Report on Performance Appraisal Evaluation of MOBILINK Telecom Co.

September 2011

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Assignment onPerformance Appraisal System of MOBILOINK (An Orascom Telecom Company)

Submitted To:
Md. Johirul Islam Lecturer, Department of Management, Faculty of Business Administration, BUBT.

Submitted By:
Amaranthine Intake- 21st Section- 07

Date of submission- 10th September, 2011

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Letter of Transmittal
10th September 2011 The Course Advisor Md. Johirul Islam Department of Management Faculty of Business Administration, BUBT Subject: Submission of the report. Dear Sir, We would like to thank you for assigning us this subject to prepare the report. This task has given us the opportunity to explore one of the most important aspect of the HR Management which is very important in our practical life. The report contains a comprehensive study on the Performance Appraisal model under which the organization MOBILINK Telecom Co. is sustained. It was a great pleasure for us to have such type of opportunity to work on this topic. We have endeavor our best to come out with a good one and also if we do any mistake (involuntary), then please try to see it in the eyes of forgiven. Finally we would like to thank you for valuable guidance & supports in preparing this report. We will be grateful for any clarification when required. We will be highly obliged if you are kind enough to approve this report and provide your valuable judgment on it. Sincerely yours Amaranthine Intake- 21st Section- 07

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Table of Contents

S.L. No.

Title

01. Acknowledgement . 02. Executive Summary .. 03. Introduction .. 04. Performance Appraisal 05. Objectives of Performance Appraisal 06. Methods or Techniques of Performance Appraisal 07. Process of Performance Appraisal.. 08. Persons Who Appraise Performance. 09. Problems of Performance

Pag e No. 6 7 8 9 9 10 12 15 17

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Appraisal.. 10. Performance Appraisal System of Mobilink..................................... .................... 11. Feedback ... 12. CRITICAL REVIEW ON PERFORMANCE

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APPRAISAL . 13. Conclusion . 14. Recommendation .

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ACKNOWLEDGEMENT

This part is to thanks those who helped us a lot for completing the project management report. First and foremost we would like to thank almighty Allah for giving us the strength and ability to complete this report.

Then we want to thank our Human Resource Management course instructor honorable Md. Johirul Islam for his generosity and delegate contribution. Although it is the first time that we are writing on a particular topic, but repeated discussion on the subject made us confident to express ourselves throughout the report. We are grateful for his careful guidance. Then we have to thank our friends. Their patient, dedication, help and cheerfulness were very precious for us. In addition, we would like to thank our classmates for sharing their views and topic. We would also like to thank the other staff of Mobilink for being so cooperative and for guiding us in every step of our project

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Executive Summary
The objective of this study was to investigate organizations current performance management practices and determine which system characteristics or qualities influenced effectiveness and predicted success. The study, based on survey results from 88 of the Benchmark organizations, was designed to establish a general profile of each organizations performance management system as well as address four main areas: 1. Current and best practices. 2. CEO ratings of the effectiveness of their organizations performance management system in relation to areas such as improving financial performance, developing organizational talent, and driving the organizations strategic plan. 3. Overall system effectiveness. 4. Each systems impact on business, the organizational culture, and customer satisfaction.

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INTRODUCTION Orascom Telecom Holding S.A.E. ("Orascom Telecom") or ("OTH") was established in 1998 and has grown to become a major player in the telecommunication market in the world. OTH is considered among the largest and most diversified network operator in the Middle East, Africa and Pakistan. Mobilink GSM (PMCL), a subsidiary of Orascom Telecom, was awarded a license in July, 1992 and started its operations in 1994, and has become the market leader both in terms of growth as well as having the largest customer subscriber base in, Pakistan - a base of over 24 million and growing.

MISSION STATEMENT
To be the unmatchable mobile system of communications in Pakistan this provides the best value to its customers, employees, business partners and shareholders. MOBILINK'S VISION To be the leading telecommunication services provider in Pakistan by offering innovative communication solutions of our customers while exceeding shareholder value and employee expectations
Performance:
Performance relates to activities that are performed by an employee

Appraisal:
Appraisal means the evaluation of an employee performance.

