performance appraisal systeme hrm project
TRANSCRIPT
ABSTRACT
Performance Appraisal Systems is the main theme of this article. The Article tells about how many performance appraisal methods are used by the organizations under consideration and under analysis? It tells about what performance appraisal is according to these organizations? The main purpose of collecting and analyzing this information is to know about organizations performance appraisal methods, to know that how employees are appraised and what kind of criteria is used in this regard? The article covers the whole performance appraisal systems to evaluate the exact output of these methods either these methods are according to the standards and procedures as mentioned by that organization or not? Every organization needs a formal approach to track individual contributions and performance against organizational goals and to identify individual strengths and opportunities for improvement. This article is about the performance appraisal systems of Bank Alfalah Limited and Mobilink GSM. First there is data analysis of Bank Alfalah Limited which uses Forced-choice rating or Bell Curve method for Performance Appraisal of its Human Resource. Typically, this system involves placing employees along a performance curve or classifying employees into categories of percentiles for performance. Is often associated with a 20-60-20 distribution the top 20 percent is rewarded for best performance, the middle 60 percent is rated ‘average’ and the bottom 20 percent is coached for improvement. The ‘rank-and-yank’ system automatically terminates employees in the bottom category, allowing organizations to purge the worst performers. These reviews are mainly dependent on perceptions. But, “Perception is the paradox of mind”. Is there a way out to overcome the perception based evaluations? It is the role and duty of the administrators to design a system to give appropriate opportunities to the individuals to gain maximum credit points. Forced distribution is useful for jobs that are structured with strict quantitative criteria. Finally there is data about Performance Appraisal System of Mobilink GSM which uses Multi-rater assessment (or 360-degree feedback). This method of appraisal gives the employees feedback from the immediate supervisor, peers, subordinates and customers. The supervisor usually does the actual appraising. The HR department serves a policy making and advisory role. The supervisor needs to conduct an appraisal interview in which the written appraisal is presented. The manager needs to review the definition for the job and appraise the performance in relation to the written job description. In addition, the job description often isn't sufficient to clarify the manager's expectations since the job description is normally written for groups of jobs rather than specific positions. Strengths of the negotiated performance appraisal are its ability to promote candid two-way communication between the supervisor and the person being appraised and to help the latter take more responsibility for improving performance. In contrast, in the traditional performance appraisal, the supervisor acts more as a judge of employee performance than as a coach.
INTRODUCTION
In Human Resource department of any organization, generally used Performance Appraisal methods to appraise the employees are;Graphic rating scale this performance appraisal method uses a scale to rate an employee on his or her level of performance for each job trait. Paired comparison method this method pairs employees for every trait and compares them. This is suppose to indicate whom is better. I have not used this method for annual performance appraisals. Forced distribution method this method of performance appraisal is similar to a bell curve. This method distributes employees from top performer to mediocre performers by percentage rates. Those employees listed in the top percentages are normally given raises, while those at the lowest percentages may not be given raises. Critical incident method this method keeps a record of good and poor examples of employee's performance. These examples are reviewed with the employee on a periodic basis.
In addition, as a former manager, I agree that keeping a record of incidents is good to discuss with employees. Behaviorally anchored rating scales this appraisal method combines narratives, critical scale and quantified ratings by anchoring good and poor behavior examples. 360-degree feedback - This method of appraisal gives the employees feedback from the immediate supervisor, peers, subordinates and customers. Management by objectives - This method requires manager and employee to set measurable goals. These goals are discussed on a periodic basis. Clear expectations and feedback are important because if the employee is not meeting their target, the manager is able to discuss and get them back on track to reach the year-end goal. But Bank Alfalah Limited uses Forced-choice rating or Bell Curve method for Performance Appraisal of its Human Resource. Typically, this system involves placing employees along a performance curve or classifying employees into categories of percentiles for performance. Is often associated with a 20-60-20 distribution the top 20 percent is rewarded for best performance, the middle 60 percent is rated ‘average’ and the bottom 20 percent is coached for improvement. Secondly Mobilink GSM which uses Multi-rater assessment (or 360-degree feedback). This method of appraisal gives the employees feedback from the immediate supervisor, peers, subordinates and customers. The supervisor usually does the actual appraising. The HR department serves a policy making and advisory role.
