Abstract:Organizations need to evaluate their employees in a timely manner to
determine the lack of rightwardness in the employees’ effort. By doing so an
organization can reward its employees by giving promotion and other pecuniary and
non-pecuniary benefits. On the contrary, it can punish its employees depending on
some strict performance measuring criteria. This study tries to compare the
performance appraisal system of a local bank with that of a multinational bank.
Both banks are using quantitative and qualitative performance appraisal criteria.
Although objective factors do matter, judgmental approach is widely used by both
banks in their performance evaluation system. Immediate boss plays a significant
role in deciding the fate of the appraisee. It has been seen that though there exists a
good performance appraisal system inboth cases, good amount of training and
counseling still necessary for both the appraiser and the appraisee.
1. Introduction
This document is a research paper by Merima Bejtagic-Makic on HR practices during an economic recession. It discusses how the recession has impacted businesses and forced HR managers to cut costs through layoffs, wage reductions, and increased workloads. However, the document emphasizes that the best HR managers avoid major layoffs and focus on retaining talented employees. It then examines several HR strategies used during recessions, such as wage adjustments, employment adjustments, reorganizing work hours, improving communication, and focusing on innovation. The conclusion stresses the important role of HR in driving performance through initiatives like talent management, performance reviews, and leadership development.
This power point present the research finding of Human Resources Audit. It examining the policies, documentation, systems, and practices with respect to an organization’s HR function. It reveals the strength and weaknesses in the human resources system, and all issues, which need resolution.
The document discusses human resource audits, including their definition, significance, objectives, benefits, and approaches. A HR audit examines policies, practices, procedures, compliance, effectiveness, and efficiency. It identifies gaps, makes recommendations for improvements, and helps ensure HR activities align with organizational goals. The audit scope includes functions like planning, staffing, development, motivation and more. Objectives include assessing performance, implementation, corrective actions, evaluations, and strategy modification. Benefits are improving the HR department, responsibility, uniform policies, and legal compliance.
A human resource audit evaluates all human resource activities within an organization to determine how effectively they support the company's strategy and objectives. The audit examines areas like recruitment and selection, training programs, performance management, compensation and benefits, employee satisfaction, and managerial compliance with HR policies. The results are documented in an audit report that identifies strengths, weaknesses, and recommendations for improving how HR contributes to organizational success.
This document provides an overview of the history and development of performance appraisal. It discusses how early research from the 1950s to 1980s focused on developing different rating scales to reduce biases. Starting in the 1980s, research examined common rating errors and whether bias-free appraisals were truly accurate. Recent research has explored measuring employee attitudes towards performance appraisal systems and their effectiveness. The document also reviews literature on various ethical issues in human resource management practices.
An HR audit is a comprehensive review of an organization's HR policies, procedures, documentation, and systems. It identifies areas for improvement and ensures regulatory compliance. The audit involves reviewing aspects like hiring, benefits, compensation, performance reviews, and terminations. The purpose is to recognize HR strengths and problems in order to remedy issues and enhance the HR function. Key areas that should be audited include legal compliance, record keeping, compensation, employee relations, and health and safety policies.
Chapter 1 to 4 human resource managementAhmed Salem
This document outlines the course objectives, assessment structure, topics, and schedule for an MBA course in Human Resource Management. The key topics covered include definitions of HRM, responsibilities of the HR department, skills of HR managers, roles of supervisors in HRM, ethical issues, careers in HRM, and challenges in the HR environment. Assessment is 60% coursework through assignments, presentations, and exams, and 40% final examination. Class discussions and activities are included to apply concepts to hypothetical workplace examples.
This document discusses human resources management (HRM). It begins by explaining the importance of HRM, including helping control budgets, improving organizational performance and image, and sustaining the business. Next, it describes how HRM has evolved from a traditional personnel administration function to a more modern, strategic role. The document then outlines the goals and benefits of HRM, the key activities within the HRM landscape, and some characteristics of effective HRM practices. Finally, it discusses challenges for HRM like managing innovation and the shift from manual to knowledge work in the modern economy.
This document is a research paper by Merima Bejtagic-Makic on HR practices during an economic recession. It discusses how the recession has impacted businesses and forced HR managers to cut costs through layoffs, wage reductions, and increased workloads. However, the document emphasizes that the best HR managers avoid major layoffs and focus on retaining talented employees. It then examines several HR strategies used during recessions, such as wage adjustments, employment adjustments, reorganizing work hours, improving communication, and focusing on innovation. The conclusion stresses the important role of HR in driving performance through initiatives like talent management, performance reviews, and leadership development.
This power point present the research finding of Human Resources Audit. It examining the policies, documentation, systems, and practices with respect to an organization’s HR function. It reveals the strength and weaknesses in the human resources system, and all issues, which need resolution.
The document discusses human resource audits, including their definition, significance, objectives, benefits, and approaches. A HR audit examines policies, practices, procedures, compliance, effectiveness, and efficiency. It identifies gaps, makes recommendations for improvements, and helps ensure HR activities align with organizational goals. The audit scope includes functions like planning, staffing, development, motivation and more. Objectives include assessing performance, implementation, corrective actions, evaluations, and strategy modification. Benefits are improving the HR department, responsibility, uniform policies, and legal compliance.
A human resource audit evaluates all human resource activities within an organization to determine how effectively they support the company's strategy and objectives. The audit examines areas like recruitment and selection, training programs, performance management, compensation and benefits, employee satisfaction, and managerial compliance with HR policies. The results are documented in an audit report that identifies strengths, weaknesses, and recommendations for improving how HR contributes to organizational success.
This document provides an overview of the history and development of performance appraisal. It discusses how early research from the 1950s to 1980s focused on developing different rating scales to reduce biases. Starting in the 1980s, research examined common rating errors and whether bias-free appraisals were truly accurate. Recent research has explored measuring employee attitudes towards performance appraisal systems and their effectiveness. The document also reviews literature on various ethical issues in human resource management practices.
An HR audit is a comprehensive review of an organization's HR policies, procedures, documentation, and systems. It identifies areas for improvement and ensures regulatory compliance. The audit involves reviewing aspects like hiring, benefits, compensation, performance reviews, and terminations. The purpose is to recognize HR strengths and problems in order to remedy issues and enhance the HR function. Key areas that should be audited include legal compliance, record keeping, compensation, employee relations, and health and safety policies.
Chapter 1 to 4 human resource managementAhmed Salem
This document outlines the course objectives, assessment structure, topics, and schedule for an MBA course in Human Resource Management. The key topics covered include definitions of HRM, responsibilities of the HR department, skills of HR managers, roles of supervisors in HRM, ethical issues, careers in HRM, and challenges in the HR environment. Assessment is 60% coursework through assignments, presentations, and exams, and 40% final examination. Class discussions and activities are included to apply concepts to hypothetical workplace examples.
This document discusses human resources management (HRM). It begins by explaining the importance of HRM, including helping control budgets, improving organizational performance and image, and sustaining the business. Next, it describes how HRM has evolved from a traditional personnel administration function to a more modern, strategic role. The document then outlines the goals and benefits of HRM, the key activities within the HRM landscape, and some characteristics of effective HRM practices. Finally, it discusses challenges for HRM like managing innovation and the shift from manual to knowledge work in the modern economy.
This document discusses the strategic role of human resources in organizational transformation. It makes three key points:
1) Human resource managers must understand organizational strategies and ensure HR programs support strategic goals. This includes evaluating employee competencies, developing training programs, and communicating strategies to employees.
2) HR programs must be tailored to changing business needs and evaluated for effectiveness. Managers must demonstrate how initiatives improve performance and contribute to goals.
3) HR helps organizations adapt to changing work environments through skills assessment, motivation programs, change management strategies, and integrated HR systems that support each other and organizational transformation.
The document discusses human resource management and related topics. It begins with definitions of key terms like personnel management, human resources, and human resource development. It then covers objectives and functions of human resource management like planning, organizing, directing, controlling, development, and maintenance of personnel. The document also discusses topics like job analysis, its objectives and techniques, job description vs job specification, and the process of job evaluation.
HR audit is an overall quality control check on human resource activities in a division or company and how those activities support the organization’s strategy. A human resource audit evaluates the personnel activities used in an organization. The audit may include one division or entire company.
The objectives of job evaluation are to:
1. Establish sound salary differentials between jobs requiring different skills.
2. Identify and eliminate salary inequities.
3. Establish a foundation for variable pay like incentives and bonuses.
4. Maintain consistent policies for employee career growth and development.
5. Create a method of job classification for managing major wage issues in union negotiations.
Approaches to strategic hrm - strategic human resource management - Manu Me...manumelwin
There are five approaches to strategic HRM. These consist of
Resource-based strategy.
Achieving strategic fit.
High-performance management.
High- commitment management.
High-involvement management.
Operations Research - Application and Scope in Business AreasSundar B N
Operation research is an analytical method used to solve problems and make decisions in organizations. It involves breaking problems down into basic components and solving them through mathematical analysis. The main objective is to find the optimal solution given limited resources. Operation research can be applied to many business areas, including accounting, finance, production, marketing, personnel planning, and more. It has also been used successfully in industries like airlines, telecommunications, manufacturing, healthcare, and transportation.
An HR audit reviews an organization's implementation of policies and procedures to ensure compliance with employment laws, identify liabilities, implement best practices, and educate managers. It evaluates personnel activities across divisions or the entire company. The audit provides feedback on operating managers, HR specialists, and how well managers are meeting HR duties. It is an overall quality check on HR activities and how they support organizational strategy. Benefits include identifying the HR department's contributions, improving professionalism, clarifying duties, and finding critical personnel issues. Conducting audits helps ensure compliance, improve practices, train managers, prepare for potential audits or litigation, and correct errors.
A Human Resources Audit is a comprehensive method (or means) to review current human resources policies, procedures, documentation and systems to identify needs for improvement and enhancement of the HR function as well as to assess compliance with ever-changing rules and regulations.
An HR audit systematically examines an organization's HR policies, procedures, and practices to evaluate their effectiveness and identify any gaps. The goals are to measure how well units are meeting objectives, determine what is and is not working, and formulate improvement plans. An HR audit benefits an organization by identifying the contributions of the HR department, improving its professional image, ensuring legal compliance, and reducing costs.
