionsof Reserve Bank of India
 Corporative Banking
Banking Scenario in India
Banking in India originated in the first decade of 18th century. The first banks
were The General Bank of India, which started in 1786, and Bank of Hindustan,
both of which are now defunct. The oldest bank in existence in India is the State
Bank of India, which originated in the "The Bank of Bengal" in Calcutta in June
1806. This was one of the three presidency banks, the other two being the Bank
of Bombay and the Bank of Madras. The presidency banks wereestablished under
charters from the British East India Company. They merged in 1925 to form the
Imperial Bank of India, which, upon India's independence, became the State Bank
of India. For many years the Presidency banks acted as quasi-central banks, as did
their successors. The Reserve Bank of India formally took on the responsibility of
regulating the Indian banking sector from 1935. After India's independence in
1947, the Reserve Bank was nationalized and given broader powers.

14
A couple of decades later, foreign banks such as Credit Lyonnais
started their Calcutta operations in the 1850s. At that point of time, Calcutta was
the most active trading port, mainly due to the trade of the British Empire, and
due to which banking activity took roots there and prospered.
EARLY HISTORY
Banking in India originated in the last decades of the 18th century. The first banks
were The General Bank of India which started in 1786, and the Bank of Hindustan,
both of which are now defunct. The oldest bank in existence in India is the State
Bank of India, which originated in the Bank of Calcutta in June 1806, which almost
immediately became the Bank of Bengal. This was one of the three presidency
banks, the other two being the Bank of Bombay and the Bank of Madras, all three
of which were established under charters from the British East India Company.
For many years the Presidency banks acted as quasi-central banks, as did their
successors. The three banks merged in 1921 to form the Imperial Bank of India,
which, upon India's independence, became the State Bank of India.
Indian merchants in Calcutta established the Union Bank in 1839, but it failed in
1848 as a consequence of the economic crisis of 1848-49. The Allahabad Bank,
established in 1865 and still functioning today, is the oldest Joint Stock bank in
India. It was not the first though. That honor belongs to the Bank of Upper India,
which was established in 1863, and which survived until 1913, when it failed, with
some of its assets and liabilities being transferred to the Alliance Bank of Simla.

15
When the American Civil War stopped the supply of cotton
to Lancashire from the Confederate States, promoters opened banks to finance
trading in Indian cotton. With large exposure to speculative ventures, most of the
banks opened in India during that period failed. The depositors lost money and
lost interest in keeping deposits with banks. Subsequently, banking in India
remained the exclusive domain of Europeans for next several decades until the
beginning of the 20th century.
Foreign banks too started to arrive, particularly in Calcutta, in the 1860s.
The Comptoire d’Escompte de Paris opened a branch in Calcutta in 1860, and
another in Bombay in 1862. Calcutta was the most active trading port in India,
mainly due to the trade of the British Empire, and so became a banking center.
The first entirely Indian joint stock bank was the Oudh Commercial Bank,
established in 1881 in Faizabad. It failed in 1958. The next was the Punjab
National bank, established in Lahore in 1895, which has survived to the present
and is now one of the largest banks in India.
Around the turn of the 20th Century, the Indian economy was passing through a
relative period of stability. Around five decades had elapsed since the Indian
Mutiny, and the social, industrial and other infrastructure had improved. Indians
had established small banks, most of which served particular ethnic and religious
communities.

16
The Bank of Bengal, which later became the State Bank of India.
The presidency banks dominated banking in India but there were also some
exchange banks and a number of Indian Joint stock banks. All these banks
operated in different segments of the
economy. The exchange banks, mostly
owned by Europeans, concentrated on
financing foreign trade. Indian joint
stock banks were generally
undercapitalized and lacked the
experience and maturity to compete
with the presidency and exchange banks. This segmentation let Lord Curzon to
observe, "In respect of banking it seems we are behind the times. We are like
some old fashioned sailing ship, divided by solid wooden bulkheads into separate
and cumbersome compartments."The period between 1906 and 1911, saw the
establishment of banks inspired by the Swadeshi movement. The Swadeshi
movement inspired local businessmen and political figures to found banks of and
for the Indian community. A number of banks established then have survived to
the present such as Bank of India, Corporation Bank, Indian Bank, Bank of
Baroda, Canara Bank and Central Bank of India.
FROM WORLD WAR IST TO INDEPENDENCE
The period during the FirstWorld War (1914-1918) through theend of the Second
World War (1939-1945), and two years thereafter until the independence of India

17
were challenging for Indian banking. The years of the First World
War were turbulent, and it took its toll with banks simply collapsing despite the
Indian economy gaining indirect boost due to war-related economic activities
At least 94 banks in India failed between 1913 and 1918 as indicated in the
following table:
Post-Independence
The partition of India in 1947 adversely impacted the economies of Punjab and
West Bengal, paralyzing banking activities for months. India's independence
marked the end of a regime of the Laissez-faire for the Indian banking. The
Government of India initiated measures to play an active role in the economic life
of the nation, and the Industrial Policy Resolution adopted by the government in
Year Number of
Banks that
Failed
Authorized
Capital
(Rs. Lac)
Paid up Capital
(Rs Lac)
1913 12 274 35
1914 42 710 109
1915 11 56 05
1916 13 231 04
1917 09 76 25
1918 07 209 01

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1948 envisaged a mixed economy. This resulted into greater
involvement of the state in different segments of the economy including banking
and finance. The major steps to regulate banking included. The Reserve Bank of
India, India's central banking authority, was established in April 1935, but was
nationalized on 1 January 1949 under the terms of the Reserve Bank of India
(Transfer to Public Ownership) Act, 1948 (RBI, 2005b).In 1949, the Banking
Regulation Act was enacted which empowered the ReserveBank of India (RBI) "to
regulate, control, and inspect the banks in India". The Banking Regulation Act also
provided that no new bank or branch of an existing bank could be opened without
a license from the RBI, and no two banks could have common directors.
NATIONALIZATION
Despite the provisions, control and regulations of Reserve Bank of India, banks in
India except the State Bank of India or SBI, continued to be owned and operated
by private persons. By the 1960s, the Indian banking industry had become an
important tool to facilitate the development of the Indian economy. At the same
time, it had emerged as a large employer, and a debate had ensued about the
nationalization of the banking industry. Indra Gandhi, the then Prime Minister of
India, expressed the intention of the Government of India in the annual
conference of the All India Congress Meeting in a paper entitled "Stray thoughts
on Bank Nationalization”. The meeting received the paper with enthusiasm.
Thereafter, her move was swift and sudden. The Government of India issued an
ordinance ('Banking Companies (Acquisition and Transfer of Undertakings)

19
Ordinance, 1969')) and nationalized the 14 largest commercial
banks with effect from the midnight of 19 July 1969. These banks contained 85
percent of bank deposits in the country. Jayaprakash Narayan, a nationalleader of
India, described the step as a "masterstroke of political sagacity." Within two
weeks of the issue of the ordinance, the Parliament passed the Banking
Companies (Acquisition and Transfer of Undertaking) Bill, and it received the
presidential approval on 9 August 1969.A second dose of nationalization of 6
more commercial banks followed in 1980. The stated reason for the
nationalization was to give the government more control of credit delivery. With
the second dose of nationalization, the Government of India controlled around
91% of the banking business of India. Later on, in the year 1993, the government
merged New Bank of India with Punjab National Bank. It was the only merger
between nationalized banks and resulted in the reduction of the number of
nationalized banks from 20 to 19. After this, until the 1990s, the nationalized
banks grew at a pace of around 4%, closer to the average growth rate of the
Indian economy.
LIBERALIZATION
In the early 1990s, the then Narasimha Rao government embarked on a policy of
liberalization, licensing a small number of private banks. These came to be known
as New Generation tech-savvy banks, and included Global Trust Bank (the first of
such new generation banks to be set up), which later amalgamated with Oriental
Bank of Commerce, UTI Bank (since renamed Axis Bank), ICICI Bank and HDFC

20
Bank. This move, along with the rapid growth in the economy of
India, revitalized the banking sector in India, which has seen rapid growth with
strong contribution from all the three sectors of banks, namely, government
banks, private banks and foreign banks.
The next stage for the Indian banking has been set up with the proposed
relaxation in the norms for Foreign Direct Investment, where all Foreign Investors
in banks may be given voting rights which could exceed the present cap of 10%, at
present it has gone up to 74% with some restrictions. The new policy shook the
Banking sector in India completely. Bankers, till this time, were used to the 4–6–4
method (Borrow at 4%; Lend at 6%; Go home at 4) of functioning. The new wave
ushered in a modern outlook and tech-savvy methods of working for traditional
banks. All this led to the retail boom in India. People not just demanded more
from their banks but also received more.
CURRENT SITUATION
Currently banking in India is generally fairly mature in terms of supply, product
range and reach-even though reach in rural India still remains a challenge for the
private sector and foreign banks. In terms of quality of assets and capital
adequacy, Indian banks are considered to have clean, strong and transparent
balance sheets relative to other banks in comparable economies in its region. The
Reserve Bank of India is an autonomous body, with minimal pressure from the
government. The stated policy of the Bank on the Indian Rupee is to manage
volatility but without any fixed exchange rate-and this has mostly been true.

