Mahedi Hassan Term Paper

7/25/2019 Mahedi Hassan Term Paper

1/48

Term Paper Proposal

On

Performance Appraisal System of Square Toiletries Ltd

Submitted To:

Md. Zafar AliAssociate Management Counselor

MBA (Management)

Bangladesh Institute of Management (BIM), ha!a"#$%&

Submitted By:Md' Mahedi assan

oll* #+%$

Program* P- I. M

Batch* P-M /0/.I.- #

BANGLADESH INSTITUTE OF MANAGEMENT (BIM)

Date of Submission: 3rdNovember 201

!ntrodu"tion:


2/48

Performance appraisal is a method of e1aluating the 2eha1ior of emplo3ees in the 4or! spot,

normall3 including 2oth the 5uantitati1e and 5ualitati1e aspects of 6o2 performance'

Performance here refers to the degree of accomplishment of the tas!s that ma!e up an

indi1idual7s 6o2' It indicates ho4 4ell an indi1idual is fulfilling the 6o2 demands' Often the

term is confused 4ith effort, 2ut demands' Often the term is confused 4ith effort, 2ut

performance is al4a3s measured in terms of results and not efforts'

Performance appraisal is the s3stematic description of an emplo3ee7s 6o2 rele1ant

strengths and 4ea!nesses'

The 2asic purpose is to find out ho4 4ell the emplo3ee is performing the 6o2 and

esta2lish a plan of impro1ement'

Appraisals are arranged periodicall3 according to a definite plan'

Performance appraisal is not a 6o2 e1aluation' Performance appraisal refers to ho4

4ell someone is doing the assigned 6o2' 8o2 e1aluation determines ho4 much a 6o2 is

4orth to the organi9ation and, therefore, 4hat range of pa3 should 2e assigned to 6o2'

Performance appraisal is a continuous process in e1er3 large scale organi9ation'

Ba"#$round:

This stud3 is conducted to !no4 a2out the different functions of performance appraisal

s3stem of the :5uare toiletries ltd' Around ;%%% emplo3ees 4or! here, so I tr3 to ho4 M

department in the s5uare toiletries ltd e1aluate their emplo3ees performance' I tr3 to find out

4hat t3pe of performance appraisal s3stem acti1e in s5uare toiletries ltd' Performance

Appraisal has 2een considered as the most significant tool for an organi9ation' A critical

factor related to an organi9ation7s long"term success is its a2ilit3 to measure ho4 4ell

emplo3ees perform and then use that information to ensure that performance meets present

standards and impro1es o1er time' This process is referred to as performance appraisal or

performance e1aluation' It can also 2e defined as the process 23 4hich an emplo3ee7s

contri2ution to the organi9ation during a specified period of time is assessed' If used

effecti1el3, it can impro1e emplo3ee moti1ation and performance' Performance appraisal is a

formal s3stem that e1aluates the 5ualit3 of a 4or!er7s performance' An appraisal s3stem is an

important process that lin!s*

Organi9ational o26ecti1es


3/48

a3"to"da3 performance

Professional de1elopment

e4ards and incenti1es

%b&e"tives of t'e Study:

(rimary %b&e"tives

The primar3 o26ecti1e is to !no4 o1erall (erforman"e A))raisal System of S*uare

Toiletries +td.

Se"ondary %b&e"tive

To create and maintain a satisfactor3 le1el of performance'

To contri2ute to the emplo3ee7s gro4th and de1elopment'

To ensure continuous ran!ing 2ased on performance'

To facilitate fair and e5uita2le compensation 2ased on Performance'

To ensure organi9ational effecti1eness through emplo3ees standard and impro1ed

performance'

Met'odolo$y of t'e ,e)ort:

In order to ma!e the report more meaningful and presenta2le, t4o sources of data and

information ha1e 2een used 4idel3'

ata :ources

Primar3 :ources :econdar3 :ources

T'e -(rimary Sour"es are as follo/s:


4/48

T'e -Se"ondary Sour"es are as follo/s

Periodicals Pu2lished (Internal)

Internet 4as also used as a theoretical source of information'

?e2sites

Sam)le Sie:

Management of the companies* It includes the 1ie4 of the personnel 4ho are in1ol1ed in the

performance appraisal@

/mplo3ees of the companies* The general emplo3ees 4ho had undergone some performance

appraisal'I ha1e ta!es $% indi1idual as a sample si9e'

Data analysis:

The 5uantitati1e data anal3sis of the research from 5uestionnaire placed among different

positions of the emplo3ees' After data is prepared and entered into the computer, data must 2e

e>plored and comprehend through diagrammatic presentation'

or# (lan:

AT!!T!4S 1st

/ee#

2nd

/ee#

3rd

/ee#

5t'

/ee#

t'

/ee#

6t'

/ee#+iterature ,evie/Develo)Met'odolo$yonstru"t

7uestionnaireData olle"tionData Analysis,e)ort ritin$(a)er Submission8 (resentation


5/48

$#th8anuar3, $%#

Md' afar Ali

Associate Management Counselor

MBA (Management)

Bangladesh Institute of Management (BIM), ha!a"#$%&

:u26ect* Submission of !nterns'i) ,e)ort

:ir,

It is a pleasure for me to su2mit 3ou m3 term paper titled Performance Appraisal :3stem of

:5uare Toiletries td' I ha1e tried m3 le1el 2est to fulfill all m3 re5uirements of this course

and tried to follo4 m3 super1isor7s instructions 4hile preparing this report' This report ga1e

me the opportunit3 to appl3 theoretical !no4ledge in practical field, 4hich I hope, 4ould

help me in m3 future career'

It 4ould 2e a profound pleasure for me if the report can sa1e its purpose' I 4ould 2e a1aila2le

in an3 time to e>plain 3ou an3 5ueries if 3ou feel necessar3 and I 4ill 2e glad to respond to

them'

:incerel3 ours

M' Mahedi assan

I"#+%$

Batch"/1ening"#

Program D P-M

+etter of Transmittal


6/48

I 4ould li!e to e>press m3 gratitude to all the people that are in1ol1e 2oth in directl3 and

indirectl3 in the preparation of this report' I apologi9e those people 4hose names that I ha1e

not mentioned and their contri2ution'

