HUMAN

RESOURCE
MANAGEMENT

GROUP MEMBERS:
MUHAMMAD FAISAL
QURAT-UL-AIN SIDDIQUI
RAFIA ASLAM
ZUNAIRA AHMED
USSAMA SAEED

FINAL PROJECT REPORT

PERFORMANCE APPRAISAL
AT SSGC

SUBMITED TO: Ms ABIDA

SHAHEEN
DATE OF SUBMISSION: 21st
DEC 2010

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 ACKNOWLEDGMENT

First of all we would like to thank Allah Almighty for giving us the wisdom to work on such a
purposeful report. Making an idea actually work is not possible without the grace of Allah,
prayers of parents and support from friends.

We are truly thankful to our instructor Ms ABIDA SHAHEEN as she has been very cooperative
and supportive throughout the semester and in this work. We would also like to thank Ms.
MARIUM (HR executive in SSGC) who provided her valuable time and really supported us in
preparing this term report.

We would like to take this opportunity to thank all those people who helped in the compilation of
this report and provided their valuable advice.

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 TABLE OF CONTENT
S.NO TOPICS Page No.

1. Introduction to the company 6

2. Company Performance Management System 7

3. Performance Management Cycle 10

4. Methods of Performance Management 11

5. Graphical Rating Scale/ Ranking Method 11

6. Essay writing Method 13

7. Bell Curve 14

8. Performance Review Form of SSGC 15

9. Problems while Appraising 20

10. Performance Management Process 21

11. Compensation System based on Performance 23

12. Conclusion 24

13. Recommendation 25

EXECUTIVE SUMMARY

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This report is about the significance and objectives of Performance Management system of

SSGC (SUI SOUTHERN GAS COMPANY). This report is mainly concerned with the overall

Performance management system of the company which includes company’s performance

appraisal system. We conducted a detailed interview with the company’s Hr professionals and

covered the topic of performance appraisal from almost all perspectives. In this report we have

discussed that on what grounds company has conducted its Performance management system. In

this report we have also highlighted why Performance appraisal system is necessary for the

organization, what are the beneficial outcomes of it, what are the company methods to appraise

employee performance, the problems faced by the company while implementing its performance

appraisal system and what is their reward system. At the end of this report we have also given

some recommendations for the betterment of company’s Performance appraisal system.

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COMPANY OBJECTIVE

The SSGC objective is to supply natural gas where ever there is enough load in order to justify
the infra structure cost. They expand the gas network to meet economic and social requirements
in many places through funding support from the Federal and Provincial governments. In 2003,
the comprehensive 5- year gas network development and expansion plan has been launched by
the company to connect several small towns and villages in remote areas of Sindh and
Baluchistan which the piped natural gas is in the very poor condition of piped natural gas.

On yearly basis, the company adds nearly 66000 new customers (industrial, commercial and
domestic) to its customer based and lays hundreds of kilometers of transmission pipelines
and distribution network. Further they install other facilities such as metering/billing
stations in its system by the help of its staff of technically qualified and skilled employees

MISSION

“To meet the energy requirements of customers through reliable, environment friendly And
sustainable supply of national gas, while conducting company business professionally, efficiently
ethically, and with responsibility to all our stake holders, community and the nation.”

VISION

“To be a model utility, providing quality service by maintaining a high level of ethical and
professional standards and through optimum use of resources.”

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 INTRODUCTION
Company Overview

SSGC was established in 1989 as a result of the merger of two

gas companies - Sui Gas Transmission Company Limited
(SGTC) and Southern Gas Company Limited (SGC). Sui
Southern Gas Company Limited (SSGC) is the major company of
the country which is involved in purification, transmission and
distribution of natural gas throughout the country.

SSGC employs and maintains a team of competent professional

staff to run its operations effectively. Its staff is well-experienced
in their respective fields. The present strength of SSGC staff is
5,500 which comprises of 1,350 executives and 4,150 non-
executive staff. SSGC helps its staff improve and update their
expertise in respective fields, based on world-wide gas industry
practices, by arranging specialized training programmes locally
and abroad.

SSGC is primarily involved in operations and maintenance of:

I. Gas purification facilities at Sui;
II. Gas transmission pipelines;
III. Gas compression facilities and
IV. Gas distribution pipelines

In order to support its operations SSGC has appropriate

infrastructural facilities spread over the two provinces of the
country. SSGC's major infrastructure components comprising of
gas transmission/distribution pipelines, purification facilities and
compressor stations. SSGC shares with SNGPL the ownership of
gas purification facilities at Sui.