The document discusses three models of training:
1. The System Model consists of five phases - analyze, design, develop, execute, and evaluate - that are repeated to continuously improve training.
2. The Instructional System Development Model focuses on linking training objectives to job responsibilities and performance. It includes analysis, planning, development, execution, and evaluation phases.
3. The Transition Model views the organization holistically and bases training on the organization's vision, mission, and values.
The document outlines a 7-step model for conducting an HR audit: 1) Determine the scope and type of audit, 2) Develop an audit questionnaire, 3) Collect data using the questionnaire, 4) Benchmark findings against industry standards, 5) Provide a report of findings and recommendations to management, 6) Create action plans to address issues, and 7) Foster continuous improvement through ongoing monitoring and follow up. The goal of the audit is to assess HR practices, identify areas for improvement, and ensure policies and procedures are up-to-date and compliant on an ongoing basis.
This document discusses performance appraisal and provides details about:
1. It defines performance appraisal as a systematic evaluation of employees by supervisors and discusses why appraisals are conducted.
2. It describes different methods of performance appraisal used in companies like behaviorally anchored rating scales, human resource accounting, management by objectives, 360 degree feedback, and the rating scale method used by BMW.
3. It provides an overview of BMW, including that it is a German automaker known for luxury vehicles and motorcycles, and discusses BMW's operations in India including its assembly plant in Chennai.
HR Bundles for Effective Work Life Balance: An Empirical Studyscmsnoida5
Work Life Balance (WLB) is one of the most
important issues at workplace in today’s
competitive business environment. A large
number of studies have been carried out on WLB
in the human resource and other academic fields.
Most of the studies find major factors related to
the work life balance. This paper, however tries
to find the HR bundles related to various factors
of WLB. The bundles basically club the major
items affecting WLB under limited number
of broad constructs. This study basically works
on the variables related to Job Motivation,
Organizational Culture, Flexi Workings, and
Work Culture etc. For the purpose of this study
data has been collected from 125 IT professionals
from Delhi-NCR. The sampling method is
judgmental sampling where only those employees
have been selected that are married and have at
least one child. Factor analysis and Descriptive
have been used for data analysis. The paper
significantly contributes in the literature by establishing relationship between HR bundles
and Work Life Balance. Further, the study
also finds and elaborates the reasons why these
variables have come up the most important and
bundled together under one broad construct.
This document provides an overview of a toolkit for measuring HR effectiveness. The toolkit allows organizations to audit their HR systems, policies, and practices to identify gaps and priorities for improvement. It includes diagnostic questionnaires and guidelines around six core people management areas: planning, recruitment, deployment, management, development, and transition. The toolkit can be used at different levels - basic, full, or enhanced - depending on needs and available time. The basic audit involves completing two questionnaires to assess HR policies and overall effectiveness.
Human resource management involves both "hard" and "soft" approaches. The hard approach treats employees as a resource to be hired and fired as needed, pays minimal wages, and focuses on short-term workforce needs. The soft approach treats employees as a long-term investment, focuses on their development and empowerment, and aims to motivate through delegation and rewards rather than just pay. While the hard approach may be more cost-effective, it risks higher turnover and less successful recruitment. The soft approach better motivates employees but risks higher costs reducing competitiveness. The best approach depends on the specific business and objectives.
The document discusses the importance of conducting regular HR audits through the case study of Texaco. Texaco did not properly audit its divisions for compliance with equal employment laws and faced a racial discrimination lawsuit. The $176 million settlement was an expensive lesson for Texaco on the importance of auditing HR practices. Regular audits allow employers to proactively identify and address issues before they escalate into legal claims.
Human Resource Management involves hiring, motivating, and maintaining employees in an organization. It focuses on managing people to accomplish individual, organizational, and social goals. HRM aims to make integrated decisions regarding recruiting, developing, compensating, and separating employees in a way that is consistent with the organization's effectiveness and ability to serve customers with high quality products and services.
Review of literature on performance appraisal systemelenavogel8
In this file, you can ref useful information about review of literature on performance appraisal system such as review of literature on performance appraisal system methods
Analysing the Concept of Performance Appraisal System on Employees DevelopmentAJHSSR Journal
Globally, governments and companies spend billions of naira yearly on employee performance
evaluation. This study sought to establish the analysis of the concept of performance appraisal system on
employee’s developmentfocusing on a case study of Oasis Management Company, Abuja. The main objective
of this study was to find out the significant relationship between performance appraisal system and employees’
development and to identify the impacts of performance appraisal on employee’s development. Regression
analysis was done to establish the concept of performance appraisal system on employee development. From
the findings, the study concluded that organizations should appraise their employees often through utilized
targets, accomplishments, organization goals, time management and efficiency for performance measure
purposes as it would lead to increase in employee’s development.
Strategic human resource management (SHRM) aligns a company's human resource strategies and policies with its business strategies and objectives. The document discusses key concepts in SHRM including determining strategic objectives, developing action plans, the four components of SHRM, and linking business and HR strategies. It also covers frameworks for SHRM such as strategic fit, distinctive HR practices, and theoretical perspectives including fit, functional, economic, and typological. Examples are provided of alternative HR strategies in different industries and contexts.
Best Practice in Human Resource Operations for Multinationals Assignment SampleInstant Assignment Help
The document discusses best practices in human resource operations for multinational companies. It states that HR operations like recruitment, training, performance management, and compensation play an important role in supporting business operations and goals for multinationals. Some key best practices identified include talent acquisition, training employees, providing healthcare and other benefits, developing internal HR skills, using new technologies, and maintaining good employee relations. Implementing the right HR strategies can help create an effective work environment and motivate employees to contribute to business success.
This document discusses the strategic role of human resources in organizational transformation. It makes three key points:
1) Human resource managers must understand organizational strategies and ensure HR programs support strategic goals. This includes evaluating employee competencies, developing training programs, and communicating strategies to employees.
2) HR programs must be tailored to changing business needs and evaluated for effectiveness. Managers must demonstrate how initiatives improve performance and contribute to goals.
3) HR helps organizations adapt to changing work environments through skills assessment, motivation programs, change management strategies, and integrated HR systems that support each other and organizational transformation.
The document discusses human resource management and related topics. It begins with definitions of key terms like personnel management, human resources, and human resource development. It then covers objectives and functions of human resource management like planning, organizing, directing, controlling, development, and maintenance of personnel. The document also discusses topics like job analysis, its objectives and techniques, job description vs job specification, and the process of job evaluation.
HR audit is an overall quality control check on human resource activities in a division or company and how those activities support the organization’s strategy. A human resource audit evaluates the personnel activities used in an organization. The audit may include one division or entire company.
The objectives of job evaluation are to:
1. Establish sound salary differentials between jobs requiring different skills.
2. Identify and eliminate salary inequities.
3. Establish a foundation for variable pay like incentives and bonuses.
4. Maintain consistent policies for employee career growth and development.
5. Create a method of job classification for managing major wage issues in union negotiations.
Approaches to strategic hrm - strategic human resource management - Manu Me...manumelwin
There are five approaches to strategic HRM. These consist of
Resource-based strategy.
Achieving strategic fit.
High-performance management.
High- commitment management.
High-involvement management.
Operations Research - Application and Scope in Business AreasSundar B N
Operation research is an analytical method used to solve problems and make decisions in organizations. It involves breaking problems down into basic components and solving them through mathematical analysis. The main objective is to find the optimal solution given limited resources. Operation research can be applied to many business areas, including accounting, finance, production, marketing, personnel planning, and more. It has also been used successfully in industries like airlines, telecommunications, manufacturing, healthcare, and transportation.
An HR audit reviews an organization's implementation of policies and procedures to ensure compliance with employment laws, identify liabilities, implement best practices, and educate managers. It evaluates personnel activities across divisions or the entire company. The audit provides feedback on operating managers, HR specialists, and how well managers are meeting HR duties. It is an overall quality check on HR activities and how they support organizational strategy. Benefits include identifying the HR department's contributions, improving professionalism, clarifying duties, and finding critical personnel issues. Conducting audits helps ensure compliance, improve practices, train managers, prepare for potential audits or litigation, and correct errors.
A Human Resources Audit is a comprehensive method (or means) to review current human resources policies, procedures, documentation and systems to identify needs for improvement and enhancement of the HR function as well as to assess compliance with ever-changing rules and regulations.
An HR audit systematically examines an organization's HR policies, procedures, and practices to evaluate their effectiveness and identify any gaps. The goals are to measure how well units are meeting objectives, determine what is and is not working, and formulate improvement plans. An HR audit benefits an organization by identifying the contributions of the HR department, improving its professional image, ensuring legal compliance, and reducing costs.
The document discusses three models of training:
1. The System Model consists of five phases - analyze, design, develop, execute, and evaluate - that are repeated to continuously improve training.
2. The Instructional System Development Model focuses on linking training objectives to job responsibilities and performance. It includes analysis, planning, development, execution, and evaluation phases.
3. The Transition Model views the organization holistically and bases training on the organization's vision, mission, and values.
The document outlines a 7-step model for conducting an HR audit: 1) Determine the scope and type of audit, 2) Develop an audit questionnaire, 3) Collect data using the questionnaire, 4) Benchmark findings against industry standards, 5) Provide a report of findings and recommendations to management, 6) Create action plans to address issues, and 7) Foster continuous improvement through ongoing monitoring and follow up. The goal of the audit is to assess HR practices, identify areas for improvement, and ensure policies and procedures are up-to-date and compliant on an ongoing basis.
This document discusses performance appraisal and provides details about:
1. It defines performance appraisal as a systematic evaluation of employees by supervisors and discusses why appraisals are conducted.
2. It describes different methods of performance appraisal used in companies like behaviorally anchored rating scales, human resource accounting, management by objectives, 360 degree feedback, and the rating scale method used by BMW.
3. It provides an overview of BMW, including that it is a German automaker known for luxury vehicles and motorcycles, and discusses BMW's operations in India including its assembly plant in Chennai.
HR Bundles for Effective Work Life Balance: An Empirical Studyscmsnoida5
Work Life Balance (WLB) is one of the most
important issues at workplace in today’s
competitive business environment. A large
number of studies have been carried out on WLB
in the human resource and other academic fields.
