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Course No : MBA
Submitted to Dr. Mayenul Islam Course Teacher School of Business (MBA) AUST
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CERTIFICATION
I hereby declare that this assignment report is the result of the independent work carried out by me. I am also certifying that this assignment is my own work in my own words. All sources have been acknowledged and the content has not been previously submitted for assessment to Ahsanullah University of Science & Technology or elsewhere. I also confirm that I have kept a copy of this assignment.
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ACKNOWLEDGMENT
The accomplishment of my report and development of final dissertation was possible with the blessing and guidance of Almighty Allah and those who supported and guided me in the due course. Foremost of all, I would like to express special gratitude to Almighty Allah, who gave me the patience and strength to successfully complete all the stages of this course. The completion of this paper would not have been possible without the support and able guidance of our honorable course teacher Md. Mohiuddin. I would like to express my special gratitude to my colleagues who supported me through sharing my responsibilities to have sufficient time for compilation of my final dissertation.
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PREFACE
True learning is born out of experience and observation practical experienceis one of the best types of leanings that one can remember throughout thelife. Presently, as i am working a well reputed organization Bashundhara Citys Management. I have a close supervision and got chance to see the functioning HRD departments and imbibe a lot learning of the subjects. this report will identify effectiveness of performance appraisal system of employee development at Bashundhara City Development Ltd. It will show how performance appraisal as Bashundhara City Development Ltd. The school of business department Ahsanullah University Of Science And Technology, allow us to prepare assignment of academic curriculum, for the course of Fundament of HR with title of Performance Appraisal on Bashundhara City. All efforts have been made to keep the report free from errors and I hope that the report will prove helpful to all those interested in this field. If one will be benefited with this report my effort will be success.
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TABLE OF CONTENTS
Contents Title Page Certification Acknowledgement Preface Table of contents CHAPTER - 1 Introduction Statement of the Study Objective of the Study Methodology of Study CHAPTER - 2 Literature Review CHAPTER - 3 An overview of the Organization CHAPTER - 4 Result and Findings CHAPTER - 5 Conclusion and Recommendation References
Page No. 01 02 03 04 05
07 07 08 09
11-15
17-36
38
40-41 42
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CHAPTER 1
INTRODUCTION
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INTRODUCTION
Performance appraisal may be defined as a structured formal interaction between a subordinate and supervisor, that usually takes the form of a periodic interview (annual or semi-annual), in which the work performance of the subordinate is examined and discussed, with a view to identifying weaknesses and strengths as well as opportunities for improvement and skills development. In many organizations - but not all - appraisal results are used, either directly or indirectly, to help determine reward outcomes. That is, the appraisal results are used to identify the better performing employees who should get the majority of available merit pay increases, bonuses, and promotions. By the same token, appraisal results are used to identify the poorer performers who may require some form of counseling, or in extreme cases, demotion, dismissal or decreases in pay. (Organizations need to be aware of laws in their country that might restrict their capacity to dismiss employees or decrease pay.) Whether this is an appropriate use of performance appraisal - the assignment and justification of rewards and penalties - is a very uncertain and contentious matter.
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METHODOLOGY OF THE STUDY A number of methods can be used to gather occupational information. Usually a combination of methods is used. Methods are listed below. Internet Research - The Internet has emerged as one of the primary sources of information about occupations. Many career planning websites provide excellent information about occupations or career exploration. A listing and description of the sites can be searched via search engines like Google. Personal Observation - Common sources of information about occupations are friends, relatives, and elders. In addition, people can review and verify their current knowledge of occupations by discussing occupations in a class or with a counselor. Interviews - people can find out about occupations by talking to those who do that type of work. Events such as career fairs give people a chance to gather information about a large number of occupations in the same place. Work Experience Placement - in courses with a work experience component, students can gain firsthand knowledge of occupations by working with employers. Books, pamphlets, and brochures - Career and Employment offices have various sources of hard copy information. Large companies and industry associations also have various sources of printed information about occupations specific to their company or industry.