It purchases natural gas from 5 different sources and sells this gas
to its customers in Sindh and Baluchistan. SSGC also distributes
liquefied petroleum gas (LPG) throughout Pakistan and
manufactures gas meters for domestic and commercial consumers
under a licensing arrangement with Schlumberger of France since
1976. SSGC operates under well established technical standards
and practices of the oil and gas industry institutions.

COMPANY PERFORMANCE
MANAGEMENT SYSTEM

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2.1 Overview of PMS at SSGC
PMS is a planned and integrated method which is crucial to success of SSGC as it helps in
improving the performance of the staff. By definition performance management is a process that
comprises of goal setting, performance appraisal and development into a one common system
whose objective is to ensure that the employee’s are working in a manner that must support the
company’s strategic aims and long term goals.

Figure 1.1

Previously SSGC have been using performance appraisals to decide annual pay increases. But,
the broader goals such as employee development, improving performance, team building, or
providing useful feedback to employees were being neglected. Therefore, PMS was adopted to
ensure and increase efficiency in the work.

The PMS is the foundation of the SSGC’s performance excellence as it comprises of clear and
specific targets and work standards for the top management which keeps them focused and
aligned with the company objectives. It is a source of periodic informal and formal feedback
from individual’s performance relative to the goals.
The company’s current PMS system provides a review to support decisions related to training
and career development, compensation, transfers and promotions. The key to prevent
performance problem is two-way communication between supervisor/manager and employee.
This results in complete understanding of the task specification and the required results.

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The benefits associated are:

The executive or top management gets a birds’ eye view of the performance milestones being
achieved and the areas where efforts must be made

The manager gains an accurate information about the moral of people working as a result of the
communication being required

The company retains highly motivated staff who are inclined to work for the objectives of
company as a whole

SSGC’s PMS is though time consuming but pays-off in terms of increased performance
productivity, employee morale and quality of work, plus a reduction in employee relations
problems is well worth the investment.

The SSGC system of evaluating performance has been designed to ensure:

• That all executives have an opportunity to discuss their future career goals
• That training needs are being met to help them develop to their fullest potential
• That strengths and weaknesses of all employees are required to be recorded so that the
organization can make accurate decisions regarding an employee’s contribution, career
development, training needs, promotional opportunities, pay increases, etc.

In order to utilize this system effectively, all company managers/supervisors pay special
attention to the following major underlying elements of the system:

• Supervisor responsibility: This is a part of the normal day-today responsibility of every

supervisor and relates to planning and assigning work to the subordinate.

• Performance criteria: Criteria for job performance are set to reflect requirements of
different positions, levels of assignment and operating conditions.

• Communication: Supervisors communicate job standards, goals and other expectations

to employees before the evaluation period begins (during the process of Performance
Plan).

• Continuous feedback: Executives accept suggestions for improving and/or maintaining

their performance when they receive feedback continuously (e.g. daily, weekly or
monthly). This also assures that company employees are not surprised by negative
feedback during the formal appraisal but they take it as a chance for improvement. This
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 also prevents the executives from asking for a review of their rating as they are fully
aware of it

• Development coaching: The company supervisors are instructors and team leaders in the
development of their subordinates.

• Link to compensation: Effective compensation systems link performance achievements

to salary increments, as the widespread system of the company is merit oriented. Rating
is based on performance only.

2.2 Principles of Performance Management System

The principles of PM System being adopted by SSGC are listed below:

• Effective business management
• Tool to help managers to manage
• Driven by corporate values and strategic goals
• Focuses on solutions to work problems and produces results
• Promotes change in behavior, increases productivity and reduces paperwork
• Its not just a “System” – its about managing people in the best possible way

2.3 Performance Management Cycle at SSGC

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 Figure 1.2
The S
1. The performance and development plan is generally made by the head supervisors who
divide the task responsibilities in teams. The manager or the immediate supervisor begins
the process by noticeably discussing with the employee the expectations for the
evaluation period.

2. After assigning different assignments to each employee supervisors keep a check on

their workers to make sure that they are properly working on time or before time.

3. In the last step the supervisors review the employee performance in order to assess the
outputs and achievements during the specified time frame. Thus the employee and the
supervisor both become dynamic in this step of performance management cycle and both
of them have the responsibility to review performance against goals and objectives.

