Performance Appraisal

Topic: AutomotiveCommercial
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Last updated: June 13, 2019

A performance appraisal, employee appraisal, performance review, or (career) development discussion is a method by which the job performance of an employee is evaluated (generally in terms of quality, quantity, cost, and time) typically by the corresponding manager or supervisor. A performance appraisal is a part of guiding and managing career development. It is the process of obtaining, analyzing, and recording information about the relative worth of an employee to the organization.

Performance appraisal is an analysis of an employee’s recent successes and failures, personal strengths and weaknesses, and suitability for promotion or further training. It is also the judgment of an employee’s performance in a job based on considerations other than productivity alone. The most popular methods used in the performance appraisal process include the following * Management by objectives * 360-degree appraisal * Behavioral observation scale * Behaviorally anchored rating scales 1. 1: Statement of Research Problem Here we work on ‘Performance Appraisal of MNC’.In our study we try determine the method of performance appraisal which is used by the Multi National Corporations (MNC). We want to recognize the employee satisfaction according to their appraisal.

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1. 2: Objectives of the Study Primary Objectives * To find the performance appraisal of the MNC. * To ascertain the employee satisfaction according to their appraisal. * To evaluate the MNC appraisal with our local organization. * To get an insight into the relative importance of performance appraisal in MNC * To know how MNC’s use performance appraisal as an effective tools to achieve efficiency and effectiveness.

Secondary Objectives * To observe the work environment in MNC in comparison with our local company * To get experience and expertise in assignment * To enhance the communication skill * To increase confidence 1. 3: Methodology Qualitative methods will be used to conduct this study. The information will be collected mainly from the primary and also from secondary sources. Actually we did not get enough information from secondary sources. We have directly collected our information from the selected field by the face to face conversation. 1. : Scope and Limitation of the Study The term paper will enhance our overall knowledge about Performance Appraisal and help us to enhance our ability to conduct with an organization.

We think this term paper will also be beneficial for those people who need information about the performance appraisal of MNC. Preparing the term paper we have faced some obstructions which are * The study takes enough time to collect the information. * We did not get enough secondary information. * Organizational restriction about disclosing the information.Chapter: 2.

0 Literature Review Performance appraisal is a formal structured system of measuring and evaluating an employee’s job related behaviors and outcomes to discover how and why the employee is presently performing on the job and how the employee can perform more effectively in the future so that the employee organization and society all benefit According to Flippo “performance appraisal is the systematic, periodic and an impartial rating of an employee’s excellence in the matters pertaining to his present job and his potential for a better job. The work performance of the subordinate is examined and discussed in the form of a periodic interview with a structured formal interaction between a subordinate and supervisor to identify weaknesses and strengths of the subordinate as well as opportunities for improvement and skills development. The performance of each and every individual employee plays a major role to achieve organization goals and to sustain its growth in the present competitive world.The employee’s performance should assess continuously to make their contribution to higher extend. According to the modern approach of performance appraisal, it can be regarded as a formal interaction between a superior and a subordinate, usually taking place periodically, during which the performance of the subordinate is discussed with the aim of identifying the strengths and weaknesses of the subordinate.

This takes place mainly to help the subordinate enhance his skills and also to analyze the opportunities that are available to the subordinate.As a part of his job, the supervisor is supposed to monitor the progress of the employee from time to time. Performance appraisals are usually spread out over a period of three month, six month and twelve month period. It is the job of the supervisor to provide the employees with feedback and help them improve in any way if needed. Many companies regularly administer performance appraisals to evaluate an employee’s current or past performance relative to his or her performance standards.

This process involves an employer (1) setting work standards; (2) assessing the employee’s actual performance relative to these standards; and (3) providing feedback to the employee with the aim of motivating that person to eliminate performance deficiencies or to continue to perform above par. (Dessler,1999). Here we work with two multinational corporations (MNC). A multinational corporation (MNC), also called a Trans-National Co-operation, (TNC) or multinational enterprise (MNE) is a corporation or an enterprise that manages production or delivers services in more than one country. It can also be referred to as an international corporation.The International Labor Organization (ILO) has defined as an MNC as a corporation that has its management headquarters in one country, known as the home country, and operates in several other countries, known as host countries. We tried to evaluate their performance appraisal process and their employee’s support about the evaluation process.