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CHAPTER 2
LITERATURE REVIEW
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LITRATURE REVIEW
Once the employees has been selected, trained and motivated, he is then apprised for his performance. Performance appraisal is the step where the management finds out how effective it has been hiring and placing employees. If any problem is identified, steps are taken to communicate with the employees and to remedy them. So so a performance appraisal is a process of evaluating an employees performance of a job in terms of its requirement
Several methods and techniques of appraisal are available for measurement of the performance of the employee. The methods and scales differ for obvious reason. First they differ in sources of traits and qualities to be apprised. The quality may differ because of difference in job requirements. Second they differ because of different kinds of workers who are being rated .third the variation may be caused by the degree of precision attempted in an evaluation. Finally they differ because of the method used to obtain weighting for various traits. The performance appraisal method is divided into three categories these are Trait-based method Behavioral method Comparative method Result oriented method The part concerned with me is the comparative methods There are so many methods which are include in comparative method but the most important and most popular are Straight ranking method Grading method Graphing rating method
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Forced choice description method Forced distribution methods Check list method Critical incident method Free from easy method
Straight ranking method It is the oldest and simplest method of performance appraisal, by which the man and his performance are considered as an entity by the rater. No attempted is to made to fractionalize the rate; the whole man compared with the whole man; that is the ranking of a man in a work group is done against that of another. The relative position of each man is tasted in terms of his numerical rank. Limitation- this is the simplest method of separating the most efficient from the least efficient and relatively easy to develop and use. But the greatest limitation of his method is the In practice it is very difficult to compare a single individual with human beings having various behavior traits The method only tell us how a man stands in relation to the others in the group but does not indicate how much better or worse he is than another It is difficult task when large number of person are rated It does not eliminate snap judgment. Grading methodUnder this system, the rater consider certain feature and marks them accordingly to the scale, train categories of worth are first established and carefully defined. The selected feature may be analytical ability, cooperativeness, dependability, self-expression, job knowledge, leadership, etc they may be A-out standing B-very good C-average D-fair E-poor
These are used in the selection of candidates by the public service commission
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Limitation- in this method we cant get the actual performance of the employee. for example if consider that those employee who got 50 to 60 point is in average then the who got 50 point may be de motivated and who got 51 point may be happy with that appraisal . Graphic Rating Method This is the most commonly used method of performance appraisal. Under it a printed form one for each person to be rated. The factors which are including in this method are employee characteristics and employee contribution. In employee characteristics are included are leadership, attitude, enthusiasm, locality creative ability, analytical ability, co-ordination. In the employee contribution are include the quantity and quality of work, the responsibility assumed, specific goal achieved, regularity of attendance. These traits then evaluated on continuous scale where in the rather place a mark somewhere along a continuum LimitationHowever this method also not free from limitation The rating is generally subjective often the rating cluster on the high side when this method is used Another severe limitation is that it assume that each characteristics is equally important for all jobs Forced choice description method it attempts to correct a rater tendency to give consistently high or low rating to all the employees under this method the rating elements are several sets of pair phrases or adjective relating to job proficiency and personal qualification the following statement are illustrative of the type of statement that are used Organize the work well Lacks the ability to make people feel at ease Has a cool even temperament Is punctual and careful Is a hard worker and co-operative LimitationTrained technicians are required prepare sets of series for each occupational group Most of the raters become irritated with the test because they are not being trusted