Most of the studies find major factors related to
the work life balance. This paper, however tries
to find the HR bundles related to various factors
of WLB. The bundles basically club the major
items affecting WLB under limited number
of broad constructs. This study basically works
on the variables related to Job Motivation,
Organizational Culture, Flexi Workings, and
Work Culture etc. For the purpose of this study
data has been collected from 125 IT professionals
from Delhi-NCR. The sampling method is
judgmental sampling where only those employees
have been selected that are married and have at
least one child. Factor analysis and Descriptive
have been used for data analysis. The paper
significantly contributes in the literature by establishing relationship between HR bundles
and Work Life Balance. Further, the study
also finds and elaborates the reasons why these
variables have come up the most important and
bundled together under one broad construct.
This document provides an overview of a toolkit for measuring HR effectiveness. The toolkit allows organizations to audit their HR systems, policies, and practices to identify gaps and priorities for improvement. It includes diagnostic questionnaires and guidelines around six core people management areas: planning, recruitment, deployment, management, development, and transition. The toolkit can be used at different levels - basic, full, or enhanced - depending on needs and available time. The basic audit involves completing two questionnaires to assess HR policies and overall effectiveness.
Human resource management involves both "hard" and "soft" approaches. The hard approach treats employees as a resource to be hired and fired as needed, pays minimal wages, and focuses on short-term workforce needs. The soft approach treats employees as a long-term investment, focuses on their development and empowerment, and aims to motivate through delegation and rewards rather than just pay. While the hard approach may be more cost-effective, it risks higher turnover and less successful recruitment. The soft approach better motivates employees but risks higher costs reducing competitiveness. The best approach depends on the specific business and objectives.
The document discusses the importance of conducting regular HR audits through the case study of Texaco. Texaco did not properly audit its divisions for compliance with equal employment laws and faced a racial discrimination lawsuit. The $176 million settlement was an expensive lesson for Texaco on the importance of auditing HR practices. Regular audits allow employers to proactively identify and address issues before they escalate into legal claims.
Human Resource Management involves hiring, motivating, and maintaining employees in an organization. It focuses on managing people to accomplish individual, organizational, and social goals. HRM aims to make integrated decisions regarding recruiting, developing, compensating, and separating employees in a way that is consistent with the organization's effectiveness and ability to serve customers with high quality products and services.
Review of literature on performance appraisal systemelenavogel8
In this file, you can ref useful information about review of literature on performance appraisal system such as review of literature on performance appraisal system methods
Analysing the Concept of Performance Appraisal System on Employees DevelopmentAJHSSR Journal
Globally, governments and companies spend billions of naira yearly on employee performance
evaluation. This study sought to establish the analysis of the concept of performance appraisal system on
employee’s developmentfocusing on a case study of Oasis Management Company, Abuja. The main objective
of this study was to find out the significant relationship between performance appraisal system and employees’
development and to identify the impacts of performance appraisal on employee’s development. Regression
analysis was done to establish the concept of performance appraisal system on employee development. From
the findings, the study concluded that organizations should appraise their employees often through utilized
targets, accomplishments, organization goals, time management and efficiency for performance measure
purposes as it would lead to increase in employee’s development.
Strategic human resource management (SHRM) aligns a company's human resource strategies and policies with its business strategies and objectives. The document discusses key concepts in SHRM including determining strategic objectives, developing action plans, the four components of SHRM, and linking business and HR strategies. It also covers frameworks for SHRM such as strategic fit, distinctive HR practices, and theoretical perspectives including fit, functional, economic, and typological. Examples are provided of alternative HR strategies in different industries and contexts.
Best Practice in Human Resource Operations for Multinationals Assignment SampleInstant Assignment Help
The document discusses best practices in human resource operations for multinational companies. It states that HR operations like recruitment, training, performance management, and compensation play an important role in supporting business operations and goals for multinationals. Some key best practices identified include talent acquisition, training employees, providing healthcare and other benefits, developing internal HR skills, using new technologies, and maintaining good employee relations. Implementing the right HR strategies can help create an effective work environment and motivate employees to contribute to business success.
Organization Study at Vodafone South Ltd, BangaloreJomy Mathew
The document provides a history of the telecommunication industry. It traces the origins of telegraphy to Samuel Morse's invention of the electric telegraph in 1844. This allowed the first long-distance transmission of messages between Washington D.C. and Baltimore. It then discusses the expansion of the telegraph network across the U.S. and Europe in the following decades. This included the establishment of Western Union in 1851. It also briefly discusses the short-lived Pony Express mail service. The document concludes by noting how telecommunications has evolved from the telegraph to influence all aspects of modern life through voice calls, internet, satellite communications and more.
The Aditya Birla Group is an Indian multinational conglomerate founded in 1857. It operates in 40 countries with over 120,000 employees worldwide and has interests in sectors such as fibers, metals, cement, chemicals, and financial services. The group had revenue of approximately $45 billion in 2014, making it the third largest Indian private sector conglomerate. The group focuses on initiatives in education, healthcare, livelihood, and infrastructure development through its community centers and works in over 3,000 villages across India and other countries in Asia.
The document discusses ITC Limited's human resource policies and practices. Some key points:
- ITC was founded in 1910 and has grown to become one of India's largest conglomerates, with businesses in hotels, paper, packaging, agriculture and more.
- ITC has comprehensive HR policies covering recruitment, training, performance management, and aims to develop an employee-centric culture with a focus on values.
- Detailed policies are provided around non-discrimination, freedom of association, child and forced labor prohibition, health and safety, and consultation on workplace changes.
- Confidentiality of employee health information is emphasized, including around HIV/AIDS status.
Summer Internship project presentation. This Power point presentation will help the MBA and other management students of various universities to make an effective presentation at their Viva. The management graduates doing their internship in the telecom and other service will be benefited more from this slide.
Sample outline of a companies hr policyTanuj Poddar
This document provides guidance and sample policies for developing a career pathing and development program. It discusses the importance of aligning such a program with company objectives and strategies. Sample policies cover topics like recruitment, induction, performance appraisal, recognition, training, and variable compensation. Additional resources are provided on developing career bands based on competencies, succession planning, and integrating career planning into performance management. The document aims to help companies create effective programs that support employees' professional growth while helping the organization meet its goals.
The document is an HR policy manual for Tameer Microfinance Bank. It contains policies and procedures related to various HR functions such as employee classification, compensation and benefits, code of conduct, organizational development, and HR operations. The manual provides guidance for implementing consistent HR practices across the organization.
Capital budgeting refers to the long-term planning process used to evaluate proposed major investments and capital expenditures. It involves evaluating potential capital projects and determining which projects to invest in. The key methods used to evaluate projects include payback period, net present value, internal rate of return, and profitability index. Payback period is a simple and widely used traditional method that measures the time required for the cash inflows from a project to repay the initial cash outlay. However, it ignores cash flows beyond the payback period. More sophisticated discounted cash flow methods like net present value and internal rate of return are better as they consider the timing of all cash flows and investment cost of capital.
Pizza hut description and HR policies | project report of pizza hutMian Muhammad Zafar
Its a final report on the topic Pizza Hut.
The file contains a brief description about thee organization and it also contains the mission and vision statement as well as objectives of the organization.
The main content of the report is about the HR policies of the organization.
it don't have any unrelated description and it is very easy and just to the point so u can enjoy this report and it is very helpful for your study carrier
Indian Telecom Industry & role of HR in it, With emphasis on Airtelmini244
The document summarizes the growth of the Indian telecommunication industry. It discusses key metrics like India surpassing the US to become the second largest wireless network, achieving the world's lowest call rates and fastest growth in subscribers. It also outlines government initiatives to support growth, trends in rural connectivity, key players in mobile services, and investments being made to continue expansion. The telecom industry is expected to see further investments to support reaching 500 million subscribers by 2010.
Capital budgeting is the process of evaluating long-term investment projects and determining whether they are worth funding through debt, equity, or retained earnings. It involves estimating future cash flows of potential projects, evaluating them using techniques like net present value, and choosing projects that increase shareholder value and have returns higher than the company's cost of capital. The objectives of capital budgeting include setting investment priorities, purchasing assets that generate positive returns, aligning investments with marketing plans, keeping pace with projected growth, and maintaining an optimal debt level.
- Idea and Airtel are major Indian telecommunication companies, with Idea operating in 25 countries and Airtel in 19.
- Idea is part of Aditya Birla Group, India's first multinational corporation, employing over 125,000 people.
- Both companies operate GSM networks across countries, with Idea providing 2G and 3G services and Airtel providing 2G, 3G, and 4G.
A Comparative Study on Pizza Hut and Domino's; An innovative Health Restaurant.Rajalaxmi Prakash
This document provides a comparative analysis of Pizza Hut and Domino's Pizza in India. It summarizes the history, key facts and figures, franchise requirements, training programs, financing options, and obligations of both companies. It also analyzes their marketing strategies over time, positioning, similarities and differences. A SWOT analysis is given for each brand. The document concludes with proposals for new healthy restaurant concepts focusing on fresh, organic ingredients with customized healthy options and promotions to target health-conscious customers.
Vodafone was formed in 1984 as Racal Telecom Limited and changed its name to Vodafone in 1991. It has over 84,000 employees worldwide serving over 341 million customers globally. In India, Vodafone has around 131 million customers and employs 12,000 people. Vodafone's vision is to be the world's mobile communication leader by enriching customers' lives and helping communities connect. Their business principles focus on respecting employees' human rights and promoting diversity and inclusion.
{ To Study the structure and function of HR policy in HCL/ICC,
{ To compare the HR policy of HCL/ICC with other companies of similar profile
{ To find out the key techniques that makes The HR Policy effective and valuable in HCL/ICC and in other organizations.
This report is my term group project. It talks about the hr policies in TCS, then mainly on compensation structure. It covers the reward and award system. TCS follows Performance Appraisal of Balance Scorecard and Compensation structure based on EVA model. Award Process also covered over here.
