Evaluate the process of performance appraisals and reward policy of AKH Fashion Ltd.

“Evaluation of performance appraisals and reward policy system of AKH Fashion Ltd.” Page 1
Chapter 01
Introductory Part

1.1. Introduction:
Internship program is an important part of Bachelor of Business Administration (BBA). This
program creates a unique opportunity for the student to apply their theoretical knowledge into
practice and gain valuable real world knowledge during the program; student can also realize
existing business condition a part from having opportunities to solve many problems. After
completion of course requirements, the students of BBA are sent to various organizations for
12 weeks’ internship to gather practical knowledge. It helps the students to explain the real
life situation. As AKH Group is one of the largest groups of company in Bangladesh. So I
have selected AKH Group, which is one of the leading garments manufacturing industry of
Bangladesh. As a part of my internship program of Bachelors of Business Administration at
IUBAT-International University of Business Agriculture and Technology, I was assigned for
doing my internship in AKH Group. My program started from September 15, 2017 to
December 14, 2017 selected by the registry of IUBAT. In AKH Group, I was supervised by
Md. Mahbubur Rahman Babor, Manager,GPQ. My project was on “Evaluation of
performance appraisals and reward policy system of AKH Fashion Ltd.”, which is under
AKH Group. This was given by my supervisor Faquir Mohammad Ishtiaque, Lecturer of
College of Business Administration.
1.2. Research of Aims:
The research aim usually refers to the main goal or purpose of a Research Project. The aim of
this project is to Evaluation of performance appraisals and reward policy system of AKH
Fashion Ltd.
1.3. Objective of the study:
The objective of the report is to discuss evaluation of performance appraisals and reward
policy system of AKH Fashion Ltd. The main objectives of this report are as given follows:
1.3.1. Broad objective:
The primary purpose of the study is to have a thorough understanding about evaluate the
process of performance appraisals and reward policy system of AKH Fashion Ltd.

1.3.2. Specific objective:
To analyze and explain performance appraisal process of AKH Fashion Ltd.
To asses and evaluate the existing performance appraisal and reward policy
system of AKH Fashion Ltd.
To summarize and find out the performance appraisal process and practice are
conducting now in AKH Fashion Ltd.
To evaluate performance management system in the organization.
To measure the compensation management practice.
1.4. Scope of the study:
The scope of the study is very bright, because to make this report about the performance
appraisal system I got the chance to communicate with assistant HRM manager of the
organization, and can observe what performance appraisal systems they are follow and how
they implement. It is a vast opportunity for me to develop my skill in this sector, and also to
make them a complete report of the garments.
To make this report I use both primary and the secondary data. The primary data is collected
from both GM and the assistant HRM officer by asking question when I got any problem in
the time of research and also to make this report.
The secondary data is collected from their every kind of rules, policies and also from their
various reports.
By this report I try to find out what kind of theoretical procedure are implied in the practical
life to run this kind of organization.
I get all kind of help both from the worker and also from the employees for the information.
1.5. Limitations of the study:
Some limitations or barriers were faced while conducting the study, among which is making
textbook knowledge compatible with real life scenario while talking to the organization,
which was sometimes disappointing. Again, this report is the first of its kind prepared by me.
This also proved to be a limitation. These limitations were:-
 There is no previous study and written information on such topic was available.
 Getting relevant papers and documents were strictly prohibited.

 The human resources department was reluctant to provide information because of
confidentiality.
 In many cases the latest information was not available.
1.6. Ethical Consideration:
Ethical considerations can be addressed at individual and at societal levels. The way that
individuals are affected by the conduct of others merits ethical consideration.
This practicum Report is fully prepared by me .I use many information’s and documents from
internet and different websites. The HR officer gives permits to conduct the survey among
the employees. I have collected the information from the employees, some of officers of
AKH Fashion Ltd. They provide me some brief and data while making this research. While
conducting the survey the TG employees and officers of the group are also help me to prepare
this research through giving their opinions.

Chapter 02
Organizational Part

2.1. Background of the AKH group:
AKH was established in the year 1997. Just about 15 kilometers to the North from the
country’s National Parliament in Sher-E-Bangla Nagar, Dhaka, and just by on the Dhaka-
Aricha highway, the Corporate Headquarters of AKH group is situated. Its other premises are
located at Hemayetpur and Tatuljhra in Savar, and Dhamrai in Dhaka. Public amenities and
utilities as well as availability of workforce necessary for textiles and garment industry are in
the best shapes by country standards in and around those areas. Adding all of these
advantages to its own expertise and other strengths, AKH has now successfully evolved into
a highly integrated leading group in apparel manufacturing and exporting from Bangladesh.
The entire operations of AKH are carried out from four of its own premises. These premises
are designed with the most modern and futuristic factory specifications. On the verge of
embarking upon producing woven fabrics very soon, now it has got 14 successful going
concerns to independently engage itself in knitting, dyeing, printing, embroidering, sewing,
accessory manufacturing, packaging, washing, clearing & forwarding, and logistics.
On an aggregate floor space of more than 1.73 million square feet in different production
units, a few more than 17,500 people are now working in AKH. Every month, they are
producing about 2.5 million pieces of knit and knitted fleece garments in its vertical knit
division, and about 1.9 million pieces of shirts and blouses in its woven division.
Till date, almost all the social, industrial and environmental standards and certificates
required and applauded locally and internationally are achieved by AKH. So, having the best
kind of ETP is not just enough for AKH; rather, in order for delivering the task professionally
responding to the global call, AKH now has gone green.

2.2. Corporate information of AKH group:
Corporate governance is the set of processes, customs, policies, laws, and institutions
affecting the way a corporation (or company) is directed, administered or controlled.
Corporate governance also includes the relationships among the many stakeholders involved
and the goals for which the corporation is governed. The principal stakeholders are the
shareholders, the board of directors, employees, customers, creditors, suppliers, and the
community at large. Good corporate governance is the key to the integrity of corporations,
financial institutions and markets, and central to the health of our economies and the stability.
Factory Location : AKH Tower, 133-134, Hemayetpur, Savar, Dhaka-1340, Bangladesh.
Telephone No : +88 02 7744001-8
Fax No : +88 02 7741830-31
Corporate E-mail : info@akhfashions.com
Website URL : www.akhfashions.com
2.2.1. Other business of AKH group:
 AKH Fashion Ltd.
 AKH Knitting & Dyeing Ltd.
 AKH Knit Wear Ltd.
 AKH Stitch Art Ltd.
 AKH Shirts Ltd.
 AKH Apparels Ltd.
 Angshuk Ltd.
 AKH Packaging & Accessories Ltd.
 AKH Trims Ltd.
 AKH Washing Ltd.
 AKH Cargo service.
 Sabah Trade International Ltd. ( C & F )
 AKH ECO Apparel Ltd.

2.2.2. Buyers of AKH group: Their main customer country’s are- USA, Canada, Europe,
Japan & India. Now a Days AKH is one of the most reliable manufacturers providing high-
quality Oven to the leading fashion brands like:
Table-1: Buyers of AKH Group
2.2.3. Mandates of AKH group:
AKH’s list of accomplishment and mandates for quality, efficiency, compliance and good
practices is pretty long. It is accredited with
 Fairtrade Certificate
 Oekotex Standard 100-Product Class-1
 ISO 9001: 2000
 Eco Sustainable Textile Standards
 C-TPAT
 WRAP
 LEED-Gold and many other Certificates.
But on top, AKH weighs the best its buyers’ satisfaction. AKH buildings are successfully
evaluated for structural excellence. These are satisfactorily appraised by Grey Gabriel
Associates and other audit authorities for building and fire safety.
American Eagle US Polo M & S Taka-Q (Male & Co) Voegley
GAP K Mart C & A Indian Terrains Sears

2.3. Corporate Governance of AKH Group:
2.3.1 Board of Directors
Table-2: Board of Directors
From the desk of Directors:
AKH is a one-stop source for overseas buyers to buy their high quality knit and woven
garments from Bangladesh.
We started in 1997 when this business was very tough but yet our exports continued to
increase. We exported for the first time in 1997; it was worth 1.3 million US dollars. In 2015,
it increased about 160 times to reach 209 million dollars. We have figured out that, over
several years yet to come, our export would continue to grow in the same way. With our
export, we too are growing vertically and horizontally. We are going green as well. To
strengthen our undertakings with a desired impact of synergy, by now, we have successfully
flourished in the areas like composite knitting including fleece garments besides accessories
producing, clearing & forwarding as well as cargo carrying in our own covered vans.
Ensuring product quality with no compromise, AKH maintains delivery deadlines with
extreme professionalism.
Beyond business activities, however, AKH dedicates a portion of its margin for social
welfare. It runs an educational institution and an orphanage. Every year, with the help of
foreign surgeons, it organizes free plastic surgery and eye camps for the underprivileged
people in the country.
Now, AKH is moving forward through the way where ethical practices, health & hygiene,
safety, security, green environment are met with the appropriate meanings and for the whole
Name & Designation Contract Information
Delwar Hossain
Chairman
Cell: +88-01711-526488
hossain@akhfashions.com
Md. Shamsul Alam
Managing Director
Cell: +88-01711-528036
alam@akhfashions.com
Md. Abul Kashem
Dy. Managing Director
Cell: +88-01713-003432
kashem@akhfashions.com

satisfaction of the value-chain members in the world market. With sporting spirit, AKH
pursues progress as a matter of unending self-actualization. Thanks to our valued customers
for their trust on us, we have been enjoying a continuous yearly growth for long and so
implementing expansion almost on a regular basis.
We believe in a shared approach and always work with the promise for a better and greener
tomorrow.
2.3.2. Company Profile
Head Office 133-134, Hamayetpur, Savar, Dhaka. Bangladesh.
Phone (880-2) 7744001-8
Fax (880-2) 7741830
E-mail info@akhfashions.com
Chairman Mr. Delwar Hossain
Managing Director Mr. Md. Shamsul Alam
Dy. Managing Director Mr. Md Abul Kashem
Contact Person Md. Abul Kashem (Dy. Managing Director)
E-Mail: kashem@akhfashions.com
Moslehuddin Ahmed (Executive Director)
E-Mail: muahmed@akhfashions.com
Year of Establishment 1997
Production Capacity/Monthly 1.2 Millions Pcs
Total Turnover US$ 50.00 million (2011)
No. of Workers 4290 Persons
Main Product Woven Shirts (Men’s/ Ladies/ Boys & Girls)
Main Market USA, Canada & Europe, Japan
Buyers/Brands USA: Gap, Wal-Mart, Kohls, PVH, Wrangler, Jc-
Penney, Sears K-Mart Costco, Macy, EB, US Polo,
BNR etc
UK: Mackays Stores, Marks & Spencer, Debenhams,
Shop Direct, Next etc.
Germany: C&A, Metro, Aldi etc.

