Performance management includes activities which ensure that goals are consistently met in an effective and efficient manner. Performance management can focus on the performance of an organization, a department, employee, or even the processes to build a product or service, as well as many other areas. Professionals are often found discussing about performance management practices in organization even when they themselves are not aware of the proper meaning, evaluation criteria and applicability of various performance management practices. Performance management system is ensured in every organization irrespective of the size, nature and purpose of the organization. This study was conducted in tier III cities like Bareilly, Moradabad, and Rampur of Uttar Pradesh, where a large number of banks providing financial and other banking services are present. The focus of the study was on assessing the level of awareness of banking professionals regarding various performance appraisal methods..

Performance management is a broad term coined by Aubrey Daniels in the late 1970s to describe a technology (i.e., science imbedded in applications methods) for managing both behavior and results—two critical elements of what is known as performance. It may be possible to get all professionals reconcile their personal goals with the organizational goals and increase productivity and profitability of an organization using this process. It can be applied by organizations or a single department or a section inside an organization, as well as by an individual. The performance process is appropriately named ‘self-propelled performance process’. Managing employee or system performance facilitates effective delivery of strategic and operational goals. There is a clear and immediate correlation between using performance management programs and improved business and organizational results.

There are basically two methods of performance appraisal, viz., traditional and modern. The traditional methods basically include essay appraisal method, straight ranking method, paired comparisons, critical incidents, field review, graphic rating, and forced distribution. The modern methods of performance appraisal system include behavioral anchored rating scales, human resource accounting methods, 360 degree performance appraisal method, and management by objective method. The main focus of the paper is on assessing the awareness of banking professionals regarding evaluation criteria and the factors responsible for the same, and the magnitude of the effect of such methods on their jobs and performance.