Performance appraisal:
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Performance appraisal is a method by which an employees present and past performance can be evaluated. Objectives of Performance Appraisal 1. Employee Performance 2. Employee Development 3. Supervisory Understanding 4. Guide 5. Wage & salary administration 6. Validate human resource program

Performance Appraisal can be done with following objectives in mind: 1. To maintain records in order to determine compensation packages, wage structure, salaries raises, etc. 2. To identify the strengths and weaknesses of employees to place right men on right job. 3. To maintain and assess the potential present in a person for further growth and development. 4. To provide a feedback to employees regarding their performance and related status. 5. To provide a feedback to employees regarding their performance and related status. 6. It serves as a basis for influencing working habits of the employees. 7. To review and retain the promotional and other training programs.

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Performance Appraisal Methods

360 Degree Feedback

Written Essays

Performance Appraisal Methods

Multiperson Comparisons

Graphic Rating Scale

BARS

Behavioral Anchored Rating Scales

Critical Incidents

Written essay

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 A technique in which an evaluator writes out employee strengths, weaknesses, past performance and potential. Advantages of this is simple to use. Disadvantages of this is more a measure of evaluators writing ability than of employee actual performance. Graphical rating scale A performance appraisal technique in which an employee is rated on a set of performance factors. Advantages of this provide quantitative data , less time consuming than other methods. Disadvantage of this do not provide depth of job behavior assessed. Critical incidents A technique in which the evaluator focuses on the critical behaviors that separate effective from ineffective job performance. Advantage rich examples behaviorally based. Disadvantage time consuming lack of quantification. Behaviorally anchored rating scales (BARS) A performance appraisal technique that appraises an employee on example of actual job behavior. Advantage focus on specific and measurable job behaviors. Disadvantage time consuming difficult to develop.

Multiperson comparisons Performance appraisal techniques that compare one individuals performance with that of one or more other individuals.
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 Group ranking Individual ranking Advantage compares with one another. Disadvantage unwieldy with large no of employees. 360 degree feedback A performance appraisal method that utilizes feedback from supervisors employees and coworkers. Advantage of this is thorough. Disadvantage time consuming.

Process of Performance Appraisal

Establishing Performance Standards
The first step in the process of performance appraisal is the setting up of the standards which will be used to as the base to compare the actual performance of the employees. This step requires setting the criteria to judge the performance of the employees as successful or unsuccessful and the degrees of their contribution to the organizational goals and objectives. The standards set should be clear, easily understandable and in measurable terms. In case the performance of the employee cannot be measured, great care should be taken to describe the standards. COMMUNICATING THE STANDARDS Once set, it is the responsibility of the management to communicate the standards to all the employees of the organization. The employees should be informed and the standards should be clearly explained to them. This will help them to understand their roles and to know what exactly is expected from them. The standards should also be communicated to the appraisers or the evaluators and if required, the standards can also be modified at this stage itself according to the relevant feedback from the employees or the evaluators.

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MEASURING THE ACTUAL PERFORMANCE The most difficult part of the Performance appraisal process is measuring the actual performance of the employees that is the work done by the employees during the specified period of time. It is a continuous process which involves monitoring the performance throughout the year. This stage requires the careful selection of the appropriate techniques of measurement, taking care that personal bias does not affect the outcome of the process and providing assistance rather than interfering in an employees work.

COMPARING THE ACTUAL WITH THE DESIRED PERFORMANCE

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The actual performance is compared with the desired or the standard performance. The comparison tells the deviations in the performance of the employees from the standards set. The result can show the actual performance being more than the desired performance or, the actual performance being less than the desired performance depicting a negative deviation in the organizational performance. It includes recalling, evaluating and analysis of data related to the employees performance. DISCUSSING RESULTS The result of the appraisal is communicated and discussed with the employees on one-to-one basis. The focus of this discussion is on communication and listening. The results, the problems and the possible solutions are discussed with the aim of problem solving and reaching consensus. The feedback should be given with a positive attitude as this can have an effect on the employees future performance. The purpose of the meeting should be to solve the problems faced and motivate the employees to perform better.