21
With the growth in the Indian economy expected to be strong for
quite some time especially in its services sector-the demand for banking services,
especially retail banking, mortgages and investment services are expected to be
strong. One may also expect M&As, takeovers, and asset sales.
In March 2006, the Reserve Bank of India allowed Warburg Pincus to increase its
stake in Kotak Mahindra Bank (a private sector bank) to 10%. This is the first time
an investor has been allowed to hold more than 5% in a private sector bank since
the RBI announced norms in 2005 that any stake exceeding 5% in the private
sector banks would need to be vetted by them.
Currently, India has 96 scheduled commercial banks (SCBs) - 27 public sector
banks (that is Government of India is holding a stake), 31 private banks (these do
not have government stake; they may be publicly listed and traded on stock
exchanges) and 38 foreign banks. They have a combined network of over 53,000
branches and 49,000ATMs. According to a reportby ICRA Limited, a rating agency,
the public sector banks hold over 75 percent of total assets of the banking
industry, with the privateand foreign banks holding 18.2% and 6.5% respectively.
FUNCTIONS OF RESERVE BANK OF INDIA
The Reserve Bank of India Act of 1934 entrust all the important functions of a
central bank to the Reserve Bank of India. With this act Reserve Bank of India
became the sole regulatory body of the banking sector in India. It was entitled to
perform the following functions.

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Bank of Issue
Under Section 22 of the Reserve Bank of India Act, the Bank has the sole right to
issue bank notes of all denominations. The distribution of one rupee notes and
coins and small coins all over the country is undertaken by the Reserve Bank as
agent of the Government. The Reserve Bank has a separate Issue Department
which is entrusted with the issue of currency notes. The assets and liabilities of
the Issue Department are kept separate from those of the Banking Department.
Originally, the assets of the Issue Department were to consist of not less than
two-fifths of gold coin, gold bullion or sterling securities provided the amount of
gold was not less than Rs. 40 crores in value. The remaining three-fifths of the
assets might be held in rupee coins, Government of India rupee securities, eligible
bills of exchange and promissory notes payable in India. Due to the exigencies of
the Second World War and the post-war period, these provisions were
considerably modified. Since 1957, the Reserve Bank of India is required to
maintain gold and foreign exchange reserves of Ra. 200 crores, of which at least
Rs. 115 crores should be in gold. The system as it exists today is known as the
minimum reserve system.
At present, banknotes in India are issued in the denomination of Rs.10, Rs.20,
Rs.50, Rs.100, Rs.500 and Rs.1000. These notes are called banknotes as they are
issued by the Reserve Bank of India (Reserve Bank). The printing of notes in the
denominations of Re.1, Rs. 2 and Rs.5 has been discontinued as these
denominations have been coinised. However, such banknotes issued earlier can

23
still be found in circulation and these banknotes continue to be
legal tender. Every banknote issued by Reserve Bank of India (Rs.2, Rs.5, Rs.10,
Rs.20, Rs.50, Rs.100, Rs.500 and Rs.1000) shall be legal tender at any place in
India in payment or on account for the amount expressed therein, and shall be
guaranteed by the Central Government, subject to provisions of sub-section (2)
Section 26 of RBI Act, 1934.
Currency Management
The Reserve Bank derives its role in currency management from the Reserve Bank
of India Act; 1934.The Reserve Bank manages currency in India. The Government,
on the advice of the Reserve Bank, decides on various denominations of
banknotes to be issued. The Reserve Bank also co-ordinates with the Government
in the designing of banknotes, including the security feature. The Reserve Bank
estimates the quantity of banknotes that are likely to be needed denomination-
wise and accordingly, places indent with the various printing presses. Banknotes
received from banks and currency chests are examined and those fit for
circulation are reissued and the others (soiled and mutilated) are destroyed so as
to maintain the quality of banknotes in circulation. In terms of Section 25 of RBI
Act, 1934 the design of banknotes is required to be approved by the Central
Government on the recommendations of the Central Board of the Reserve Bank
of India. The responsibility for coinage vests with the Government of India on the
basis of the Coinage Act, 1906 as amended from time to time. The Government of
India also attends to the designing and minting of coins in various denominations.

24
The Reserve Bank decides the volume and value of banknotes to
be printed each year. The quantum of banknotes that needs to be printed,
broadly depends on the requirement for meeting the demand for banknotes due
to inflation, GDP growth, replacement of soiled banknotes and reserve stock
requirements.
Banker to Government
The second important function of the Reserve Bank of India is to act as
Government banker, agent and adviser. The Reserve Bank is agent of Central
Government and of all State Governments in India excepting that of Jammu and
Kashmir. The Reserve Bank has the obligation to transact Government business,
via. to keep the cash balances as deposits free of interest, to receive and to make
payments on behalf of the Government and to carry out their exchange
remittances and other banking operations. The Reserve Bank of India helps the
Government - both the Union and the States to float new loans and to manage
public debt. The Bank makes ways and means advances to the Governments for
90 days. It makes loans and advances to the States and local authorities. It acts as
adviser to the Government on all monetary and banking matters.
Bankers' Bank and Lender of the Last Resort
The Reserve Bank of India acts as the bankers' bank. According to the provisions
of the Banking Companies Act of 1949, every scheduled bank was required to
maintain with the Reserve Bank a cash balance equivalent to 5% of its demand

25
liabilities and 2 per cent of its time liabilities in India. By an
amendment of 1962, the distinction between demand and time liabilities was
abolished and banks have been asked to keep cash reserves equal to 3 per cent of
their aggregate deposit liabilities. The minimum cash requirements can be
changed by the Reserve Bank of India. The scheduled banks can borrow from the
Reserve Bank of India on the basis of eligible securities or get financial
accommodation in times of need or stringency by rediscounting bills of exchange.
Since commercial banks can always expect the Reserve Bank of India to come to
their help in times of banking crisis the Reserve Bank becomes not only the
banker's bank but also the lender of the last resort.
Controller of Credit
The Reserve Bank of India is the controller of credit i.e. it has the power to
influence the volume of credit created by banks in India. It can do so through
changing the Bank rate or through open market operations. According to the
Banking Regulation Act of 1949, the Reserve Bank of India can ask any particular
bank or the whole banking system not to lend to particular groups or persons on
the basis of certain types of securities. Since 1956, selective controls of credit are
increasingly being used by the Reserve Bank.
The Reserve Bank of India is armed with many more powers to control the Indian
money market. Every bank has to get a license from the Reserve Bank of India to
do banking business within India, the license can be cancelled by the Reserve
Bank of certain stipulated conditions are not fulfilled. Every bank will have to get