Canada: Wal-Mart
Italy: United Colour of Benetton
France: Celio
Europe: H&M, Kigili, Pierre Cardin, CV etc.
Japan : ITOYOUKADO, TAKA-Q etc.
Suppliers (Fabrics) Penfabric, Pentley (Malaysia), P.T. Argo Pantes, P.T.
Unilon (Indonesia), Taksang (HK), Jiangshu Textiles
(China), Arvind/ BVM (India), Monno Fabric,
Beximco Textile, Unicom Textile (Bangladesh) etc.
Principal Bankers (1) Export Import Bank of Bangladesh
Gulshan Branch, 75, Gulahsn Avenue
Dhaka 1212. Bangladesh
Phone: 9886296, 9862262, 8819711
Telex: 632125 EXN GL BJ. Fax: 880-2-8818703
E-mail: eximgul@bttb.net.bd. Swift # EXBKBDDH 007
(2) Agrani Bank Ltd.
Purana Palton Corp. Branch, Dhaka
56, Purana Palton, Dhaka, Bangladesh.
Phone: 8802-9560011, 9564769
Cable: PURANA PALTON, Swift: AGBKBDDHA034
Table-3: Company Profile

2.3.3: Factory Organogram:
Figure-1: Factory Organogram
2.4. Mission and Vision:
Mission
AKH is committed to venture out into the changing and challenging global market as a
leading enterprise in the world apparel industry by satisfying its valued customers.
Vision
 To operate as one of the best apparel sources in the global market;
 To satisfy the valued customers, meeting their expectation by providing quality
products & services on time, and offering them the best value in terms of quality,
price, environmental and other ethical practices;
Chairman
MD
HR &
Admin
Reception
Time
Selection
Store
Security
Maintance (
M & E )
Vehicle
Service
Selection
General Service
Selection
Finance &
Account
DY.MD
Manager, Compliance Excutive
Director
GM
Manager
Production
Cutting In Charge
Cutting
Supervisior
Marker
Man
Workers
Asst.
Production
Manager
Line chief
Supervisor
Workers
Finishing In
Charge
Finishing
Supervisor
Workers
Merchandising Manager
Comercial
Import
Export
AGM
Quality
Manager
Quality
Q.C
Q.I
Pattern
Master
Sample &
Pattern

 To meet compliance standards to assure an ideal work environment and obtain
optimum level of productivity;
 To maintain the technology-led command in the industry;
 To promote development ensuring unprejudiced and equal opportunities for all;
 To continue growing nurturing competence in professionalism seeking win-win
terms; and
 To go green as much as possible.
2.5. Porter’s Five Forces:
Figure-2: Porter’s Five Forces
The five forces model is an excellent tool used to analyze the industry in which the firm is
competing in. It helps us see the type of industry the firm is competing in, what
characteristics are associated with the type of industry, and also identify what types of things
the firm can do to stay ahead of the competition. The five forces model includes: Rivalry
among existing firms, Threats of new entrants, threat of substitute products and bargaining
power of buyers and suppliers. These forces assess the degree of competition and the
marketing power of buyers and suppliers.
 Threat of new entrants
When any new garments company enter to the market, than it become a threat to this
company. Easy to enter if there is ordinary technology, access to distribution channels, low
scale threshold.

 Capital requirements
 Cost disadvantages
 Government strategy
 Bargaining power of buyers
The bargaining power of customers is also described as the market of outputs. The buyer
power is high if the buyer has many alternatives.
 Percentage of sales
 Undifferentiated goods
 cost sensitivity
 Bargaining power of suppliers
There is more and more large number of competitors in the market which has meant a larger
supply of machine in the market.
 Pricing
 Supply/Product available
 value issue
 Threat of substitutes
Competitor substitutions that can be used in place of a company’s goods or services pose a
threat.
 Buyer set up cost
 Number of substitute products offered in the market
 Rivalry among existing firms
What is important here is the number and ability of your competitors. Our company has many
competitors, and they offer equally attractive products and service.
 Rate of factory growth
 Number of competitors
 Product or service characteristics
2.6. SWOT analysis of AKH Group:

SWOT analysis (alternatively SWOT matrix) is an acronym for strengths, weaknesses,
opportunities, and threats and is a structured planning method that evaluates those four
elements of a project or business venture. A SWOT analysis can be carried out for a
company, product, place, industry, or person. It involves specifying the objective of the
business venture or project and identifying the internal and external factors that are favorable
and unfavorable to achieve that objective.
Figure-3: SWOT Analysis
Strength:
 Export
 Sister Concerns
 Utility
 Logistics
 Accessory Productions
 HR Compliance
 IT
 Mandates
Weaknesses:
 Raw Materials
 Bank Interest Rate
 Transaction Time at Ports
 Transportation Time
 Taxes

 Power and Interest Rates
Opportunities:
 Fashion Products
 New Machinery
 Productivity & Quality
 Job Training for the Employees
 A Social Responsible Corporate Citizen
 Stopover Facility
Threats:
 Political
 Future Order to Collect
 Transport
 Fabric and Accessories Collect
2.7. External and Internal Environment Analysis:
2.7.1. External Environment:
 Political Factor:
Because of political instability in our country Garments factory often faces many types of
problem such as delay in production and delivery on time.
 Economical Factor:
RMG has great contribution on economy. It creates a large number of job opportunities,
which reduce unemployment problem. And they do many works to develop the economic
system of our country.
 Socio Cultural Factor:
When social trends change it can greatly affect the need for a business’s products or services.
Similarly if a society has an older population the cost of labor will increase and a business
will need to change their management strategies in order to cope with these changes.

 Technological Factor:
Importing latest machineries will add value to the flow of production. Technology can also
have a great impact on efficient production levels. In addition to this there are some changes
in technology that can affect the costs that a business needs to meet and can improve the
quality of a product or service.
2.7.2. Internal Environment:
The internal environment is the environment that has a direct impact on the business. Here
there are some internal factors which are generally controllable. It can alter or modify such
factors as its personnel, physical facilities, and organization and functional means, like
marketing, to suit the environment.
 Corporate Culture:
Garments, Textiles and Clothing are the leading industry of Bangladesh. These sectors are
earning country's major portion of foreign exchange and creating huge job opportunities.
Keeping this prospect in mind, AKH Group was established in 1997. The main instruments of
our success are the teamwork, skilled personnel and professionalism. The factory is designed
to meet all compliances & human right requirements. From the very beginning it has got a
view to attend social commitments and make contribution of the economy.
 Marketing:
AKH Group has its own marketing team. They take their order directly from buyer. They
advertise their product by Magazine, Social media. On the other hand they arranged fashion
fair to promote their product and also takes part in International Trade Fair.
 Finance:
 Yearly Turnover of AKH Group US$ 50.00 Million.
 Year over year, AKH Group has been able to grow revenues from $10.7 US$ to $15.1
US$.