The document discusses HR policies and practices at Walmart. It covers several topics: core values around customer service, respect, and excellence; best practices like teamwork and an open door policy; employee training programs; benefits like health coverage and stock purchase plans; workforce planning; negative practices around non-unionization and lower wages; comparisons to Ikea's policies; and recommendations around diversity and transparency. It also briefly discusses Walmart's operations in India and challenges faced there. The overall document provides an overview of Walmart's extensive HR programs and some criticisms of its approach.
Talent management aims to retain employees and develop their skills to achieve organizational goals. It includes processes like recruitment, performance management, and succession planning. Implementing talent management requires defining an organization's desired competencies and skills, assessing current competencies, and developing a strategy to close any gaps. A successful talent management strategy provides visibility of skills across an organization to help managers make better decisions regarding performance, career development, and planning.
this is performance management of the employees we are found there is lot of employees not satisfied with their job what they have . and we need to improve their performance management in the organization this main reason we did this study
Human resource accounting involves measuring the costs and value of employees to an organization. It aims to provide cost and valuation information to aid management decision making regarding acquiring, developing, and maintaining human resources. The objectives of human resource accounting include monitoring human resource use, analyzing whether human assets are conserved or depleted, and facilitating valuation and disclosure of human resources in financial statements.
This document provides an overview of strategic human resource management. It defines SHRM and explains its links to strategic management and the general planning process. The document outlines the SHRM process, including scanning the external and internal environment, identifying sources of competitive advantage, developing HR strategies, implementing those strategies, and monitoring/evaluating performance. It also discusses strategic fit and the relationship between business and HR strategies. Examples of Facebook's performance management and efforts to increase employee convenience are provided.
Analysing The Concept Of Performance Appraisal System On Employees DevelopmentSandra Long
This document analyzes the concept of performance appraisal systems on employee development. It discusses how performance appraisals can identify employee strengths and weaknesses to indicate how strengths can be utilized and weaknesses overcome. The study examines the relationship between performance appraisal systems and employee development, as well as the impacts of performance appraisal on employee development. The document presents literature on performance appraisal concepts, types, importance, and systems, and how they relate to employee development objectives like improving performance and determining training needs. The study aims to establish if effective performance appraisals can positively influence employee development.
The objectives of job evaluation are to:
- Establish sound salary differentials between jobs requiring different skills
- Identify and eliminate salary inequities
- Establish a foundation for variable pay like incentives and bonuses
- Maintain consistent career growth guidelines
- Create a method of job classification for union negotiations
- Collect job facts for tasks, employee selection, promotion, and work simplification
There are quantitative and non-quantitative methods for conducting job evaluation scientifically, such as ranking systems, point systems, and factor comparison systems.
HR Analytics Design, Implementation and Measurement of HR StrategyDr. Nilesh Thakre
The document discusses HR analytics and the design, implementation, and measurement of HR strategy. It defines HR analytics as applying data mining and business analytics techniques to human resources data to provide insights for effectively managing employees. It also discusses defining a company vision, establishing the HR department's role, developing a company overview, investigating company needs, evaluating HR processes, implementing the plan, and measuring success as key parts of designing, implementing, and measuring an HR strategy. The goal of the strategy is to help achieve business goals and get an optimal return on investment from human capital.
This document provides an overview of the syllabus for a Business Management course on Human Resource Management. It covers topics such as defining HRM and its relationship to the management process, the importance of HRM to managers, trends influencing HRM, strategic planning and its importance to managers, talent management, job analysis, writing job descriptions and specifications, employment planning and forecasting, and recruiting. Key aspects of each topic are defined and discussed over the 15 page document through headings, subheadings, and paragraphs of text.
Job analysis involves determining the duties, skills, and qualifications required for a job. It is used for recruitment and selection, performance evaluation, training and development, compensation, and job design. Data for job analysis can be collected through interviews, surveys, observation, and reviewing records. The results are used to create job descriptions that outline responsibilities, and job specifications that list qualifications needed. Specifications can be based on expert judgment or statistical analysis of traits correlated with job performance. Effective job analysis facilitates human resource planning and management.
Performance management in hospitals focuses on clinical outcomes, patient satisfaction, and operational efficiency. Key metrics include mortality and complication rates, patient experience scores, average length of stay, and operating costs. For electrical retailers, common metrics center around sales, profits, inventory levels, and customer service. Retailers track sales targets, gross and net profits, stock turnover rate, and metrics like average handling time per customer call. Both sectors also monitor employee engagement and development through performance reviews.
performance appraisal and management.pptxRidaZaman1
Performance appraisal is a process that involves evaluating an employee's job performance and contributions. It helps companies identify any workplace problems and make decisions regarding promotions, transfers, and terminations. It also provides employees with feedback on their capabilities and opportunities for development. Effective performance appraisal systems have clear objectives, well-defined evaluation criteria, accurate and reliable results, and post-appraisal interviews. They also focus on work performance, provide continuous feedback, and match the company's goals.
Mu0016 performance mgmt & appraisalNitesh Kumar
This document discusses performance management and appraisal. It explains that performance management aims to build a high-performance culture by clarifying goals, enabling growth, and continuously improving processes. The main goals of performance management are to help employees achieve standards, identify skills needed for their jobs, encourage motivation, promote communication between supervisors and employees, identify barriers to performance, and support career advancement. The document also defines performance appraisal, discusses dimensions and characteristics of appraisal, and lists traditional and modern methods of appraisal such as essays, rankings, behavioral anchors, management by objectives, and 360-degree feedback. Finally, it explains the principles of performance feedback and some common pitfalls managers face in providing feedback.
Application of business analytics in human resourcesJisa Shaji
Human resource management focuses on recruiting, compensation, training, employee relations, and organizational development. Business analytics can be applied in human resources to improve these functions. For example, predictive analysis of historical employee data can help determine (1) the probability that a new candidate will stay for two years and (2) which current employees are most likely to perform best. By analyzing issues by various factors, human resources professionals can make clearer decisions and provide timely advice to management and employees.
evaluation of performence appraisal INFINITY CREATIONS 2016saikrishnabachuwar
This document discusses performance appraisal and employee performance management. It begins by defining organizational effectiveness and the importance of evaluating employee performance. It then discusses the need for performance appraisal systems to provide feedback, identify high and low performers, and facilitate compensation decisions. The objectives and scope of performance appraisal are outlined, along with the methodology, data sources, and chapter plan for the study. Key differences between annual performance appraisals and ongoing performance management processes are explained. Typical outcomes of annual appraisals like misdirected bonuses and poor development are contrasted with improved communication, goal alignment, and employee development under performance management.
Improving Productivity through Appropriate Performance Appraisal in Pakistan ...Muhammad Arslan
The purpose of this study is to analyze the impact of performance appraisal on productivity. Appraisal tools are
used to measure the output of workers which are compared with the given tasks with specific working
environment in designing these tools there is three step process define the job, appraise the performance and
providing the relative feedback. The manager should take keen in designing. Cross tabulation methods is used to
analyze this phenomenon. Face to face interview and questionnaire will be the research strategy and this will be
cross sectional study i.e. one time study; data collection method will be secondary data, primary data through
random sampling will be collected from the contractors of transport companies of Pakistan State Oil Limited
and general analytical method will be used for data analysis. The finding of study suggests that performance
appraisal system has significant effect on personal skill and by using the combination of two methods; rating and
narrative method leads us improvement in productivity of the organization.
The document discusses how HR can add value to an organization through strategic human resource management practices. It outlines the HR value chain model which shows how HR activities can lead to improved HR outcomes and organizational objectives. Effective HR practices like talent acquisition, learning and development, and performance management can increase employee engagement, commitment and skills, leading to higher organizational performance in areas like productivity, quality and customer service. This in turn can improve the organization's financial results. Strategic HR aims to improve business performance through people by meeting both business and individual needs.
The document discusses potential appraisal, which refers to evaluating an employee's hidden talents and skills that are not currently being utilized, in order to identify their potential for higher roles. It explains that potential appraisal is future-oriented and aims to develop employees. Key aspects of potential appraisal include identifying job requirements and qualities, indicators to assess qualities, and providing feedback. Competency mapping and balanced scorecards are also discussed as tools to help with potential appraisal.
The document provides an introduction to strategic human resource management (SHRM). It defines SHRM and discusses how it integrates traditional HR activities with an organization's overall strategic planning. The document then asks and answers several questions about key HR concepts like HRM, SHRM, HCM, HRP, and the SHRM process. Barriers to SHRM implementation and factors affecting HRP are also discussed.
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إضغ بين إيديكم من أقوى الملازم التي صممتها
ملزمة تشريح الجهاز الهيكلي (نظري 3)
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تتميز هذهِ الملزمة بعِدة مُميزات :
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2- تحتوي على 78 رسم توضيحي لكل كلمة موجودة بالملزمة (لكل كلمة !!!!)
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6- تحتوي الملزمة في اول سلايد على خارطة تتضمن جميع تفرُعات معلومات الجهاز الهيكلي المذكورة في هذهِ الملزمة
واخيراً هذهِ الملزمة حلالٌ عليكم وإتمنى منكم إن تدعولي بالخير والصحة والعافية فقط
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Temple of Asclepius in Thrace. Excavation resultsKrassimira Luka
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1. Daffodil International University Journal of Business and Economics, Vol. 2, No. 1, January 2007
A Comparative Study of Performance Appraisal Systems of Two
Private Commercial Banks
Muhammad Bakhtear Uddin Talukdar*
Sampa Saha*
Abstract: Organizations need to evaluate their employees in a timely manner to
determine the lack of rightwardness in the employees’ effort. By doing so an
organization can reward its employees by giving promotion and other pecuniary and
non-pecuniary benefits. On the contrary, it can punish its employees depending on
some strict performance measuring criteria. This study tries to compare the
performance appraisal system of a local bank with that of a multinational bank.
Both banks are using quantitative and qualitative performance appraisal criteria.
Although objective factors do matter, judgmental approach is widely used by both
banks in their performance evaluation system. Immediate boss plays a significant
role in deciding the fate of the appraisee. It has been seen that though there exists a
good performance appraisal system in both cases, good amount of training and
counseling still necessary for both the appraiser and the appraisee.