2.3 Methods of performance Management

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 The methods distinctively being adopted and practiced at SSGC are:
• Performance Review Form
a. Ranking method/Graphic rating scales
b. Essay Method/Pen Picture
• Bell Curve

2.3.1 Ranking method/Graphic rating scales

The Graphic ranking is a performance appraisal method which is being implemented at SSGC
that facilitates the company management in evaluating employee performance from finest to
most terrible.

In this method Graphic rating scales require an evaluator to indicate on a scale the degree to
which an employee demonstrates a particular trait, behavior, or performance result. In addition
the rating forms are a collection of a number of scales, each linked to a certain job or
performance-related dimension, such as job knowledge, responsibility, or quality of work. Each
scale is a continuum of scale points, or anchors, which vary from high to low, from good to poor,
and from most to least effective.

The common problem with various levels is the requirement to justify the difference among each
level. As the objective measures and ratings are complicated to achieve in any appraisal system,
and in team of high-performing employees, the division between diverse levels of performance
may be fake. Thus at SSGC the management focuses on the trend to trim down, the number of
rating levels in appraisal systems.

Rating scales used in SSGC are:

I. Substantially exceed expectation 81% and above (SEE)

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 II. Exceed expectation 66% to 80% (EE)
III. Meets expectation 51% to 65% (ME)
IV. Below expectation 26% to 50% (BE)
V. Not acceptable 0% to 25% (NA)

SSGCs Rating Scale Characteristics:

SSGC’s rating scales have the following characteristics

1. Performance dimensions are clearly defined.

2. Scales are behaviorally based so that a rater is able to support all ratings with objective,
observable evidence.
3. Points, or anchors, on each scaled dimension are brief, unambiguous, and relevant to the
dimension being rated.

SSGCs Rating Scale Advantages:

Carefully constructed graphic rating scales gives SSGC a number of advantages given below:

1. Standardization of content permitting comparison of employees.

2. Ease of development use and relatively low development and usage cost.
3. Reasonably high rater and rate acceptance.

SSGCs Rating Scale Disadvantages

The biggest disadvantage of such rating scales is that they are vulnerable to rating errors that
may lead to incorrect appraisals in the company. Some of the probable rating errors of the
company’s performance appraisal system consist of:

When a rating on one dimension of an appraisal instrument considerably manipulates the ratings
on other dimensions for the same employee it results to halo effect. Consequently an employee is
rated regarding the similar across all performance dimensions.

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Central tendency occurs due to deficient variation or deviation among ratings of different
subordinates, where most employees are likely to be rated as average.

2.3.2 Essay Writing/Pen Picture

The essay method being implemented at SSGC involves an evaluator's written report appraising
an employee's performance, usually in terms of job behaviors and/or results. The subject of an
essay appraisal is often justification of pay, promotion, or termination decisions, but essays can
be used for developmental purposes as well.

Since essay appraisals are to a large extent unstructured and open-ended, lack of standardization
is a major problem faced by the company. The open-ended, unstructured nature of the essay
appraisal makes it highly susceptible to evaluator bias, which may in some cases be
discriminatory. By not having to report on all job-related behaviors or results, an evaluator may
simply comment on those that reflect favorably or unfavorably on an employee. This does not
usually represent a true picture of the employee or the job, and content validity of the method
suffers.

2.3.3 Bell Curve Method of Performance Appraisal

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 Figure 1.3

Bell curve system of appraisal is a forced ranking system enforced on the employees by
the management. The Forced ranking is a workforce management tool under which a company
must identify its best and worst performers, then look after the former and recover or discard the
latter. Under this system comparison of performance of the entire workforce engaged in similar
activity is being done and they are ranked on the basis of their performance. The company
management separates the entire workforce as the top performers, medium
performers and the poor performers. The percentile varies with the company policy. In SSGC
they have top performers 10%, middle performers 80% and the bottom performers 10%.