The forced ranking system is an excellent method for rewarding top performers and setting specific deadlines for improvement for poor performers. Despite its appeal, the system has several drawbacks. For instance, the system promotes individual performance over teamwork and often leads to dissatisfaction among ‘average’ and poor performers. These reviews are mainly dependent on perceptions. But, “Perception is the paradox of mind”. Is there a way out to overcome the perception based evaluations? Through scientifically proved self assessment psychometric tools coupled with behavior psychologist’s interventions, the individuals can be evaluated and the data base can be captured. Performance appraisal is to be used for development of individuals by matching individual inventory to that of work and credit points based performance data base, by objective oriented humane administrators for long term gains.
METHDOLOGY
In conducting the whole Analysis of Performance Appraisal Systems we have used two main sources of data collection, Primary and Secondary. In primary data sources we have mainly focused on Questioner as a tool for collecting data from executives of organizations under consideration. We developed a questioner having following main questions in it:
What Performance Appraisal System mean to your organization? How many methods of Performance Appraisal your organization is using
presently? Why your organization is using that particular Performance Method? How much it is important to your organization? Why there is need to appraise employees? Is your organization using sabbaticals?
Secondly we have used survey to some extent in our data collection for Analysis of Performance Appraisal Systems; in this regard we have surveyed 3 to 4 employees of each organization from customer relation officer to assistant Human Resource manager. They gave information regarding performance appraisal system that they are satisfied with the overall performance management system but they showed some reservations regarding their long term benefits.
The appraisal needs to be thoughtfully prepared with good examples which support the points the manager wants to make. The manager needs to review the definition for the job and appraise the performance in relation to the written job description. In addition, the job description often isn't sufficient to clarify the manager's expectations since the job description is normally written for groups of jobs rather than specific positions. The supervisor usually does the actual appraising. The HR department serves a policy making and advisory role. The supervisor needs to conduct an appraisal interview in which the written appraisal is presented.
Finally we have used internet or online reviews of different analysts regarding performance appraisal system of each organization. In these reviews we found that majority of the analysts were satisfied with the overall performance appraisal system. But they have pointed out that each organization has to revise the overall performance management system regarding employee compensation and motivation.
RESULTS
Bank Alfalah Limited
Bank Alfalah uses the bell curve or forced distribution method to appraise their employees.
A forced distribution method requires rater to compare performance of employees and place a certain percentage of employees at various performance levels. It assumes performance level in a group of employees will be distributed according to a bell-shaped or normal curve.
Their criteria are base on the performance of Quantity of output, Quality of output, Timeliness of output, Presence at work and Cooperativeness.
Bank Alfalah also uses sabbaticals like paid leaves to the employees which include 30 leaves, 10 casual, 10 sick and 10 others. If the leaves exceed 30 then the employees are not paid for that. If the employees don’t take the leaves in a year then he will be paid only for the current year leaves.
There is no favoritism and nepotism at any level in the performance appraisal system.
They train their managers (employees) and grade them accordingly.
Here 20-60-20 distribution the top 20 percent is rewarded for best performance, the middle 60 percent is rated ‘average’ and the bottom 20 percent is coached for improvement.
Mobilink GSM
Bank Alfalah uses 360 Degree (Multi-Rater Assessment) method to appraise their employees.360 degree feedback is a performance appraisal method that utilizes feedback from supervisors, managers, peers, customers, suppliers, employees and colleagues.
Mobilink provides a formal review program to evaluate work performance and to promote communication and discussion of job performance w.r.t. past performance.Mobilink assess the employee on Leadership, Communication skills, Team work and Co-operation, Problem solving & decision making, Initiative and drive, Flexibility and Customer focus.