 Human Resource Management:
For company's success employees are vital. If an employee has a positive interaction with
customer, definitely customer will be come back. It's important for company to hire and
recruit the right person, train well, motivate and retain them. Therefore, the company should
give satisfying jobs, appropriate work schedules, a positive work environment and fair
compensation and benefits. To gain competitive advantage these activities are essential of
AKH Group strategy to deploy human resources.
2.7.3. Internal Factor Evaluation (IFE) Matrix:
Strengths Weight Rate Total Score
Export 0.11 3 0.33
Sister Concerns 0.09 4 0.36
Utility 0.07 3 0.21
Logistics 0.1 4 0.4
Accessory Productions 0.06 3 0.18
HR Compliance 0.07 3 0.21
IT 0.11 4 0.44
Mandates 0.06 3 0.18
Weaknesses
Raw Materials 0.08 2 0.16
Bank Interest Rate 0.04 2 0.08
Transaction Time at Ports 0.05 2 0.1
Transportation Time 0.07 1 0.07
Taxes 0.05 1 0.05
Power and Interest Rates 0.04 2 0.08
Total 1 2.85
Table-4: Internal Factor Evaluation (IFE) Matrix
2.7.4. External Factor Evaluation (EFE) Matrix:
Opportunities Weight Rate Total Score

Fashion Products 0.09 4 0.36
New Machinery 0.11 3 0.33
Productivity & Quality 0.09 3 0.21
Job Training for the Employees 0.07 3 0.27
A Social Responsible Corporate
Citizen
0.06 1 0.06
Stopover Facility 0.07 2 0.14
Threats
Political 0.14 3 0.42
Future Order to Collect 0.12 4 0.48
Transport 0.2 2 0.4
Fabric and Accessories Collect 0.05 2 0.1
Total 1 2.79
Table-5: External Factor Evaluation (EFE) Matrix
2.7.5. TWOS Matrix:
We know the Strengths-Weaknesses-Opportunities-Threats (SWOT) Matrix is an important
matching tool that helps managers develop four types of strategies those are- SO (Strengths-
Opportunities), WO (Weaknesses-Opportunities), ST (Strengths-Threats), and WT
(Weaknesses-Threats) strategies.
Strengths Weaknesses

TOWS Matrix
1. Export
2. Sister Concerns
3. Utility
4. Logistics
5. HR Compliance
6. IT
7. Mandates
1. Raw Materials
2. Bank Interest Rate
3. Transaction Time at
Ports
4. Transportation Time
5. Taxes
Opportunities SO-Strategies WO-Strategies
1. Fashion Products
2. New Machinery
3. Productivity &
Quality
4. Job Training for
the Employees
5. Stopover Facility
 Exports quality full
fashion products.
 New Machineries and
utilities support to
produce best quality
products.
 HR compliance arranges
job training for new
employees.
 Find best quality raw
materials for fashion
products.
 Earn foreign currency
to meet the higher
bank interest rate and
taxes.
 Try to reduce
transportation time.
Threats ST-Strategies WT-Strategies
1. Political
2. Future Order to
Collect
3. Transport
 Political condition may
affects the export system
 Sister concerns can collect
the future order.
 Authority maintain the
transport system
 Low quality raw
materials may stop
future order to collect.
 Political crisis may
increase bank interest
rate and taxes
 Poor transport service
will cause long time to
deliver products.
Table-6: TWOS Matrix

3.1. Human Resource Management (HRM) Literature Review:
Chapter 03
Topic and review of
literature

Human Resource Management (HRM) is the function within an organization that focuses on
recruitment of, management of, and providing direction for the people who work in the
organization. Human Resource Management can also be performed by line managers. Human
Resource Management is the organizational function that deals with issues related to people
such as compensation, hiring, performance management, organization development, safety,
wellness, benefits, employee motivation, communication, administration, and training.
Human Resource (or personnel) management, in the sense of getting things done through
people, is an essential part of every manager’s responsibility, but many organizations find it
advantageous to establish a specialist division to provide an expert service dedicated to
ensuring that the human resource function is performed efficiently.
“People are our most valuable asset” is a formula, which no member of any senior
management team would disagree with. Yet, the realities for many organizations are that their
people remain undervalued, under trained and underutilized. The market place for talented,
skilled people is competitive and expensive. Taking on new staff can be disruptive to existing
employees. Also, it takes time to develop ‘cultural awareness’, product / process /
organization knowledge and experience for new staff members.
Human Resource Management has come to be recognized as an inherent part of management,
which is concerned with the human resources of an organization. Its objective is the
maintenance of better human relations in the organization by the development, application
and evaluation of policies, procedures and programmers relating to human resources to
optimize their contribution towards the realization of organizational objectives.
In other words, HRM is concerned with getting better results with the collaboration of people.
It is an integral but distinctive part of management, concerned with people at work and their
relationships within the enterprise. HRM helps in attaining maximum individual
development, desirable working relationship between employees and employers, employees
and employees, and effective modeling of human resources as contrasted with physical
resources. It is the recruitment, selection, development, utilization, compensation and
motivation of human resources by the organization.
3.1.1 Human Resource Management: Evolution

The early part of the century saw a concern for improved efficiency through careful design of
work. During the middle part of the century importance shifted to the employee’s
productivity. Recent decades have focused on increased concern for the quality of working
life, total quality management and worker’s participation in management. These three phases
may be termed as welfare, development and empowerment.
3.1.2 Human Resource Management: Nature
Human Resource Management is a process of bringing people and organizations together so
that the goals of each are met. The various features of HRM include:
 It is pervasive in nature as it is present in all enterprises.
 Its focus is on results rather than on rules.
 It tries to help employees develop their potential fully.
 It encourages employees to give their best to the organization.
 It is all about people at work, both as individuals and groups.
 It tries to put people on assigned jobs in order to produce good results.
 It helps an organization meet its goals in the future by providing for competent and
well-motivated employees.
 It tries to build and maintain cordial relations between people working at various
levels in the organization.
 It is a multidisciplinary activity, utilizing knowledge and inputs drawn from
psychology, economics, etc.
3.1.3 Human Resource Management: Scope
The scope of HRM is very wide:
1) Personnel aspect -This is concerned with manpower planning, recruitment, selection,
placement, transfer, promotion, training and development, layoff and retrenchment,
remuneration, incentives, productivity etc.
2) Welfare aspect -It deals with working conditions and amenities such as canteens, rest
and lunch rooms, housing, transport, medical assistance, education, health and safety,
recreation facilities, etc.

3) Industrial relations aspect- This covers union-management relations, joint
consultation, collective bargaining, grievance and disciplinary procedures, settlement
of disputes, etc.
3.1.4 Human Resource Management: Beliefs
The Human Resource Management philosophy is based on the following beliefs:
 Human resource is the most important asset in the organization and can be developed
and increased to an unlimited extent.
 A healthy climate with values of openness, enthusiasm, trust, mutuality and
collaboration is essential for developing human resource.
 HRM can be planned and monitored in ways that are beneficial both to the individuals
and the organization.
 Employees feel highly motivated if the organization provides for satisfaction of their
basic and higher level needs.
 Employee commitment is increased with the opportunity to discover and use one’s
capabilities and potential in one’s work.
 It is every manager’s responsibility to ensure the development and utilization of the
capabilities of subordinates.
3.1.5 Human Resource Management: Objectives
 To help the organization reach its goals.
 To ensure effective utilization and maximum development of human resources.
 To ensure respect for human beings. To identify and satisfy the needs of individuals.
 To ensure reconciliation of individual goals with those of the organization.
 To achieve and maintain high morale among employees.
 To provide the organization with well-trained and well-motivated employees.
 To increase to the fullest the employee’s job satisfaction and self-actualization.
 To develop and maintain a quality of work life.
 To be ethically and socially responsive to the needs of society.
 To develop overall personality of each employee in its multidimensional aspect.

3.1.6 Human Resource Management: Activities
In order to achieve the above objectives, Human Resource Management undertakes the
following activities:
1. Human resource or manpower planning.
2. Recruitment, selection and placement of personnel.
3. Training and development of employees.
4. Appraisal of performance of employees.
5. Taking corrective steps such as transfer from one job to another.
6. Remuneration of employees.
7. Social security and welfare of employees.
8. Setting general and specific management policy for organizational relationship.
9. Collective bargaining, contract negotiation and grievance handling.
10. Staffing the organization.
3.2. Functions of Human Resource Management:
Following are the various functions of Human Resource Management that are essential for
the effective functioning of the organization:
1. Recruitment
2. Selection
3. Induction
4. Compensation
5. Performance Appraisal
6. Training & Development
3.3. Introduction to Human Resource Management at AKH Fashion Ltd.
Generally, HR department is responsible for the overall management. AKH Fashion Ltd.
considers that success depends on the collective effort of entire work force. There are a
number of functions performed by the HR department of AKH Fashion Ltd. They are
discussed below –

o Selection and recruitment of general workers and management employees.
o Providing ID card and appointment letter to the employee.
o Updating employee personal file
o Maintaining employee personal file
o Training and development
o Preparing monthly salary sheet
o Preparing increment sheet
o Evaluating performance of the workers and management staff and give promotion or
increment based on the evaluation.
o Taking disciplinary actions when and where is needed.
o Leave register.
o Collecting attendance.
o Visiting floor and observing whether the workers are maintaining the rules and
regulations or not.
Table-7: HR department of AKH Fashion Ltd.
3.4. History of performance appraisal:
The history of performance appraisal is quite brief. Its roots in the early 20th
century can be
traced to Taylor’s pioneering Time and Motion studies. But this is not very helpful, for the
same may be said about almost everything in the field of modern human resources
management. As a distinct and formal management procedure used in the evaluation of work
performance, appraisal really dates from the time of the Second World War-not more than 60
years ago. Yet in a broader sense, the practice of appraisal is a very ancient art. In the scale of
things historical, it might well lay claim to being the world’s second oldest profession! There
is, says Dulewicz (1989), “… a basic human tendency to make judgments about those one is
working with, as well as about oneself.” Appraisal, it seems, is both inevitable and universal.
In the absence of a carefully structured system of appraisal, people will tend to judge the
work performance of others, including subordinates, naturally, informally and arbitrarily. The
human inclination to judge can create serious motivational, ethical and legal problems in the
workplace. Without a structured appraisal system, there is little chance of ensuring that the
judgments made will be lawful, fair, defensible and accurate. Performance appraisal systems
began as simple methods of income justification. That is, appraisal was used to decide
whether or not the salary or wage of an individual employee was justified.