DECISION MAKING The last step of the process is to take decisions which can be taken either to improve the performance of the employees, take the required corrective actions, or the related HR decisions like rewards, promotions, demotions, transfers etc.

Persons who appraise performance

Self-Assessment

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This form of performance information is actually quite common but usually used only as an informal part of the supervisor-employee appraisal feedback session. Supervisors frequently open the discussion with: How do you feel you have performed? In a somewhat more formal approach, supervisors ask employees to identify the key accomplishments they feel best represent their performance in critical and non-critical performance elements. In a 360degree approach, if self-ratings are going to be included, structured forms and formal procedures are recommended.

Peer
With downsizing and reduced hierarchies in organizations, as well as the increasing use of teams and group accountability, peers are often the most relevant evaluators of their colleagues performance. Peers have a unique perspective on a co-workers job performance and employees are generally very receptive to the concept of rating each other. Peer ratings can be used when the employees expertise is known or the performance and results can be observed. There are both significant contributions and serious pitfalls that must be carefully considered before including this type of feedback in a multifaceted appraisal program.

SUPERIORS
Evaluations by superiors are the most traditional source of employee feedback. This form of evaluation includes both the ratings of individuals by supervisors on elements in an employees performance plan and the evaluation of programs and teams by senior managers.

CUSTOMERS
Executive Order 12862, Setting Customer Service Standards, requires agencies to survey internal and external customers, publish customer service standards, and measure agency performance against these standards. Internal
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customers are defined as users of products or services supplied by another employee or group within the agency or organization. External customers are outside the organization and include, but are not limited to, the general public.

SUBORDINATES
An upward-appraisal process or feedback survey (sometimes referred to as a SAM, for Subordinates Appraising Managers) is among the most significant and yet controversial features of a full circle performance evaluation program. Both managers being appraised and their own superiors agree that subordinates have a unique, often essential, perspective. The subordinate ratings provide particularly valuable data on performance elements concerning managerial and supervisory behaviors. However, there is usually great reluctance, even fear, concerning implementation of this rating dimension. On balance, the contributions can outweigh the concerns if the precautions noted below are addressed.

Problems Related With Performance Appraisal

Managers usually are not qualified to assess personality traits and most managers are not trained to conduct evaluation and performance interviews. Some managers discouraged good performance by overemphasizing shortcomings and almost neglecting good works. The real message is lost.
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Raters personality also plays an important role in the effectiveness of evaluation program. There are many possible sources of errors in the performance appraisal process. Various types of rater errors are mentioned next: Recency error: The recency effect occurs when a rater gives greater weight to recent events when appraising an individuals performance. A recent action-either good or bad is more likely to be remembered by the rater. Using some method of documenting both positive and negative performance can minimize this problem. Central tendency error: Appraisers who rate all employees within a narrow range, usually the middle or average, commit a central tendency error. It is the reluctance to make extreme ratings in either direction, the inability to distinguish between and among rates; a form of range restriction. Leniency error: Every evaluation has its own value system, which acts as standard against which appraisals are made. Some evaluation mark high and others low. The former is referred to as positive leniency error and the latter as negative leniency error or strictness. Halo effect: The halo effect occurs when a managers rates an employee high or low on all items because of one characteristic.

Contrast error:
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This error is the tendency to rate people relative to other people rather than to performance standers.

Similarity error: When evaluators rate other people in the same way that the evaluators perceive themselves, they are making a similarity error. Based on the perception that evaluators have themselves, they project those perceptions onto others. Personal prejudice: A raters dislike for a group or class o people may distort the ratings those people receives. Discrimination may occur in terms of age, gender, religion and country of origin etc. For example, some HR departments have noticed that male supervisors give underserved low ratings to women who hold traditionally male jobs. Sometimes, raters are unaware of their prejudice and this makes such biases more difficult to overcome.