• The employees belonging to the higher grade are rewarded with rewards bonuses, in
order to motivate them to show their better performance.
• The middle percentile employees are provided with training to enhance their key skills to
improve their work performance.
• The lower level employees are given the chances to improve their efforts and are
abandoned from the system.
2.4 Performance Review Form of SSGC

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At SSGC all the immediate supervisors of respective department’s fill out the annual
performance review form of the individual’s performance in the month of June. The performance
plan and input form which is submitted by the employees is used to evaluate the employee
performance. This form is a complete assessment process carried out by the immediate
supervisor based on compensation of KPIs and skills and competencies required for the job and
those displayed by the individuals. The percentage of increment is determined and paid in July of
each year on the basis of the annual rating. The current performance review form of the SSGC is
revised to include KPIs specific to an individual’s job, in addition to the general KPIs. This
revision makes the form more objective.
The Annual Review Form of the SSGC has been revised and emphasize on performance as
measured against specified competencies (as opposed to specific tasks or behaviors) that are
identified for each position. The system of evaluating performance has been designed to ensure:

• The company executives are responsible to decide their future career goals and training
requirements with their manager/supervisor in order to build up their fullest potential.
• The strengths and weaknesses of the company executives are verified to take the exact
decisions linked to the employee’s contribution, career development, training
requirements, promotional opportunities, pay increases, etc.

To highlight the value of this process, top management at SSGC send a message to all the
managers and supervisors of the company that the procedure of rating employee performance is
an important source to carry out this task, with obligation rather than filling the forms without
having any meetings. Without organizational commitment to the process managers/supervisors
will consider review writing of no use. Managers/supervisors make sure that ratings are fair and
accurate. For example:
• High ratings for everyone (leniency approach)
• Low ratings for everyone (severity approach)
• Middle level of the bell curve (everyone is doing just fine)

2.4.1 Parts of Performance Review Form

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The SSGC performance review form has six parts. Each part is divided on the basis of feedback
from different subordinates, immediate supervisor and ultimately by senior reporting officers.

Part I – Personal Information

This part consists of personal information related to the employee’s name, current grade, last
qualification achieved, and the department he/she is working for, the date he/she joined the
company and achieved last promotion, the department he/she worked before and is currently
working.
This part helps SSGC to understand the information of employee accurately. The information
entered in the form is updated in Oracle’s Human Resource Information System (HRIS) which
helps SSGC to track down their employees recent and past personal activities.
Promotion is done on a number of factors such as minimum working time period in SSGC of 3
years, the prior trainings and the current trainings acquired, the past performance (KPI) and the
current performance of the employee. SSGC policy determines that when these factors are
achieved by an employee then he/she will be eligible to be promoted.

Part II – Performance Indicators

SSGC asses their employee’s on five different ratings:
1. Substantially Exceed Expectation: The employee which has shown remarkable
performance over the period. The employee’s whose performance is consistently superior
and significantly exceeds the position requirements is marked on SEE rank.
2. Exceed Expectations: The employee which has performed very well and the performance
frequently exceed position requirements is marked on EE rank.
3. Meets Expectations: The employee which is proficient has consistently meets the current
position requirements are marked on ME rank.
4. Below Expectations: The employee which meets some, but not all position requirements.
The employee having less anticipation is marked on BE rank.
5. Not Acceptable: The employee having poor performance and consistently fails to meet
minimum position requirements; lacks skills required or fails to utilize necessary skills is
marked on NA rank.

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This Part II of the form is further divided into general and specific Key Indicators:
1 Performance:
1.1 General Key Indicators
i. Targets achieved, additional work done
ii. Planning and organizing
iii. Changing management
iv. Proactive actions for UFG Control
v. Creativity, initiative & drive

1.2 Job relevant KPI’s to be selected from Annex-A as applicable to individual

Key Performance Indicators (KPI) in SSGC

The SSGC Key Performance Indicators are:
• Quantifiable measurements that reflect the significant success factors of the company.
• Reflect the company’s goals, and key to its success.
• Considered long-term considerations. The definition of what they are and how they are
measured do not change often.

Human resources KPI’S of SSGC:

They include KPI about human resources management such as employee loyalty, labor relation,
compensation, training and development, recruitment etc

 Recruitment KPI

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They include KPIs about recruitment They include KPIs about performance
process. management.
Training KPI Employee loyalty KPI
They include KPIs about training practices. They include KPIs about employee and
Health and safety KPI faithfulness devotion.
They include KPIs about health and safety HR efficiency KPI
of workers. They include KPIs about effectiveness of
workforce.
Performance KPI
2. Competencies & skills
i. Communication skills
ii. Development and presentation of case/project
iii. Interpersonal skills
iv. Delegation of work and management control
v. Leadership skills, attitude and motivation
3. Development Efforts
i. Training efforts for subordinates
ii. Willingness to accept New responsibilities
iii. Willingness to accept change of job/station (job rotation)
iv. Self Development efforts (training and education)
v. Conformance to medical advice