At the 2eginning of this report I 4ould li!e to than! m3 academic super1isor Md' afar Ali,

Associate Management Counselor, BIMD for guiding me and for gi1ing me the opportunit3 to

prepare this report' More speciall3, I 4ould li!e to than! for him for imparting his time and

4isdom'

A"#no/led$ement


7/48

I declare that the eport prepared on Performance Appraisal System of Square Toiletries

Ltd, 23 me is a part of P-M, BIM' It is m3 o4n 4or!, under the super1ision, Md'

afar Ali, Associate Management Counselor, BIM'

I further affirm that the 4or! reported in this report is original and no part or 4hole has 2een

su2mitted to an3 4here for an3 purpose'

:incerel3,

M' Mahedi assan

I"#+%$Batch"/1ening"#

Program D P-M

De"laration


8/48

This report is part of the uman esource Management Course re5uirement of this program'

M report portra3s the process of performance appraisal :3stem of :5uare Toiletries td'

?e too! help from the emplo3ees of the :5uare Pharmaceuticals Compan3 td' and

discussed 4ith them a2out their performance and appraisal management s3stem and other

things also'

Performance management is the s3stematic process 23 4hich an agenc3 in1ol1es its

emplo3ees, as indi1iduals and mem2ers of a group, in impro1ing organi9ational effecti1eness

in the accomplishment of agenc3 mission and goals' Process of performance appraisal is the

setting up of the standards 4hich 4ill 2e used to as the 2ase to compare the actual

performance of the emplo3ees'

:5uare Toiletries td Compan3 al4a3s measure their staffs, department and performance2eha1ior also' The3 create their performance management and appraisal s3stem in a planned

4a3'


9/48

Table of ontents

'a)ter ontent (a$e number

etter of transmittal

Ac!no4ledgement

eclaration

/>ecuti1e :ummar3

'a)ter9 1Introduction

'a)ter92Profile of :5uare Toiletries td'

Corporate Mission

0ision

Organ gram

:?OT Anal3sis

'a)ter93

Origin of the report

Bac!ground of the eport

:cope of the eport

O26ecti1es of the eport

Methodolog3 of the eport

imitations of the eport

Performance appraisal

:teps in Appraising Performance

Appraisal Methods

'a)ter95

=indings*

ecommendation

Conclusion

eferences


10/48

!ntrodu"tion

:5uare Toiletries td' is the leading Toiletries E Cosmetics Manufacturing Compan3 in

Bangladesh@ pro1iding 1alue added products and ser1ices to 2ring 5ualit3 in life' :T

2elie1es e5ual emplo3ment opportunit3 for all and thus compan3 is committed to achie1e

5ualit3 o26ecti1e through continuous Performance Appraisal' The compan3 is 4holeheartedl3

fostering the 2est human resource practices in Bangladesh' It is maintaining a good congenial

4or!ing atmosphere for 2oth of its male and female emplo3ees' In :5uare Toiletries td', as

per 6o2 specification emplo3ees are appointed through a competiti1e recruitment process'

/1er3 emplo3ee is ha1ing their o4n 6o2 description 4hich ma!es them more responsi2le and

accounta2le to the management' Performance is the ma6or criteria for career progression'

:5uare is one of the fe4 emplo3ers in the countr3, 4ho encourages 4omen to appl3 and 6oin'


11/48

The compan3 is constantl3 focusing emplo3ee moti1ation in its 6ourne3 to4ards e1en more

health3 emplo3ee and emplo3er relationship' '

:5uare is maintaining a health3 trac! record of lo4est emplo3ee turno1er rate among the

industr3 4hich is a reflection of emplo3ee satisfaction and moti1ation' The Management is

1er3 !een to determine the areas for impro1ement in polic3, compensation strategies and

emplo3ee satisfaction to achie1e optimal emplo3ee7s retention rates' ?or!ing for 3ears in

:5uare creates a sense of 2elongingness among its proud emplo3ees' :5uare ensures a sound

career prospect through continuous training and de1elopment for its emplo3ees' The

management and staff anal39e the methods for identif3ing training needs and arrange training

to emplo3ees accordingl3' Ample opportunities lie for the emplo3ees to groom themsel1es up

and shoulder greater responsi2ilities' Management and emplo3ees use effecti1e

communication s3stem and pro2lem sol1ing s!ills necessar3 for conflict resolution,

neutralit3, acti1e listening, asserti1eness, anal3sis of factors leading to conflict, negotiation of

solution' :uccess of :5uare lies in its prime focus on health3 emplo3ee and emplo3er

relationship'

S*uare Toiletries

T3pe* Pri1atel3 eld

Compan3 :i9e* ;%%% emplo3ees?e2site* http*FF444's5uaretoiletries'com

Industr3* Consumer -oods

=ounded* #GGH

Managing irector* An6an Cho4dhur3 Pintu

ead5uarters* upa3an Centre (##th E #$th floor), &$ Moha!hali CFA, ha!a"#$#$,

Bangladesh

Tel* JJ%"$"GJH#+;#"H% =a>* JJ%"$"GJ+;H$
http://www.squaretoiletries.com/http://www.squaretoiletries.com/


12/48

:5uare Toiletries td' is one of the largest and leading =MC- Compan3 in Bangladesh 4ith a

turno1er of K: &+ million' The compan3 is mar!eting $% Brands in different segments li!e

health E h3giene, oral care, hair care, fa2ric care etc' Ma6or Brands of the compan3 are 8ui,

Cha!a, :enora, Magic, Meril Protecti1e Care E Meril Ba23' :5uare is also e>porting its

finished products to #; countries" KA/, -erman3, KL, Australia, Mala3sia etc'

As ni*ue As ;ou

?e 2elong to a uni5ue nationalit3' In our e1er3 footstep " from our inimita2le histor3 of

cultural heritage to our lo1e for mother dialect to our glorious freedom fight to our 2eautiful

flora and fauna D 4e are onl3 one of its classes' This unmatcha2le feature of us is also acutel3

rooted to e1er3 one of us in our indi1idual affinit3, enthusiasm, needs, dreams and hopes' At

