EXECUTIVE SUMMARY

As a part of the requirement of completion of BBA, this report summarizes the

internship period of the incumbent in Berger Paints Bangladesh Ltd. - one of the most
prestigious multinational companies of the country. It has been operating in Bangladesh
market since 1950 and has been the market leader with the lions share of the market for
a considerably long period of time.
This report tries to focus on the brief orientation on the organization and the Human
Resource strategies of the organization. The company has well established and practiced
HR policies those focus on improvement of the organizational culture, development of
employees and maintaining a healthy relationship within the whole organization.
Berger Paints Bangladesh Limited is not a very large organization in terms of employees.
Up until May 2007 there are 341 approved permanent positions. The Human Resource &
Administration Department headed by Manager HR & Admin is responsible for the
selection, recruitment; training, developing all of them. Moreover, it is also accountable
for providing various benefits & rewards, taking health & safety measure, maintaining
good relationship with the union, taking disciplinary actions if necessary and many
more. And one of the most crucial tasks of the HR department is to evaluate each and
every employee depending on their performance for a certain period of time and
appraise them accordingly with some indications of improvement needs.
Any organization requires consistent levels of high performance from its employees in
order to survive in a highly competitive environment. And Performance appraisal is the
tool to measure this attribute. It helps an organization to exactly point out its strengths
and weaknesses regarding its human capital and makes clear where to make
improvement. It also plays a key role in the reward system.
Various Appraisal methods are in used in practice through out the world. Some of the
most common methods are Behavioral Rating Scales, Critical Incident Technique,
Management by Objectives, Graphic Rating Scale etc.

There exist some controversies as to what should be the main reason for conducting
Performance Appraisal. Some researchers are completely against it where some mention
it as potentially "... the most crucial aspect of organizational life. However, it is more or
less acknowledged by industrial scientists & psychologists that Performance Appraisal is
actually an important integrated aspect for an organization.
In Berger Paints Bangladesh Limited the performance of employees are evaluated in
three different forms, i.e. the workers & staffs, the mid & entry level management
members and the senior management members. In fact, all the management members
are being appraised on the same parameters. BPBL mainly follows the Management by
Objectives method where the appraisee and appraiser sit together at the beginning of a
year to set the Key Result Areas (KRAs) for the appraisee upon mutual agreement. And
at the end of the year, the employee is evaluated on his/her achievement relating to the
pre determined KRAs. If the employee needs any sort of developmental activities for
further improvement, that is also revealed here.
While conducting a study on this existing appraisal process, some inconsistency and
lacking with standard practices had been observed. A multiple regression model has
been built to express the relationship between different factors affecting & determining
performance and the finally assessed performance. A random sample of 50 PPAD forms
had been used for this purpose. Out of the nine managerial competencies upon which an
employee is usually evaluated, two (namely People Leadership, Rational Decision
Making) factors were proved to have negative relationship with overall Performance,
which is hypothetically not supported. One possible reason behind this may be the
appraisers inability to relate the individual criteria and their respective weightages with
the final Performance evaluation. In order to improve/ recover this inconsistency, the
appraisers should be given proper training and orientation about the up to date
appraisal practices of the modern world.
Some expert opinions were also collected regarding the present appraisal process of
BPBL and how to improve them. Depending on these and some more theoretical aspects,
a slightly refined performance appraisal form had been proposed in this report. It is
expected that, with such modified & improved appraisal system, Berger will be able to
continue its position as the employer of choice and retain its image as a caring
organization towards its employees.