26
the permission of the Reserve Bank before it can open a new
branch. Each scheduled bank must send a weekly return to the Reserve Bank
showing, in detail, its assets and liabilities. This power of the Bank to call for
information is also intended to give it effective control of the credit system. The
ReserveBank has also the power to inspect the accounts of any commercial bank.
As supreme banking authority in the country, the Reserve Bank of India,
therefore, has the following powers:
 It holds the cash reserves of all the scheduled banks.
 b) It controls the credit operations of banks through quantitative and
qualitative control.
 It controls the banking system through the system of licensing, inspection
and calling for information.
 It acts as the lender of the last resort by providing
rediscount facilities to scheduled banks.
Custodian of Foreign Reserves
The Reserve Bank of India has the responsibility to maintain the official rate of
exchange. According to the Reserve Bank of India Act of 1934, the Bank was
required to buy and sell at fixed rates any amount of sterling in lots of not less
than Rs. 10,000. The rate of exchange fixed was Re. 1 = sh. 6d. Since 1935 the
Bank was able to maintain the exchange rate fixed at lsh.6d. Though there were
periods of extreme pressurein favor of or against the rupee. After India became a

27
member of the International Monetary Fund in 1946, the Reserve
Bank has the responsibility of maintaining fixed exchange rates with all other
member countries of the I.M.F. Besides maintaining the rate of exchange of the
rupee, the Reserve Bank has to act as the custodian of India's reserve of
international currencies. The vast sterling balances were acquired and managed
by the Bank. Further, the RBI has the responsibility of administering the exchange
controls of the country.
Supervisory functions
In addition to its traditional central banking functions, the Reserve bank has
certain non-monetary functions of the nature of supervision of banks and
promotion of sound banking in India. The Reserve Bank Act, 1934, and the
Banking Regulation Act, 1949 have given the RBI wide powers of supervision and
control over commercial and co-operative banks, relating to licensing and
establishments, branch expansion, liquidity of their assets, management and
methods of working, amalgamation, reconstruction, and liquidation. The RBI is
authorized to carry out periodical inspections of the banks and to call for returns
and necessary information from them. The nationalization of 14 major Indian
scheduled banks in July 1969 has imposed new responsibilities on the RBI for
directing the growth of banking and credit policies towards more rapid
development of the economy and realization of certain desired social objectives.
The supervisory functions of the RBI have helped a great deal in improving the

28
standard of banking in India to develop on sound lines and to
improve the methods of their operation.
Promotional functions
With economic growth assuming a new urgency since Independence, the range of
the Reserve Bank's functions has steadily widened. The Bank now performs a
variety of developmental and promotional functions, which, at one time, were
regarded as outside the normal scope of central banking. The Reserve Bank was
asked to promote banking habit, extend banking facilities to rural and semi-urban
areas, and establish and promote new specialized financing agencies. Accordingly,
the Reserve Bank has helped in the setting up of the IFCI and the SFC; it set up the
Deposit Insurance Corporation in 1962, the Unit Trust of India in 1964, the
Industrial Development Bank of India also in 1964, the Agricultural Refinance
Corporation of India in 1963 and the Industrial Reconstruction Corporation of
India in 1972. These institutions were set up directly or indirectly by the Reserve
Bank to promote saving habit and to mobilize savings, and to provide industrial
finance as well as agricultural finance. As far back as 1935, the Reserve Bank of
India set up the Agricultural Credit Department to provide agricultural credit. But
only since 1951 the Bank's role in this field has become extremely important. The
Bank has developed the co-operative credit movement to encourage saving, to
eliminate moneylenders from the villages and to route its short term credit to
agriculture. The RBI has set up the Agricultural Refinance and Development
Corporation to provide long-term finance to farmers.

29
Classification of RBIs functions
The monetary functions also known as the central banking functions of the RBI
are related to control and regulation of money and credit, i.e., issue of currency,
control of bank credit, control of foreign exchange operations, banker to the
Government and to the money market. Monetary functions of the RBI are
significant as they control and regulate the volume of money and credit in the
country.
Equally important, however, are the non-monetary functions of the RBI in the
context of India's economic backwardness. The supervisory function of the RBI
may be regarded as a non-monetary function (though many consider this a
monetary function). The promotion of sound banking in India is an important goal
of the RBI, the RBI has been given wide and drastic powers, under the Banking
Regulation Act of 1949 - these powers relate to licensing of banks, branch
expansion, liquidity of their assets, management and methods of working,
inspection, amalgamation, reconstruction and liquidation. Under the RBI's
supervision and inspection, the working of banks has greatly improved.
Commercial banks have developed into financially and operationally sound and
viable units. The RBI's powers of supervision have now been extended to non-
banking financial intermediaries. Since independence, particularly after its
nationalization in 1949, theRBI has followed the promotionalfunctions vigorously
and has been responsiblefor strong financial supportto industrial and agricultural
development in the country.

30
Scheduled Commercial Banks
Scheduled Commercial Banks are those included in the second schedule of the
ReserveBank of India Act, 1934. In terms of ownership and function, commercials
banks can be classified into four categories
Public sector Banks
Public sector banks are those in which the government has the major holding.
These can be classified into two groups.
State Bank of India and its Associates

31
The state bank of India was initially known as the Imperial Bank,
which was formed in 1921 by the amalgamation of three presidency banks—the
bank of Bengal, the bank of Bombay and the bank of Madras. The imperial bank
acted as a bank to the government until the establishment of RBI in 1935. The
imperial bank was nationalized under the State Bank of India, Act 1955.this
marked the first phase of the nationalization of the banks. The main objective of
the nationalization was to extend banking facilities on a large scale particularly in
the ruraland semi-urban areas. The state bank of India has the seven subsidiaries.
 The state bank of Bikaner and Jaipur.
 The state bank of Hyderabad.
 The state bank of Indore.
 The state bank of Mysore.
 The state bank of Patiala.
 The state bank of Saurashtra.
 The state bank of Travancore.
Nationalized Banks
In 1969, fourteen big Indian joint stock banks in the private sector were
nationalized. The nationalization was effected by an ordinance which was later
replaced by an act of Parliament, known as Banking Companies (Acquisition and
Transfer of Under takings) Act, 1970.the major objective of the nationalization
was to widen the branch net work of the banks particularly in the rural and the
semi urban areas which, in turn, would help in the greater mobilsation of savings

32
and flow of credit to neglected sectors such as, Agriculture and
small scale industries.
Public sector banks have an edge over private sector banks in terms of size,
geographical reach and access to low cost deposits. Huge Size enables them to
cater to the large credit need of corporate. The nationalized banks are a dominant
segment in commercial Banking. Public sector banks dominate with 75% of deposits
and 71% of advances in the industry.
Private Sector Banks
For over two decades, after nationalization of 14 large banks in 1969, no banks
were allowed to be set up in the private sector. The Narasimham Committee, in
its first report, recommended the freedom of entry into the financial system. The
banks which have been set up in the 1990’s under the guidelines of the
Narasimham Committee are referred to as new private sector banks. New private
sector banks to with stand the competition from the public sector banks came up
with innovative products and superior services. They tapped new market such as
retailing, capital markets etc. They accessed low cost NRI funds and managed the
associated Forex risk for them. HDFC Bank had the lowest cost of deposits in
2003-04. Given the greater efficiency of private sector banks, public sector banks
started losing market share and have been doing soat about 1% per annum.