Parformance Appraisal System Of MOBILINK Telecom Co.

PRACTICES AT MOBILINK FOR PERFORMANCE APPRAISAL SYSTEM
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Mobilink conducts performance appraisal in order to evaluate their employees current performance or past performance relative to companys performance standards. Mobilink try to adapt the performance appraisal in which their employees understood what his or her performance standards were and that the supervisor also provides the employee with feedback, development, and incentives required to help the person eliminate performance deficiencies or to continue to perform above par. There are many performance appraisal methods. Mobilink uses the computerized perfo rmance appraisal method. In Mobilink the performance appraisal of employees is conducted in December. The Mobilink HR department has developed a performance appraisal sheet and hasdownloaded it on the intran et of Mobilink so that the supervisor performs theevaluation of the employees. When the supervisor completes the evaluation, he will send the performance appraisal sheet to the employee for the affirmation with the ideas of the supervisor if the employee does not agree with the supervisor he will not sign the PA sheet. When the last date of submission of PA sheet is passed then the HR department asks the supervisor and the employee about the problem and resolves the problem.

POLICIES AT MOBILINK FOR PERFORMANCE APPRAISAL Objectives: The purpose of this policy is to provide a formal review program to evaluate work performance and to promote communication and discussion of job performance. The intent of these discussions should be to review current job Performance and responsibilities, set goals, and discuss future opportunities withreference to past performance at Mobilink.

The Objectives of the Performance Review Program is: O To measure work performance O To motivate and assist employees in improving their performance and achieving their personal/professional career goals

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O To identify employees with high potential for advancement O To provide objective information for making decisions on salary increases, promotions, bonus and transfers. O To identify employees training and development O To provide a solid path for career planning for each individual Frequency of the Performance Review: Informal performance discussions should be conducted frequently as and when the need arises. These discussions will provide the basis for an objective summarization of performance during formal Performance Reviews and allow more time for discussing future plans and organizational as well as personal objectives. The supervisor is encouraged to make notes on pertinent points discussed and to place those notes in the employees personnel file. Formal written performance reviews will be conducted with all employees annually. Notification along with Performance Evaluation Forms will be sent from the Human Resources Department in advance with the scheduled performance evaluation date. All employees will be reviewed at least once at confirmation. Therefore, performance reviews will be held on an annual basis from the date of hiring or more often if desirable to do so. The supervisor will receive notification of the scheduled review period from the Human Resources Department.

Policy guidelines: The performance appraisal is done on an annual / basis (from January 1st to December 31st). Every employee should know what is expected from him / her through direct supervisors. He / She should participate in & agree with the goals & objectives set by himself / herself in accordance with the Companys business plans & objective goals. Everyone should have the
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opportunity to perform & develop according to the set objectives & agreed upon duties. He / she should also expect self-assessment and take actions to develop his / her competency level & increase his / her participation in the achievement of the Companys objectives. To ensure openness, consistency & objectivity, the agreed competency framework covering all aspects of the job should be used as the basis for performance planning appraisals. Accordingly, it should be well known & clear for both the Employee and the Manager covered. Department Heads & Managers involved in performance appraisals should be well-trained & familiar with the applied performance appraisal system & the appraisal interviewing techniques. The performance evaluation program requires that an annual meeting be held with each employee; however, Coaching, Counseling and Guidance must be an on-going process for the desired improvement and development to be achieved. To give a chance to Subordinates to evaluate their seniors a 360 Degree Evaluation will be conducted at the time of the Performance Evaluation. PERFORMANCE APPRAISAL FORMS The performance appraisal forms will be filled once in a year to get a clear picture of the employee performance. APPRAISAL POLICY The intent of these appraisals is to review current job performance and responsibilities,set goals and discuss further opportunities with reference to past performance atMobilink.