The process was firmly linked to material outcomes. If an employee’s performance was
found to be less than ideal, a cut in pay would follow. On the other hand, if their performance
was better than the supervisor expected, a pay rise was in order. Little consideration, if any,
was given to the developmental possibilities of appraisal. If was felt that a cut in pay, or a
rise, should provide the only required impetus for an employee to either improve or continue
to perform well. Sometimes this basic system succeeded in getting the results that were
intended; but more often than not, it failed.
3.5. What is “Performance Appraisal”?
Performance appraisal is defined as the process of assessing the performance and progress of
an employee or a group of employees on a given job and his / their potential for future
development. It consists of all formal procedures used in working organizations and potential
of employees. According to Flippo, “Performance Appraisal is the systematic, periodic and
an important rating of an employee’s excellence in matters pertaining to his present job and
his potential for a better job.”
A performance appraisal is a review and discussion of an employee’s performance of
assigned duties and responsibilities. The appraisal is based on results obtained by the
employee in his/her job, not on the employee’s personality characteristics. The appraisal
measures skills and accomplishments with reasonable accuracy and uniformity. It provides a
way to help identify areas for performance enhancement and to help promote professional
growth. It should not, however, be considered the supervisor’s only communication tool.
Open lines of communication throughout the year help to make effective working
relationships. Each employee is entitled to a thoughtful and careful appraisal. The success of
the process depends on the supervisor’s willingness to complete a constructive and objective
appraisal and on the employee’s willingness to respond to constructive suggestions and to
work with the supervisor to reach future goals.
3.6. Why Appraise Performance?
Periodic reviews help supervisors gain a better understanding of each employee’s abilities.
The goal of the review process is to recognize achievement, to evaluate job progress, and
then to design training for the further development of skills and strengths. A careful review

will stimulate employee’s interest and improve job performance. The review provides the
employee, the supervisor, the Vice President, and Human Resources a critical, formal
feedback mechanism on an annual basis; however these discussions should not be restricted
solely to a formal annual review.
3.7. Objectives of Performance Appraisal:
Performance Appraisal can be done with following objectives in mind:
 To maintain records in order to determine compensation packages, wage structure,
salaries raises, etc.
 To identify the strengths and weaknesses of employees to place right men on right
job.
 To maintain and assess the potential present in a person for further growth and
development.
 To provide a feedback to employees regarding their performance and related status.
 To provide a feedback to employees regarding their performance and related status.
 It serves as a basis for influencing working habits of the employees.
 To review and retain the promotional and other training programs.
3.8. Scope:
The scope of any performance appraisal should include the following: provide employees
with a better understanding of their role and responsibilities; increase confidence through
recognizing strengths while identifying training needs to improve weaknesses; improve
working relationships and communication between supervisors and subordinates; increase
commitment to organizational goals; develop employees into future supervisors; assist in
personnel decisions such as promotions or allocating rewards; and allow time for self-
reflection, self-appraisal and personal goal setting.

3.9. Characteristics:
Performance Appraisal is a process.
 It is the systematic examination of the strengths and weakness of an employee in
terms of his job.
 It is scientific and objective study. Formal procedures are used in the study.
 It is an ongoing and continuous process wherein the evaluations are arranged
periodically according to a definite plan.
 The main purpose of performance appraisal is to secure information necessary for
making objective and correct decision an employee.
3.10. Advantages of performance appraisal:
It is said that performance appraisal is an investment for the company which can be justified
by following advantages:
 Promotion: Performance appraisal helps the supervisors to chalk out the promotion
programs for efficient employees. In this regards, inefficient workers can be
dismissed or demoted in case.
 Compensation: Performance appraisal helps in chalking out compensation packages
for employees. Merit rating is possible through performance appraisal. Performance
Appraisal tries to give worth to a performance. A compensation package which
includes bonus, high salary rates, extra benefits, allowances and pre-requisites are
dependent on performance appraisal. The criteria should be merit rather than
seniority.
 Employees Development: The systematic procedure of performance appraisal helps
the supervisors to frame training policies and programs. It helps to analyze strengths
and weaknesses of employees so that new jobs can be designed for efficient
employees. It also helps in framing future development programs.
 Selection Validation: Performance Appraisal helps the supervisors to understand the
validity and importance of the selection procedure. The supervisors come to know the

validity and thereby the strengths and weaknesses of selection procedure. Future
changes in selection methods can be made in this regard.
 Communication: For an organization, effective communication between employees
and employers is very important. Through performance appraisal, communication can
be sought for in the following ways: Through performance appraisal, the employers
can understand and accept skills of subordinates.
1. The subordinates can also understand and create a trust and confidence
in superiors.
2. It also helps in maintaining cordial and congenial labor management
relationship.
3. It develops the spirit of work and boosts the morale of employees.
All the above factors ensure effective communication.
 Motivation: Performance appraisal serves as a motivation tool. Through evaluating
performance of employees, a person’s efficiency can be determined if the targets are
achieved. This very well motivates a person for better job and helps him to improve
his performance in the future.
3.11. Limitations:
1. Errors in Rating
2. Lack of reliability
3. Negative approach
4. Multiple objectives
5. Lack of knowledge
3.12. Modern appraisal:
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. Whether this is an appropriate use of performance appraisal –
the assignment and justification of rewards and penalties is a very uncertain and contentious
matter.
3.13. Controversy:
Few issues in management stir up more controversy than performance appraisal.
There are many reputable sources – researchers, management commentators, and
psychometricians – who have expressed doubts about the validity and reliability of the
performance appraisal process. Some have even suggested that the process is so inherently
flawed that it may be impossible to perfect it. At the other extreme, there are many strong
advocates of performance appraisal. Some view it as potentially “… the most crucial aspect
of organizational life”.
Between these two extremes lie various schools of belief. While all endorse the use of
performance appraisal, there are many different opinions on how and when to apply it. There
are those, for instance, who believe that performance appraisal has many important employee
development uses, but scorn any attempt to link the process to reward outcomes such as pay
rises and promotions. This group believes that the linkage to reward outcomes reduces or
eliminates the developmental value of appraisals. Rather than an opportunity for constructive
review and encouragement, the reward-linked process is perceived as judgmental, punitive
and harrowing.
For example, how many people would gladly admit their work problems if, at the same time,
they knew that their next pay rise or a much-wanted promotion was riding on an appraisal
result? Very likely, in that situation, many people would deny or downplay their weaknesses.
Nor is the desire to distort or deny the truth confined to the person being appraised. Many
appraisers feel uncomfortable with the combined role of judge and executioner.

Such reluctance is not difficult to understand. Appraisers often know their appraises well, and
are typically in a direct subordinate-supervisor relationship. They work together on a daily
basis and may, at times, mix socially. Suggesting that a subordinate needs to brush up on
certain work skills is one thing; giving an appraisal result that has the direct effect of negating
a promotion is another.
The result can be resentment and serious morale damage, leading to workplace disruption,
soured relationships and productivity declines. On the other hand, there is a strong rival
argument which claims that performance appraisal must unequivocally be linked to reward
outcomes.
The advocates of this approach say that organizations must have a process by which rewards
which are not an unlimited resource – may be openly and fairly distributed to those most
deserving on the basis of merit, effort and results. There is a critical need for remunerative
justice in organizations. Performance appraisal – whatever its practical flaws is the only
process available to help achieve fair, decent and consistent reward outcomes.
It has also been claimed that appraises themselves are inclined to believe that appraisal results
should be linked directly to reward outcomes – and are suspicious and disappointed when
told this is not the case. Rather than feeling relieved, appraises may suspect that they are not
being told the whole truth, or that the appraisal process is a sham and waste of time.
3.14. Process:
The process of performance appraisal:
 Establishing performance standards
 Communicating the Standards
 Measuring Performance
 Comparing the actual with the standards
 Discussing the appraisal
 Taking Corrective Action

3.15. Techniques in performance appraisal:
Certain techniques in performance appraisal have been thoroughly investigated, and some
have been found to yield better results than others.
3.15.1. Encourage Discussion: Research studies show that employees are likely to feel more
satisfied with their appraisal result if they have the chance to talk freely and discuss their
performance. It is also more likely that such employees will be better able to meet future
performance goals.
Employees are also more likely to feel that the appraisal process is fair if they are given a
chance to talk about their performance. This especially so when they are permitted to
challenge and appeal against their evaluation.
3.15.2. Constructive Intention: It is very important that employees recognize that negative
appraisal feedback is provided with a constructive intention, i.e., to help them overcome
present difficulties and to improve their future performance. Employees will be less anxious
about criticism, and more likely to find it useful, when they believe that the appraiser’s
intentions are helpful and constructive.
In contrast, other studies have reported that “destructive criticism” – which is vague, ill-
informed, unfair or harshly presented – will lead to problems such as anger, resentment,
tension and workplace conflict, as well as increased resistance to improvement, denial of
problems, and poorer performance.
3.15.3. Set Performance Goals: It has been shown in numerous studies that goal-setting is
an important element in employee motivation. Goals can stimulate employee effort, focus
attention, increase persistence, and encourage employees to find new and better ways to
work.
The useful of goals as a stimulus to human motivation is one of the best supported theories in
management. It is also quite clear that goals which are “…specific, difficult and accepted by
employees will lead to higher levels of performance than easy, vague goals (such as do your
best) or no goals at all.”