33
Foreign Banks
Foreign banks have been operating in India since decades. A few foreign banks
have been operating in India for over a century. ANZ Grind lays has been in India
for more than hundred years, while Standard Chartered Bank ha been around
since 1858. The presence of foreign banks in India has benefitted the financial
system by enhancing competition, transfer of technology and specialized skills in
higher efficiency and greater customer satisfaction. They have also enabled large
Indian companies to access foreign currency resources from their overseas
branches. They are active players in the money market and foreign exchange
market which has contributed to enhancing the liquidity and deepening of these
markets in terms of both volumes and products. New foreign banks are allowed
to conduct business in India after taking into consideration the financial
soundness of the bank, international and home country ranking, rating,
international presence and economic and political relations between the
countries.
Regional Rural Banks
A new category of scheduled banks came into existence in 1975 when six regional
rural banks (RRB’s) came into existence under the regional rural banks ordinance,
1975. This ordinance was promulgated by the government of India on 26
September 1975. This ordinance was subsequently replaced by Regional Rural
Banks Act, 1976. Although cooperative and commercial banks achieved a high
reach and disbursement of credit, there existed a vast gap in the area of rural

34
credit. In order to fill up this gap, a new set up of banks, namely,
RRB’s was established. Each RRB is sponsored by a public sector bank. The
authorized capital of each RRB is Rs one crore and the issued capital is Rs 25 Lac.
Out of this issued capital, 50% is authorized by the government of India, 15% by
concerned state government and the rest 35% by the sponsor bank.
Cooperative Banking
Cooperative Banks came into existence with the enactment of the cooperative
credit society’s act of 1904 which provided for the formation of cooperative credit
societies. Subsequently, in 1912, a new act was passed which provided for the
formation of cooperative central banks. Cooperative credit institutions play a
pivotal role in the financial systemof the economy in terms of their reach, volume
of operations and the purpose they serve. Cooperative banks fill in the gaps of
banking needs of small and medium income groups not adequately met through
by the public and private sector banks. The cooperative banking system
supplements the efforts of the commercial banks in mobilizing savings and
meeting the credit needs of the local population.
The cooperative credit sector in India comprises rural cooperative institutions and
urban cooperative banks. The rural cooperative credit institutions comprise of
institutions such as state cooperative banks, district central cooperative banks
and primary agriculture credit societies, which specialize in short term credit and
institutions such as state cooperative agriculture & rural development banks and

35
primary cooperative agriculture & rural development banks, which
specialize in long term credit.
Urban cooperative banks (UCB’s) are mostly engaged in retail banking. They are
not permitted to deal in foreign exchange directly because of the high risk
involved in the Forex business. Urban cooperative banks mobilize saving from
middle and low income urban groups and purvey the credit to the weaker
sections. They cater to the needs of small borrowers in the non agriculture
Company Profile
 Organization Profile ofJammu and Kashmir Bank
 Infrastructure: Global Standards of J&K Bank
 Financial ServicesPortfolio
 Brand Identity
 Channelsof Distribution
 Products / Servicesoffered byJ&K Bank
 Corporate Headquarters
 Board of Directors
 Vision/Mission
Company Profile
Profile of J&K Bank

36
HISTORY OF J&K BANK
The Jammu & Kashmir Bank was founded on October 1, 1938 under letters patent
issued by the Maharaja of Jammu and Kashmir, Hari Singh. The Maharaja invited
eminent Kashmiriinvestors to become founding directors and shareholders of the
bank, the most notable of which were Abdul Aziz Mantoo, Pesten Gee and the
Bhaghat Family, all of whomacquired major shareholdings.]TheBank commenced
business on July 4, 1939 and was considered the first of its nature and
composition as a State owned bank in the country. The Bank was established as a
semi-State Bank with participation in capital by State and the public under the
control of State Government. The bank had to face serious problems at the time
of independence when out of its total often branches two branches of
Muzaffarabad, Rawalakot and Mirpur fell to the other side of the line of control
(now Pakistan-administered Kashmir) along with cash and other assets. Following
the extension of Central laws to the state of Jammu & Kashmir, the bank was
defined as a government company as per the provisions of Indian companies act
1956. Mushtaq Ahmed is the new CEO & Chairman of J&K bank.
It was in the year 1971 that Jammu and Kashmir Bank was granted the status of a
'Scheduled Bank'. Five years later, it was declared as "A" Class Bank, by the
Reserve Bank of India (RBI). As the years passed on, the bank started achieving
more and more success. Today, it boasts of more than 500 branches across the
country. It was only recently that Jammu and Kashmir Bank became a billion
dollar company. Governed by the Companies Act and Banking Regulation Act of

37
India, it is regulated by RBI and SEBI. It finds a listing on the
National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) as well. J&K
Bank’s AnnualReport 2008-09 has won threeawards at the prestigious LACP 2009
Vision Awards – the world’s largest award programme for Annual Reports,
organized by California-based League of American Communications Professionals
(LACP), USA. The LACP is a forum within the public relations industry that
facilitates discussion of best-in-class practices in public relations and recognizes
exemplary communication capabilities at a global level. The awards received
include – Rank 73 on the top hundred list of annual reports from around the
world, Platinum Award in the Commercial Banks – Up to $10billon annual revenue
from the Asia Pacific Region and Silver Award for Most Creative Report across all
sectors from the Asia Pacific Region. Dr Haseeb Drabu was chairman and chief
executive of the bank for the period 2005 to 2010.
ORGANIZATION PROFILE OF JAMMU AND KASHMIR BANK
 Despite government holding 53% of equity shares, still its private sector
bank.
 Itis Government Company under Indian companies Act 1956.
 It is an Operational exclusivity - a virtual monopoly in J&K and
functional distinctiveness- government owned private bank.
 Itis a sole banker of the Governmentof J&K.
 It is the only private sector bank designated as agent of RBI for
banking business.
 Itcarries out banking business of the Central Governmentin J&K.
 It collects taxes pertaining to Central Board of Direct Taxes in J&K.

38
INFRASTRUCTURE: Global Standards of J&K Bank
 It is the fastest growing bank with 520 branches across the country
 98% of the business of J&K bank is computerized.
 Anywhere banking Tele- Banking and SWIFT are facilities available in J&K
bank.
 Internet banking, SMS and mobile banking is provided by J&K Bank.
 ATMs connected globally to all Master- Card networked ATMs.
 Mobile ATM services are available- first of its kind in Northern India.
 J&K bank Global access Debit Cards: Cirrus and Maestro enabled.
 Own credit card are available.
 It is live on RTGS System of RBI
 It has Electronic Fund Transfer (EFT) System available
Financial Services portfolio: One stop for all financial needs
 Insurance joint venture for distribution of these are:-
 It has life insurance products of MetLife (India) Pvt. Limited.
 It has non-life insurance products of Bajaj Allianz General
 Insurance Co. Limited.
 Offering UTI, Reliance and Kotak Mutual Funds.
 It provides deposit dory services.
 It has collected agent for utility services provided by State and Private
sector.

39
 It always tie-ups for sale of consumer goods with
number of Companies like Bajaj Auto, Honda Genset, HCL, etc
Financials & Future Plans
J&K Bank has posted record net profit of Rs 615.20 Crores for the financial year
2010-11 against net profit of Rs. 512.38 Crores for the previous year thereby
recording growth of 20%. During this period, operating profit of the Bank has
increased from Rs. 958.20 Crores to Rs. 1149.49 Crores.
The Business of the Bank recorded increase of Rs. 10000 Crores during the year
and the total business reached Rs. 70870 Crores, recording a growth of 18%.
Deposits increased by 20% to Rs. 44675 Crores against Rs. 37237 Crores for the
previous financial year. The Loans and Advances at Rs 26194 Crores recorded
growth of 14% in comparison to Rs. 23057 Crores as at the end of March/2010.
The growth in loans and advances is in spite of the fact that Government of
Jammu & Kashmir repaid in full the Ways and Means facility of Rs. 2300 crores in
March 2011.
The results were announced after the Board of Directors of the Bank adopted the
audited results for the financial year 2010-11 in a meeting held on May 14. The
Board recommended an all time high dividend of 260% (Rs. 26/- per share)
subject to the approval of shareholders at the ensuing Annual General Meeting
scheduled to be held on July 9, 2011.
Commenting on the results, Chairman & CEO Mushtaq Ahmad said “the financial
results reflect implementation of business strategy aimed at qualitative and

40
quantitative growth in business of the Bank. The performance
during the year has put the bank on a growth trajectory for achieving the planned
target of business of Rs. 100000 crore and profit of Rs. 1000 Crore by March
2013.” In his brief remarks on the functioning of the Bank, Chairman & CEO stated
that inspite of the challenges faced during the last financial year the new business
strategy has enabled the Bank to convert the challenges into opportunities. As a
result of these measure net NPA ratio declined to 0.20% against 0.28% for the
previous year. The Chairman & CEO stated that the Bank will focus on playing its
role of a developmental financial institution in the State of Jammu and Kashmir
and lay emphasis on the growth and development of agriculture, industry, and
services sector. He further stated that the policies of the Bank would be aimed at
socio economic development of the State by active participation in financing
employment generation and poverty alleviation programmes of the State
Government. The Bank has taken a lead role in implementing the Sher-i-Kashmir
Employment and Welfare Programme for Youth (SKEWPY) promoted by the State
Governmentas a mission. As a hand holding measure and to achieve the objective
of alternate employment generation the Bank has constituted a task force for
monitoring implementation of this scheme.
It was disclosed by the Chairman that for registering high volume business in rest
of the country new branches would be opened at all important commercial
centres. During the year 2010-11 the Bank opened 16 new branches and thereby
increased its branch network to 548 branches in addition to 35 extension
counters. The new branches were opened in under banked rural areas for