:T 4e 2elie1e in the importance of uni5ueness 2oth at indi1idual and national le1el' Being a

part of the most admired local conglomerate of Bangladesh " :5uare -roup, 4e ha1e gained

the e>pertise and upheld som2er eagerness in fulfilling 3our e>pectations 4ith our 5ualit3product ranges through utmost sincerit3' ?e consider 3ou as uni5ue in terms of 3our needs,

and to satisf3 that 4e ha1e pooled a uni5ue team of dedicated emplo3ee and sta!eholder'

Onl3 for 3ou 4e are relentlessl3 stri1ing to 2e as uni5ue as 3ou'

S)e"ialties

Manufacturer of different cosmetic and toiletries product categories, Cosmetic Contract

Manufacturing E Pac!aging, Mar!eter of different cosmetic and toiletries product categories'

%ur Brands


13/48

Ma$i"

>ool

?)el

S)rin$

Se)nil

Zero"al

Sele"t (lus

S#a#ti

Saaf

Madina

ision

0ision ?e attempt to understand the uni5ue needs of the consumer and translate that needs

into products 4hich satisfies them in the form of 5ualit3 products, high le1el of ser1ice and

afforda2le price range in a uni5ue 4a3'

Mission To treasure consumer understanding as one of our most 1alued assets and there23

e>erting e1er3 effort to understand consumersN d3namic re5uirements to ena2le us inoffering ma>imum satisfaction'

To offer consumer products at afforda2le price 23 strictl3 maintaining

uncompromising stance 4ith 5ualit3' ?ith continuous E and inno1ation 4e stri1e

to ma!e our products compl3ing 4ith international 5ualit3 standards'

To maintain a congenial 4or!ing en1ironment to 2uild and de1elop the core asset of

:T D its people' As 4ell as to pursue for high le1el of emplo3ee moti1ation and

satisfaction'

To sincerel3 uphold the responsi2ilit3 to4ards the go1ernment and societ3 4ith

utmost ethical standards as 4ell as ma!e e1er3 effort for a social order de1oid of

malpractices, anti"en1ironmental 2eha1iors, unethical and corrupti1e dealings'

@erita$e :


14/48

in #G+J, 4hen :5uare Pharmaceuticals td, the flagship compan3 of :5uare -roup,

4as esta2lished' Toda3 :5uare -roup has 2urgeoned into one of the top"line esteemed

conglomerates in Bangladesh'

:5uare Toiletries td' started its 6ourne3 in #GJJ 4ith a single product as a separate

di1ision of :5uare Pharmaceuticals'

In #GGH, :5uare Toiletries td' 2ecame a Pri1ate td' Compan3'

At present, :T is the countr3Ns leading manufacturer of international 5ualit3

cosmetics and toiletries 4ith $% 2rands and more than ++ products co1ering a 4ide

range of categories li!e s!in care, hair care, oral care, 2a23 care, fa2ric care, scourers,

male grooming and OTC'

Besides core 2usiness functions :T has long 2een ta!ing acti1e part in different

philanthropic acti1ities li!e emplo3ment generation program for 1ulnera2lecommunit3, financial aid to disad1antaged and natural disaster affected people,

helping acid 1ictims, tree plantation, creating mass a4areness on health and h3giene

issues, supporting in education and 1arious local communit3 programs and man3

more'

or)orate overnan"e

Board of irectors a ecuti1e Management' /1er3 month co"ordination meeting is held congregating allthe department heads to discuss priorit3 issues and sol1e pro2lems, if an3'

/>ecuti1e Management the />ecuti1e Management is headed 23 the Managing irector, the

Chief />ecuti1e Officer (C/O) 4ho has 2een delegated necessar3 and ade5uate authorit3 23

the Board of irectors' The />ecuti1e Management operates through further delegations of

authorit3 at e1er3 echelon of the line management' The />ecuti1e Management is responsi2le

for preparation of segment plansFsu2"segment plans for e1er3 profit centers 4ith 2udgetar3

targets for e1er3 item of goods and ser1ices and is held accounta2le for deficiencies 4ith

appreciation for e>ceptional performance' These operations are carried out 23 the />ecuti1e

Management through series of team"2ound initiati1es'

alues 8 (rin"i)les

?ell 2eing of consumer, emplo3ee and societ3 are the three foundation pillars of the 1alues

and principles of :5uare Toiletries td' :5uare Toiletries td' 2elie1es that it is theiro2ligation to 4or! for the 4elfare of societ3' In spite of 2eing a commercial organi9ation :T


15/48

doesnNt al4a3s opt for profit, rather it tries to 2e e1en more focused to4ards the fulfillment of

its commitments to societ3 and hence has an intense sense of responsi2ilit3 to its customer,

its people and its societ3 as a 4hole' =rom the da3 to da3 2usiness operation to 5ualit3 polic3,

in e1er3 single acti1it3 of :T these core 1alues and principals are reflected'

7uality (oli"y edicated to ma!e e1er3 effort to understand consumer needs to pro1ide

ma>imum satisfaction and to achie1e mar!et leadership'

:tri1e to continuousl3 upgrade manufacturing technolog3 and to maintain

optimum le1el of 5ualit3 measures in conformit3 4ith the international standard D

I:O G%%#* $%%J'

Committed to achie1e 5ualit3 o26ecti1e through continuous emplo3ee training and

maintaining congenial 4or!ing en1ironment'

%ur (eo)le

:T has 2een 2uilt around one core asset, and it is its people' That is 4hat ma!es 4or!ing so

special here' :T 2elie1es that 4or! is more than a place 3ou go e1er3 da3' It should 2e a

place of e>ploration, professional gro4th and creati1it3' ItNs a2out 2eing inspired and

moti1ated to achie1e e>traordinar3 things' :T 4ants its people to ta!e pride in their 4or!'