We observe the performance evaluation process of PRAN RFL Group and Nestle Ltd. Nestle Bangladesh Ltd. Property Heights, Gulshan Tower (4th Floor)12 R. K.

Mission Road, Plot 31, Road 53, Gulshan North C/ADhaka 1203, Bangladesh Dhaka 1212 BangladeshChapter 3. 0 company Profile 3. 1: Profiles of Nestle Bangladesh ltd Nestle – the world’s largest food ; beverages company in terms of sales as well as product range and geographical presence. Nestle covers nearly every field of nutrition: infant formula, milk products, chocolate and confectionery, instant coffee, ice-cream, culinary products, frozen ready-made meals, mineral water etc. Nestle is today the world’s leading food company, with a 135-year history and operations in virtually every country in the world. Nestle’s principal assets are not office buildings, factories, or even brands.Rather, it is the fact that they are a global organization comprised of many nationalities, religions, and ethnic backgrounds all working together in one single unifying corporate culture.

Nestle is the world’s leading nutrition, health and wellness company. The company employs more than 280,000 people and has 456 factories in 84 countries. Nestle products are sold in almost every country in the world. Nestle’s business objective is to manufacture and market the Company’s products in such a way as to create value that can be sustained over the long term for shareholders, employees, consumers, and business partners.Nestle Bangladesh Limited started its first commercial production in Bangladesh in 1994. In 1998, Nestle S. A. took over the remaining 40% share from our local partner when Nestle Bangladesh became a fully owned subsidiary of Nestle S.

A. Nestle Bangladesh’s vision is to be recognized as the most successful food and drink Company in Bangladesh, generating sustainable, profitable growth and continuously improving results to the benefit of shareholders and employees.The factory is situated at Sripur, 55 km north of Dhaka; the factory produces instant noodles, cereals and repacks milks, soups, beverages and infant nutrition products. Today Nestle Bangladesh Ltd. is a strongly positioned organization.

The Company will continue to grow through their policy of constant innovation and renovation, concentrating on their core competencies and our commitment to high quality, with the aim of providing the best quality food to the people of Bangladesh. 3. 2: Profiles of PRAN-RFL “PRAN” is currently the most well known household name among the millions of people in Bangladesh and abroad also.Since its inception in 1980, PRAN Group has grown up in stature and became the largest fruit and vegetable processor in Bangladesh. It also has the distinction of achieving prestigious certificate like ISO 9001:2000, and being the largest exporter of processed agro products with compliance of HALAL & HACCP to more than 70 countries from Bangladesh. PRAN is the pioneer in Bangladesh to be involved in contract farming and procures raw material directly from the farmers and processes through state of the art machinery at our several factories into hygienically packed food and drinks products.The brand “PRAN” has established itself in every category of food and beverage industry and can boost a product range from Juices, Carbonated Drinks, Confectionery, Snacks, and Spices to even Dairy products.

Today, their consumers not only value “PRAN” for its authentic refreshing juice drinks products , but also for its mouth watering quality confectionery products with high visual appeal and exciting texture. We intend to expand our presence to every corner of the world and strive to make “PRAN” a truly international brand to be recognized globally.Almost 26000 employees are working in this organization.

The Human Resource department plays a vital role for maintain this huge employees. They have 4 sectors in their HRD. * Recruit * Personnel * Training * TQM (Total Quality Management) Chapter 4. 0 Performance Evaluation Method 4. 1:Appraisal Process of Nestle Bangladesh Ltd For the performance evaluation process Nestle Bangladesh ltd set a particular formula. The appraisal is conducted by the HRD in two Parts. In the First part Appraisal form has to be filled up by the Appraises and the appraiser.Then the Appraiser judged appraises by put the marks according to the overall performance.