3.15.4. Appraiser Credibility: It is important that the appraiser (usually the employee’s
supervisor) be well-informed and credible. Appraisers should feel comfortable with the
techniques of appraisal, and should be knowledgeable about the employee’s job and
performance.
When these conditions exist, employees are more likely to view the appraisal process as
accurate and fair. They also express more acceptances of the appraiser’s feedback and a
greater willingness to change.
3.16. Methods of Performance appraisal:
The foregoing list of major program pitfalls represents a difficult challenge, even considering
the available battery of appraisal techniques. But attempting to avoid these pitfalls by doing
away with appraisals themselves is like trying to solve the problems of life by committing
suicide. The more logical task is to identify those appraisal practices that are
(a) Most likely to achieve a particular objective and
(b) Least vulnerable to the obstacles already discussed.
Before relating the specific techniques to the goals of performance appraisal stated at the
outset of the article, I shall briefly review each, taking them more or less in an order of
increasing complexity. The best-known techniques will be treated most briefly.
3.16.1 Essay appraisal:
In its simplest form, this technique asks the rater to write a paragraph or more covering an
individual’s strengths, weaknesses, potential, and so on. In most selection situations,
particularly those involving professional, sales, or managerial positions, essay appraisals
from former employers, teachers, or associates carry significant weight.
In the essay method approach, the appraiser prepares a written statement about the employee
being appraised. The statement usually concentrates on describing specific strengths and
weaknesses in job performance. It also suggests courses of action to remedy the identified
problem areas. The statement may be written and edited by the appraiser alone, or it be
composed in collaboration with the appraise.

3.16.2 Graphic rating scale:
This technique may not yield the depth of an essay appraisal, but it is more consistent and
reliable. Typically, a graphic scale assesses a person on the quality and quantity of his work
(is he outstanding, above average, average, or unsatisfactory?) and on a variety of other
factors that vary with the job but usually include personal traits like reliability and
cooperation. It may also include specific performance items like oral and written
communication.
The rating scale method offers a high degree of structure for appraisals. Each employee trait
or characteristic is rated on a bipolar scale that usually has several points ranging from “poor”
to “excellent” (or some similar arrangement). The traits assessed on these scales include
employee attributes such as cooperation, communications ability, initiative, punctuality and
technical (work skills) competence.
The nature and scope of the traits selected for inclusion is limited only by the imagination of
the scale’s designer, or by the organization’s need to know. The one major provision in
selecting traits is that they should be in some way relevant to the appraiser’s job. The traits
selected by some organizations have been unwise and have resulted in legal action on the
grounds of discrimination.
3.16.3 Management by objectives (MBO):
To avoid, or to deal with, the feeling that they are being judged by unfairly high standards,
employees in some organizations are being asked to set – or help set – their own performance
goals. Within the past five or six years, MBO has become something of a fad and is so
familiar to most managers that I will not dwell on it here. The use of management objectives
was first widely advocated in the 1950s by the noted management theorist Peter Drucker.
MBO (management by objectives) methods of performance appraisal are results-oriented.
That is, they seek to measure employee performance by examining the extent to which
predetermined work objectives have been met. Usually the objectives are established jointly
by the supervisor and subordinate. An example of an objective for a sales manager might be:
Increase the gross monthly sales volume to $250,000 by 30 June. Once an objective is agreed,

the employee is usually expected to self-audit; that is, to identify the skills needed to achieve
the objective. Typically they do not rely on others to locate and specify their strengths and
weaknesses. They are expected to monitor their own development and progress.
3.16.4 Field review:
The field review is one of several techniques for doing this. A member of the personnel or
central administrative staff meets with small groups of raters from each supervisory unit and
goes over each employee’s rating with them to
(a) Identify areas of inter-rater disagreement
(b) Help the group arrive at a consensus, and
(c) Determine that each rater conceives the standards similarly.
3.16.5 Forced-choice rating:
Like the field review, this technique was developed to reduce bias and establish objective
standards of comparison between individuals, but it does not involve the intervention of a
third party.
3.16.6 Ranking methods:
For comparative purposes, particularly when it is necessary to compare people who work for
different supervisors, individual statements, ratings, or appraisal forms are not particularly
useful. Instead, it is necessary to recognize that comparisons involve an overall subjective
judgment to which a host of additional facts and impressions must somehow be added. There
is no single form or way to do this. The best approach appears to be a ranking technique
involving pooled judgment.
The two most effective methods are alternation ranking and paired comparison ranking.
1. “Alternation ranking”:
Ranking of employees from best to worst on a trait or traits is another method for evaluating
employees. Since it is usually easier to distinguish between the worst and the best employees
than to rank them, an alternation ranking method is most popular. Here subordinates to be
rated are listed and the names of those not well enough to rank are crossed. Then on a form as
shown below, the employee who is highest on the characteristic being measured and the one

who is the lowest are indicated. Then chose the next highest and the next lowest, alternating
between highest and lowest until all the employees to be rated have been ranked.
2. “Paired-comparison ranking”:
This technique is probably just as accurate as alternation ranking and might be more so. But
with large numbers of employees it becomes extremely time consuming and cumbersome.
Both ranking techniques, particularly when combined with multiple rankings (i.e., when two
or more people are asked to make independent rankings of the same work group and their
lists are averaged), are among the best available for generating valid order-of-merit rankings
for salary administration purposes.
3.16.7 Assessment centers:
So far, we have been talking about assessing past performance. What about the assessment of
future performance or potential? In any placement decision and even more so in promotion
decisions, some prediction of future performance is necessary. How can this kind of
prediction be made most validly and most fairly?
3.16.8 360 Degree feedback:
Many firms have expanded the idea of upward feedback into what the call 360-degree
feedback. The feedback is generally used for training and development, rather than for pay
increases.
Many firms have expanded the idea of upward feedback into what the call 360-degree
feedback. The feedback is generally used for training and development, rather than for pay
increases.
Most 360 Degree Feedback system contains several common features. Appropriate parties
peers, supervisors, subordinates and customers, for instance – complete survey,
questionnaires on an individual. 360 degree feedback is also known as the multi-rater
feedback, whereby ratings are not given just by the next manager up in the organizational
hierarchy, but also by peers and subordinates. Appropriates customer ratings are also
included, along with the element of self appraisal. Once gathered in, the assessment from the
various quarters are compared with one another and the results communicated to the manager
concerned.

Another technique that is useful for coaching purposes is, of course, MBO. Like the critical
incident method, it focuses on actual behavior and actual results, which can be discussed
objectively and constructively, with little or no need for a supervisor to “play God.”
3.17. Benefits of Performance Appraisals:
 Measures an employee’s performance.
 Helps in clarifying, defining, redefining priorities and objectives.
 Motivates the employee through achievement and feedback.
 Facilitates assessment and agreement of training needs.
 Helps in identification of personal strengths and weaknesses.
 Plays an important role in Personal career and succession planning.
 Clarifies team roles and facilitates team building.
 Plays major role in organizational training needs assessment and analysis.
 Improves understanding and relationship between the employee and the reporting
manager and also helps in resolving confusions and misunderstandings.
 Plays an important tool for communicating the organization’s philosophies, values,
aims, strategies, priorities, etc among its employees.
 Helps in counseling and feedback.
3.18. Problems in Performance Appraisals:
Performance appraisals are subject to a wide variety of inaccuracies and biases referred to as
‘rating errors’. These errors can seriously affect assessment results. Some of the most
common rating errors are: –
3.18.1. Leniency or Severity: Leniency or severity on the part of the rater makes the
assessment subjective. Subjective assessment defeats the very purpose of performance
appraisal. Ratings are lenient for the following reasons:
a) The rater may feel that anyone under his or her jurisdiction who is rated unfavorably
will reflect poorly on his or her own worthiness.

b) He/She may feel that a derogatory rating will be revealed to the rate to detriment the
relations between the rater and the rate.
c) He/She may rate leniently in order to win promotions for the subordinates and
therefore, indirectly increase his/her hold over him.
3.18.2. Central Tendency: This occurs when employees are incorrectly rated near the
average or middle of the scale. The attitude of the rater is to play safe. This safe playing
attitude stems from certain doubts and anxieties, which the raters have been assessing the
rates.
3.18.3. Halo Error: A halo error takes place when one aspect of an individual’s performance
influences the evaluation of the entire performance of the individual. The halo error occurs
when an employee who works late constantly might be rated high on productivity and quality
of output as well as on motivation. Similarly, an attractive or popular personality might be
given a high overall rating. Rating employees separately on each of the performance
measures and encouraging raters to guard against the halo effect are the two ways to reduce
the halo effect.
3.18.4. Rater Effect: This includes favoritism, stereotyping, and hostility. Extensively high
or low score are given only to certain individuals or groups based on the rater’s attitude
towards them and not on actual outcomes or behaviors; sex, age, race and friendship biases
are examples of this type of error.
3.18.5. Primacy and Regency Effects: The rater’s rating is heavily influenced either by
behavior exhibited by the rate during his early stage of the review period (primacy) or by the
outcomes, or behavior exhibited by the rate near the end of the review period (regency). For
example, if a salesperson captures an important contract/sale just before the completion of the
appraisal, the timing of the incident may inflate his or her standing, even though the overall
performance of the sales person may not have been encouraging. One way of guarding
against such an error is to ask the rater to consider the composite performance of the rate and
not to be influenced by one incident or an achievement.