4. Core Values
i. Team work
ii. Fostering merit
iii. Integrity of decision
iv. Degree of self discipline
v. General conduct, adherence to rule and company ethics

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Conflict Resolution
On these general and specific KPIs, employees are awarded points based on their performance.
There are times when the employee is not satisfied with the points awarded to him/her by the
immediate supervisor. In such a case a committee is made specifically for Grievance Handling.
Under this committee, a proper meeting is held depending on the number of employees not
satisfied with their awarded points. Although this meeting is held annually, but depending upon
the number of meetings it can also be held semi-annually.
In this meeting, the employee (not satisfied with awarded points), employee Head/immediate
supervisor and Jury of HR is present. The case is presented to the Jury and after discussion it is
decided whether the points were awarded unjustly or there was some other misunderstanding.

Part III – Pen Picture

In this part, overall work performance, personality and potential of the employee are stated in
brief. Major strengths and weaknesses are also written down by the immediate supervisors which
are needed to be reinforced and overcome respectively.

Part IV – Improvements in performance on the basis of training received during the year
under review
This part contains a small section which tells whether or not the employee has fulfilled all the
requirements to be promoted. If he/she has than the immediate supervisor ticks on the YES check
box and writes down the position to which he/she would be promoted to. There is also a section
in which he needs to mention the reasons pertaining to the promotion.

Part V – Any disciplinary proceedings

Disciplinary procedure is a step-by-step process followed by the company in the situations where
an employee has to be advice, warned, or given notice to. Failure to follow a fair, transparent,
and uniform disciplinary procedure may result in legal penalties (damages) and/or annulment of
the firm's action.
In the form, an employee can be given a disciplinary proceeding because of either low rating,
unacceptable performance, not meeting the standards of the job, etc.

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 Part VI – Comments by Reporting Officers
This section includes comments made by Initiating Reporting Officer, Senior Reporting Officer,
Geographical Head, Departmental Head and lastly Division Head/Managing Director.
This final section of the form is designed to allow comments by all members of the reporting line
in the interest of maintaining transparency. In all cases reporting line extends up to department
head level. In the case of DGM/GM the reporting line is SGM/MD.

2.4.2 Problems while Appraising employee Performance:

• Sometimes the company’s performance evaluations may lead to a pessimistic impact on
office dynamics. When the employees are trained to work in teams the employee may
perceive that an unjust evaluation is given to him/her. Thus negative reports develop
resentment among coworkers who her evaluated on lower basis or may develop rivalry
towards the immediate supervisors who review their work.
• Time consuming: The performance appraisal process is highly time consuming. The
company managers and supervisors invest too much of their time in completing the forms
and meeting with employees to explain them the results which may take hours, or
sometimes days to complete. It is often a waste of time if not completed properly.
• Employee de-motivation: when the company is unable to reward their employees
according to their performances due to high government influence, practices of favoritism
and biasness among employees, this leads to extreme de-motivation among the
employees that may affect the employee performances.

• Legal issues:
o Personal Bias/Favoritism: Many of the company managers allow their
impressions of employees or their personal feelings about them to dominate the
performance rating process. This at times results into distortion of the appraisal
process and also causes frustration and disappointment among those employees
who are discriminated against age, race, and sex.

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The company is under high government influence. For instance the company even has to pay to
those employees who never bother to come for their job and do not perform their job duties.

2.5 Performance Management Process

The process of Performance Management that is used in SSGC consists of 4 steps:

1. Performance plan
2. Midyear review
3. Executive input
4. Annual performance review

STEP 1: PERFORMANCE PLAN

In this step, first there is preparation and distribution of Performance Plan form, to Department
Heads. Then the individuals complete the form, after that the line managers of that particular
department after consultation and agreement approved it.
Executive/Line manager keep a copy of the form and original forwarded to HR department.

This form is split into the following 5 path:

• Ongoing activities
• Planned objectives
• Development/HR objectives
• Competencies & skills
• Core values
On 1st July each year, it is essential for all executives to make their own performance plan for the
year (1st July to 30th June) associated with the business plan of their own departments. The plan
contains task listed according to the level of priority which has to be completed in the given span
of time. This plan is discussed and must be mutually agreed upon between the employee and his
Line Manager.

