Performance Management

Performance Management is a continuous process of identifying, measuring, and developing individual and team performance aligned with organizational goals. In banks, it links employee output to strategic objectives like credit growth, NPA reduction, and customer satisfaction.

Employees are ranked against each other in order of performance.

Performance appraisal systematically evaluates an employee's job-related strengths and weaknesses to guide reward, promotion, training, and career decisions. It also serves as a feedback mechanism to improve individual and organizational effectiveness.

A scale rating employees on traits like quality, attendance, and initiative.

Performance Appraisal is a periodic, retrospective evaluation of past performance, whereas Performance Management is a broader, ongoing process that includes goal-setting, coaching, feedback, and development. Performance Management encompasses appraisal as one of its components.

Each employee is compared individually with every other employee.

KRAs are the specific areas of responsibility where an employee is expected to deliver results that significantly impact organizational success. In banks, KRAs may include loan disbursement targets, deposit mobilization, customer acquisition, and compliance adherence.

A meeting between manager and employee to discuss performance and future goals.