3.18.6. Performance Dimension Order: Two or more dimensions on a performance
instrument follow each other and both describe or rotate to a similar quality. The rater rates
the first dimensions accurately and then rates the second dimension to the first because of the
proximity. If the dimensions had been arranged in a significantly different order, the ratings
might have been different.
3.18.7. Spillover Effect: This refers lo allowing past performance appraisal rating lo
unjustifiably influence current ratings. Past ratings, good or bad, result in similar rating for
current period although the demonstrated behavior does not deserve the rating, good or bad.
3.18.8. Perceptual Errors: This includes various well-known problems of selective
perception (such as the horns and halos effect) as well as problems of perceived meaning.
Selective perception is the human tendency to make private and highly subjective
assessments of what a person is “really like”, and then seek evidence to support that view
(while ignoring or downplaying evidence that might contradict it).
This is a common and normal psychological phenomenon. All human beings are affected by
it. In other words, we see in others what we want to see in them. An example is the supervisor
who believes that an employee is inherently good (halo effect) and so ignores evidence that
might suggest otherwise. Instead of correcting the slackening employee, the supervisor
covers for them and may even offer excuses for their declining performance.
On the other hand, a supervisor may have formed the impression that an employee is bad
(horns effect). The supervisor becomes unreasonably harsh in their assessment of the
employee, and always ready to criticize and undermine them.

3.19. Steps to limit effects:
There are reasonable steps which can be taken to limit the effects of supervisory bias.
3.19.1. Awareness Training: The first line of defense lies in raising awareness of the
problem. Supervisors need to be informed of the types of subtle bias that can interfere with
their performance as appraisers. They need to understand that the in-group/out-group bias, for
instance, reduces them orally and motivation of their subordinates.
3.19.2. Developing Poor Performers: Incentives, financial or non-financial, may offered to
encourage supervisors to make special efforts to help poor performers improve. Supervisory
appraisals, for example, might stress the importance of working with poor performers to
upgrade their performance. The possibilities are extensive.
3.19.3. Counseling, Transfer, and Termination: There is always the possibility that an
employee who receives poor appraisal results is in fact a chronic poor performer. No
employer is obliged to tolerate poor performance forever. Consistently poor appraisal results
will indicate a need for counseling, transfer or termination. The exact remedy will depend on
the circumstances.
3.20. Performance Appraisal Systems of AKH Fashion Ltd.:
Today every organization is interested – in doing better performance appraisals-
3.20.1. For the organization: For the organization performance appraisals provide the
mechanism to cascade Organizational strategies, goals and core values down to each
employee. This ensures that their efforts are coordinated and their combined effort moves the
organization in the right direction.
3.20.2. For Managers: For managers the performance appraisal can be a practical and
versatile management tool that helps them focus their employees’ activities, monitor their
progress, and encourage their development

3.20.3. For Employees: For employees effective performance appraisals can have a positive
effect on morale. Employees who know what is expected of them and how they will be
evaluated will approach their work with a better attitude and better sense of responsibility.
3.20.4. Reasons for an Appraisal:
Reasons for introducing performance appraisal in AKH Fashion Ltd. explaining below:-
a) To identify any training that, may be needed
b) To make personal / business objectives clear
c) To identify employees those are potential for promotion
d) To review salaries or payment methods
e) To identify individual strengths of employees
f) To increase motivation
g) To improve performance
h) To update job descriptions
3.20.5. The main benefits for using an appraisal system are as follows:
a) Gives you an idea of what you should expect from your employees.
b) Develops further yourself as a manager (or supervisor).
c) The supervisors develop a better relationship with the employees by getting to know
them better and what their job consists of more precisely.
d) Improves communication in the business.
3.20.6. Developmental performance appraisal purposes:
One of the most important aspects of performance appraisal is that of personal development.
The developmental approach to performance appraisal recognizes employees as individuals
with concerns and needs. The developmental approach uses performance appraisal as a
contributor to employee motivation, development, and human resources planning. AKH
Fashion Ltd. HRD following the additional purposes:-
a) They provides a formal structure for communications between employees and
managers to help clarify local issues, needs and expectations
b) They provide employees with the formal opportunity to indicate their career direction,
level of ambition and how it could be attained.

c) They provide formal recognition and informal encouragement to the employee who
has been trying to perform well.
d) They formally shows organizational interest and support opportunities for personal
development.
3.21. HR Plan of AKH Fashion Ltd.:
In the AKH Fashion Ltd. Fair labor standard Act 1938 and the Equal Pay Act: passed in 1963
are both are followed and comments of the compensation system; Job Descriptions, Job
Analysis, Evaluation, Pay Structures are also followed for the compensation.
3.21.1 Appraisal system of AKH Fashion Ltd :( For office)
AKH Fashion Ltd. generally used employee’s previous performance on his job and
behavioral activities with colleagues and management. After the provision period of six
months, an employee’s salary is increased with confirmation by the company’s existing
policy.
3.21.1.1. Method:
AKH Fashion Ltd. Use Performance + Behavioral method to evaluate their employee.
3.21.1.2. Period:
a) After every 12 months an automatic salary is increase of each employee.
b) Special increase for special performance.
c) In every 06 months company gives performance wise appraisal.
d) Religious festival (Eid, Pooja) allowance.
e) Tour allowance.
3.21.2 The pay structure of AKH Fashion Ltd.: (For the factory)
In the AKH Fashion Ltd. there are 3300-worker work for them they have their pay structure
according to the government rules, and the labor wages law. And the wages laws are
describing bellow.

3.21.2.1. Wages: Every worker for 8 hour work, 6 days a week in a month have to work and
it call the basic work and they will get for the basic salary in grade. The grade of their basic
salary given bellow:
Stepping workers and Classification Basic Salary
Grade-1 8,500/- taka
Table-8: Wages
3.21.2.2. Compensation of over time: Over 8 hour work in working day is calling the
overtime work. And for that they will get Tk. 28.85/- per hour. If any worker does the work
over 12 hours then he will get 400/-taka. But no worker can work more than 54 hour in a
week as overtime.
3.21.2.3. The total wage: Every worker will get 40% of his base salary as a house rent, and
medical allowance (fixed) 250/- taka. So as a total he will get 5300/- taka.
3.21.2.4. Time card: For every worker they have their own time card. In these card workers
arrivals and departure time from the work is recorded. And the organization timekeeper will
give his sign to the time card according to the time. And thus way workers wages are
calculated by their time card.
3.22. Bonus system by the AKH Fashion Ltd.:
Like every other organization run their benefit program with their own rule.
 If the worker working duration is 1year over then he will get 100% bonus.
 If the worker working duration is 6 months over then will get 1/4 from the basic.
 If the worker working duration is 3 months then will get 1/8 from the basic.
 If the worker working duration is lower than 3 years he will get 1/16 from the basic.
But the lowest bonus for the new worker is 100/- taka.

3.23. Allowance for the travel, meal, and housing:
3.23.1. Travel allowance: AKH Fashion Ltd. gives the travel allowance to the officer but not
to the worker. For the officer the garments have their own vehicle. As the worker amount is
huge so it’s quite impossible to give them the transportation service, but the company give
every worker monthly travel allowance 200 TK and its fixed.
3.23.2. Meal allowance: For the meal the organization officer has their mass meal system,
but worker have to bring their won meal from their home. But the company gives 650 TK
monthly fixed meal allowance for every worker.
3.23.3. Housing allowance: The housing allowances are given for the worker good
accommodation, and also to their officer. For the worker is 40% of their basic salary, and for
the officer it’s 50% of their basic.
3.23.4. Merit pay system: there is no system for the merit pay system, both for the worker
and officer. Because the organization believes, everyone will get the same salary by their
skills or work.
3.24. Benefits:
3.24.1. Employee benefit: Every organization try to give there employee or the worker
benefit. This kind of benefit can be the financial or could be the non financial. But in this
benefit part would like to describe the non financial benefit part, which is given by AKH
Fashion Ltd. to their workers and the employees.
3.24.2. Medical allowance: AKH Fashion Ltd. has their own medical team for the
emergence. Every week the organization fixed doctor checkup the entire worker and if he got
any disturbances then he takes the action. And every 9.00 am to5.00 pm the doctor stays in
the organization, and from the organization the free medicine also provided to the ill workers.
And the organization also give the facility to the worker with minimum charge they can do
the pathological test. If any kind of accident happens in the organization then they are ready
to give the medical service. And also the workers are getting the fixed medical allowance

(taka-250) with their total salary. And also for the major accident happen to doing the work,
and then organization takes the whole responsibility for the medical expense.
3.24.3. Health Insurance: For the safety of every worker the organization has taken the
group health and accident insurance policy.
3.24.4. Holiday & vacation leave: The AKH Fashion Ltd. gives their workers the several
types of vacation to maintain the labor law for the leave and also the government rules.
3.24.5. Reward Policy: AKH Group (Woven Division) company does not tolerate the stolen
or embezzlement of any workers' employees in the goods / assets of the company. The
authorities also do not support the activities of bribe, crime etc. The authorities use different
methods to prevent the company's property / property theft and bribe, to prevent corruption.
One of those methods is a reward policy.
3.24.5.1. Purpose: For the purpose of stopping the assets of AKH Group (Woven Division)
and for bribery and corruption, the authorities have made an "award-winning policy" for the
protection of the authorities for taking appropriate action.
3.24.5.2. Method:
 Inaccuracy: When any kind of theft is found, it is immediately notified to the
Security in-charge. He informed the manager administration and executive director in
advance and took the person along with the goods to the Manager, Administration /
Executive Director's Office. If anybody noticed bribery and any kind of corruption,
then immediately, the senior officer of the person who is involved in this work is
notified.
 Review: How the unit, which is working in the unit, is reviewed with P. M. and how
the goods could be disbursed to those workers from that section. Bribes and
corruption are also adopted in the same process.
 Investigation: The matter of theft / corruption was investigated by the concerned
unit's PM, Security in-charge, Manager (Administration) and a committee comprising
the security at duty on that floor.