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The result of evaluation dont prove useful for training purposes because the rater is ignorant of how he is evaluating the individual Forced distribution method This system is used to eliminate or minimize raters bias so that all the personnel may not be placed at the higher end or lower end of the scale. It requires the rater to apprise an employee according to a predetermined distribution scale under this system it is performance and promo ability. For this purpose a five point performance scale is used with out any descriptive statement. Employees are placed between the two extreme good or bad job performances. For ex 10% given to outstanding, 20% given to good and 40% given to satisfactory. LimitationThis method use in wage administration leads to low morale and low productive
Checklist method Under this method the rater does not evaluate employee performance; he supplies report about it and the final rating is done by personnel department. A series of question are presented concerning an employee to his behavior. The rater then checks to indicate if the answer to a question about an employee is positive or negative. The value of each question may be weighed equally or certain question may be weighed more heavily then others. ExampleIs the employee really interested in job? Is he regular on his job? Is he equipment maintain in order? Does he ever make mistake? Does he follow instruction properly? LimitationThis method suffers from bias on the part of the rater because he can distinguish positive or negative question
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Process can be expensive and time consuming Separate checklist must be developed Free essay method Under this method the supervisor makes a free form, open ended appraisal of an employee in his own words and put down its impression about the employee. He takes note of these factors Relation with fellow supervisor General organization and planning ability Job knowledge and potential Employee characteristics and attitude Production, quality, and cost control Physical condition and Development needs LimitationIt contains a subjective evaluation of the reported behavior of an individual may effect such employment decision as promotion, lay-off. Etc. Some appraisal may not write a descriptive report The appraisal may be loaded with flowery language about the quality of rate then the actual evaluation Critical incident method The essence of this system is that it attempts to measure workers performance in terms of certain events and episode that occur in the performance rates job. These events are known as critical incident method. The supervisor keeps a written record of the event that can easily recalled and used at the time of performance appraisal
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CHAPTER 3
AN OVERVIEW OF THE ORGANIZATION
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Interpersonal Relationships
Organizational Skills
Initiative
Communication Skills
Adherence to The extent to which an employee supports and adheres to the Quality and Safety organizational policies and values. Demonstrates awareness of and Standards complies with safety regulations and quality standards. Instrumental in creating a safe and healthy work environment for all, and promotes high quality of workmanship within the organization.
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COMPETENCY
Leadership
DEFINITION
The extent to which an employee can demonstrate depth and scope of job knowledge in the performance of organizational objectives, deliver measurable results of organizational enterprise KPIs; demonstrate in action the ability to lead by inspiring, motivating, and generate enthusiasm in people (high morale), engaging people through sharing the organizational vision, setting strategic direction, and leading by example while creating a collaborative and supportive work environment; delegates and direct effectively, shows respect, confidence, and trust in others; uncompromising personal integrity and high moral courage. The extent to which an employee demonstrates proper judgment, decision-making, and problem solving skills; gathers, analyzes and evaluates information for effective decisions. Demonstrates an ability to make decisions under conditions of risk and follows through (clear thinker). Draws appropriate logical conclusions from relevant data, solves short & long-term problems by generating alternative solutions and contingency plans. The extent to which an employee demonstrates the ability to deliver goals through the effective deployment and use of all available resources including people, processes and technology; always looking for opportunities to maximize efficiency, quality and cost.