1. Introduction
At every organization (eg, business, education system, hospital) there exists a set of
interrelated consequences that affect the control of human behavior. Some of these
consequences are embodied in formal policies, programs, or, procedures, but many are an
unwritten part of the culture. The interrelated set of consequences can be called an
organization's Human Resource Architecture (HRA). Human Resource Architecture is
one of three architectures that form the infrastructure of organizations. The others are
metric and information. Metric architecture consists of policies and practices that
establish how things are measured (eg, accounting systems, quality indexes). The
information architecture is policies and practices that establish how things are known (eg,
reports, information systems, meetings). Experts describe re-engineering as an effort to
use technology to redirect information in organizations, thus aligning new operational
schemes with new information architecture. HRA includes things such as selection
standards, a supervisor's response to problems, promotional rules, pay change policies,
and continued employment. Usually, but not always, these practices are defined in an
*
Lecturers, Faculty of Business and Economics, Daffodil International University.
The authors are highly grateful to Professor Dr. S. M. Ikhtiar Alam for his valuable comments
regarding the preparation of the paper.
2. 94 A Comparative Study of Performance Appraisal Systems of Two Private Commercial Banks
organization's human resource policies. Performance appraisal is one of the main streams
of Human Resource Architecture, which includes a process evaluation of employee
activities and behavior.
Performance appraisal is a process of assessing, summarizing and developing the work
performance of staff in an organization. Good performance appraisals benefit both
employees and the organization. They promote common understanding of individual
needs, work objectives and standards of acceptable performance. They also give
employees and managers a useful tool to aid in employee development. One human
resource objective for using performance appraisal systems is to determine who should be
promoted, demoted, transferred, or terminated. However, these are not only human
resource functions that are related to performance appraisals. For example, an
organization may use the results from a performance appraisal system to determine who
needs formal training and development opportunities. Further, such opportunities may
have no use as reward for individuals whose appraisals were positive.
Performance appraisal also can be used to motivate and improve performance. By
showing an individual strength lie and pirating out areas that still need improvement, an
evaluator can help focus an employee’s attention on a course that will produce the most
positive benefits additionally reinforcing behaviors that have produced strong positive
results should motivate the individual to continue to performing this manner.
A well-designed performance appraisal system also can encourage individuals to work
together as a team. If this is an organization’s goal, it must face several challenges in
designing and implementing such a system. Obviously, using the supervisor in the
evaluation process, self-managed group members can evaluate each other. Because self-
managed teams require a unique approach to performance appraisal, the process may
need to be redesigned.
2. Literature Review
Human Resource process includes things such as selection criteria, problem solving
attitude of the supervisors, adjustable payment system, and continuation of employment.
HR process as consisting of three basic components:
The HR Professional There are the HR professionals who have the strategic and other
skills required to build a strategy-oriented HR system.
HR policies and activities (such as how the company recruits, select, and trains and
reward employees) that comprise the HR system itself.
3. Daffodil International University Journal of Business and Economics, Vol. 2, No. 1, January 2007 95
Employee behaviors and competencies that the company’s strategy requires, and that
hopefully emerge from the actions and policies of the company’s strategy-supporting HR
system. These three components are called HR architecture shown in the following
Figure :
Figure 1: Components of HRA
Ideally the HR professionals should design the HR system in such a way that it helps to
produce the employee competencies and behaviors the company needs to achieve its
strategic goals.
To create a strategy-oriented HR system, we require new skills on the part of HR
professionals.
They must have the competencies required to create HR system that produce strategically
relevant employee behavior.
They need to understand the strategy formulation process.
They must be adept at identifying the workforce implications and requirements and
requirements of the new strategy and at crafting HR policies and practices that produce
those workforce requirements.
They must have a sufficiently wide breadth of business knowledge to be able to
understand how the company creates value, and to see how the firm’s HR system can
contribute to that value creation process. The HR professional has to understand how
businesses operate. Just knowing the nitty-gritty of recruiting, selecting, and training is
no longer sufficient. The HR manager needs a way to translate the company’s new
strategy into specific, actionable HR policies and practices; the basic process is shown
below:
The HR
Professionals
HR Professionals
with strategic
management
competencies
The HR System
High-Performance
Work System (CHPWS)
consisting of
strategically aligned HR
policies practices, and
activities
The HR Professionals
HR Professionals with
strategic management
competencies, values,
motivation, and
behaviors required by
the company’s
strategic plan.
4. 96 A Comparative Study of Performance Appraisal Systems of Two Private Commercial Banks
Management formulates a strategic plan. That strategic plan implies certain HR
requirements, in terms of the employee skills, attributes, and behaviors that HR must
deliver to enable the business to achieve its strategic goals. Given these HR requirements,
HR management formulates HR strategic, policies and practices aimed at achieving the
desired workforce skills, attributes, behaviors. These may take the form of new selection,
training, and compensation policies and practices, for instance. Ideally, HR management
identifies “Scorecard” metrics it can use to measure the extent to which its new HR
initiatives are supporting management’s strategic goals.
The HR Scorecard Approach:
Management judges the HR function based on whether it creates value for the company.
Value creation means contributing in a measurable way to achieving the company’s
strategic goals.
HR creates value by engaging in activities that produce the employee behaviors the
company needs to achieve these strategic goals.
Manager often uses HR Scorecard to measure the HR function’s effectiveness and
efficiency in producing these employee behaviors and thus in achieving the company’s
strategic goals.
Formulate Business Strategy
(What are the Strategic goals of the Business?)
Identify workforce Recruitments
(What employee competencies and behaviors must HR deliver to
enable the business to reach its goals?)
Formulate HR Strategic policies and activities.
(Which HR Strategies and practices will enable HR to produce these employee
competencies and behaviors?)
Develop detailed HR Scorecard Measures
(How can HR measure whether it is executing well for the business in terms of
producing the required workforce competencies and behaviors?)
5. Daffodil International University Journal of Business and Economics, Vol. 2, No. 1, January 2007 97
“The HR Scorecard is a concise measurement system. It shows the quantitative standards
or “metrics”. The company uses to measure HR activities and to measure the employee
behaviors resulting from these activities, and to measure the strategically relevant
organizational outcomes of those employee behaviors. In doing so, it highlights, in a
concise but comprehensive way, the causal link between the HR activities, and the
emergent employee behaviors, and the resulting firm wide strategic outcomes and
performance.
Information for creating an HR scorecard:
To create an HR Scorecard, the manager needs three types of information.
First, Manager must know what the company’s strategy is, because the strategy will
determine what the important employee behaviors and strategically important
organizational outcomes are, and how the firm will measure organizational performance.
Second, the manager must understand the causal links between the HR activities, the
employee behaviors, the organizational outcomes, and the organization’s performance.
Third, manager must have metrics he can use to measure all the activities and results
involved, specifically the HR activities, the emergent employee behaviors, the
strategically relevant organizational outcomes and the organizational performance (G
Dessler, 2006, pp. 84-87).
Typically the larger the organization the more likely the components of HRA are written
down and institutionalized. What is written down, however, often does not reflect the real
set of consequences that follow behavior. Too often, regardless of what the personnel
manual states, organizationally destructive behavior is reinforced while organizationally
appropriate behavior is punished. For example, people are told to innovate, but when they
do things differently, they are reprimanded. How people behave in organizations is in
large part a function of the culture or totality of socially transmitted behavior patterns (eg,
arts, beliefs, institutions). The facet of organization-specific culture that explains why
people behave as they do is HRA. In any culture certain behaviors are reinforced while
others are punished or suppressed eventually becoming extinct. For example, in some
organizations mistakes are accepted and viewed as the basis for personal growth. These
organizations are referred to as learning organizations. In other organizations, mistakes
are not tolerated and result in sanctions or even termination of the employment
relationship. In learning organizations, there is considerable risk taking and innovation. In
organizations where mistakes are punished, there is a tendency to avoid risk and follow
standard procedures. Regardless of popular management theory, neither of the above
situations is intrinsically right or wrong. An organization's HRA must align with its
mission. Human Resource Architecture is the total gamut of all inter related human
6. 98 A Comparative Study of Performance Appraisal Systems of Two Private Commercial Banks
behavior that determines the human resources policies and practices of an organization.
The HRA is illustrated in the Figure 1 below (Wydra, 1996).
Figure 2: Human Resource Architecture
Human Resource Architecture
Where performance refers to the degree of accomplishment of the tasks that make up an
employee’s job. It reflects how well an employee is fulfilling the requirements of a job.
Often confused with effort, which refers to energy expended, performance is measured in
Status Quo
Selection
Recruitment Criteria
Promotion Criteria
Assessment Centers
Selection Tools
New hire orientation
New Leader training
Policies and
Procedures
Work rules
Paid time off
Absenteeism and
tardiness
Work location
Overtime
Problem
solving/grievance
Progressive discipline
Work scheduling;
hours, days, cycle,
breaks, lunches,
coordination
Staffing
Strategy
Layoffs/displacement
Outplacement
Reassignment
Retraining
Rightsizing
Job Description
Describing
requirement
Assigning work
Valuing work
Teamwork vs.
individual work
Dynamic job redesign
Dynamic
compensation
Performance
Evaluation
Individual based
Team based
Multi-rater
Establishing
expectations
Performance criteria
Measuring
performance
Training and
Development
New work process
Teambuilding
Communication
Participation
Decision making
Problem solving
Interpersonal skills
Diagnostics
Employee surveys
Focus groups
Ongoing involvement
HR effectiveness
surveys
Assessment centers
HRIS information
system
Union
Relationship
Mutual gains
bargaining
Union avoidance
Adversarial vs.
collaborative
Negotiation
Contract interpretation
Grievance handling
Union security
Employee involvement
Compensation
and Reward
Cash: fixed/variable
Non-cash:
fixed/variable
Benefits:
fixed/variable
Linkage to
7. Daffodil International University Journal of Business and Economics, Vol. 2, No. 1, January 2007 99
terms of results. For example, a student may exert a great deal of effort in preparing for
an examination and still make a poor grade. In such a case effort expended was high, yet
the performance was low. Performance appraisal means evaluating an employee’s current
or past performance relative to the person’s performance standards. Appraisal involves
setting work standards, assessing the employee’s actual performance relative to these
standards and providing feedback to the employee with aim and motivating that person to
eliminate deficiencies or to continue to perform above par.