41
providing basic banking facilities to unbanked population. 94% of
branches covering more than 99% of the Bank’s business are networked under
Core Banking Solution (CBS). All CBS branches have been enabled for RTGS and
NEFT facilities. The bank is implementing plan to increase its branch and ATM
network to 600 each during the current year to further supplement its direct
reach. It was stated by the Chairman & CEO that all these measures were aimed
at providing banking services and other facilities of international standards to its
customers. The bank maintained its reputation of being remarkably responsible
premier institution by implementing a well conceived Corporate Social
Responsibility (CSR) policy. The key initiatives undertaken by the bank in this
regard have focused primarily on providing educational facilities to under
privileged sections of the society, extending financial assistance for medical
treatment of destitute and taking meaningful initiatives for preserving and
promoting, heritage and handicrafts in the State. The chairman & CEO expressed
his gratitude to the government of Jammu & Kashmir, RBI, customers & all other
stake holders of the Bank for their support and patronage.
Brand Identity
The new identity for J&K Bank is a visual representation of the Bank’s philosophy
and business strategy. Thethree colored squares representthe regions of Jammu,
Kashmir and Ladakh. The counter-form created by the interaction of the squares
is a falcon with outstretched wings – a symbol of power and empowerment. The
synergy between the three regions propels the bank towards new horizons.

42
Green signifies growth and renewal, blue conveys stability and
unity, and red represents energy and power. All these attributes are integrated
and assimilated in the white counter-form.
Channels of Distribution
The Bank has continued to expand its distribution network to augment its
geographical reach and maintain business growth momentum. This has helped
the Bank particularly in the acquisition of low-costretail deposits. Out of total 556
branches (including extension counters and service branches), 344 branches are
in semi urban and rural areas. This reach will help carry on the growth of
momentum particularly in generating low cost deposits and credit disbursement
to agriculture, artisan and SME sectors. The ATM network of the Bank has
increased from 365 to 460 during the year, and today constitutes the largest ATM
network in J&K.
The Bank’s branch network (excluding extension counters and service branches)
as on 31st
March 2011 was as under:
Area Branches
Metro 52
Urban 175
Semi urban 53

43
Rural 287
Total 567
Products/Services offered by J&K Bank
 Saving Bank Deposits
 Savings Bank Deposit Scheme SB Ujala -No Frills Account
 Millennium Deposits Scheme
 Flexi Deposits Scheme
 Fixed Deposits Scheme
 Child Care Scheme
 Cash Certificates
 Super Earner Deposits Scheme
 Recurring Deposits Scheme
 Recurring Plus Account
 Smart Saver Scheme
 Depositors Pension Scheme
 Tax Saver Term Deposit Scheme
 Mehandi Deposit Certificate
 Current Accounts
 Gift Cheque Scheme
 Platinum Current Account
 Gold Current Account

44
 Premium Plus
 Current Account
 Premium Current Account
 Basic Current Account
 Loans
 Housing Loan Scheme
 Education Loan Scheme
 Car Loan Scheme
 Car Loan for Used Car
 Commercial Vehicle Finance
 Commercial Vehicle Finance (Used Vehicles)
 Two Wheeler Finance
 Other Finances
 Consumer Loan.
 Consumption Loan.
 Personal Loan to Pensioners Mortgage
 Loan for Trade & Service Sector
 Loans against Mortgage of Immovable Property
 Fair Price Shop Scheme
 SpecializedFinance Schemes
 Help Tourism (For Kashmir valley only)
 All Purpose AgriTerm Loan

45
 Fruit Advances Scheme (Apple)
 Zafran Finance
 Roshni Financing Scheme
 Craft Development Finance
 Dastkar Finance
 Giri Finance Scheme
 Khatamband Craftsmen Finance
 Commercial Premises Finance
 Laptop/PC Finance
 CREDIT CARDS
 Global Access Card
 Empowerment Credit Cards
 Types of Cards
 Blue Empowerment Card
 Silver Empowerment Card
 Gold Empowerment Card
 INSURANCE
The Bank diversified its operations when it ventured into the insurancebusiness,
both life and non-life segments.

46
Life Insurance Segment
 MetLife India Insurance
Non Life Insurance Segment
 Bajaj Allianz General Insurance Co. Ltd.
Division of Business on the basis of Zones
The Jammu & Kashmir Bank has been divided into 11 Zones which are
presented below:
North
Zone
Central
Zone
South
Zone
Kashmir
Division
North
Zone
Central
Zone
West
Zone
Jammu
Division

47
Corporate Headquarters
The Corporate Headquarters , registered office of the Bank is located at
Srinagar and is headed by Chairman and Chief Executive officer (CEO), who
is appointed by the J&K Government for a period of 3 to 5 years.
Generally, the Chairman is selected among reputed Economists, Bankers
or/and the Administrators of the State. The Chairman is guided by the
Board of Directors of the bank.
Board of Directors
Currently there are 8 members on the Board of Directors in the bank,
excluding Chief Executive Officer. The Board sits more than a dozen
times in a year to review the business activities of the bank. It also plans

48
and regulates the future activities of the bank through
policy decisions and administrative guidelines. All the important decisions of the
bank have to be endorsed by the Board of Directors before their
implementation. Following are the Names of Current Board of Directors of the
Bank
 Mushtaq Ahmad(CEO)
 Sudhanshu Pandey, IAS
 Arnab Roy
 Abdul Majid Mir
 M. I. Shahdad
 Prof. Nisar Ali
 Nihal Garware
 M. Matto
 Rakesh Kumar Gupta
VISION
“To catalyze economic transformation and capitalize on growth.”Our vision is to
engender and catalyze economic transformation of Jammu and Kashmir and
capitalize fromthe growth induced financial prosperity thus engineered. The Bank
aspires to make Jammu and Kashmir the most prosperous state in the country, by
helping create a new financial architecture for the J&K economy, at the center of
which will be the J&K Bank.

49
MISSION
Our mission is two-fold: To provide the people of J&K international quality
financial service and solutions and to be a super-specialist bank in the rest of the
country. The two together will make us the most profitable Bank in the country.
Corporate Management
At the top management, there is Chairman and Chief Executive Officer, who is
followed by two Executive Directors and five Presidents. The Presidents are
followed by 20 Vice presidents, who in turn are followed by the Senior Executive
Managers, which are assisted by the Executive Managers.
CORPORATE MANAGEMENT
Chairman/CEO
Executive Director (COO)Executive Director (CFO)
President (GM)
Vice President (DGM)
Senior Executive Manager (AGM)

50
Executive Manager
Senior Executive
Executive
Associate Executive
Banking Associate
Assistant Banking Associates
BankingAttendant
Performance Appraisal System
 Introduction
 Performance Appraisal Process
 ElementsOfPerformance Appraisal
 ObjectivesOfPerformance Appraisal
 Appraisal Interview
 Employee Feedback
 Performance Appraisal Failures
 PAS in the J&K Bank
 Traditional PAS in the Bank
Introduction

51
Performance appraisal, also known as employee appraisal, is a
method by which the job performanceof an employee is evaluated (generally in
terms of quality, quantity, costand time). Performanceappraisalis a part of
career development.
PERFORMANCE APPRAISAL PROCESS
 Organization’s mission & objectives
 Job analysis-Process and procedures used to collect and classify
information about tasks the organization needs to complete.
 Determine the purpose
 Determine and set performancestandards
 Determine measurement methods
 Determine appraisers and impart training
 Evaluate measurement system
 Conduct appraisalactivities- assessmentof performanceobjectives, various
inhibiting facilitating factors, resources utilized and results achieved
 Compare performanceand determine deviation
 Review for Errors and AppraisalInterview
ELEMENTS OF PERFORMANCE APPRAISAL
 Goal setting- managers should setperformance objectives or standards for
individual employees