The Human resource Department conducts the overall process with the help of departmental head. The evaluation process is organized by HRD yearly basis. The Performance Evaluation Process of Nestle Bangladesh Performance appraisals are a systematic way of evaluating the standard of an employee’s performance. To evaluate the performance of employees Nestle follow some steps. Steps for evaluating a systematic performance appraisal are … 1. Identify Key Performance CriteriaTo conduct the evaluation process their HRD department developed 20 key performance criteria based on a comprehensive job description and consultation with employees.

2. Develop Appraisal Measures In order to obtain accurate and valid performance appraisals, an appraisal measure is adapted to the specific job or “job family” (i. e. , groups of similar jobs).

An evaluation of factors in the work environment which help or hinder performance is also recommended. This ensures that realistic expectations are set for employee’s performance, and is also likely to increase the perceived fairness and acceptability of performance appraisals. . Collect Performance Information from Different Sources It has been the responsibility of departments head to assess performance. However, the appraise and appraiser can be a valuable source of information as they are likely to have exposure to different aspects of an employee’s performance. Collecting information from both sources can increase the accuracy of performance evaluation (i. e.

, reduce bias), and increase employee’s perceptions of fairness. 4. Conduct an Appraisal Interview After collection the performance information the HRD organize an interview.The two central purposes of the appraisal interview are to: 1. Reflect on past performances to identify major achievements, areas for further improvement, and barriers / facilitators to effective performance 2.

Identify goals and strategies for future work practice. The appraisal interview should be a constructive, two-way exchange between the appraise and appraiser, with preparation for the interview done by both parties beforehand. 5. Evaluate the Appraisal Process The performance appraisal process should undergo regular review and improvement.For example, focus groups or surveys could be conducted to weigh employee’s perceptions of the appraisal process. The successful performance appraisal process demonstrate a change in both the ratings of employee’s performance and aspects of the work environment that impact upon work performance. TO BE FULFILLED IN BY THE APPRAISEE AND APPRAISER| (The ratings donated by the marks as follows) [{Outstanding – 4 marks] [above average- 2 marks] [average- 1 marks] [below average-0 mark}] Measurable field of performance| Assessed by appraise| Assessed by appraiser| Intelligence and mental alertness| | |Initiative, drive, enthusiasm and involvement in work| | | Knowledge (knowledge of assigned duties, related activities, current trend, rules and regulations, policies and development in functional areas)| | | Work quality- efficiency, accuracy and follow up| | | Work output- quantity and volume| | | Marketing ability| | | Learning ability, analytical thinking| | | Leadership (competence and ability to do and get things done, ability to inspire and motivate others)| | | Interpersonal relationship| | | Character – integrity, honesty, loyalty, truthfulness| | | Health and appearance| | | Personality and presentation| | |Responsibility, dependability and reliability| | | Creative and innovative ideas| | | Communication ability| | | Punctuality, time consciousness, discipline| | | Attention to maintenance of office environment, office equipment, cost consciousness/expenditure control| | | Crisis management- reaction towards difficulties and the drive and initiative displayed to overcome them| | | Willingness, adaptability and sustainability for additional responsibility.

| | | Growth potentiality| | | Total Marks| | | Signature of AppraiseeSignature of Appraiser TO BE FULFILLED BY THE APPRAISER| Overall performance rating (tick the appropriate box)Outstanding Superior actions and results that consistently deliver very (90%) high quality performance, far exceeding expectation. Above Average High quality performance where actions and results (75%-89%) frequently exceed expectation. Average Satisfactory performance that effectively meets (50%-74%) expectation. Below average Actions and results that fall short of expectation and do (below 50%) not always meet requirements of the job.