After all, itNs the com2ined talents, s!ills, !no4ledge, e>perience and passion of our peoplethat ma!e us 4ho 4e are'


16/48

Currentl3 :T is emplo3ing o1er ;,%%% emplo3ees ensuring their consistent 4elfare and

securit3' ue to its socia2le 4or!ing en1ironment and highl3 moti1ated emplo3ee, :T is

en6o3ing one of the lo4est emplo3ee turno1er rates' :T emphasi9es on e5ual emplo3ment

opportunit3 resulting in ;J 4omen emplo3ees' Besides, :T also pro1ides emplo3ment

opportunit3 to ph3sicall3 challenges persons'

Manufa"turin$ nit

:5uare Toiletries td' s3m2oli9es inno1ation' :T is the pioneer for 2ringing in ne4 products

and pac!aging concepts in Bangladesh' Currentl3, :T is carr3ing out its production in its

t4o full3 automated plants at upshi and Pa2na'

?ith our state"of"the"art production facilities, most ad1anced e5uipment, and high 5ualit3

ra4 materials, 4e ensure the a2solute 2est for our customers' epending on the nature of

products, formulation, and pac!aging, :T has product specific machiner3' A group of 4ell"trained people al4a3s ensures the smooth operations of all machiner3' Imported from 1arious

foreign suppliers, the 2est 5ualit3 ra4 materials are used for all :T products' /ach phase of

the production process undergoes rigorous testing to meet international standards, follo4ing

the -MP (-ood Manufacturing Practice) of production'

:5uare Toiletries td' has a strong E department 4hich is committed to4ards de1eloping

ne4 products and impro1ing e>isting products' The international standard products of :5uare

Toiletries td' meet the needs of Bangladeshi people as 4ell as the people a2road' The

o26ecti1es of E are D

A deep understanding of consumers, their ha2its, and product needs'

Capa2ilities to ac5uire, de1elop, and appl3 technolog3 across :TNs 2road arra3 of

product categories'

The a2ilit3 to ma!e connections 2et4een consumersN 4ants and 4hat technolog3

can deli1er'

Our Partners

All the $% 2rands 4e are manufacturing E mar!eting are de1eloped 23 E

department of :5uare Toiletries td' 4ith the sole focus to satisf3 the needs of our

customer' In our pursuit to consistentl3 deli1er 5ualit3 products to our consumer

4e ha1e also de1eloped technical partnership 4ith the follo4ing companies D

-erman3, Mala3sia, :ingapore, KL, K:A

'ere /e are rea"'in$

:5uare Toiletries td' is one of the fe4 Bangladeshi companies that is successfull3 e>porting

its products in foreign countries' Besides ser1ing the people of Bangladesh, :T is e>portingits products in "


17/48

nited >in$dom

ermany

Australia

Malaysia

Myanmar

!ndia

B'utan

nited Arab 4mirate

Sout' Afri"a

Ba'rain

7atar

>u/ait

Sin$a)ore


18/48

%r$an $ram:

GM

DGM

AGM

Sr. Manager

Assist. Manager

Manager

Sr. Executive

Executive

r. Executive

r. O!cer

O!cer

Sr."!cer


19/48

S%T Analysis

%))ortunities:

In recent 3ears male consumers are sho4ing more interest in s!in care and the3 aredemanding more products appropriate for men s!in t3pe'

As no gents 2od3 soap is a1aila2le in the mar!et produced 23 the toiletries companies

of Bangladesh, e>cept some imported foreign gents soaps those are too much high in

price, so Lool Bod3 :oap 4ill 2e !no4n as the =irst local 2od3 soap onl3 made for

men and :T 4ill ha1e a great chance to do monopol3 2usiness in this segment'

a4 materialsare easil3 a1aila2le in the current mar!et (such as* Ba3 of Bengal is

the largest source for the ingredients of :ea mineral soap)'

T'reats

The main threats that Lool Bod3 :oap ma3 ha1e* Other competitors ma3 introduce

ne4 2od3 soap for men 4ith different fragrances and high 5ualit3'

/>isting 2eaut3 soaps (such as* u>) or imported foreign soaps for men ma3 distur2

the gro4th rate of this ne4 product'

Consumers ma3 ha1e the dou2t a2out the 5ualit3 of this ne4 product'

Stren$t's

:5uare Toiletries td' occupies one of the largest manufacturing facilities 4ith 4orld

class technolog3 than other local toiletries companies (such as* automated plants in

upshi and Pa2na')

:5uare Toiletries imited (:T) is an I:O G%%#* $%%% certified Compan3'

argest local ToiletriesE Cosmetics Compan3'


20/48

specific competitor' An3 ma6or attac!s ma3 come from an3 potential competitor' :o

:5uare has the lac! of information a2out its potential competitors'

%ri$in of t'e ,e)ort:

The Term paper is entitled (erforman"e A))raisal System of S*uare Toiletries +td.C has

2een prepared as a partial fulfillment of P-M program authori9ed 23 BIM'

Ba"#$round of t'e ,e)ort:

After completing m3 # 3ear P-M, I re5uired to do Term paper 2ased on an3 reputedorgani9ation 4hich 4ould 2e helpful for m3 future professional career' I got the opportunit3

to perform in :5uare Toiletries td'

S"o)e of t'e ,e)ort:

This term paper has 2een prepared through e>tensi1e discussion 4ith m3 colleagues and 4ith

the clients' ?hile preparing this term paper, I had a great opportunit3 to ha1e an in depth

!no4ledge a2out Performance Appraisal s3stem' It also helped me to ac5uire a fast hand

perspecti1e of a leading pri1ate Compan3 in Bangladesh'

%b&e"tives of t'e Study:

(rimary %b&e"tives

The primar3 o26ecti1e is to !no4 o1erall (erforman"e A))raisal System of S*uare

Toiletries +td.