52
 Measures-Tasks or levels of performance should be used to
gauge whether an employee has achieved his goals or not and to what
extent
 Feedback- Comparison of performance to goals is usually provided
 Performance Rating- Supervisor judges overall performance and gives
numeric rating
 Performance pay- given on the basis of performance rating
OBJECTIVES OF PERFORMANCE APPRAISAL
 To increase motivation and productivity
 To enhance transparency
 To establish meritocracy
 To retain top talents
 To develop employees
 To increase commitment
 To improvecollaboration
 To ensureaccountability and ownership
APPRAISAL INTERVIEW
It is the systematic process of giving feedback to employees about their past
performance or future potential.
Establish goals- plan topics /critical elements to be discussed

53
Review performance results
Tell and sell interview- communicates to employees their performance as
accurately with little return feedback, but can lead to defensiveness.
Tell and listen interview
 Problem solving interview
 Mixed –model interview
 Invite participation
 Express appreciation
 Focus on problem solving and be supportive
 Agree on development actions
 Reinforce and resolve
 Document decisions and make Follow Up
EMPLOYEE FEEDBACK
Itis informal discussions to instruct, director promptthe employee to improve
performance
Corrective feedback
 Do it immediately, but privately
 2.Be specific by referring to performancestandards
 Restate expected behavior/s

54
 Focus on action, not the person
 Encourageimprovements
 Take notes
Motivational Feedback
 Praiseimmediately
 Be specific by referring to performancestandards
 Encourageto continue to talk
 Take notes
Methods of Performance Appraisal
Rating Methods
 Checklist
 Graphic rating scale
Comparative Methods
 Ranking Paired
 Comparison Grading
 Forced Distribution
 Forced Choice

55
Narrative Methods
 Critical Incidents
 Essay
 Field Review
 Confidential reports
Behavioral/ObjectiveMethods
 Management by objectives or Results
 Behaviorally Anchored rating Scales
 Human Resource Accounting
 360- degree
 Balanced Scorecard
Rating Methods
These methods rely on putting employees on certain pre-defined scale to assess
their performance.
 Checklist Method- a list of statements or words is given & appraiser is
asked to check statements representing the characteristic and performance
of each employee. The statements may carry yes/no alternative or + sign.
 Graphic Rating Scale Method-employee characteristic s and
performanceare evaluated through a graph. Itassesses an employee on
the quality of his work and other factors

56
Comparative Methods
They rely on relative comparison & ranking of employee performancebased on
certain criteria or characteristic of performance.
 Ranking Method
 Paired Comparison Method
 Grading Method
 Forced Distribution Method- Employees are appraised according to the
pattern of a normal curve(bell shaped) in order to check tendency of
appraisers to rate most of the employees around high points. Itforces
 appraisers to spread their employee evaluations in a
 prescribed distribution
 Forced Choice Method-asks raters to choosefromamong groups of
statements those which best fit the individual being narrated and toes
which least fit him. The statements are then weighted or scored, very much
the
 Way a psychologicaltest is scored.
Narrative Methods
These methods rely on written statements to indicate the performancelevel of
employees and involvegreat deal of linguistic skills of the appraisaldesigner.

57
 Critical Incidents Method- managers areasked to keep a
record, a “little black book” on each employee and to record actual
incidents of positiveor negative behavior
 Essay Method- Asks rater to write a paragraph or morecovering an
individual employee’s strengths, weakness, potentialand so on
 FieldreviewMethod- A member of HRD dept meets with small groups of
raters fromeach supervisory unitand goes over each employee’s rating
with them to
 Identify areas of inter- rater disagreement, help the group arriveat a
consensus, determinethat each rater conceives the standards similarly.
 Confidential Reports Method- Manager appraises theperformanceof the
employee based on his observations, judgments and intuitions and reports
it confidentially.
Behavioral / Objective Method
 Evaluations are not conducted for raises, promotions or bonuses – instead
for development & communication
 Most importantaspect in all is multilateral communication between
employee, managers and others, rather than one-way communication
1. Management by Objectives or Results Method-
 CEO decides the business strategy of the organization.
 Manager defines his objectives in the light of departmental objectives

58
 Manager & employee decide and define the major
performance objectives and evaluation criteria under mutual consultation
 Manager appraises performanceof employee at end of performancecycle
 Manager discusses results of appraisalwith employee for corrective actions
2. Behaviorally anchoredrating Scales (BARS) Method
 Performance measures for effective job performance are identified and
clustered
 Critical behaviors are identified
 Critical behaviors are reclassified to form definition of job dimension and
best ones are kept for further development
 Critical behaviors are assigned numerical scales from 1 -7
 Result of arranging various scales for different dimensions of the job
produces a series of vertical scales measured by final incidents.
3. Human Resource Accounting Method
Cost of & contribution of human resources aremeasured and compared. Cost
include retirement & selection cost, induction & placement cost etc &
contributions include value addition made by employee to organization to further
the goals & objectives of the organization.

59
4. Assessment Centre Technique
A comprehensive, standardized procedurein which multiple assessment
techniques are used to evaluate individual employees for a variety of decisions
 Interviews
 Leaderless Group Discussions
 In- basketExercise
 Management games/ Simulation exercises
 Role Playing
 Presentations- vision, organizational issues, casestudies etc.
5. 360- Degree method
The process of giving performancefeedback that combines self-appraisalwith
ratings made by co-workers atthe samelevel, above and below the target person
in the managerial hierarchy and customers.
 Appraisalby Superior
 Appraisalby colleagues/peer
 Appraisalby subordinates
 Appraisalby external customers
6. BalancedScorecardMethod
Itidentifies and prioritizes critical activities in an organization’s daily work and
measures progress along the way. Itprovides feedback around both internal

60
business processes & external outcomes in order to continuously
improvestrategic performance& results.
PERFORMANCE APPRAISAL FAILURES
 Appraiser lacks information
 Lack of appraiser skills
 Appraiser unserious aboutappraisal
 Appraiser unprepared and uses unclear languages
 Employee unreceptive to feedback
 Employee’s personalbiases and prejudices
 Ineffectivediscussion of employee development
 Insufficientrewards for performance

61
THE JAMMU AND KASHMIR BANK LTD.
ANNUAL PERFORMANCE APPRAISAL REPORT
(For the year ended 31st
, March 2010)
A. BIO DATA
1. Name of the officer…………………………………………………….
Code no. ………………………………………………………….
2. Qualification………………………………
3. Training if any, undergone during the reporting year:
S.no. Name of the
programme
Duration Name of the
institute
1
2
3
4
5
B. Service details
Year months
1. Total service in the bank _______ _________
2 .In the present scale/grade _______ _________
3. In the presentbranch/office________________
4. Under the presentappraiser ________ _________
5. Details of the last three assignments held prior to presentposting:
S.no Branch/office Position held Duration Scale
1
2
3

62
Annual Performance Report
Name………………………………….Code No……………Period……..……………
(This page is meant for branch managers, District managers and area managers)
BUSINESS DIMENSIONS
(Rupees in crores)
Job Performance Last Year Current Year %age Growth
Target Actual
a)Deposits
Less by Govt./Banks/
Financial institutions
b)Advances(total)
c)Profit/loss
d. Recovery Performance of Non performing Assets
Balance at the
beginning of
the year
Target of
recovery for
the year
Actual
recovery
during the
year
%age of
recovery to
total NPAs
shown in
column ( i )
%age of
recovery to
target for
recovery as
shown in
column (ii)
Balance
outstanding at
the end of the
year
(i) (ii) (iii) (iv) (v) (vi)
e. Reconciliation of Books
______________________________________________________________________________________
______________________________________________________________________________________
______________________________________________________________________________________
______________________________________________________________________________________
______________________________________________________________________________________
______________________________________________________________________________________
Signature