A corporation may have multiple businesses that are very similar to or completely
different from one another. Human resource strategy has been formulated when four
factors of strategy fit together. A graphical interface of human resource strategy is shown
in Figure 2 (Gomez-Mejia L. R., Balkin D. B., and Cardy R. L. (2004) Managing Human
Resources, 4th
Edition. Pearson Education, Inc.India. p.69)
Figure 3: Fit with organizational strategies
1) Fit with organizational strategies:
Depending on the firm’s size and complexity, organizational strategies may be examined
at two levels: corporate and business. Corporate strategy refers to the mix of businesses a
corporation decides to hold and the flow of resources among those businesses. The main
strategic business decisions at the corporate level concern acquisition, divestment,
diversification, and growth. Business unit strategy refer to the formulation and
implementation of strategies by firms that are relatively autonomous, even if they are part
of a larger corporation.
1) Organizational
strategies
2) Environment
HR strategies
Organizational
characteristics
Organizational
capabilities
Improv
ed firm
perfor
mance
Fit
Fit
Fit
Fit
Consistency
Consistency
Consistency
Consistency
8. 100 A Comparative Study of Performance Appraisal Systems of Two Private Commercial Banks
Evolutionary business strategy that fosters flexibility, quick response, entrepreneurship,
risks sharing and decentralization. Because the evolutionary corporation is not committed
to a particular business or industry, it may hire workers from the external market as
needed and lay them off to reduce costs if necessary, with no promise of rehiring them.
A steady- state strategy has an inward focus. Top managers exercise a great deal of direct
control over the company and prefer to promote employee dependence on supervisors
rather than independent action or entrepreneurship. Internal development of new products
and technologies and inter unit coordination are very important to these firms.
a) Porter’s business unit strategies:
Business Strategy
Common organizational
characteristics
HR strategies
Overall cost
leadership
• Sustained capital investment
and access to capital.
• Intense supervision of labor.
• Tight cost control requiring
frequent, detailed control
reports.
• Low-cost distribution system.
• Structured organization and
responsibilities.
• Products designed for ease in
manufacture.
• Efficient production.
• Explicit job descriptions
• Detailed work planning
• Emphasis on technical
qualifications and skills
• Emphasis on job-Specific
training
• Emphasis on job-based pay
• Use of performance appraisal
as a control device
Differentiation
• Strong marketing abilities
• Product engineering
• Strong capability in basic
research
• Corporate reputation for
quality or technological
leadership
• Amenities to attract highly
skilled labor, scientists, or
creative people
• Emphasis on innovation and
flexibility
• Broad job classes
• Loose work planning
• External recruitment
• Team-based training
• Emphasis on individual-based
pay
• Use of performance appraisal
as developmental tool
Focus
Combination of cost-leadership
and differentiation strategy
directed at a particular strategic
target
Combination of HR strategies
above
9. Daffodil International University Journal of Business and Economics, Vol. 2, No. 1, January 2007 101
b) Miles and Snow’s Business Strategies:
Strategic HR Area Defender Strategy Prospecter Strategy
Works flows • Efficient production
• Control emphasis
• Explicit job descriptions
• Detailed work planning
• Innovation
• Flexibility
• Broad job classes
• Loose work planning
Staffing • Internal recruitment
• HR department makes
selection decision
• Emphasis on technical
qualifications and skills
• Formal hiring and
socialization process
• External recruitment
• Supervisor makes
selection decision
• Emphasis on fit applicant
with culture
• Informal hiring and
socialization process of
new employees
Employee separations • Voluntary inducements to
leave
• Hiring freeze
• Continuing concern for
terminated employee
• Preferential rehiring policy
• Layoffs
• Recruit as needed
• Individual on his or her
own
• No preferential treatment
for laid-off workers
Performance appraisal • Uniform appraisal procedures
• Used as control device
• Narrow focus
• High dependence on superior
• Customized appraisal
• Used as developmental
tools
• Multipurpose appraisal
• Multiple inputs for
appraisal
Training • Individual training
• On-the-job training
• Job-specific training
• “ Make” skills
• Team-based or cross-
functional training
• External training
• Generic training
emphasizing flexibility
• “Buy” skills
Compensation • Fixed pay
• Job-based pay
• Seniority-based pay
• Centralized pay decisions
• Variable pay
• Individual-based pay
• Performance-based pay
• Decentralized pay
decisions
10. 102 A Comparative Study of Performance Appraisal Systems of Two Private Commercial Banks
2) Fit with the Environment:
Human Resource strategies should help the organization better exploit environmental
opportunities or cope with the unique environmental forces that affect it.
Environmental Dimension Low High
Degree of uncertainty • Detailed work planning
• Job-specific training
• Fixed pay
• High dependence on
superior
• Loose work planning
• Generic training
• variable pay
• Multiple inputs for
appraisal
Volatility • Control emphasis
• Efficient production
• Job-specific training
• Fixed pay
• Flexibility
• Innovation
• Generic training
• Variable pay
Magnitude of change • Explicit job descriptions
• Formal hiring and
socialization of new
employees
• “Make” skills
• Uniform appraisal
procedures
• Broad job classes
• Informal hiring and
socialization of new
employees
• “Buy” skills
• Customized appraisals
Complexity • Control emphasis
• Internal recruitment
• Centralized pay decisions
• High dependence on
superior
• Flexibility
• External recruitment
• Decentralized pay
decisions
• Multiple inputs for
appraisal
3) Fit with organizational characteristics:
Every firm has a unique history and its own way of doing business. To be effective, HR
strategies must be tailored to the organization’s personality. The features of an
organization’s personality can be broken down into five major categories. The production
process for converting inputs into output: Firms with a relatively routine production
process tend to benefit from HR strategies that emphasis on control such as explicit job
descriptions and job-specific training. Firms with non-routine production process tend to
benefit from flexible HR strategies that support organizational adaptability, quick
response to change, and creative decision making.
11. Daffodil International University Journal of Business and Economics, Vol. 2, No. 1, January 2007 103
The firm’s Market posture: Firm’s that experience a high rate of sales growth and engage
in product innovation tend to benefit from HR strategies that include external recruitment
(“Buying” skills), decentralized pay decisions and customized appraisal. Firm’s that
experience a low rate of sales growth and engage in limitted product innovation tend to
benefit from HR strategies that include internal recruitment (“Making” skills), on-the –
job training, and high dependence on superiors.
The firm’s overall organizational philosophy: The HR strategies that fit a managerial
philosophy high risk taking, participation, egalitarianism, and external, proactive
environmental orientation include variable pay, giving supervisors a major role in hiring
decisions, up-and-down communication channels and multiple inputs for performance
appraisal.
The firm’s organizational structure: Highly formalized organizations that are divided into
functional areas that concentrate decision making at the top.
The firm’s organizational culture: Two important dimensions of firm’s culture:
Entrepreneurial climate and moral commitment
Entrepreneurial climate give emphasis on informal hiring, and socializing of new
employees and variable pay. Moral commitment gives emphasis on discipline or
punishment to reduce employee mistakes, and informal ethical standards.
4) Fit with organizational capabilities:
A firm’s organizational capabilities include its distinctive competencies, those
characteristics (such as technical ability, management systems, and reputation) that give
the firm a competitive edge.
Performance appraisal systems require a co-ordination effort between HRD and the
manager of the organization who are responsible for conducting performance appraisal.
Generally, the responsibilities of HRD include designing the formal performance
appraisal system and selecting the methods and forms to be used for appraising
employees, training managers in conducting performance appraisal, maintaining a
reporting system to ensure that appraisals are conducted on a timely basis and an
appraisal record for individual employee.
Performance appraisal has been considered a painful and skillful annual event where the
manager evaluates the performance of employees. It was rarely linked to the overall
mission and program of the organization that were designed to maximize human effort.
Performance appraisal system, however, should create a link between organizational and
personal goals; shape and change organizational culture towards result-driven climate
(Grote, 2000: 2-3). Nowadays performance appraisal is an essential part of organizational
life, for it helps to justify besides compensation differentiation, for example, promotions,
12. 104 A Comparative Study of Performance Appraisal Systems of Two Private Commercial Banks
demotions, selection validation and terminations (Longenecker 1999: 18-19). Modern
organizations that are based mainly on mental work require universal employees whose
goals should be skillfully made in accord with the goals of the organization and its
subdivisions. Performance appraisal enables to determine whether the employees’
performance is in correspondence with established objectives and it is primarily based on
the appraisal of employees work results and activity (behavior), also potential (skills,
abilities and characteristics). One survey delineated twenty purposes, divided into four
major categories, for which formal performance appraisal can be used, according to
Cleveland, Murphy, and Williams (1989) performance appraisal system can be used for
the following objectives:
General Applications Specific Uses
Developmental Uses
Identification of individual training needs
Performance feedback
Determining transfer and job assignments
Identification of individual strengths and developmental needs.
Organizational
Maintenance/Objectives
Human Resource Planning, Determining organizational training
needs, Evaluation of organizational goal achievement, Information
for goal identification, Evaluation of human resource system,
Reinforcement of organizational development needs.
Documentation
Criteria for validation research, Documentation of human resource
decisions, Helping to meet legal requirements.
During the appraisal process primarily work results are valued that create preconditions
for their improvement in the future and enable to differentiate the compensation by on
one hand diminishing equalization and on the other hand increasing fair compensation.
With the determination of work results, several problems occur that are due to the change
towards more dynamic and universal tasks and as a result of which it is not always
possible to determine the work results and compare them. The emphasis on individual
work results also reduces the sense of teamwork and undermines the interests of a group
as a whole. (Coughlan, 1999, pp. 355-357; Yager, 2000, pp. 48-51)
The advantages and disadvantages of different appraisal criteria cause their balanced
usage. For example, the appraisal systems of several known British companies are based
on skills and competence, behavioral traits and outputs from the job. As work is very
diverse by its nature and it lacks objective measures in more than 1/3 of cases, it is
difficult to establish concrete objects for work and make them congruent with individual
interests. Therefore, British companies exploit distinct appraisal criteria simultaneously,
increasingly valuing, for example, cooperation (Sisson, 1994: 484-485). A performance
13. Daffodil International University Journal of Business and Economics, Vol. 2, No. 1, January 2007 105
appraisal criterion has to be on one hand relevant, reliable and justly measurable, and on
the other hand tightly linked to the objects of the organization and its subdivisions. Such
criteria are relatively difficult to find and in consequence the best result is achieved
through balanced combination of distinct criteria. Personnel appraisal presupposes the
appraisal system, including the development of appraisal criteria and methods that
depending on the appraised object might be very distinct. This in turn presupposes
discussions between the leaders and employees of the organization and reaching in
common agreement about the basis of appraisal. A performance appraisal system
assumes its acceptance by the employees and the fine tuning of employees’ objectives
with those of the organization.
