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After thorough analysis they came up with Perform Max

Commitment appraisal system which not only emphasizes on a

better relationship between manager and employees but also
increases the overall productivity of the whole organization;
aligned with ones self interest. Their proposed system is
anongoing process that focuses on ones development rather
than just rewards. Moreover, both the manager and employee
play efficient roles in this Performa Commitment by sharing
responsibilities effectively andefficiently using a positive
approach.The company joined hands with a leading Dutch
company to form a joint corporation (Engro Pattack Terminal
Ltd.) for the development of a jetty cum liquid chemical
terminal at Port Qasim. The project isunder construction and is
expected to be completed in September 1997, in time to
service ICI's new PTA project at Port Qasim. Prospects for
further expansion of this terminal facility are highly promising
as thechemical industry of Pakistan takes off. Engro's
management is confident that it is well positioned to playan
important role in the growth of the petrochemical business in
Pakistan. To know its tasks it hasacquired large areas of land at
bin Qasim port. The first product recognize to start its entry into
petro-chemicals is PVC resin.The company has already signed a
Moue with two well-known Japanese organizations namely
Mitsubishiand Asahi Glass to jointly form a 100,000 tons p.a.
PVC plant at bin Qasim port. The completion of thiscontract is
being focused for mid-1999 and it is expected to give the based
for further upstream,downstream and side way joint
possibilities. To realize its objectives of development and
expansion thecompany recognizes that one of the crucial
success factors will be the quality of its human
resources.Resultantly Engro's Human Resource Management is
based on the philosophy that its employees are itsmost
valuable and important asset.The philosophy is put into
practice through a large and expanded set of rules and
regulations and procedures and processes focused on human
resource development and management. A significant
andimportant feature of Engro's organizational development is
to motivate close relation of the employeesand on occasions,
their partners also, in structuring upon the forming and
mapping the company's valuesystems and its long-term
organizational tasks. With the help of renowned experts high
quality programmers are organized in informal and creative
settings to provide an opportunity to employees tohave their
views about the company's future.The candidates who have
successfully cleared the tests and have scored above than
relevant mark are thencalled for interview. The interview is
conducted by four people, on decision-making and three
managers.All the four interviewers should if possible be from
within the department but often that is not the case.The
purpose of the interviews is to check the persons subjective
skills which are difficult to measuresuch as move toward
communication skills, abilities and personality. During the
interview all four personmark the candidate individually and
then put forward a cumulative mark. These are the marks
touchingwhich different candidates are differentiated


The reward management however is strictly performance driven and every

opportunity is used to reinforce the culture of reward for performance. To promote
and strengthen a keenly competitive environment within the organization for
enhanced quality and productivity, en elaborate performance assessment and
employee development system has been institutionalized which by design forces

objectivity in employee appraisal against given dimensions of performance



The Project Hope Telemedicine initiative by Engro makes available doctors in no less
than fifteen medical specialties ranging from neonatology to cardiology on a daily
basis - and free of cost, to the communities. The project has provided online
consultation by specialist doctors to about 1400 patients to date


Human Resource at Engro believes in learning by doing. Therefore adequate

arrangements are made at the organization to impart training to the staff. It can
take the shape of internal (in-housetraining) or external training depending on the
specific need of the target audience. Staff is made to do things so that they get a
firsthand experience.

Engro Food is one of the few organizations that have through training contributed
not only to the employees but to the community at large. Social investment projects
were organized and more than 1,30,000 people from a cross-section of society
benefitted from it. The concept of a big organization involved not only in producing
excellent products like Olper but also involved in community welfare has had a very
positive impact on the image of Engro Food. All these factors helped Engro Food not
only to enter the market but capture 22% of the market is a very big achievement
against any local or international benchmark. It had to fight against an image of
chemicals, fertilizers to that of quality milk, not an easy transition, still they belief
where there is a will there is a way. The result of effectively managing human
resources is an enhanced ability to attract and retain qualified employees who are
motivated to perform, and the results of having the right employees motivated to
perform are numerous. They include greater profitability, low employee turnover,
high product quality, lower production costs, and more rapid acceptance and
implementation of corporate strategy. These results, particularly if coupled with
competitors who do not have thigh people motivated to perform, can create a
number of competitive advantages through human resource management practices.