Se"ondary %b&e"tive To create and maintain a satisfactor3 le1el of performance'

To contri2ute to the emplo3ee7s gro4th and de1elopment'

To ensure continuous ran!ing 2ased on performance'

To facilitate fair and e5uita2le compensation 2ased on Performance'

To ensure organi9ational effecti1eness through emplo3ees standard and impro1ed

performance'


21/48

Met'odolo$y of t'e ,e)ort:

In order to ma!e the report more meaningful and presenta2le, t4o sources of data and

information ha1e 2een used 4idel3'

ata :ources

Primar3 :ources :econdar3 :ources

T'e -(rimary Sour"es are as follo/s:


22/48

ac! of opportunit3 to 1isit more emplo3ees'

(erforman"e A))raisal

PA means e1aluating an emplo3ee7s current or past performance relati1e to his or her

performance standards'

ary Dessler

Performance appraisal is defined as e1aluating an emplo3ee7s current or past performance

relati1e to his or her performance standard'

T'e a))raisal )ro"ess:

:etting 4or! standard or efine the 6o2

Assessing the emplo3ee7s actual performance relati1e to these standard or Appraise

performance

Pro1iding feed2ac! to the emplo3ee 4ith the aim of moti1ating the person to

eliminate performance deficiencies or to continue to perform a2o1e per'

Appraisal Methods* The appraisal itself is generall3 conducted using predetermines and

formal method li!e one or more of those descri2ed in this section'

A))raisal Met'ods:

The appraisal itself is generall3 conducted using predetermine and formal method li!e one or

more of those descri2ed in this section'

a. ra)'i" ,atin$ S"ale:

A scale that listing a num2er of traits and a range of performance for each' The emplo3ee is

then rated 23 identif3ing the scale that 2est descri2es his or her le1el of performance for each

trait'

b. (aired om)arison Met'od:


23/48

an!ing comparison method ma!ing a chart of all possi2le pairs of the emplo3ees for each

trait and indicate 4hich the 2etter pair of the emplo3ees is'

". 'ee# list:

In this s3stem, a large num2er of statements that descri2e a specific 6o2 are gi1en' /achstatement has a 4eight or scale 1alue attached to it' ?hile rating an emplo3ee the super1isor

chec!s all those statements that most closel3 descri2e the 2eha1ior of the indi1idual under

assessment' The rating sheet is then scored 23 a1eraging the 4eights of all the statements

chec!ed 23 the rater' A chec!list is constructed for each 6o2 23 ha1ing persons 4ho are 5uite

familiar 4ith the 6o2s' These statements are then categori9ed 23 the 6udges and 4eights are

assigned to the statements in accordance 4ith the 1alue attached 23 the 6udges'

Mana$ement by ob&e"tives

Commonl3 referred to as MBO D is a performance appraisal method that determines ho4

closel3 aligned an emplo3ee7s goals are to organi9ational goals' MBO appraisals are suita2le

for measuring 5uantitati1e and 5ualitati1e output of high"le1el emplo3ees' igh"le1el

emplo3ees such as managers generall3 report to directors, according to hierarch3 and the

chain of authorit3 present in man3 organi9ations' Therefore, managers and the directors or

e>ecuti1es the3 report to often 4or! together to esta2lish MBO goals for this t3pe of

appraisal method.

There are four main steps in MBO*

#' efine the 6o2' e1ie4, 4ith the su2ordinates, his or her !e3 responsi2ilities and duties'

$' efine e>pected results (set o26ecti1es)' ere specif3 in measura2le terms 4hat the person

is e>pected to achie1e'

;' Measure the results' Compare actual goals achie1ed 4ith e>pected results'

H' Pro1ide feed2ac!, appraise' old periodic performance re1ie4 meetings 4ith su2ordinates

to discuss and e1aluate the latter7s progress in achie1ing e>pected results'

360 (erforman"e A))raisals

The ;% e1aluation feed2ac! method 4as first used in the #GH%s' Analogous to the multiple

points on a compass, the ;% method pro1ides each emplo3ee the opportunit3 to recei1eperformance feed2ac! from his or her super1isor, peers, staff mem2ers, co"4or!ers and

customers' ;%"degree feed2ac! or multi"source feed2ac! is an appraisal or performance

assessment tool that incorporates feed2ac! from all 4ho o2ser1e and are affected 23 the

performance of a candidate' Ksuall3, this tool is used for emplo3ees at middle and senior

le1el' The comple>it3 of their roles ena2les the organi9ation to generate sufficient data from

all sta!eholders for a meaningful assessment'

;% degree respondents for an emplo3ee can 2e hisFher peers, managers (i'e' superior),

su2ordinates, team mem2ers, customers, suppliersF 1endors " an3one 4ho comes into contact

4ith the emplo3ee and can pro1ide 1alua2le insights and information or feed2ac! regarding

the on"the"6o2 performance of the emplo3ee';% degree appraisal has four integralcomponents*


24/48

:elf appraisal

:uperior7s appraisal

:u2ordinate7s appraisal

Peer appraisal'

:elf"appraisal gi1es a chance to the emplo3ee to loo! at hisFher strengths and 4ea!nesses, his

achie1ements, and 6udge his o4n performance' :uperior7s appraisal forms the traditional part

of the ;% degree appraisal 4here the emplo3ees7 responsi2ilities and actual performance is

rated 23 the superior' :u2ordinates appraisal gi1es a chance to 6udge the emplo3ee on the

parameters li!e communication and moti1ating a2ilities, superior7s a2ilit3 to delegate the

4or!, leadership 5ualities etc' Also !no4n as internal customers, the correct feed2ac! gi1en

23 peers can help to find emplo3ees7 a2ilities to 4or! in a team, co"operation and sensiti1it3

to4ards others'

:elf"assessment is an indispensa2le part of ;% degree appraisals and therefore ;% degree

Performance appraisal ha1e high emplo3ee in1ol1ement and also ha1e the strongest impact

on 2eha1ior and performance' It pro1ides a ;%"degree re1ie4 of the emplo3ees7

performance and is considered to 2e one of the most credi2le performance appraisal methods'

;% degree appraisal is also a po4erful de1elopmental tool 2ecause 4hen conducted at

regular inter1als (sa3 3earl3) it helps to !eep a trac! of the changes others7 perceptions a2out

the emplo3ees' A ;% degree appraisal is generall3 found more suita2le for the managers as it

helps to assess their leadership and managing st3les' This techni5ue is 2eing effecti1el3 used

across the glo2e for performance appraisals' :ome of the organi9ations follo4ing it are

