PERFORMANCE APPRAISAL

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Presented To:
Prof Major Nazar Abbas

Presented By:
H Salman Ahmed 310-11523
M Shahbaz 2883
Muddasir Iqbal Qazi 2910

Hajvery University Lahore

Dated: Dec 03, 2010
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 Sequence of Presentation
Introduction
Purpose & Responses to Performance Appraisal
How Performance Appraisal Helps the Managers ?
Who does the Appraisal ?
Measurement Matters ?
Rater Should Avoid from Errors .
5 Techniques of Performance
Appraisal.
3 Comparing Techniques
Analysis of ZUFLAH
Analysis of Al-Flah Bank Ltd
Recommendations 3
 Performance Appraisal
The process of measuring an
employee’s performance on
the job , comparing and
recording the results , and
communicating the results to
the employees

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Performance Appraisal
3-Step Process

1- Manager measures an
employee’s work and compare it
with established standards
2-Manager records the results
3-Manager communicates the
results to the employees in some
form

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Questions Before Appraisal
Who appraises whom ?
When should the appraisals
be performed ?
What measurement
procedures should be used ?
How should we record the
results ?
How should we store and
distribute the results ?
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 Purpose of Performance Appraisal

Provide the organization with information

about work performance

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 Responses to Performance Appraisal

Rewards
Salary Raise
Selection of
Employees for Training
Programs
Promotions
Incentives
Paid Vacations
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 Responses to Performance Appraisal

Punishment
Reprimand
Transfer
Firing

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 Performance Appraisal Helps the Managers

 Provide basis for reward allocations

 Provide basis for promotions, transfers, layoffs
 Identify high potential employees
 To develop & Improve
the employee’s performance
 Set appropriate goals
for employees
 Eliminate Problems
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Performance Appraisal Helps the Managers

Evaluate previous training programs

Foster work improvement
Identify training & development
opportunities
Develop ways to overcome
performance barriers

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 Who Does the Appraisal ?

Immediate Boss
Co-workers
Peers on the same organization
level who are not co-workers
Subordinates
Manager of other work units
Customers

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 Measurement Matters
Organizations need to use fair & unbiased
methods
A good measurement system should be
•Valid
• Reliable
• Free of bias & errors

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 Raters should avoid from
1-Halo Error: The tendency of an evaluator to
generalize and to rate an employee as high or
low on all traits of performance because the
employee rates high or low on one particular
trait

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 Raters should avoid from
2-Recency & Timing Errors: P.A errors that
occur when employees take advantage by
improving the quality of their work just before
an evaluation.

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 Raters should avoid from
3-Clonal Effect: The tendency of raters to favor
people who are like themselves

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 Performance Appraisal Techniques
5 of Most Popular Methods used to Appraise
an Individual’s Performance
1. Graphic Rating Scales
2. Checklists
3. Essays
4. Forced Choice
5. Management By Objectives

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 1-Graphic Rating Scales
The rater simply indicates the point on the
scale that corresponds to the employee’s
performance either the overall performance
or on particular job dimensions.

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 2-Checklists
A group of people familiar with the job come
up with a list of work behaviors important to
job. The group also rate the relative
importance of each item on the list
Rater simply checks the
items on the list that best
apply to the individual being
Rated.

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 3-Essays
 Rater use this method, write paragraphs describing
the work behaviors of the employee being rated.
Essays are not easily quantified but provide a
detailed, in-depth look of employee
Essays are more effective when taken from notes
and observations & from entire rating period.
If rater works only from memory,
 he may concentrate on employee’s
personality rather work behavior

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 4-Forced Choice Method
1-People who are knowledgeable about a particular
job …..develop a list of statements that describe an
employee’s behavior on job.
2-Statements are then grouped & rater pick one
statement from each group
3-Someone other than rater
scores the appraisal, weight
each statement
4-Rater does not know how
each statement will be weighted
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 5-Management By Objective
Goal setting approach
A good MBO system with specific, measurable
goals avoids many measurement problems.
If means are not specified to reach objective
then employee may use unethical or potentially
destructive means to reach objective.
Since every goal is different, it
is difficult to compare the
achievements of different employees.
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 Comparing Individuals
All mentioned methods evaluate individuals
without reference to other employees
To eliminate the tendency to rate everyone
the same way & to provide information to help
managers to allocate rewards
There are other methods that involve
comparative evaluation of two or
more employees