63
Name………………………………….Code No……………Period…………………..
TO BE FILLED IN BY THE APPRAISER
A) Qualitative aspects ofbusiness dimensions
1) House keeping_____________________________________________
2) Customer service____________________________________________
3) Inspection/auditand rectification irregularities_____________________________________
4) Submission ofperiodical returns___________________________________
B) Comments on deficientperformance
______________________________________________________________________________________
______________________________________________________________________________________
C) Specific training programmes recommended
______________________________________________________________________________________
______________________________________________________________________________________
______________________________________________________________________________________
D) I) explanations/memos served ifany
______________________________________________________________________________________
______________________________________________________________________________________
ii) Status of disciplinaryaction,if any, initiated during the period under review:
______________________________________________________________________________________
______________________________________________________________________________________
______________________________________________________________________________________
______________________________________________________________________________________
______________________________________________________________________________________
______________________________________________________________________________________
Signature
(Appraising authority)

64
Name………………………………….Code No……………Period………………..…
SELF APPRAISAL
1. Highlights of my performance during the year
________________________________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________
2. Areas in which I feel I have not come upto the expectedlevel.
________________________________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________
3. Constraints Faced.
________________________________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________
4. What according to me would enable me to perform better?
________________________________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________
Signature

65
MANAGERIAL DIMENSIONS
1. Job knowledge
(knowledge of assigned duties, related activities, current trends & development in banking
________________________________________________________________________________________________
________________________________________________________________________________________________
2. Leadership/team building
(Ability to inspire sub ordinate to obtain maximum performance)
________________________________________________________________________________________________
________________________________________________________________________________________________
3. Decision making/problem solving
________________________________________________________________________________________________
________________________________________________________________________________________________
4. Administrative skill planning and organizing ability
________________________________________________________________________________________________
_______________________________________________________________________________________________
5. Public relations/ marketing skills
________________________________________________________________________________________________
________________________________________________________________________________________________
6. Integrity and Honesty
________________________________________________________________________________________________
_______________________________________________________________________________________________
7. Communication skills
________________________________________________________________________________________________
________________________________________________________________________________________________
8. Innovativeness and creativity
________________________________________________________________________________________________
________________________________________________________________________________________________
9. Commitment and involvement
________________________________________________________________________________________________
________________________________________________________________________________________________
10. Discipline
________________________________________________________________________________________________
________________________________________________________________________________________________
Signature
(Appraisingauthority)

66
Name………………………………….Code No……………Period……………..……
11. Comments on
i) Conceptual abilities
(Ability to rise above the immediate problem or situation to see the broader issues & implications)
________________________________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________
ii) Emotional Strength
(Ability to remain calm, level headed & unemotional, showing persistence & resilience in the face of
adversity)
________________________________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________
iii) Responsiveness to corporate concerns
(Genuinely concerned about the goals and performance of the bank)
________________________________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________
iv) Willingness to assume responsibilities
________________________________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________
*KEYRESPONSIBILITY AREAS FOR NON OPERATIONAL ASSIGNMENTS (by appraiser)
[job roles & functions of officers in various non operational assignments in branches (other than branch manager),
administrative officers, corporate offices, zonal offices/head offices]
S.no Responsibility Areas (Description of Tasks/Goals) Comments Of Appraiser
1
2
3
4
5
6
7
8
*Suggestive list of KRAs given in annexure
Signature
(AppraisingAuthority)

67
RATING OF OVERALL ASSESMENT/PERFORMANCE BY APPRAISING AUTHORITY AND
REVIVING AUTHORITY
A) For operational Assignments
Marks Out of Appraising Authority Reviewing Authority
a. 30
b. 20
c. 40
d. 10
Total Marks Awarded 100
B) For non operational Assignments
a. Key Responsibility Areas 50
b. Managerial Dimensions 40
c. Outstanding Performance 10
Total Marks Awarded 100
C) Descriptive comments on:
a. Selfappraisal $
b. Potential $
c. Training $
Signature
Name
Designation
Branch/office
Date
Final Marks Awarded Final Rating*
Remarks_______________________________________________________________________
Name________________________Designatio________________________Signature________________
By Accepting Authority

68
*Rating Matrix
91-100% Outstanding 41-60 Average
81-90 Excellent 40% Below Below Average
71-80 Very good
61-70 Good
$ in case of need additional paper may be used
ResearchMethodology
 Research Objective
 Research Design
 SamplingPlan
 Tools & Technique
RESEARCH METHADOLOGY
Various authors havedefined it in different way. Research starts with the
question or problem. Its purposeis to find out the answers to question through
the application or scientific method. Itis systematic and intensive study directed
to word a more complete knowledgeof the subjectstudy. Research can be
classified into two broad categories.
 Basic Research
 Applied Research
Market Research is systematic and objective study of problems relating to the
market of goods and services. Itmay be emphasized that it is not restricted to
many particular area of marketing, but is applicable to all phases of aspect.

69
Marketing Research is a key of education and analyzes the
competitors’ productpositioning and how to gain competitive advancestage. Itis
an important tool to study consumer opinion.
The systematic and objective search for an analysis is to get the
information relevant to the identification and solution of any problems in the field
of marketing.
Marketing research is the systematic design, collection, reporting of data
and finding the relevant solutions for a specific marketing situation or problem
faced by the company.
Research Objective
Provideinformation to HR manager regarding employee satisfaction. To identify
grievances regarding PAS of the bank. Providing information to employees’ vis-à-
vis Darpan-the360 degree appraisalsystemof the bank.
Research Design
Type of study Exploratory
Source of data Primary
Data collectionmode Structured questionnaire.

70
Sampling Plan
Target population was employees of the various branches including corporate
headquarter of The J&K Bank.
Tools and Techniques
The following tools and techniques were implemented and put to use in order to
analyzeably.
Statistical Tools:
 Pie charts
 Tables:
Technological Tools:
 Ms- Excel
 Ms-Word
ResearchInstruments:
Marketing research has choice of two main research instruments in collecting
Primary data, questionnaire and mechanical devices. In this marketing research
survey, I haveused a questionnairemethod for collecting the data.
This method consists of a set of questions resented to respondents for
their answers. Thequestionnaire is the most common instrument used to collect

71
primary data. A questionnaireconsists of two types of questions
close ended and open-ended questions. Closeended questions refer to provide
two or more possiblealternatives to the respondent. And the open-ended
questions allow the respondents to answer in their own words. In our research
we have used both types of questions in questionnaire.
Sources of Information:
Both PRIMARYand SECONDARYdata was used for study in questions. The sources
relied upon are as under.
Primary Sources
 Written facts and figures collected from target group and
other consumers too.
 Verbal information gathered fromthe target group.
Secondary Sources
 J&K Bank website.
 Write-ups available fromthe J&K bank depicting its profileand
its programmes/schemes under execution.
 Published material in the formof books and periodicals, and
 Discussions with theBank officials.
 Reports on the performanceof the Bank’s-annualreports
including balance sheets.

