Old Versus New Performance Management System in Indian Public Sector Banks

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Performance management system is the process of creating a work environment in which people are enabled to perform to the best of their abilities. It is a tool used by the organisations in developing and training their employees which helps them better understand their responsibilities towards the organisation and perform better. Performance Management System [PMS] was traditionally known Performance Appraisal System [PAS]. The appraisal system was used as a tool of controlling employee through salary administration, reward administration, promotion, and disciplinary actions. The appraisal reports were confidential in nature and the employees were rated on the basis their traits. The Public Sector Banks [PSBs] had an annual appraisal system that documented the past activities of an employee and rated them on that basis. Little or no importance was given to future growth. The employee had no say in his/her appraisal. The appraisal took place at the time of promotion of the employee and the promotion of the employee was based on the seniority and not on the performance. The appraisal system was mostly uniform in all public sector banks. In recent times, many changes have taken place in the performance management system of these banks. Many banks have taken steps to provide specialised training and knowledge sharing programmes, incentives for better performance, efficient performance appraisal, better promotion opportunities to deserving employees and creating better working environment. State Bank of India has an open system of appraisal. Allahabad Bank has introduced a system that aims in helping officers to identify their strengths and weaknesses and encourage improvement of performance on the job. Indian Overseas Bank has a system in which a branch manager gives a self-appraisal on business growth, customer service, internal administration and requirements in great detail. Union Bank of India has an appraisal system in which the appraiser has to assess the...
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