Performance appraisal is one of the most significant prerequisites of effective formation
and employment of personnel and enables better motivation, development and
compensation of personnel. Appraisal enables one to obtain information about the work
peculiarities and work results. Leaders and executors, as well as organization as a whole,
need such information. They all require feedback about their performance. Feedback
should be extensive, in other words 360º. Such appraisal systems were first applied in
academic circles for appraising leaders by sub-ordinates and later already in many world-
wide known companies, such as IBM, FORD et al (Maurer, Tarulli, 1996: 238).
Employees’ performance appraisal and feedback about it enables them to enhance their
self-evaluation and sense of security, pursue deserved work and compensation and
improve their activity. The results of the performance appraisal are vital compensation
criteria and enable its efficiency.
Payment by results is an effective form of labor compensation by which employees are
paid according to their performance. Objective performance appraisal should not
concentrate on evaluating employee’s personal traits, but their job performance towards
goals and it should be the basis for determining compensation (Nelson, 2000: 39-40). The
system of payment by results is based on the performance and aims to achieve the fixed
goals of the organization. It is one of the components of labor compensation, based on
extra bonuses for the resulting work. Payment of bonuses presupposes performance of
higher capacity and quality from that of demanded or an essential activity for
organization, for example, working at unsuitable times (e.g. during a day off). Payment
by results presupposes the examination of organizational activity and the creation of
detailed information system, also the establishment of clear principles of work motivation
and compensation proceeded from goals. In case of payment by results, concrete work
criteria are established which requires precise measuring and evaluation of
accomplishment. Payment by results presumes objective appraisal of work performance
(Cole, 1997: 249). Only the use of fair and measurable criteria enables to determine fair
compensation, strengthen the connection between the results and payment and thus
increase the motivation of the employees (Baron, 1999, pp. 277-278). The method’s
14. 106 A Comparative Study of Performance Appraisal Systems of Two Private Commercial Banks
efficiency of application depends on the choice of criteria for performance appraisal and
their connection with work, which is usually first of all the amount and quality of the
concrete work in different segments of activities and various financially measurable
indicators.
3. Process of Performance Appraisal
The Performance Management Process provides an opportunity for the employee and
performance manager to discuss development goals and jointly create a plan for
achieving those goals. The Process is outlined in the diagram below:
The Planning Process must also consider the emerging environment. Opportunities and/
or threats could arise in any of the five main areas:
Economic: e.g. Changes expected in tax, inflation rates, growth rates, currency rates,
trade control.
Government: e.g. Election prospects and manifesto EU legislation, environmental
legislation, development grants, level of government spending.
Social: e.g. Demographic changes, education levels, leisure pursuits, willingness to incur
debt, social norms, behavior, trends, attitudes towards such aspects as marriage , working
mothers, youth unemployment, early retirement.
Technology: e.g. new materials, products and production techniques, improved
communications, transport.
Strategic plan and annual goals
Job description and essential function
Standards of Performance
Performance Observation and feedback
Performance Development plan
15. Daffodil International University Journal of Business and Economics, Vol. 2, No. 1, January 2007 107
Outputs
Measuring performance against
standards.
1) Comprehensive review (e.g.
annually)
2) Progress or periodic reviews (e.g.
for milestones, quarterly, monthly)
Competitors: cheap imports, potential entrants, sources of raw material.
4. Model of Performance Appraisal
The simplified model of performance appraisal shown in Figure 1 indicates three kinds of
appraisal:
(I) A comprehensive review
(II) Progress or periodic reviews, and
(III) Continuous monitoring.
There is a general agreement that a formal comprehensive appraisal should be conducted
at least once a year, but some people suggest that such discussions should take place
more frequently. Some enterprises have done all the reviews within short periods of time
each year while other reviews are carried out throughout the year, often at the
employment anniversary. Shown in Figure 3 (Koontz H. (1994). Management –A Global
Perspective, 10th
Edition. McGrew-Hill, Singapore. P.398.) Obviously, no universally
applicable suggestion can be made about the frame for the formal comprehensive review.
It depends on the nature of the task, past company practices, and other situation factors,
once, twice or even three times may be appropriate for a particular organization or a
person who is new in a job.
Figure4: Performance Appraisal Model
Actual performance
Inputs
Setting verifiable objectives that
become standards.
Corrective actions for undesirable
deviation from standards.
16. 108 A Comparative Study of Performance Appraisal Systems of Two Private Commercial Banks
The important thing is that the formal comprehensive reviews be supplemented by
frequent progress or periodic reviews. These reviews can be short and relatively informal,
but they help to identify problems or barriers that hinder effective performance. Finally,
there is continuous monitoring of performance. With this system, when performance
deviates from plans, one does not have to wait for the next periodic review to correct it.
The superior and the subordinate discuss the situation immediately so that corrective
actions can be taken at once in order to prevent a small deviation from developing into a
major problem.
5. Criteria for a Good Appraisal System
Performance evaluation process is a process of assessing, summarizing and developing
the work performance of an employee. The general criteria for this evaluation should be
clearly outlined on the performance evaluation form.
These ratings given should describe the level of performance of the individual compared
to a job description and standard of performance. For example:
O = Outstanding: exceeded all position goals or duties.
A = Above expectations: met all position goals or duties and in many instances
exceeded them.
M = Met expectations: met practically all position goals or duties and in some instances
them.
B = Below expectations: failed to meet position goals and objectives for the evaluation
period.
C = Clearly unsatisfactory: performance of goals or duties is unacceptable.
The performance manager or supervisor will use these criteria to rate the employee’s
performance.
6. Methods of Performance Appraisal
There are various methods of performance appraisal. Whatever the method of
performance appraisal and organization uses, it must be job related. Therefore, to
selecting a performance appraisal method, an organization must conduct job analyses and
have to develop job descriptions.
Most of the performance measures currently in use can be characterized as either
objective or subjective. Objective measures are typically results based measures of
physical output, whereas subjective measures can be used to assess traits, behaviors, or
results.
17. Daffodil International University Journal of Business and Economics, Vol. 2, No. 1, January 2007 109
A. Objective measures: Objective measures assess performance in terms of numbers,
such as the amount of a product an employee produces or sells, the number of defective
products produced, the number of times an employee is absent or late to work, or some
other direct numerical index of how well or quickly an employee can perform certain
tasks. There are five types of objective measures that are as follows:
a) Production measures
b) Personnel data
c) Performance tests
d) Business unit performance measures.
B. Subjective measures: Some important, well-known and widely used performance
appraisal methods under subjective measures are as follows (Landy and Farr, 1976):
1. Management by Objectives (MBO) or Goal setting: A very popular individualized
method of evaluating the performance of managers and professionals is management
by objectives (MBO). The MBO process involves three steps (Odiorne, 1979):
i) The employee meets with his or her superior and agrees on a set of goals to
achieve during a specified period of time. Goals should be quantifiable and
should include an agree-on target.
ii) Throughout this period, progress toward the goals is monitored, though the
employee is left generally free to determine how to go about meeting them.
iii) At the end of the period, the employee and superior again meet to evaluate
whether the goals where achieved and to decide together on a new set of
goals.
2. Management by Objectives and Results: Management by objectives (MBO) is the
process by which managers and employees jointly define their goals, the responsibility
for achieving these goals, and the means of evaluating individual and group performance.
Popularized by management expert peter F. Drucker, MBO provides a systematic method
of setting goals for work units and for individuals so that all their activities are directly
linked to achieving organizational goals.
Management by objectives (MBO) and its latest development, Management by objectives
and results (MBO/R), have been a controversial subject partially because of the diverse
interpretation of what the terms mean and partially because of the way the concept was
implemented.
For some it describes a theory Y participative endeavor in which managers, and even
employees, become involved in establishing objectives for the organization; For some it
is a type of planning process; for some it is an organization wide system; for some it is a
18. 110 A Comparative Study of Performance Appraisal Systems of Two Private Commercial Banks
control process; for some it is a theory X method employed by top management to gain
systematically greater control over organizational processes; and for others it is any
combination of these. The MBOR is shown in the Figure 4 (George S. Odiorne. (1965).
Management by objectives. International Edition. Pitman Publishing Corporation. p. 78.)
Figure 4: Management by Objective and Result
The essential task of management is to arrange organizational conditions and methods of
operation so that people can achieve their own goals best by directing their own efforts
toward organizational objectives.
Subordinate
proposes goals &
measure for his job
Revisions in
organization
structure
Organizations common
goals measure of
organization
Review of
organization
f
Join agreement on
subordinates’ goals
Superior sets down
goals & measures
for subordinates
Feedback of interim
results against
il
Cumulative periodic review
of subordinate results
against target
5(a)
4
2
1
5
7
6
3
3
New input
5(b)
Knockout of
inappropriate
l
19. Daffodil International University Journal of Business and Economics, Vol. 2, No. 1, January 2007 111
3. Work Standard Approach: The work standards approach to performance appraisal is
most frequently used for production employees and is basically a form of goal setting
for these employees. It involves setting a standard or an expected level of output and
then comparing work standards should reflect the average output of a typical
employee. Work standards attempt to define a fair days output.
4. Essay Appraisal Method: Essay appraisal method requires that the evaluation
describe an employee’s performance in a written statement describing an individual’s
strengths, weaknesses, and post performance.
5. Critical-Incident appraisal: The critical incident appraisal method of performance
appraisal in which the rater keeps a written record of incidents that illustrate both
positive and negative behaviors of the employee. The rater then uses these incidents
as a basis for evaluating the employee’s performance.