At Mobilink• Performance appraisal is done on an annual basis (from January 1st to December
31st)• To give a chance to subordinates to evaluate their seniors a 360 degree evaluation
is conducted at the tome of the performance evaluation.• The immediate supervisor prepares an annual report in December of each year of
each employee• Increments are also given at the end of the year, increments are percentage of
salaries.• A promotion is given on good performance after completing two years in the
current grade.• Bonuses are given but the employee must have to complete 6 months in the
company service. • There is no favoritism and nepotism.• They also use sabbaticals like paid leaves of 25 per year.
360 Degree Feedback
DISCUSSION
Our personal insights based on the results that Bank Al-Falah uses the Forced-choice rating or Bell Curve method. The method is mainly based forced distribution of employees on a bell shaped curve in a ratio of 20-60-20. The top 20 percent is rewarded for best performance, the middle 60 percent is rated ‘average’ and the bottom 20 percent is coached for improvement. Secondly Mobilink GSM which uses Multi-rater assessment (or 360-degree feedback). This method of appraisal gives the employees feedback from the immediate supervisor, peers, subordinates and customers. The supervisor usually does the actual appraising. The HR department serves a policy making and advisory role. The supervisor needs to conduct an appraisal interview in which the written appraisal is presented. The manager needs to review the definition for the job and appraise the performance in relation to the written job description. In intent, the forced ranking system is an excellent method for rewarding top performers and setting specific deadlines for improvement for poor performers. Despite its appeal, the system has several drawbacks. For instance, the system promotes individual performance over teamwork and often leads to dissatisfaction among ‘average’ and poor performers. These reviews are mainly dependent on perceptions.
CONCLUSION
By concluding this article we conclude that forced ranking system is an excellent method for rewarding top performers and setting specific deadlines for improvement for poor performers. Despite its appeal, the system has several drawbacks. For instance, the system promotes individual performance over teamwork and often leads to dissatisfaction among ‘average’ and poor performers. Mobilink conducts periodically evaluation of work performance and to promote communication and discussion of job performance i.e. performance at Mobilink. And for Mobilink GSM's Multi-rater assessment (or 360-degree feedback) we conclude that this method for Performance Appraisal is very thorough is more comprehensive than the other methods of performance appraisal methods. But a main drawback of this method is that it is very time consuming because each employee has to be appraised by supervisors, employees and coworkers and feedback required from these stakeholders takes a lot of time.
SUGGESTIONS As the work is an out let for self expression. So, the development processes
should be based on assessing individual’s interests, motivations, personality traits, strengths and weaknesses, capabilities, knowledge and skill levels.
The efforts of the administrators should be to match the individual inventory to the work. The capabilities are to be tapped with proper work assignments and indiscipline should be punished as to be modified by social disapproval approach.
The performance appraisal is to be used for development of individuals by matching individual inventory.
REFRENCES Bank Alfalh Limited
Bank Alfalah Limited Executive Manager Human Resource
Alia Ahmad’s Interview at head office Lahore Shahdin Manzil.
Bank Alfalah Limited official website. http//www.bankalfalah.com
Online Reviews on overall performance appraisal system of Bank Alfalah Limited regarding employee training and compensation.
Bank Alfalah Limited Performance Appraisal form. Bank Alfalah Limited annual report for employee
compensation and training.
Mobilink GSM
Mobilink GSM Assistant Manager Human Resource Management Hamid Mushtaq’s interview at Human Resource Department main boulevard Gulberg Ш Lahore.
Mobilink GSM official website http//www.mobilinkgsm.com
Online Reviews on overall performance appraisal system of Mobilink GSM regarding employee training and compensation.
Mobilink GSM Performance Appraisal Form. Online Reviews on overall performance appraisal system of
Mobilink GSM regarding employee training and compensation.
Mobilink GSM annual report for employee compensation and training.