?ipro, Infos3s, and eliance Industries etc'

S*uare Toiletries A))raisal system

The s5uare toiletries ltd follo4s the ;% degree Appraisal :3stem' Because ;%"degree tool to

assess performance and potential of staff and ena2le the emplo3ees to map their career path

2ased on the feed2ac!' Organi9ations ta!e ;%"degree feed2ac! a2out an emplo3ee 2efore

ta!ing a ma6or decision a2out the professionalNs career'

The results from ;%"degree feed2ac! are often used 23 the person recei1ing the feed2ac! to

plan training and de1elopment' esults are also used in ma!ing administrati1e decisions forpa3 or promotion'

In The s5uare toiletries the ;% degree !no4s as PM:" Performance Management :3stem'

The s5uare toiletries limited rated emplo3ees in some categories li!e"

/ducation

:er1ice life

/>perience

Lno4ledge a2out 4or!


25/48

Beha1ior 4ith others

Ta!ing time to done a 4or!

A2ilities to adopt

Culture

O1erall performance

Attendance rate

Kses of resources etc'

Dimension of 0= (erforman"e A))raisal

T'e >(!

Another important consideration in the de1elopment of LPIs is the selection of the

appropriate measurement famil3 to capture operational performance o1er time and then

relate these LPIs to internal 2usiness and e>ternal industr3 2enchmar!s' Although the

follo4ing list reflects common measurement families, different industries 4ill ha1e their

o4n specific 2usiness dri1ers and related measures'

(rodu"tivity: Measures emplo3ee output (unitsF transactionsFdollars), the uptime

le1els and ho4 emplo3ees use their time (sales"to"assets ratio, dollar re1enue from

ne4 customers, sales pipeline)'

7uality: Measures the a2ilit3 to meet andFor e>ceed the re5uirements and

e>pectations of the customer (customer complaints, percent returns, PMO "" defects

per million opportunities)'

(rofitability:Measures the o1erall effecti1eness of the management organi9ation in

generating profits (profit contri2ution 23 segmentFcustomer, margin spreads)'

Timeliness:Measures the point in time (da3F4ee!F month) 4hen management andemplo3ee tas!s are completed (on"time deli1er3, percent of late orders)'

(ro"ess 4ffi"ien"y: Measures ho4 effecti1el3 the management organi9ation

incorporates 5ualit3 control, :i> :igma and 2est practices to streamline operational

processes (3ield percentage, process uptime, capacit3 utili9ation)'

y"le Time: Measures the duration of time (hoursFda3sFmonths) re5uired 23

emplo3ees to complete tas!s (processing time, time to ser1ice customer)'


26/48

,esour"e tiliation: Measures ho4 effecti1el3 the management organi9ation

le1erages e>isting 2usiness resources such as assets, 2ric!s and mortar, in1estments

(sales per total assets, sales per channel, 4in rate)'

ost Savin$s: Measures ho4 successfull3 the management organi9ation achie1es

economies of scale and scope of 4or! 4ith its people, staff and practices to control

operational and o1erhead costs (cost per unit, in1entor3 turns, cost of goods)'

ro/t': Measures the a2ilit3 of the management organi9ation to maintain

competiti1e economic position in the gro4th of the econom3 and industr3 (mar!et

share, customer ac5uisitionFretention, account penetration)'

!nnovation:Measures the capa2ilit3 of the organi9ation to de1elop ne4 products,

processes and ser1ices to penetrate ne4 mar!ets and customer segments (ne4 patents,

ne4 product rollouts, E spend)'

Te"'nolo$y:Measures ho4 effecti1el3 the IT organi9ation de1elops implements and

maintains information management infrastructure and applications (IT capital

spending, CM technologies implemented, ?e2"ena2led access)'


27/48

Organi9ations are set up to achie1e certain o26ecti1es' Achie1ement of goals or targets

depends upon the performance of indi1idual emplo3ees' The o26ecti1es can 2e fulfilled 4hen

the tas!s are assigned to the emplo3ees and the3 perform the tas!s' Other4ise these cannot 2e

fulfilled' .o4 the 5uestion arises ho4 far the 4or! has 2een done as per the planning' The

responsi2ilit3, accounta2ilit3 and performance standards ha1e 2een met or not' ence it is

5uite necessar3 to understand as to 4hat e>tent emplo3ees ha1e 2een successful at their 6o2s

for achie1ement of their goals' This information 4ill 2e a1aila2le 4hen the performances of

emplo3ees ha1e 2een e1aluated at the end of the 3ear' If it is not done then the management

4ill not come to !no4 the e>act position a2out the targets achie1ed' The3 4ill 2e in the dar!

and there 4ill 2e chances of planning failure' The planning is done in the 2eginning of

performance management process' The performance appraisal is an important stage in this

process' It sho4s as per planning of o26ecti1es, performance standards and 2eha1ior the

communication, counseling, coaching, moti1ation and feed2ac! ha1e 2een gi1en or not'

=inall3 to see 4hat is the impact of these planning and action on the performance of the

emplo3ees' The performance standards regarding 5ualit3, 5uantit3, cost and 2eha1ior ha1e

2een achie1ed or not' :o it 2ecomes necessar3 to carr3 out the performance appraisal of e1er3

one for smooth 4or!ing of the organi9ation' Thus performance appraisal forms an important

part of M' This necessitates the stud3 of the topic of performance appraisal' Performance

appraisal is mainl3 used for three purposes*

(a) As a 2asis of re4ard allocation such as salar3 increments, promotion and other

re4ards etc' In performance appraisal s3stems slo4 and fast 4or!ing emplo3ees are

identified' Knder compensation, re4ards and recognition plans the emplo3ees are gi1en

higher pa3 scales, higher incenti1es for 2etter performance and appreciation for the 4or!'

:ome time the cases of good performers are recommended for further promotion' It leads

to de1elopment and moti1ation of emplo3ees'

(2) Performance appraisal 4ill point out the 4ea!nesses of emplo3ees and 4ill spot the

areas 4here de1elopment efforts are needed' The 4ea!nesses in initiati1es, leadership5ualit3, pro2lem sol1ing approach, 2eha1ior, discipline, difficulties faced during the 4or!