Resource Management
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Manager Sample :
To be completed by all heads/ managers for each employee after the Annual Performance Review meeting. Use the Annual Performance Review Discussion Notes Form to record key comments and evidence. Employee Details Name Department / Section Employee ID Salary Scale Code Position Title Joining Date Duration in Current Role Line Manager
Date of Annual Review Annual Performance Review (1) Key Achievements (Jan - Dec 2010) 20%
Objective
0%
0%
0%
0%
0%
(3A) Competencies Overall Performance Rating Employees (10%) Rate the employee against each indivdial competency to calculate a average rating for all. Competency Reliability Interpersonal Relationship Organizational Skills Initiative Communication Skills Adherence to Quality and Safety Standards AVERAGE COMPETENCY RATING 3A: (3B) Competencies Overall Performance Rating Managers (10%)
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Rate the heads/ managers against each indivdial Competency to calculate an average rating for all. Leadership Decision Making and Problem Solving Resource Management AVERAGE COMPETENCY RATING 3B: Overall Performance Category (1) Rating of Performance Achieved (20%) (2) Rating against Agreed Objectives (70%) (3) Overall Competency Rating (10%) *The Overall Performance Rating is: The Overall Performance Category is: 100 - 80 Top 79 - 60 Performer Highly Valued
*This overal category is calculated as an average of (Rating 1 x 20%)+ (Rating 2 X 70%) + (Rating 3 X 10%) Reviewers Comments:
Signature:
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Employee Sample
To be completed by all heads/ managers for each employee after the Annual Performance Review meeting. Use the Annual Performance Review Discussion Notes Form to record key comments and evidence. Employee Details Name Department / Section Employee ID Salary Scale Code Position Title Joining Date Duration in Current Role Line Manager
Date of Annual Review Annual Performance Review (1) Key Achievements (Jan - Dec 2010) 20%
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Objective
Measure
0%
0%
0%
0%
0%
(3A) Competencies Overall Performance Rating Employees (10%) Rate the employee against each indivdial competency to calculate a average rating for all. Competency Reliability Interpersonal Relationship Organizational Skills Initiative
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Communication Skills Adherence to Quality and Safety Standards AVERAGE COMPETENCY RATING 3A: (3B) Competencies Overall Performance Rating Managers (10%) Rate the heads/ managers against each indivdial Competency to calculate an average rating for all. Leadership Decision Making and Problem Solving Resource Management AVERAGE COMPETENCY RATING 3B: Overall Performance Category (1) Rating of Performance Achieved (20%) (2) Rating against Agreed Objectives (70%) (3) Overall Competency Rating (10%) *The Overall Performance Rating is: The Overall Performance Category is: 100 - 80 Top Performer 79 - 60 Highly Valued 59 - 40 Valued
*This overal category is calculated as an average of (Rating 1 x 20%)+ (Rating 2 X 70%) + (Rating 3 X 10%) Reviewers Comments:
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Signature:
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Use this form during the meeting to record your individual annual performance review discussion notes with your team member. Record the key discussion points with comments and evidence of performance for each of the 3 areas highlighted. Complete the Annual Performance Review Summary Form after the annual review meeting to record individual ratings once you have reflected on the individual performance and the evidence gathered from the meeting.
NAME:
___________________________________________
DEPT:
___________________________________________
REVIEW DATE:
___________
1) KEY ACHIEVEMENTS (For Jan Dec 2010) Comments and evidence on areas of achievement:
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Objective(s):
Measure(s):
Target(s):
Development Needs:
Action:
Plan:
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Objective 2
Weighting %
Measure
Target Achieved
Objective 3
Weighting %
Measure
Target Achieved
Objective 4
Weighting %
Measure
Target Achieved
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Evidence:
Interpersonal Relationship:
Evidence:
Organizational Skills:
Evidence:
Initiative:
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Evidence:
Communication Skills:
Evidence:
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Leadership:
Evidence:
Evidence:
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Resource Management:
Evidence:
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Phase 1: Performance Planning. At the beginning of the year, the manager and individual get together for a performance-planning meeting. In this hour-long session they discuss what the person will achieve over the next twelve months (the key responsibilities of the persons job and the goals and projects the person will work on) and how the person will do the job (the behaviors and competencies the organization expects of its members). They typically also discuss the individuals development plans. Phase 2: Performance Execution. Over the course of the year the employee works to achieve the goals, objectives, and key responsibilities of the job. The manager provides coaching and feedback to the individual to increase the probability of success. He creates the conditions that motivate and resolves any performance problems that arise. Midway through the year perhaps even more frequentlythey meet to review the individuals performance thus far against the plans and goals that they discussed in the performance-planning meeting. Phase 3: Performance Assessment. As the time for the formal performance appraisal nears, the manager reflects on how well the subordinate has performed over the course of the year, assembles the various forms and paperwork that the organization provides to make this assessment, and fills them out. The manager may also recommend a change in the individuals compensation based on the quality of the individuals work. The completed assessment form is usually reviewed and approved by the appraisers boss. Othersperhaps the department head or the compensation managermay also review and approve the assessment. Phase 4: Performance Review. The manager and the subordinate meet, usually for about an hour. They review the appraisal form that the manager has written and talk about how well the person performed over the past twelve months. At the end of the review meeting they set a date to meet again to hold a performance-planning discussion for the next twelve months, at which point the performance management process starts a new. Of course there may be many individual variations on the basic theme, but most sophisticated companies generally follow this four phase process. Figure 1-1 illustrates the basic four-phase process.