 Prize: The person / person who cooperate with the thief is encouraged by giving bribe
/ corruption information or by stealing directly from the hands (especially the
Security).
3.24.6. Evaluation and employee’s satisfaction: Employees are fully satisfied by using
performance appraisal and reward policy system. We provide performance appraisal and
reward policy for all employees who work with the company minimum 1 year but sometimes
they did not with the company 1 year because there is 6 months provisional period during
he/she join the company. In provisional period they do not get any reward. That’s why our
employee moved sometimes to other garments/company. I can say, employees are almost
satisfied with the services of performance appraisal and reward policy system of AKH
Fashion Ltd.
Employee’s satisfaction of AKH Fashion Ltd provides a leading indicator of buyer intentions
and loyalty. Employees satisfaction data are among the most frequently collected indicators
of market perceptions. Employee’s satisfaction is an advertising term that measures how
products or services supplied by a company meet or better a buyer’s expectation. Employee
satisfaction is important because it provides marketers and business owners with a metric that
they can use to manage and improve their businesses.
AKH Fashion Ltd always measure employees are satisfied or not. Because it’s a leading sign
of buyer repurchase intentions and dependability. Through measuring I got that it’s a point of
differentiation that increases buyer lifetime value. It reduces negative word of mouth.
3.24.7. Status: Overall I can say, employees are almost satisfied with the performance
appraisal and reward policy system of AKH Fashion Ltd.
3.24.8. Findings: If organization is very much protect by the organizational rules and also
implement the rules perfectly then there are no chance for error. But some points are always
missed thought they are carefully observe. So like there are some problems I have found
during my survey on evaluation of performance appraisal and reward policy of AKH Fashion
Ltd and they are-

Maximum recruitment is appointed internally who are inexperienced. So there is a
chance to affect in overall performance of the organization.
Appraisal system is only based on performance basis which limits the area of
employee evaluation.
There is no training or counseling facilities for the poor performers within the
organization.
The organizations have no lady doctor or lady medical representative for the
woman worker.
3.24.9. Implication: AKH Fashion Ltd management must have to be careful about
employees. They should try to give the best services to their employees. They should be more
attentive on solving problems of employee. They should increase the manpower to give the
employees training or counseling facilities services on early basis.

Chapter 04
Actual Task

4.1. Learning Outcomes:
I joined in AKH Fashion Ltd. as an internship student. In the time of internship period, I
worked in office as an internee, under the supervision of Md. Mahbubur Rahman Babar
(Manager, GPQ). He is a great person for me because I learned lot of things from him. He is
very kind and cooperative person.
I have worked for approximately three months with the employers of HR sector. I have
gathered some valuable knowledge during working there. It is very important for a BBA
student to get practical knowledge for the development and preparation of a person in the job
world. Now, I would like to divide my all those learning into two categories:
4.1.1. Primary Learning
4.1.2. Secondary learning
4.1.1. Primary Learning:
In primary learning I have learnt some basic things, like as:
4.1.1.1 Organizational Culture of AKH Fashion Ltd.:
Organization culture of AKH Fashion Ltd. is quite different. They exchange greetings when
entering the office. There is another culture is that they complete their prayers in Zaamat
timely.
The behavior of every staffs is so kind. They always try to satisfy their worker. In a
challenging situation they also handle in a smooth way. I have also seen some terrible
situation which was handling by them. Besides it they maintain smoking free zone and they
behave very politely with customers as they are main part of organization.
4.1.1.2. Time Management:
I worked in the Human Resource Management Department of AKH Fashion Ltd. Especially
all types of daily basis work. I worked there 5 days in a week. My office hour was 9 am to 5
pm. But sometimes I had to stay more than the office time for work.
At the beginning of my internship they tell me about my duties and then they introduce me
about the whole process of performance appraisal and reward policy of AKH Fashion Ltd.
They gave me some primary information about the function of the different sections.

4.1.1.3. How to behave with worker:
“To know the worker before providing services is very important” worker is the main
organ of any company. Any garments business depends on worker. A worker is considered as
a part of organization. AKH Fashion Ltd. also depends on worker. So it is very important to
serve them the best service.
4.1.2 Secondary Learning:
During my three month internship, there are many things to learn which is described in
below-
 Recruiting worker.
 Train worker.
 Updating employee personal file.
 Writing service book for employee record management.
 ID card distribution.
 Leave & update them on leave registry book.
 Performance evaluation based on one year.
 CV sorting.
 Sending letter to the employee who are absent for long days.
Table-9: Secondary Learning
The tasks are described briefly in the following description-
4.1.2.1. Recruiting worker:
Recruiting workers was a great task. It taught me some procedure for recruiting worker,
which is helping me to build up my future career.
4.1.2.2. Train Worker:
Workers had been trained by me during my internship period. To improve the services of the
worker many training had been organized. Such as- environment health and safety training,
risk assessment training, maternity training, grievance training etc.

4.1.2.3. Updating Employee Personal File:
Each and every employee of AKH Fashion Ltd. owns a file. These files contain everything
about an employee. One of the major tasks of HR department is updating those personal file.
A lot of files have been updated when I was there.
4.1.2.4. Writing Service Book for Employee Record Management:
Service book is a book that contains several information regarding employee. This service
book is a must according to regulation. It can be kept separately but in AKH Fashion Ltd., it
is kept along with the personal files. A good number of service books have been written
during my internship over there.
4.1.2.5. ID card Distribution:
Each and every employee is required to hang ID card while visiting the factory premises. I
have distributed ID card among the visitors.
4.1.2.6. Leave Form Management & Updating:
In a month, many employees enjoy various types of leave. At the end of every month, HR
department is responsible to update them on the leave registry book. These books contain
information regarding leave. A lots of leave form information have been updated to the
registry book by me.
4.1.2.7. Performance Evaluation based on one year:
At the end of one year job in a company, one employee gets promotion or increment. HR
department is responsible to make a performance evaluation sheet including name, ID and
department and send it to the department head. Then the department head will judge him on
some criteria and mention how much increment should be made or whether promotion should
be given or not. After doing that, they send it back to the HR department & they promote or
give increment based on this. I have prepared those sheets and sort them according to
department.
4.1.2.8. CV Sorting:
The process of selecting candidates starts with sorting out CVs. I have worked a lot in sorting
out CVs initially, especially in the position of floor supervisor, production officer etc. There I

was asked to give emphasis on the educational qualifications, previous working experience
and whether the candidate has done relevant training program which will be appropriate for
the given job responsibilities. After the initial screening has done, I had to make a list of the
candidates who can be called for interview.
4.1.2.9. Disciplinary Actions:
I have worked with some activities of disciplinary procedure such as sending letter to the
employees who are absent in the factory for a long time (maximum 10 days are allowed).
4.2. Evaluation: It was a great experience of working for the first time and this report has
been prepared on the basis of experience gathered during the period of internship. The
company did not fix any responsibilities for interns. I have done different types of tasks in
different division whenever assigned.

Chapter 05
Research Methods

5.1. Problem Statement:
The main purpose of this report is to find out “Evaluation of performance appraisals and
reward policy system of AKH Fashion Ltd.”
5.2. Background of the Problems:
When I worked on AKH Fashion Limited I observed that disconnected from rewards in this
organization, getting a merit raise, bonus, or promotion is completely disconnected from an
employee’s performance appraisal scores. When there is a weak link, employees and
managers are not likely to take the process seriously. The process is not fully integrated with
compensation, performance management, development, or staffing (internal movement). A
lack of integration and coordination leads to duplication and missed opportunity. For this
problem I am doing this research.
5.3.ProjectTimeline:
Task Sep-Oct
(16-5)
Oct
(6-20)
Oct-Nov
(21-15)
Nov
(16-20)
Nov (21-
31)
Dec
(1-16)
Literature Search and
Review
Questionnaire
preparation
Field Work 3 days
Data collection
Data processing
Data analysis
Final Report witting
Table-10: Gantt Chart

5.4.BudgetInformation:
In my internship period from 15th
September to 14th
December 2017, I have to spend some
amount of money. Total expenditure to prepare this project are shown in below-
Particulars Amount (Taka)
Transportation 1800
Printing and binding 1000
Cell phone and Internet bill 1500
Lunch bill 1800
Other expenditures 500
Total 6,600 Taka
Table-11: Budget
5.5. Research Methodology:
The study requires a systemic procedure from selection of the topic to the preparation of final
report. To develop the report I choose Quantitative research method where I convert my data
into numerical value. And the data source was to be identified and collected, classified,
interpreted and presented in a systemic manner. The overall procedure of the methodology
has been as below:
5.5.0. Research Approach:
Quantitative Research:
Quantitative research is the systematic investigation of observable phenomena via statistical,
mathematical or computational techniques. The objective of quantitative research is to
develop and employ mathematical models or hypotheses pertaining to phenomena.
My research method is Quantitative Research and I have made questionnaires with structure
question by the survey of employees.