6. Graphic Rating Scale: In graphic rating scale method, the rater assesses an employee
or factors such as quantity of work, dependability, job knowledge, attendance,
accuracy of work and cooperativeness. The graphic rating scale method is subject to
some serious weaknesses; one potential weakness is that evaluators are unlikely to
interpret writhen descriptions in the same manner due to difference in background,
experience and personality.
7. Checklist: Checklist method of performance appraisal in which the rater answer with
a yes or no a series of questions about the behavior of the employee being rated.
Normally human resource department keeps the scoring key for the checklist method;
the evaluator is generally not aware of the weights associated with each question. But
because raters can see the positive or negative connotation of each question, biased
can be introduced. Additional drawback of the checklist method is that it is time
consuming to assemble the questions.
8. Behaviorally Anchored Rating Scale (BARS): A behaviorally anchored rating scale
combines the benefits of narratives, critical incidents and quantitative scales by
anchoring a rating scale with specific behavioral examples of good or poor
performance. Its proponents say it provides better, more equitable appraisals than do
the other tools. Developing BARS typically requires five steps, those are :-
a) Generate critical incidents
b) Develop performance dimensions,
c) Reallocate incidents,
d) Scale the incidents,
e) Develop final instrument.
20. 112 A Comparative Study of Performance Appraisal Systems of Two Private Commercial Banks
9. Ranking Method: In ranking method of performance appraisal the performance of an
employee is ranked relative to the performance of others. Three most commonly used
ranking methods are -
a) Attention ranking
b) Paired comparisons ranking
c) Forced distribution.
7. Raters of Employee Performance
In most organizations, subjective ratings of employee performance are provided by
supervisor. However, other options are certainly available and are increasingly used. The
main performance raters are:
(a) The immediate supervisor: Supervisor’s ratings are the heart of the most appraisals.
The supervisor should be and usual is-in the best position to observe and evaluates
the subordinate’s performance and is responsible for theft person’s performance.
(b) Peer appraisal: Nowadays some firms using peer appraisal method of evaluating the
performance of the employee. In this method employees are evaluated by their peers
(Wexley and Klimoski, 1984).
(c) Rating committee: Many employers use rating committees, these committees
usually contain the employee’s immediate supervisor and three or four other
supervisors,
(d) Self rating: In this method employees should appraise themselves. The basic
problem of this method is that employees usually rate themselves higher than
supervisors or peers rate them (Thornton, 1988).
(e) Appraisal by sub-ordinate: Sub-ordinate ratings are especially valuable when used
for developmental rather than evaluative purposes. Evaluation by sub-ordinates may
provide valuable information. They know how well a supervisor performs with
respect to leading, organizing, planning, delegating, and communicating. In fact,
evaluating the boss is becoming a popular mechanism in many organizations.
(f) Customer evaluation: In service delivery organization customer evaluation is
becoming a popular and effective method of performance appraisal, where the
employee is evaluated by the client (Berry and Parasuraman, 1991).
(g) Computers in performance evaluation: Computers have several roles in the
appraisal of performance.
(h) 360 – Degree appraisal: Many companies have implemented 360 - degree appraisal,
where performance ratings are collected simultaneously from subordinates, peers,
supervisors, and employees themselves. Typically, 360 – degree appraisals are used
for development and feedback purposes (Reilly, 1994).
21. Daffodil International University Journal of Business and Economics, Vol. 2, No. 1, January 2007 113
8. Comparing Employee Performance Appraisal System of a Local Bank With That
of a Multinational Bank
1. Rating appraisal system: From various kinds of performance appraisal system, local
bank use the point rating system. On the other hand, Multinational bank also follow
the same system. This system gives more emphasis on quality of work,
Dependability, Job knowledge, attendance, accuracy, etc.
2. Time: Local bank evaluate the performance of employee yearly by the head office.
But multinational bank evaluate the divisional performance of employee quarterly
and head office evaluate the performance of all employee yearly.
3. Level: Local bank measure the performance at three levels.
a. Junior level
b. Mid-level
c. High level
Multinational bank measure the performance at three levels.
a. Non-executive level
b. Executive level ( Mid-level)
c. Top Management.
4. Rating scale: Local bank rating the employee by the following way. Outstanding (80
and above): Superior actions and results that consistently deliver very high quality
performance far exceeding expectation.
Very good (70 and 79): High quality performance where actions and result frequently
exceed expectation.
Good (60-69): satisfactory performance that effectively meets expectation.
Average (50-59): Actions and results that sometimes fall short of expectation and do not
always meet requirements of the job.
On the contrary the multinational bank rates the employees by the following ways:
1. Significantly above the performance level required by the business.
2. Consistently better than the performance level required by the business.
3. Consistently achieved the performance level required by the business.
4. Not consistently achieving the performance level by the business.
5. Significantly below the performance level required by the business.
22. 114 A Comparative Study of Performance Appraisal Systems of Two Private Commercial Banks
1-2: Indicates above business expectation.
3: Benchmark Behavior (meets business expectation for effective performance)
4-5: Below business expectation.
5. Measurable field for appraisee: The head office delivers a questionnaire to be filled
up by the appraisee. The questionnaire comprises the following things:
Sl. No. Particulars Local bank Multinational bank
1
Knowledge of organization, product,
services
√ √
2 Awareness of the policies/ manuals √ √
3
Knowledge of banking rules and
regulations.
√ √
4 Problem solving * √
5 Punctuality and time consciousness √ √
6 Independent working * √
7 Communication skill √ √
8
Commitment to the organization and it’s
advancement
√ √
9 Marketing and selling ability √ √
10 Initiative and drive √ √
11 Preparedness to learn and implement √ √
12 Response to customer reactions √ √
13 Leadership * √
14 Team Orientation * √
15 Decision-making * √
16 Multi-tasking √ √
17 Readiness to work under pressure √ √
18 Resilience √ √
19
Senses of responsibility and
belongingness
√ √
Yes-√, No-*
Local and multinational bank give more or less emphasis on theses measurable fields
based on their level.
23. Daffodil International University Journal of Business and Economics, Vol. 2, No. 1, January 2007 115
6. Measurable field for appraiser: The head office delivers a questionnaire to be filled
up by the appraiser. The questionnaire includes the following things:
Sl. no Particulars Local bank Multinational bank
1 Initiative, drive, enthusiasm √ √
2
Acceptability to the colleagues and
seniors
√ √
3 Acceptability to the customers √ √
4
Time consciousness, attendance,
punctuality
√ √
5
Sense of commitment and
belongingness to the bank
√ √
6
Knowledge in banking, accounting,
finance, laws practices.
√ √
7
Knowledge about the bank’s product,
services and policies
√ √
8
Skill of presentation in English and
Bengali
√ √
9 Physical and mental health condition √ *
10
Outer presentation and adherence to
discipline
√ √
11 Preparedness to work under pressure √ √
12 Desk related job accomplishment √ √
13
Compliance with instruction in
accomplishment of jobs assigned
√ √
14
Response to customer, Reactions
response to supervisor’s instructions
√ √
15 Accuracy in accomplishments √ √
Yes-√ No-*
Local and multinational bank give more or less emphasis on theses measurable fields
based on their level.
24. 116 A Comparative Study of Performance Appraisal Systems of Two Private Commercial Banks
7. Marks Allocation:
(A) Local Bank:
Sl. no. Particulars Total Marks Marks secured
1 Appraisal of performance (assessment) 40
2 Business performance 20
3 Length of banking service 5
4 Academic qualification 10
5 Institute of bankers examination (Part1-
1mark,part-2 -2marks)
3 (1+2=3)
6 Professional training 2
7 Interview performance 20
Total 100
(B) Multinational Bank: Multinational bank gives emphasis on Appraisal of performance
and Business performance.
8. Corrective action: In local bank, Total evaluation marks are 100. as a financial
institution 20 marks for deposit mobilization. Employee who gets below 60 marks is not
eligible for promotion.
Promotion must be due after 2 years. Every employee gets 1 increment in a year.
Training need is not assessed individually. The need is assessed divisionally. Whether an
employee shall receive training or not depends on immediate supervisor’s report and
recommendation. The employee get two festival bonus & a single leave, medical
allowance, house rent allowance which depends on their basic pay.
In Multinational bank 50% marks for deposit mobilization and rest of marks for business
performance. Employee who achieve outstanding can get up to 10 increments in a year.
Those who are below average, they give counseling, and training. It depends on their
supervisors’ assessment.
9. Findings and Recommendations
It has been seen that the concerned local bank sets its human resource strategies that
emphasize efficiency, control and firm-specific knowledge. Such strategies include
internal recruitment (“making” skills), on-the-job training, and high dependence of
supervisors. It is evaluating the employees’ performance mostly objectively and the final
decision regarding the appraisee has been taken by the higher authority, where sometimes
the appraiser’s or immediate supervisor’s recommendation is neglected. The liking and
disliking of higher authority do matter and the personal influence from the appraisee
distorts the true judgment by the evaluation board. On the contrary, as the multinational
25. Daffodil International University Journal of Business and Economics, Vol. 2, No. 1, January 2007 117
bank experiences high growth in sales and engages in product innovation for a wide
market segment, it benefits from those human resource strategies that include external
recruitment (“buying” skills), decentralized pay decisions and customized appraisals.
The evaluation process is hindered by lack of positive communication, negative attitudes,
inflexibility, defensiveness, and a non- developmental approach both in case of local and
multinational banks.
Subjective judgment, prudence and the personal knowledge of the appraiser about the
appraisee play significant role in deciding the reward or punishment for the concerned
employee. Most of the employees do not have proper knowledge regarding the existing
performance appraisal system and the factors or areas of the work they need to give
emphasis.
Failure to use evaluations in personnel decision-making and personnel development
negates the primary purpose of performance evaluations. The use and weighting of
multiple criteria as well as the frequency of evaluation also present problems.
To overcome the errors in performance appraisals management can take some pragmatic
approaches, like: to make refinements in the design of appraisal methods, to initiate a
more promising approach to overcoming errors in performance appraisals is to improve
the skills of raters by training. More research is needed before a definitive set of topics
for rater training can be established. However, at a minimum, raters should receive
training in the performance appraisal methods used by the company.
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