Management Notes

Reference Notes for Management

Performance Appraisal at Bank of Kathmandu | Human Resource Management

Performance Appraisal at Bank of Kathmandu | Employee Performance Appraisal | Performance Appraisal and Employee Performance | Performance Appraisal Methods at BOKL | Performance Appraisal Practices in Nepal

Performance Evaluation

Performance Evaluation is the systematic, periodic, and objective way of evaluating the performance of the employees working in an organization with respect to their performance on the job and their potential for development. The accomplishment of any organization relies upon the quality and characteristics of its employees.

Performance evaluation is a vital tool in the hands of personnel management since this method achieves the primary target of the department of the improvement of individuals by evaluating the value of the person (Khanna & Sharma, 2014).

There are numbers of approaches available to appraise the performance of employees which are normally classified as:

  • Absolute methods
  • Relative methods and
  • Comprehensive methods.

Employee Performance Appraisal at Bank of Kathmandu (BOK)

Bank of Kathmandu Limited (BOK) is among one of the few commercial banks today which has made an achievement in the Nepalese banking sector and getting to be one of the biggest private division commercial banks in the nation as far as a capital base, various branch areas, ATM systems and client base (About Us).

With the progression of time banking division is developing by utilizing diverse instruments to make its task increasingly advanced the banks are showing signs of improvement results. Performance evaluation is the wonderful tool of estimating the dimension of execution of representatives and is a vital framework that helps in giving a better extension to workers’ demeanor on their advancement needs (Moyal & Iyengar, 2016).

Performance Appraisal Methods at BOKL

Performance Appraisal Methods at BOKL

At the point when banks were little in size formal execution evaluation framework was simply to settle on choices about pay rates, advancements, exchanges, and situations based on close to home learning and were unified by time scattering of branches, staff and with the quick extension in a number of branches administrators who used to settle on choices had very constrained individual information (Yaseen, 2015).

There are various methods and techniques used by the management of BOKL in order to evaluate the performance of its employees. Some of the methods adopted by them are discussed below:

Ranking Method

On the basis of overall performance, the rater ranks his/her subordinates. This comprises basically putting a man in a rank request which can also create conflict among employees working in the organization.

Behaviorally Anchored Rating Scale (BARS)

This technique has been grown as of late and is professed to be one of the powerful techniques among all the evaluation strategies recorded. It is a blend of customary article assessment and rating scale. It is more costly than different strategies and ensures exact outcomes.

In this method, the worker’s conduct and execution are examined and utilized for assessing by and large execution of a representative. The HR office is associated with this procedure. In view of the execution and conduct of a representative, they are tied down as great, normal, or poor (Bhattacharyya, 2016).

MBO Method

Management by objectives (MBO) is a systematic and organized approach that allows management to focus on achievable goals and to attain the best possible results from available resources. These organizations use this method to identify whether the stated objective is achieved or not.

At the bank, every individual is given significant territories of duty as far as results anticipated from him/her and utilize these measures as a manual for accessing the commitment of every individual employee.


Performance Appraisal and Employee Performance

Performance Appraisal does not only focus on evaluating performance and rewards for employees but also supports in improving their performances. After evaluating the performance of the employees, management can understand and identify the employees who are performing below the set standard and those employees who have the capacity as well as the potential to grow. The performance of these categories of employees can be improved by:

  • Proper Communication
  • Creation of a positive work environment
  • Providing effective training
  • Rest and entertainment
  • Appreciate contributors

Performance Appraisal Practices in Nepal

In Nepal, there is an unclear standard which indicates that the focus of appraisal is mostly dominated by subjective judgments rather than objective figures and facts. Organizations do not go for performance evaluation on a regular basis which leads to invalid judgments and evaluations as performance is evaluated based on the performance of the past 3-4 months.

Performance appraisal is followed and practiced in organized sectors only. Small and medium organizations follow informal systems with subjective criteria.

Summary and Conclusion

Performance appraisal acts as a yardstick to measure the performance of the employees. It is seen that the performance evaluation framework should convey a positive encounter and add to the general improvement of the organization. For developing employees of that organization, it is an effective tool to improve performance and productivity.

From the report, it is concluded that at BOKL they are using different performance evaluation techniques. It is also vital for organizations to have periodic reviews or audits of all personnel policies, programs, and procedures; compensation, recruitment and staffing, job analysis, job evaluation, grievance process, and communication channels (Obisi, 2011).


About Us. (n.d.). Retrieved from Bank of Kathmandu Limited:

Bhattacharyya, B. (2016, May 10). 5 Effective performance appraisal methods. Retrieved from Keka:

Khanna, M., & Sharma, R. K. (2014, June 30). Employees Performance Appraisal and its techniques: A Review. Asian J. of Adv. Basic Sci, 2, 51-58.



Yaseen, A. (2015). Performance Management Practices And Its Impact On Banks’ Performance In Pakistan. International Journal of Human Resource Studies, 5.


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