Signature of Appraiser:__________________ Name:__________________Designation:__________________ Date:__________________ 4. 2:Appraisal Process of PRAN-RFL The Pran RFL company conduct performance evaluation process with the help of unit representatives which known as the personnel department under the HRD. They conduct the evaluation process twice in a year. From various performance evaluation methods they used MBO (Management by Objective) method for evaluating the performance of their employees and also for the promotion. Management by Objective The term “management by objectives” was first popularized by Peter Drucker in his 1954 book ‘The Practice of Management’.Management by Objectives (MBO) is a process of defining objectives within an organization so that management and employees agree to the objectives and understand what they are in the organization. The essence of MBO is participative goal setting, choosing course of actions and decision making. An important part of the MBO is the measurement and the comparison of the employee’s actual performance with the standards set.

Ideally, when employees themselves have been involved with the goal setting and choosing the course of action to be followed by them, they are more likely to fulfill their responsibilities.MBO (management by objectives) methods of performance appraisal are results-oriented. That is, they seek to measure employee performance by examining the extent to which predetermined work objectives have been met. Usually the objectives are established jointly by the supervisor and subordinate. An example of an objective for a sales manager might be: Increase the gross monthly sales volume to $250,000 by 30 June.

Once an objective is agreed, the employee is usually expected to self-audit; that is, to identify the skills needed to achieve the objective. Typically they do not rely on others to locate and specify their strengths and weaknesses.They are expected to monitor their own development and progress. THE MBO PROCESS Management by Objectives can thus be regarded as a tool for planning and obtaining project results for an organization. It is a strategy devised to meet individual needs and the project needs at the same time. Moreover, it serves as a method of clarifying what each individual and organizational “unit” contribution to the project should be. Chapter: 5. 0 Summaries and Conclusion 5.

1: Findings and Results Here the comparison of Nestle Bangladesh Ltd. with our local company PRAN-RFL company regarding the performance evaluation process is conducted in two ways.First of all we measure the method of both companies and then we measure the employee satisfaction of the companies. Comparison of Method Used by Two Company At this point we can specify that the process followed by Nestle Company is very difficult and lengthy as well as biasness can arise. On the other hand, PRAN follows the MBO method which is goal oriented. Nestle company does not follow any specific method and the method which they set for evaluation; there is no motivation, communication and clarity of goal for employees. But in the MBO method all these things are present.

So after the analysis we can indicate that MBO method is better than the method which is set by Nestle Bangladesh ltd. Comparison of Employee’s Response Regarding Performance Appraisal If we measure the employee satisfaction regarding performance appraisal the result is exposed by the graphical representation. Questions| Mean| Percentage| | Nestle| Pran-Rfl| Nestle| Pran-Rfl| 1. How satisfied are you with HRD for conducting Evaluation? | 3. 5| 3. 8| 70%| 76%| 2. Do you think that the Appraisal helps you to improve the performance? | 3. 2| 3.

5| 64%| 70%| 3. How satisfied are you with the overall process? | 3. 7| 3. 9| 74%| 78%| 5. : Conclusion In this assignment, we are tried to collect the data from field and present it relevantly. After complete this assignment, we are enhancing more experience about the performance appraisal and their motivation factor.Process by which a manager or consultant (1) examines and evaluates an employee’s work behavior by comparing it with preset standards, (2) documents the results of the comparison, and (3) uses the results to provide feedback to the employee to show where improvements are needed and why.

Performance appraisals are employed to determine who needs what training, and who will be promoted, demoted, retained, or fired. . 3: Recommendations * The performance appraisal system should be fully integrated into existing management systems and processes.

* Similarly supervision of performance appraisal should be integrated into existing supervisory systems and supervisors should be trained in what and how to supervise with regard to performance appraisal * Clear and simple guidance should be created for implementing the PA process * Attention needs to be paid to the issue of who should appraise whom * Performance appraisal forms need to be simplified. Feedback should be provided as soon as possible. * Biasness must be avoided.Reference * www. pranfoods.

net * www. nestle. com * Mr. Ranjan Kumar Day, Asst.

Manager, Human Resources Management Department * HRD of Nestle Bangladesh ltd


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