STEP 2: MID YEAR REVIEW

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In December the Executive and Line manager carry out a review to check if the plan is been
fulfilled as per schedule. They prepare and distribute midyear Review forms to Executives, after
that the form would be completed by SSGC employees with details of task performed as planned
and justify short comings if any. Then this form is submitted to manager for his agreement and
approval and forwarded to HR department.

STEP 3: EXECUTIVE INPUT

This form provides the individuals of SSGC the chance to list the entire task that they perform
during the year under review to prove their accomplishment of the Performance Plan and other
extra task that they carry out at their own initiative. In case of non fulfillment of any task in the
performance plan a detailed justification is provided. Example: lack of resources, lack of
coordination among the departments, etc.
This step includes the task of Preparation and distribution of input forms to executives.
Individuals give details of assignments (routine and special carried out in accordance with the
performance plan). If incase the task contained in the plan have not been accomplished, then a
rational has to be provided by the executive.
This Form is submitted to the line manager who retains a copy for preference (for annual review)
and original is dispatched to HR department.

STEP 4: STEP IV: ANNUAL PERFORMANCE REVIEW

Preparation and distribution of performance review forms and the completion of form is done by
line manager. Annual review is discussed by line manager with Department head on the basis of
input form. Also, discussion is held between line managers/department head and Division Head
to ensure bell curve conformity.
Discussion between line manager and individual on performance rating would also be done.
Conflict resolution is also held in this section in case where individual does not agree with rating
carrying less than 50 points.

2.6 Compensation System at SSGC

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The company’s compensation system comprises of:
• Performance based rewarding
• Extrinsic rewards.

2.6.1 Performance Based rewarding

The company management monitors and identifies the sound performers and rewards them in the
similar manner according to their performance in their respective departments. Such performers
are individually identified in the department inorder perform well. The company uses
performance based compensation system in which it provides monetary rewards to its employees
such as salary increments, bonuses, etc.

2.6.2 Extrinsic rewards

The SSGC extrinsic rewarding system includes:
• Pay roll increments
• Bonuses
• Provident fund
• Bonds
The above compensation system is valid for officers and subordinates only.

2.6.3 Rewarding for labor class

At SSGC the labor class is rewarded through:
• Over time payment
• Commissions
At SSGC generally the blue collars are being compensated by union based system or Collective
Barraging Agent.

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After analyzing the company compensation system, it is identified that one more system is
existing in the organization is the union which is running and contributing in many affairs of at
SSGC. Many employees gain the compensation remunerations through the company’s Union
influence. The person who had a close type of relationship with the union can easily avail the
opportunity of the compensation. This resulted in a big issue as those employees who performed
well got de-motivated when they found that the medium or low performers were given the same
benefits, incentives & rewards given to them.

2.7 CONCLUSION
Through the study of the Performance Management System of SSGC, we can conclude that an
organization can be successful in running all its operations and activities according to their
strategic goals and objective when its employees work effectively. So, it is essential for the
management of the company to appraise the performance of employees and evaluate them
properly in order to achieve their target and long term goals.
Performance appraisal is a tool that should be done in a proper manner otherwise the company
could suffer from problems like biasness/ favoritism, halo effect that would lead to the de-
motivation of employees and can negatively affect the morale and performance of employees
who are the main human resource for every organization.

2.8 Recommendations

Semi Government Organization issues:

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1. Since company is a semi-government organization, the problem of mismanagement is
present at the moment. There must be serious accountability from both ends (the top and
the bottom management) to make sure that the company resources are not exploited.

2. Because the governmental officials keep on changing from time to time, the lack in
concentration and work/assignment importance is hindered. As the newly appointed top
executive abolishes the previous assignments and reassigns new tasks creates disinterest
amongst the staff. Hence it is recommended that the company policy must be changed
and a clause must be included which should state a minimum time period till which the
top executive must work. And he/she should complete the current projects and
assignments due in his/her period.

3. The company must introduce the 360 degree performance appraisal method. This may
help the company to provide each employee the opportunity to receive performance
feedback from his or her supervisor and four to eight peers, reporting staff members, co-
workers and customers.

4. The company must reward their employees according to their performances by avoiding
practices of favoritism, halo effects and biasness among employees, in order to avoid
extreme de-motivation among the employees that may affect the employee performances.

Annexure

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