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CHAPTER 4
RESULT AND FINDINGS
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CHAPTER 5
RECOMMENDATION & CONCLUSION
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RECOMMENDATIONS:
1. The performance appraisal process is not ready for scale-up. Currently, the process faces too many constraints to be expanded and should be revised and more successfully applied before scale-up is considered. The study team recommends that implementation plans and systems be developed for a new phase of the SPA system. As part of this new phase, forms should be revised and field tested (this field test should be simple, rapid and discrete). A TOT program and materials should also be developed and a phased training program that includes regions, district/hospitals, and sub-districts should be created. All efforts should be made so that resource materials are developed and disseminated and training completed before the end of 2006 so that the revised SPA system can be implemented in 2007. 2. In order to be effective, commitment and support for the SPA process is required from HRDD. Staff in regions testing out the GHS SPA process should be able to present the revised forms when applying for promotion. HRDD management should also provide support for the implementation of the PA process. Performance Appraisal Evaluation Report 15 3. The performance appraisal system should be fully integrated into existing management systems and processes. In order to be successful, performance appraisal activities, especially while in pilot phase, should be integrated into Central, Regional, District and facility action plans. 4. To ensure the sustainability of the process, training should be integrated into routine quarterly meetings held between regions and district/hospital staff and districts and facility staff. This will help reduce costs and establish a sustainable forum for building capacity in performance appraisal. Systems should also be developed so that in-service training coordinators at the region obtain information on training needs from staff performance appraisals (perhaps off the summary forms) and can integrate these needs into regional training plans. 5. Similarly supervision of performance appraisal should be integrated into existing supervisory systems and supervisors should be trained in what and how to supervise with regard to performance appraisal. 6. Thought should also be given to linking the SPA process to other related HR systems and processes, namely, quality assurance systems, performance-based reward programs, staff promotion and advancement, and training. As it exists, SPA has been tied into the promotion system, but its relationships to other systems remains weak. The Ministry of Health and GHS have strategic objectives related to QA, and performance-based rewards and an effort should be made to understand plans and developments in these areas to make effective links between these processes.
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CONCLUSION
Performance appraisal systems are not, as many critics say, useless and evil. When paying attention to careful PAS planning and proper techniques used, performance appraisal might be perceived not only as an irreplaceable tool for recognizing and rewarding good performance and correcting poor performance, but mainly as a way how to maintain long-term development within an organization. During a research carried out when preparing this work, an author found a big variety of views on performance appraisal and all of its aspects. Often, opinions were completely opposed. That gives evidence, that, in contrast to other management topics, performance appraisal as whole is very hard to do right, since there are not many right solutions that would have no opponents. There are several things, however, that should be kept in mind when preparing and doing performance appraisal. Appropriate technique should be always used; performance appraisal should be done as a running on daily basis, rather than annual reports. Human Resources department and appraisers should consider performance appraisal mainly as a means for development and motivation, not only a guideline for remuneration and promotion / demotion. He also found that there is a link between performance appraisal and employee attitudes and behaviors. In previous pages, several examples of effects of performance appraisal on attitudes are said. In articles, an author noticed global efforts to make changes in approaches to performance appraisal towards developmental and motivational uses.
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REFERENCES
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