5.5.1. Research Philosophy:
Research philosophy is the development of logical reasoning that incorporates contemporary
ideas with previously established methods of thought through structural phases. A Research
philosophy can be pragmatism, positivism, realism or interpretive.
The type of this research philosophy is a realism research because Realism research
philosophy relies on the idea of independence of reality from the human mind.
5.5.2. Type of Research:
Exploratory: This research is an exploratory type research.
5.5.3. Method of Data Collection:
There are two types of data collection method in my research.
Primary Data:
Questionnaire: Some primary data are collected by taking structured questions and by
discussion with the employees.
Observation: Observed in the AKH Fashion Ltd. during the working hour.
Face to Face interview: The questionnaire structure has been solved face to face
conversation with the selected sample.
Secondary Data:
 File study.
 Progress report of the company.
 Different publications regarding garments function.
 www.akhfashions.com
 Reports from BGMEA, BKMEA.
 Prospectors
 My daily notes and briefs

5.5.4. Population and Sampling Methods:
 Target Population: The population of this research is existing employees means all the
section of AKH Fashion Ltd. It is 3300 only.
 Sample Frame: The sample frame of this study consists of all 330 employees of AKH
Fashion Ltd. The sample frame was taken from only the AKH Fashion Ltd.
 Sample Size: After preparing the sample frame, the size of sample were taken to 33
peoples by using simple random sampling strategies having the service from all
section.
 Sampling Method: I selected the probability sampling method for my research
because every employee’s comes to the company to work and the population has an
equal chance of being included in the sample. Under probability sampling method I
selected simple random sampling by selecting the respondents randomly.
 Sampling Procedure: To accurately determine the probability, probability s in the
sampling is selected and it is simple random sampling. Because each member of a
population has an equal chance of being included in the sample. I have used Likert
scale to get the response from the customer. I would like to know whether
respondent’s are (1) Strongly Disagree, (2) Disagree, (3) Neutral, (4) Agree and (5)
Strongly Agree
 Research Instrument: Close ended Questionnaires.
5.6. Research Limitations:
For preparing a report few obstacles and limitations will come. MS Excel used for analysis of
data and Microsoft Word, Microsoft Excel, different tables and graphs were used to make the
data meaningful Although this research was carefully prepared, I am still aware of its
limitations and shortcomings. The research was conducted among the employees who have
lasted for 3 months. Three months is not enough to do research. It would be better if it was
done in a longer time. Due to the lack of experience there might be some problem in this
study because I am not experienced.

5.7. Data Analysis and Interpretation:
To analyze the collected data I use MS word, MS Excel. Because it is not possible to develop
it without MS word and excel. It’s necessary to use it for making any graphical
representation, Interpretation, chart, table etc.
5.7.1. Hypothesis Test: Hypothesis was testing to develop a meaningful conclusion from the
experimental data. In addition, basic statistical techniques have been used for analyzing the
data. As my sample size is more than 30, I have used Z test for the research.
The formula is given below:
Z test =
𝑋−µ
σ/√n
Where,
µ = mean value
n = sample size
σ = Standard deviation
X = Average
Based on this analysis, I made findings, recommendations and conclusion.
5.7.2. Hypothesis Scale:
In order to analyze the data, I have used Likert scale. Where 1 stands for strongly disagreed
employees, 2 stands for only disagreed employees, 3 stands for the neutral employees, 4
stands for agreed employees, and 5 stands for strongly agreed employees.
The scale has been shown in below:-
Employee Opinion Weighted
Strongly Disagree 1
Disagree 2
Neutral 3
Agree 4
Strongly Agree 5
Table-12: Hypothesis Scale

5.7.3. Hypothesis Development:
With a view to fulfill the objectives, some relevant hypotheses have been formulated for this
study:
SL No Hypothesis Survey Questions
H1 The current employee performance evaluation should be revised to meet the needs of
AKH Fashion Ltd.
H2 Training and development has positive impact on employee performance.
H3 Performance appraisals are fair and honestly done in the organization.
H4 Human Resource Manager is responsible for performing effective appraisals process.
H5 Employees (other than managerial or HR practitioners) must be involved with the
design of the performance appraisal policy.
H6 Performance appraisal policy is accepted as legitimate and important by the
organization.
H7 Performance appraisal management meetings are effective, meaningful and
transparent.
H8 Orientation and training are effective evaluation procedures for successful
performance.
Table-13: Hypothesis Development

5.7.4. Hypothesis Testing:
Likert Scale H1 H2 H3 H4 H5 H6 H7 H8
1 = Strongly Disagree 3 0 8 6 2 1 5 0
2 = Disagree 6 4 6 9 3 5 8 4
3 =Neutral 5 7 9 7 7 6 9 7
4 = Agree 8 9 3 7 12 8 6 12
5 = Strongly agree 11 13 7 4 9 13 5 10
Total Respondents 33 33 33 33 33 33 33 33
Total Weight 117 130 94 93 122 126 97 127
Average 3.54 3.94 2.85 2.82 3.69 3.82 2.94 3.85
Standard Deviation 1.35 1.04 1.44 1.29 1.14 1.19 1.28 0.99
Z-test Value 4.52 8 1.4 1.45 6.26 6.29 2 7.94
Table-14: Hypothesis Testing

5.7.5. Graphical Representation with interpretation:
Hypothesis 1
HO: The current employee performance evaluation should not be revised to meet the needs of
AKH Fashion Ltd.
HA: The current employee performance evaluation should be revised to meet the needs of
AKH Fashion Ltd.
Ho: μ = 2.5
HA: µ > 2.5
n = 33
Here, 𝑋̅ = 3.54
σ = 1.35
Z Cal = (𝑋̅ - μ) / (σ / √n) = 4.52
Figure-4: Hypothesis 1
Interpretation:
At the 5% level of significance follows Z distribution Z0.05=1.645.
Since Zcal > Ztab, null hypothesis is not accepted. So at 5% level of significance, we can say
that, the Zcal value =4.52 which is greater than the Ztab value = 1.645. So, we reject the null
hypothesis. It can conclude with saying that the current employee performance evaluation should
be revised to meet the needs of AKH Fashion Ltd.
9%
18%
15%
24%
34%
Respondent's Responses
Strongly Disagree Disagree Neutral Agree Strongly Agree

Hypothesis 2
Ho: Training and development has not positive impact on employee performance.
HA: Training and development has positive impact on employee performance.
Ho: μ = 2.5
HA: µ > 2.5
n = 33
Here, 𝑋̅ = 3.94
σ = 1.04
Z Cal = (𝑋̅ - μ) / (σ / √n) = 8
Interpretation:
that, the Zcal value = 8 which is greater than. Ztab value is 1.645. So, we reject the null
hypothesis. It can conclude with saying that training and development has positive impact on
employee performance.
0%
13%
23%
30%
34%

Hypothesis 3
Ho: Performance appraisals are not fair and honestly done in the organization.
HA: Performance appraisals are fair and honestly done in the organization.
Ho: μ = 2.5
HA: µ > 2.5
n = 33
Here, 𝑋̅ = 2.85
σ = 1.44
Z Cal = (𝑋̅ - μ) / (σ / √n) = 1.4
Interpretation:
Since Zcal < Ztab, null hypothesis is accepted. So at 5% level of significance, we can say that, the
Zcal value = 1.4 which is less than the Ztab value = 1.645. So, we accept the null hypothesis. It can
conclude with saying that performance appraisals are not fair and honestly done in the organization.
28%
21%31%
10%
10%

Hypothesis 4
Ho: Human Resource Manager is not responsible for performing effective appraisals process.
HA: Human Resource Manager is responsible for performing effective appraisals process.
Ho: μ = 2.5
HA: µ > 2.5
n = 33
Here, 𝑋̅ = 2.82
σ = 1.29
Z Cal = (𝑋̅ - μ) / (σ / √n) = 1.45
Interpretation:
Since Zcal < Ztab, null hypothesis is accepted. So at 5% level of significance, we can say
that, the Zcal value =1.45 which is less than the Ztab value = 1.645. So, we accept the null
hypothesis. It can conclude with saying that human resource manager is not responsible for
performing effective appraisals process.
18%
28%
21%
21%
12%

Hypothesis 5
Ho: Employees (other than managerial or HR practitioners) must not be involved with the
design of the performance appraisal policy.
HA: Employees (other than managerial or HR practitioners) must be involved with the design
of the performance appraisal policy.
HA: µ > 2.5
Ho: μ = 2.5
n = 33
Here, 𝑋̅ = 3.69
σ = 1.14
Z Cal = (𝑋̅ - μ) / (σ / √n) = 6.26
Interpretation:
that, the Zcal value = 6.26 which is greater than the Ztab value = 1.645 so, we reject the null
hypothesis. It can conclude with saying that employees (other than managerial or HR
practitioners) must be involved with the design of the performance appraisal policy.
6%
9%
22%
38%
25%

Hypothesis 6
Ho: Performance appraisal policy is not accepted as legitimate and important by the
organization.
HA: Performance appraisal policy is accepted as legitimate and important by the organization.
HA: µ > 2.5
Ho: μ = 2.5
n = 33
Here, 𝑋̅ = 3.82
σ = 1.19
Z Cal = (𝑋̅ - μ) / (σ / √n) = 6.29
Interpretation:
that, the Zcal value = 6.29 which is greater than the Ztab value = 1.645. So, we reject the
null hypothesis. It can conclude with saying that performance appraisal policy is accepted as
legitimate and important by the organization.
4%
19%
23%
31%
23%

Hypothesis 7
Ho: Performance appraisal management meetings are not effective, meaningful and
transparent.
HA: Performance appraisal management meetings are effective, meaningful and transparent.
HA: µ > 2.5
Ho: μ = 2.5
n = 33
Here, 𝑋̅ = 2.94
σ = 1.28
Z Cal = (𝑋̅ - μ) / (σ / √n) = 2
Interpretation:
that, the Zcal value = 2 which is greater than the Ztab value is 1.645. So, we reject the null
hypothesis. It can conclude with saying that performance appraisal management meetings are
effective, meaningful and transparent.
14%
22%
25%
17%
22%

Evaluate the process of performance appraisals and reward policy of AKH Fashion Ltd.

Evaluate the process of performance appraisals and reward policy of AKH Fashion Ltd.

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