A Comprehensive Study of Performance Management Practices and Their Effectiveness in Indian Banking Sector

Abstract

Human resource is the most important resource therefore it is to be
managed, utilize and achieve the targets very effectively and
efficiently. Therefore, employee performance management is very
vital for the success of any business. The essential side is of
performance management is to motivate employees at work to yield
better performance at any level either at department processes or
organizational level. In present competitive situation, the need for
managing employees’ performance is very high and for that purpose
various practices are being followed by performance management in
various industries across the world. In Indian banking the market
situation is very competitive that poses greater challenges in
managing banks for growth and survival. The researchers have
suggested that it is only the manpower that can make the difference
in achievements of the banks. The employees’ performance makes a
great impact on the overall business performance of the banks. The
performance of the employees should be managed on top priority
for better performance, business performance and improve the
effectiveness of the banks. Some of the banks have started
managing performance of employees by adopting various practices.
But still there is a big gap to cover. Therefore, the performance
management functions are very important and these are the need of
the hours in Indian banking system.