28/48

and competencies for performing the tas!s' The deficiencies can 2e pinpointed'

Performance appraisal is a tool for identification of deficiencies' On the 2asis of

identification the remedial action can 2e ta!en to o1ercome the deficiencies' This 4a3 the

performance of emplo3ees ma3 impro1e to a good e>tent'

(c) It can 2e used for the selection and de1elopment program' It 4ill differentiate

satisfactor3 performers from unsatisfactor3 ones' The performance appraisal 4ill help the

management to perform functions relating to selection, de1elopment, salar3, promotion,

penalties, la3"off and retrenchment'

,i$'t )eo)le ri$'t )la"e is t'e )ur)ose of (erforman"e A))raisal=re5uenc3 Percent 0alid Percent Cumulati1e

Percent

0alid .eutral $ #%'% #%'% #%'%

Agree ## ++'% ++'% +'%

:trongl3 Agree & ;+'% ;+'% #%%'%

Total $% #%%'% #%%'%

emar!s* Most of the emplo3ees agree 4ith the statement that ,i$'t )eo)le ri$'t )la"e is

t'e )ur)ose of (erforman"e A))raisal


29/48

satisfied /it' your )resent &ob=re5uenc3 Percent 0alid Percent Cumulati1ePercent

0alid :trongl3 isagree + $+'% $+'% $+'%

isagree ## ++'% ++'% J%'%

.eutral ; #+'% #+'% G+'%

Agree # +'% +'% #%%'%

Total $% #%%'% #%%'%

emar!s* G+ emplo3ees are disagreeing 4ith the statement that the3 are satisfied /it'

your )resent &ob.


30/48

4m)loyees o)inion about t'e )resent a))raisal system is a))ro)riate=re5uenc3 Percent 0alid Percent Cumulati1ePercent

0alid Agree # J%'% J%'% J%'%

:trongl3 Agree H $%'% $%'% #%%'%

Total $% #%%'% #%%'%

emar!s* Most of the emplo3ees are agree 4ith the statement that t'e )resent a))raisal

system is a))ro)riate.


31/48

T'e fre*uen"y of a))raisal is "ontinuous=re5uenc3 Percent 0alid Percent Cumulati1e

Percent

0alid Agree #G G+'% G+'% G+'%

:trongl3 Agree # +'% +'% #%%'%

Total $% #%%'% #%%'%

emar!s* Most of the emplo3ees are agree 4ith the statement that t'e )resent a))raisal

system is a "ontinuous )ro"ess.


32/48

(erforman"e A))raisal affe"ts t'e )rodu"tivity=re5uenc3 Percent 0alid Percent Cumulati1e

Percent

0alid Agree ;%'% ;%'% ;%'%

:trongl3 Agree #H &%'% &%'% #%%'%

Total $% #%%'% #%%'%

emar!s* All emplo3ees are agreeing 4ith the statement that (erforman"e A))raisal

affe"ts t'e )rodu"tivity.


33/48

a))raisal 'el) in )olis'in$ s#ills and )erforman"e=re5uenc3 Percent 0alid Percent Cumulati1e

Percent

0alid .eutral $ #%'% #%'% #%'%

Agree #+ &+'% &+'% J+'%

:trongl3 Agree ; #+'% #+'% #%%'%

Total $% #%%'% #%%'%


34/48

emar!s* G% emplo3ees are agreeing 4ith the statement that a))raisal 'el) in )olis'in$

s#ills and )erforman"e and#% emplo3ees are neutral'

(ersonal bias affe"ts /'ile a))raisin$=re5uenc3 Percent 0alid Percent Cumulati1e

Percent

0alid .eutral # +'% +'% +'%

Agree #G G+'% G+'% #%%'%

Total $% #%%'% #%%'%

emar!s* G+ emplo3ees are agreeing 4ith the statement that (ersonal bias affe"ts /'ile

a))raisin$. The3 2elie1e that personal relationship also affect the result 4hen appraising'


35/48

360 de$ree met'od of "ondu"tin$ t'e (A is a))ro)riate met'ods

=re5uenc3 Percent 0alid Percent Cumulati1e

Percent

Agree $% #%%'% #%%'% #%%'%

Total $% #%%'% #%%'%


36/48

emar!s* #%% emplo3ees are agreeing 4ith the statement that 360 de$ree met'od of

"ondu"tin$ t'e (A is a))ro)riate met'ods'

(A leads to identifi"ation of 'idden )otential=re5uenc3 Percent 0alid Percent Cumulati1e

Percent

0alid Agree #$ %'% %'% %'%

:trongl3 Agree J H%'% H%'% #%%'%

Total $% #%%'% #%%'%


37/48

emar!s* % emplo3ees are agreeing 4ith the statement and H% emplo3ees are strongl3

agreeing that (A leads to identifi"ation of 'idden )otential.

!m)ortant (erforman"e A))raisal is in utiliin$ t'e o)timal s#ills=re5uenc3 Percent 0alid Percent Cumulati1e

Percent

0alid Agree $% #%%'% #%%'% #%%'%


38/48

emar!s* all emplo3ees are agreeing 4ith the statement that !m)ortant (erforman"e

A))raisal is in utiliin$ t'e o)timal s#ills.

4E)erien"e "onsider as vital for )erforman"e a))raisal=re5uenc3 Percent 0alid Percent Cumulati1e

Percent

0alid Agree $% #%%'% #%%'% #%%'%


39/48

emar!s* all emplo3ees are agreeing 4ith the statement that 4E)erien"e "onsider as vital

for )erforman"e a))raisal.

(erforman"e A))raisal 'el)s in retention=re5uenc3 Percent 0alid Percent Cumulati1e

Percent

0alid Agree & ;+'% ;+'% ;+'%

:trongl3 Agree #; +'% +'% #%%'%

Total $% #%%'% #%%'%

emar!s* + emplo3ees are agreeing and ;+ strongl3 agree 4ith the statement that

(erforman"e A))raisal 'el)s in retention.