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 Comparing Individuals

1) Ranking

2) Forced Distribution

3) Paired Comparison

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 1-Ranking
 Rater ranks everyone in a particular group from
best to worst.
 Ranking is made on global performance criterion
(like “Best Programmer”,
“Most Efficient Accountant”.
 Ranking provides little information
for improvement or development.
 Vulnerable to the Halo effect
 Do not make clear how good an individual’s
performance actually is.
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 2-Focred Distribution
 A rater places each employee into a
category.
 Organization determines how many
categories there are &
 Percentage of the employees that can be
put in each category.

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2-Focred Distribution

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 3-Paired Comparison
 Rater compares individuals,
one pair at a time on one global
performance criterion
 It helps the rater develop a
ranking that reflects the relative
merits of various employee more
accurately
 Paired comparison can take a lot of time
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Video

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 ZUFLAH
Zuflah International Company is a leading
name in Pakistan’s latest and modernized
technology Tents and Outdoor equipments
Industry. Zuflah is innovator, manufacturer
& exporter of Tents

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 ZUFLAH
Since 1985 organization started by
supplying Tents and Sleeping Bags to
Saudi Relief Committee,
Saudi Red Crescent Society and
other Relief Agencies,
appointed by United Nations
for Afghan Refugees.

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 ZUFLAH
Zuflah International Co has constantly
attached its innovative work and design with
modern and latest technology. Most of them
are registered with Controller of Patent and
many of them are registered
with design so that no body
can copy innovative
products nor they can sell in
the market
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ZUFLAH
Vision
Zuflah's vision is to be a world class
outdoor equipment manufacturer
exceeding the customer's expectations
through dedicated employees, committed
to excellence

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 ZUFLAH
 Mission
 Zuflah’s team will contribute towards the development
of best outdoor equipment in the world.
 Offering quality customer
services and innovative products
 Using state-of-the-art
technologies
 Ensuring cost-effective
measures in procurement
and operations
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 ZUFLAH
Product Categories:
 Mountaineering Tents
 Camping Tents
 Frame Tents
 Self Operating Pop
Up Tents
 Latest Relief &
Refugees Tents
 Sleeping Bags & Mattresses
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 ZUFLAH
Product Categories:
 Free Standing Mosquito Nets
 Insecticide Treated Mosquito Nets
 Ruck Sacks & Bag Packs
 Camping Garments
 Camping Furniture

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 ZUFLAH
Business Partners:
 Organizations appointed by United Nations
 International NGO’s
 Saudi Relief Committee for Earth Quake
Disasters
 Pakistan Army
 Pakistan Air Force
 Pakistan Navy

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 ZUFLAH
Business Partners:
 Red Crescent Society of Pakistan
 Govt of Punjab
 Govt of Khyber Pakhtoonkhawa
 National Disaster
Management Authority

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 ZUFLAH
Business Partners:

 Mountaineers Club of Pakistan

 MAF Hyperstar
 METRO
 Exporters

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ZUFLAH
Embassy of Kingdom of Saudi Arabia in
ISLAMABAD

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ZUFLAH
Embassy of Kingdom of Saudi Arabia in
ISLAMABAD

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ZUFLAH
Embassy of Kingdom of Saudi Arabia in
ISLAMABAD

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ZUFLAH
Embassy of Kingdom of Saudi Arabia in
ISLAMABAD

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 ZUFLAH
Embassy of Kingdom of Saudi Arabia in
ISLAMABAD

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 ZUFLAH
Defense Related Modernized Products:

 Military Tents

 Military Sleeping Bags

 Military Field Furniture

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 ZUFLAH
Defense Related Modernized Products:

 Military Covers for Trucks

 MTV Covers for Missiles

 Ariel Vehicle Shelter

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Performance Appraisal in
Who appraises whom ?
When the appraisals is
performed ?
Type of Performance
Appraisal ?
What measurement
procedures are used ?
How should they record the
results ?
How should they store and
distribute the results ?
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ZUFLAH
Managing
Partner

Partner Partner Partner

General
Manager
Marketing Finance Production R&D
Executive Executive Executive Executive

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 Performance Appraisal
of
Bank Al Falah

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 "To be the premier organization
operating locally and internationally that
provides complete range of financial
services to all segments under one roof"
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ORGANIZATIONAL STRUCTURE

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HR Policies at BANK AL FALAH
>Manpower Planning
>Internal & External Recruitment
>Intensive Training & Development
>Performance Appraisal
>Promotion, Transfer, & Demotion
>Job Rotation
>Grievance Handling
>Welfare Activities
>Bank Al Falah Ltd. Employee Stock Option
Plan (allows employees to share in the
companies success )
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Performance Appraisal
Technique at
Bank Al Falah
(Before 2007)

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OLD PERFORMANCE APPRAISAL WAS COMPRISES OF.........
• A. Personal Data
• B. Job Responsibility
• C. Goal Specification & Achievement
• D. Personal Attributes
• E. Overall Performance
• F. Training need/Career growth/Success Planning
• G. Apraisee`s Comments
• H. Group Head`s/ GM`s Comments
• I. Final Rating (by Department)

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Performance Appraisal
Technique
at
Bank Al Falah
(After 2007)

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 NOW DAYS
MODERN Performance Appraisal
Techniques
are done under
"Performance Management"
Called
“ BAL Performance Management System”

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 what is
Performance Management?

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Performance Appraisal is but
only one part of the bigger process of
Performance Management.
So, the short answer
is that Performance Appraisal
(annual review, employee review) fits
under Performance Management.

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 Bank Al Falah
performs
“Performance Management Cycle”
each year in which all
Performance Appraisals
are carried out.
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Performance Management Cycle

covers the five different

PROCESSES
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 1- Planning

2- Coaching

3- Reviewing

4- Rewarding

5- Core behavioural competencies Model

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PLANNING

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> Employees along with supervisors
agree on five to seven challenging
goals
> Goals should be (smart)specific
measureable attainable relevant &
timed
> Supervisors will plan goals on
"Performance Planning (PPF)"
send a copy of it to HR
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Employees will complete
Performance Agreement (PA)

with supervisors & discuss

with them.

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COACHING
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>Face to Face meeting (employee will ask
FEED BACK from supervisor)

>Documentation of
Performance log & One 2 One Form
will be done.

>And also employees will be encouraged to

maintain their own Performance Log.

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• If Under Performance is observed then
Performance Improvement Plan may
need to created.

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REVIEWING
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 By consulting “Performance Log”

> Employee complete Self Evaluation Form

> SMART goals worksheet

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> Supervisors will complete
Personal Development Plan (PDP)

Which tells that what is required to improve

performance of each employee for the whole
year.

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REWARDING

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 This Appraisal method have
“Three Outcomes”
> The development needs of an employee.
> And the reward for an employee.
Through
"Personal Development Plan (PDP)"
employees & supervisors do meeting which
helps in strengthening the employees working

skills & power .

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 THE PROCESS
Tells us the
Performance of Employee
which we measured by
Different Methods

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 Core Behavioural
Competencies Model

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 DEFINES INPUT & OUTPUT

Input by the Employer & Output by

the Employees after the Appraisal
This method is used in

" Bank Al Falah“

EXCLUSIVELY

which tells us individual`s ability to achieve

SMART GOALS 109
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 FINAL
RECCOMENDATIONS

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Key RECOMMENDATIONS for both companies.........

> There should be modern APPRAISAL TECHNIQUES

such as by using Performance Management
softwares.
>There should be Performance Managers & Sub
Department of Performance Management (under
HR) which should take appraisals during whole
year.
>After proper feed back from employees ,
supervisors & employees should do work on
increasing individual`s ability.
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