PERFORMANCE REVIEW At MOBILINK a review is intended to be an open and frank discussion between an employee and their Team Leader/Manager. Generally there are two elements: first is the element in which discussion takes place over the strengths and areas which need to be developed as displayed by the job holder over the past 12 months. The performance is of course judged

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comparing the performance against the core indicators of Job. The second element is concerned with discussing the training needs/inputs activities that are considered to be appropriate to help the jobholder overcome some of development areas discussed in the review and also those activities that are deemed appropriate to build upon their current strengths.

APPRAISAL CATEGORIES Appraisal category Definition of category% of total numbers of employees which can berated in this category 1. expert Indicates exceptional performance 15% 2. very Good Indicate performance that consistently meets the requirements of the position, very good indicates the individual is on track for advancements 10% 3. Good Indicated performance that requires improvement (i.e. meet requirements without initiative or advancement) 8% 4. Basic Performance to be improved (hardly meets requirements) 5% SOURCES OF PERFORMANCE APPRAISAL At MOBILINK the primary sources of performance appraisal are the managers and secondary sources are employees themselves. Though the peers also give their opinion but it usually does not have any weightage unless a conflict arises between the manager and the employee.

FEEDBACK Workers at MOBILINK are informed of their performance and given the opportunity to express their opinion over their own level of performance against each competence. This serves the following two main purposes: It enables the reviewer to redefine whether the initial assessment was correct, as circumstances may exist that the reviewer is unaware of.

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 By asking the worker what he sees to be his own strengths and development areas often help to reduce negative responses and makes planning training needs/inputs activities easier if the person is able to express for himself the areas in which he feels he can improve.

CRITICAL REVIEW ON PERFORMANCE APPRAISAL Online 360 degree approach of performance appraisal is adopted at Mobilink for evaluating employee performance. In the past only 180 Degree approach for performance appraisal was adopted but now 360 Degree is also in action. This is a very supportive strategy by the organization because if an employee is not happy with the evaluation by his supervisor then he has the authority to challenge. There are a number of rewards that are tied to performance appraisals. So, tool applied for performance appraisal justifies itself.

CONCLUSION To conclude Mobilink has a strong HR system. That is the reason we didnt found much discrepancies in what management says, what policies state and what employees say. 90 % of the times they were same. There are some minor discrepancies but they are adjustable with little effort.

RECOMMENDATIONS Mobilink has a strong HR system. That is the reason we didnt found much discrepancies in what management says, what policies state and what employees say.90 % of the times they were same. However, there were some discrepancies that need attention and their adjustment can make this HR system best in Pakistan.

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Following are some of the recommendations based on those discrepancies: 1. Human resource department is not fully authorized to take all the decisions. Though HR department claims to have the overall management of the company but that actually is not the case. There are many HR decisions that are taken by the other department. So, there should be a clear delegation of authority regarding decision making for HR department. 2. One thing we observed during our project was that employees were not aware of the in depth policies. The main reason that we have understood for this is their lack of knowledge about policies formulation. Employees are not encouraged to give suggestions in policy formulation. So, our suggestion is that employees should be consulted while policy formulation stage. 3. Benefits and rewards are too complicated for anyone to understand. Though there are many of these but most of employees even have not information as to for what benefit they can go for. So, Mobilink should simplify its reward system for its employees to understand well. 4. The decision making is delegated to managers with goals set for each term promotion, hiring and firing is virtually in the immediate bosss hand. This practice can cause disharmony among employees for power. Team based structure (like the one at PMO) should be preferred in all departments. 5. Mobilink pursues Zero-tolerance policy for disciplinary actions. This is good but not in all cases. Mobilink should look towards its discipline polices and try to be a bit more lenient. 6. Mobilink HR lacks in terms of career planning and development. This important function of HR does not have recognition in Policies statement. Mobilink should have a look at this. 7. Mobilink uses only policy specified sources for recruitment which are only 5. In this way it can loose some potential applicants that can be asset to organizations, just because they were not well communicated. So, Mobilink should increase its recruitment sources.

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