40/48

a/are about (erforman"e A))raisal System=re5uenc3 Percent 0alid Percent Cumulati1e

Percent

0alid :trongl3 isagree + $+'% $+'% $+'%

isagree #; +'% +'% G%'%

.eutral $ #%'% #%'% #%%'%

Total $% #%%'% #%%'%


41/48

emar!s* Ma>imum /mplo3ees are not agreeing 4ith the statement that the3 a/are about

(erforman"e A))raisal System.

(erforman"e A))raisal 'el)s build relations'i)s bet/een mana$ers and em)loyees=re5uenc3 Percent 0alid Percent Cumulati1e

Percent

0alid Agree # J%'% J%'% J%'%

:trongl3 Agree H $%'% $%'% #%%'%

Total $% #%%'% #%%'%


42/48

emar!s* J% emplo3ees are agreeing and $% strongl3 agree 4ith the statement that

(erforman"e A))raisal 'el)s build relations'i)s bet/een mana$ers and em)loyees

(erforman"e A))raisal System Motivates t'e em)loyee=re5uenc3 Percent 0alid Percent Cumulati1e

Percent

0alid Agree $% #%%'% #%%'% #%%'%

emar!s* #%% emplo3ees are agreeing 4ith the statement that (erforman"e A))raisal

System motivates t'e em)loyee.


43/48

'o s'ould do t'e a))raisal=re5uenc3 Percent 0alid Percent Cumulati1e

Percent

0alid :uperior $% #%%'% #%%'% #%%'%


44/48

emar!s* #%% emplo3ees are agreeing 4ith the statement that t'eir immediate su)ervisor

or su)erior "ondu"t t'e a))raisal.

=indin$s

These appraisal s3stems differ on the factors on 4hich a person is rated and the

nature of duties handled 23 him'

It is seen that the emplo3ees are not satisfied 4ith the 4a3 the3 are appraised or

the3 ha1en7t 2een appraised properl3' =or this matter, almost all the companies

ha1e inter1ie4 and discussion'

The fre5uenc3 of appraisal in all organi9ations is 3earl3' ?here appraisal is

2ased on Le3 esult Areas, a mid"term re1ie4 is also underta!en' This data is

then compiled and the final appraisal is conducted at the end of the 3ear'

In most of the cases the immediate super1isors is the appraiser 2ut sometimes it

is also the department

All organi9ations ha1e goal setting as part of appraisal' The performance is

e1aluated against these targets'

Ma>imum of the emplo3ees in an organi9ation are moti1ated 23 performance

appraisal'

Most of the /mplo3ees are not are a2out the Performance Appraisal s3stem'


45/48

,e"ommendation

Performance appraisal should not 2e percei1ed 6ust as a regular acti1it3 2ut its

importance should 2e recogni9ed and communicated to all the emplo3ees'

There should 2e a re1ie4 of 6o2 anal3sis, 6o2 design and 4or! en1ironment

2ased on the performance appraisal'

It should pro1ide more empo4erment to the emplo3ees'

=or e>cellent performance should 2e used as a mentor to moti1ate emplo3ees

/mplo3ees should 2e gi1en feed2ac! regarding their appraisal' This 4ill help

them to impro1e on their 4ea! areas and understand the emplo3ees and their

needs, 2eha1ior 2etter and to find out the loopholes'

=inancial and non"financial incenti1es should 2e lin!ed to the annual appraisal

s3stem so that emplo3ees 4ould 2e moti1ated to perform 2etter'

The fre5uenc3 of training program for the appraiser should 2e pro1ided

The a4areness sessions for the emplo3ees should 2e consideration'


46/48

It should 2ring more clarit3 in o26ecti1e and more transparenc3 should 2e

2rought a2out in the appraisal s3stem'

on"lusion:


47/48

ear espondents,I am a student P-M Program at BIM' I am doing term paper title of m3 term paper is

(erforman"e A))raisal System of S*uare Toiletries +td.C.To complete the report follo4inginformation are re5uired and in this regard I need 3our help' It is assured that all the information 4ill

!eep confidential and 4ill use in this report onl3'

(ut a ti"# FGH to t'e follo/in$ *uestions.Name:Desi$nation:SeE: #'Male $'=emaleA$e: $H";%;#"H%H#"+%A2o1e +%,es)ondent a"ademi" *ualifi"ation:Kndergraduate-raduate Post graduate

(lease $ive your im)ortant res)onse to t'e follo/in$ *uestions:

Particulars :trongl3

isagree

isagree .eutral Agree :trongl3

Agree

,i$'t )eo)le ri$'t )la"e is t'e )ur)ose of(erforman"e A))raisal

# $ ; H +

;ou are satisfied /it' your )resent &ob # $ ; H +

4m)loyees o)inion as to t'e )resenta))raisal system is a))ro)riate

# $ ; H +

T'e fre*uen"y of a))raisal is made"ontinuously# $ ; H +


48/48

(erforman"e A))raisal affe"ts t'e)rodu"tivity of t'e em)loyees

# $ ; H +

A))raisal 'el) in )olis'in$ s#ills 8)erforman"e

# $ ; H +

(ersonal bias effe"ts /'ile a))raisin$

em)loyees

# $ ; H +

360 de$ree met'od of "ondu"tin$ t'e (A isa))ro)riate met'ods

# $ ; H +

)erforman"e a))raisal leads to identifi"ationof 'idden )otential

# $ ; H +

(erforman"e A))raisal is im)ortant inutiliin$ t'e o)timal s#illsI #no/led$e andabilities

# $ ; H +

4E)erien"e "onsider as vital for )erforman"ea))raisal

# $ ; H +

(erforman"e A))raisal 'el)s in retention ofem)loyees # $ ; H +

4m)loyee a/are about (erforman"eA))raisal System

# $ ; H +

(erforman"e A))raisal 'el)s build relations'i)sbet/een mana$ers and em)loyees

# $ ; H +

(erforman"e A))raisal System Motivates t'eem)loyee

# $ ; H +

'o s'ould do t'e a))raisal :uperior Peer :u2ordinates :elf All

Documents

Mahedi Hassan Term Paper