72
“QUESTIONNAIRE”
Name: ……………………………………………………………………………………..….
Code no.: ………………… Designation: ……………………………………………………
Place ofPosting:………………………………………………………………………………
Age……………………………………….. Gender ………………………………………….
Q1. What is the mode of PMS (Performance Management System)in J&K BANK?
a) Monthly b) Quarterly c) Yearly d) Others
Q2. What is the objective of performance appraisal?
a) Promotion b) Assessing training and development needs c) Pay rise d) Both
A&B
Q3. Who rates the performances?
a) Superiors’ b) Subordinates c) Clients d) All
Q4. On what basis performance appraisal is made?
a) Total output b) Behavioral efficiency c) Both d) Don’t Know
Q5. Is 360 degree appraisal process undertaken in the organization?
a) Yes b) No c) To Some Extent d) Don’t Know
Q6. Are you satisfied with the appraisal process of the organization?
a) Yes b) No c) To Some Extent d) Can’t Say
Q7.Overall how satisfied are you with the position at your company?
a) Very Satisfied b) Satisfied c)Dissatisfied d) Can’t Say
Q8. How would you rate the level of your job stress?
a) Mild b) Moderate c) Severe d) Extreme
Q9. Appropriate training is given to employees who fail to meet the
expected performance level.
a) Agree b) Disagree c)ToSomeExtent d)Can’t Say

73
Q10. Is the promotional policy linked with the performance appraisal
system?
a) Yes b) No c)ToSomeExtent d)Can’tSay
Q11. On what basis is the performance appraisal done?
a) Merit cum seniority (merit given preference over seniority)
b) Seniority cum merit (seniority given preference over merit)
c) Merit only d) Seniority only
Q12. How do you rate the overall assessment of performance appraisal?
a) Very good b) Good c) Satisfactory d) Poor
Q13.Variable Pay is linked with performance.
a) Agree b) Disagree c) Neither agree nor disagree d) Can’t Say
Q14. What kind of remedial measures are taken for betterment of the employee, after
appraisals are done?
a) Job rotation b) Sent to training programmes c) Counseled d) Others
Q15. How do you rate the transparency of the performance appraisal system of the
company?
Q16. Do you feel Performance Appraisal process is sufficient in appraising the
performances of employees or you need some alternatives to
it?………………………………………………………………………………………………………
…………………………………………………………………………………………………………
………………………………………………………………
Signature
Thanksfor yourCooperation

74
Analysis &Findings
 Questionnaire
 Pie Charts
Q1. What is the mode of PMS (Performance Management System) in J&K BANK?
a) Monthly b) Quarterly c) Yearly d) Others
65% of employees undergo appraisal on yearly bases, 22% are not appraised at all, 11%
employees are appraised quarterly while as 2% are assessed monthly. Bank should take
necessary steps to ensure appraisal of every employee at regular intervals.
2%
11%
65%
22%
Monthly
Quarterly
Yearly
Others

75
Q2. What is the objective of performance appraisal?
a) Promotion b) Assessing training and development needs c) Pay rise d) Both A&B
41% of employees think that the objective of performance appraisal is both promotion and
assessing training and development needs,36% think promotion is the only objective ,16% say
assessing T&D needs is the only purpose while a little portion i.e 7% think its objective is pay
rise.
36%
16%7%
41%
promotion
Assessing T & D Needs
Pay rise
Both A & B

76
Q3. Who rates the performances?
a) Superiors’ b) Subordinates c) Clients d) All
In J&K Bank 92% of the employees are appraised by superiors, while as 8% are appraised by all
(360 degree) Bank should implement 360 degree appraisal systemin totality in order to
eliminate the chances of favoritism and biasness.
92%
0%0%
8%
Superiors
Subordinates
Clients
All

77
Q4. On what basis performance appraisal is made?
a) Total output b) Behavioral efficiency c) Both d) Don’t Know
66% of employees think performance appraisal is made on total output and behavioral
efficiency,13% think that the appraisal is made on total output only,9% are of the opinion that it
is made on behavioral efficiency while as 12% employees don’t know on what basis appraisal is
done.
13%
9%
66%
12%
Total Output
Behavioral Efficiency
Both
Don't Know

78
Q5. Is 360 degree appraisal process undertaken in the organization?
a) Yes b) No c) To Some Extent d) Don’t Know
35% of the employees think 360 degree appraisal is undertaken to some extent,27% say yes it is
undertaken in the bank,22% say it is not undertaken, while as 16% of employees don’t know
whether it is undertaken or not.
35%
22%
27%
16%
Yes
No
To Some Extent
Don't Know

79
Q6. Are you satisfied with the appraisal process of the organization?
a) Yes b) No c) To Some Extent d) Can’t Say
39% of the employees are satisfied to some extent with the appraisal process of the bank,30%
are satisfied with the process,18% employees are not satisfied with the appraisal process, while
as 13% of employees did not disclosed whether they are satisfied or not.
39%
18%
30%
13%
Yes
No
To Some Extent
Can't Say

80
Q7.Overall how satisfied are you with the position at your company?
a) Very Satisfied b) Satisfied c)Dissatisfied d) Can’t Say
57% employees are satisfied with the position they have in the bank,18% are more than
satisfied, 15% didn’t said whether they are satisfied or not, while as 10% employees
are totally dissatisfied with the position they are in the bank. The bank should take all
possible steps to increase the level of satisfaction which in turn will result in efficiency &
effectiveness by the employees towards achieving the goal of the organization.
18%
57%
10%
15%
Very Satisfied
Satisfied
Dissatisfied
Can't Say

81
Q8. How would you rate the level of your job stress?
a) Mild b) Moderate c) Severe d) Extreme
47% of the employees experience Moderate level of Job Stress, 30% Severe, 15% Mild
& only 8% of the employees feel Extreme level of Job Stress.
15%
47%
30%
8%
Mild
Moderate
Severe
Extreme

82
Q9. Appropriate training is given to employees who fail to meet the
expected performance level.
a) Agree b) Disagree c)ToSomeExtent d)Can’t Say
Only 24% of the Employees agree with the Statement that Appropriate training is given
to employees who fail to meet the expected performance level While 24% Employees
Disagree. And 37% employees believe that only to some extent training is given to
employees & 15% employees can’t say.
37%
24%
24%
15%
Agree
Disagree
To Some Extent
Can't Say

83
Q10. Is the promotional policy linked with the performance appraisal system?
a) Yes b) No c)ToSomeExtent d)Can’tSay
39% of the Employees believe that only to some extent Promotional policy is linked with
Performance while as 36% employees believe that Promotional policy is linked with
Performance. And 13% employees believe that Promotional policy is not linked with
Performance while 12% employees can’t say.
Q11. On what basis is the performance appraisal done?
39%
13%
36%
12%
Yes
No
To Some Extent
Can't Say

84
a) Merit cum seniority (merit given preference over seniority)
b) Seniority cum merit (seniority given preference over merit)
c) Merit only
d) Seniority only
50% of the employees believe that only on Merit cum seniority (merit given preference
over seniority) Performance appraisal is done while 33% employees believe that only on
Seniority cum merit (seniority given preference over merit) Performance appraisal is
done. And 10% believe only on Merit while 7% believe only on Seniority performance
appraisal is done.
10%
33%
50%
7% Merit cum seniority (merit given
preference over seniority)
Seniority cum merit (seniority
given preference over merit)
Merit only
Seniority only

85
Q12. How do you rate the overall assessment of performance appraisal?
35% of the employees rate the overall assessment of Performance appraisal as Good
while as 10% rate it as poor.33% employees are satisfied with the overall assessment
of Performance appraisal & only 10% of the employees have rated the overall
assessment of Performance appraisal as Very Good
35%
10%33%
22%
Very good
Good
Satisfactory
Poor

86
Q13.Variable Pay is linked with performance.
a) Agree b) Disagree c) Neither agree nor disagree d) Can’t Say
21% of the employees don’t want to comment i.e., they neither agree nor disagree with
statement that Variable pay is liked with the performance while as 29% employees
Agree. And 20% employee believe that variable pay is not linked with the performance
& 30% employees can’t say anything about it either they don’t know or they don’t want
to comment.
30%
20%21%
29%
Agree
Disagree
Neither agree nor disagree
Can’t Say

87
Q14. What kind of remedial measures are taken for betterment of the employee, after
appraisals are done?
a) Job rotation b) Sent to training programmes c) Counseled d) Others
58% of the employees believe that employees should be Job Rotation kind of remedial
measures are taken for betterment of the employee, after appraisals are done while as
23% employees feel that employees should be sent to training programmes, 10%
employees want that employee should be counseled & only 9% employees suggest
Others remedial measures for betterment of the employee, after appraisals are done.
58%23%
10%
9%
Job rotation
Sent to training programmes
Counseled
None

88
Q15. How do you rate the transparency of the performance appraisal
system of the company?
While Rating the transparency of the PAS of the company (J&K Bank) is concerned
36% of employees are Satisfied, 35% rate it as Good & only 7% employees rate it Very
Good while as 22% of the employees are disappointed as far as transparency is
concerned and rate it as Poor.
36%
35%
22%
7%
Very good
Good
Satisfactory
Poor

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