Analysis of the Appraisal form used at

ENGRO appraises the employees through 5 performance appraisal forms

First form is the personal development report. It is actually a self

appraisal form and it deals with the following areas:

1 strengths of the employees

2 areas which require development

3 What education is already acquired by the employee and what further

training and education will he acquire in the forthcoming year?

4 what are the development considerations

5 what are the career objectives and career considerations

6 and whether he/she is interested in relocation to any other areas or fields

or even location

Second form deals with performance planning and assessment. It is

filled by the supervisor as well as the employee. And focuses on the following

1 business objectives

2 key tasks

3 any changes in the plans

4 additional work involvement

5 half yearly and annual reviews

Third form deals with performance dimensions. And is prepared by

the employee and reviewed by the supervisor. It measures the performance
in the following areas:

1 Job Knowledge

2 Adaptability to Time Pressure and Changing priorities

3 Communication Skills

4 Comprehension and Analytical Skills

5 Coordination and Teamwork

6 Creativity and Innovation

7 Decision-making and Business Judgment

8 Initiative and Self-Monitoring

9 Interacting with Others

10 Planning and Organizing

11 Customers/Clients Orientation

12 Safety Awareness

13 Quantity of Work

14 Quality and Continuous Improvement

15 Business Practice Standards

16 Organization/Unit Management Skills

17 Supervision of Employees

18 Leadership Abilities

The fourth form is filled by the supervisor and the manager and
contains the following details:

1 what are the strengths of the employee

2 are there any areas of improvement

3 What trainings are recommended by the supervisor and why?

4 and over all general comments of the supervisor

The last form is aimed at 360 degree appraisal and is called feedback
from knowledgeable others. It contains the following:

1. Leadership Abilities -

Includes the ability to inspire, motivate and command

respect of others by providing vision, direction, support and
feedback; demonstrated effectiveness in getting others to work
towards common objectives and goals; ability to delegate

2. Interacting with Others -

Involves interacting effectively with others; exhibiting

appropriate behavior, particularly in difficult situations; responding
productively to constructive criticism; maintaining motivation even
in the face of disappointment.
3. Initiative -

The extent to which an employee seeks out new assignments

and expands capabilities, personally and professionally; recognizes
needed information of resources.

4. Quality of Work -

Involves quality of performance such as thoroughness,

freedom from errors, analytical soundness, creation of useful work
products, etc.

5. Customer / Client Orientation -

Involves gathering information from internal and external

customers'/clients' concerning their needs; advocating their position
in the organization; taking action to ensure alignment between
customer'/clients' needs and those of supplier.

6. Communications -

Involves writing and speaking clearly, concisely and

persuasively. May involve either formal presentations or more
informal communications.


There are employees who feel it difficult to have their say when they
had problems with their employees. So we recommend that the
supervisors should make sure that they get the employees talk about
what aspect of the evaluation they do not feel is correct.
Change is a major factor which must be accepted eagerly and worked
upon in order to meet the upcoming challenges and agreed by both the
managers and employees

Few employees who feel that the feedback provided by their

supervisors is either not detailed or lucid. Therefore we recommend
that there should be more logical explanation on the supervisors
feedback and that too in detail, so that employees feel more satisfied
with the system

Even though Engro has a very efficient performance appraisal system

we recommend that the employees should be more trained for
conducting the performance appraisal interviews. This is because most
of the employees felt that training regarding the interviews is
necessary for them

The process has to be reviewed on a continuous basis to eliminate any

surprise and astonishing factors during this year round activity.

A healthy self-esteem will lower an individuals fear of identifying

weaknesses and trying something new so, continuous training and
development programs ought to be conducted in order to achieve
targets in a mutually defined timeline.

We also conclude that number; letter grades and check mark rating
systems are an inefficient way of assessing and improving
performance. They may be good for managers and HR department
during compilation and disseminating of bonuses and increments.
However, they do little to help the employee assess how to improve
performance or what they have done right.
The Appraisal system adopted by ENGRO is quite up to mark and sufficiently
measuring all areas. Majority of the employees are happy with the appraisal
technique and are satisfied with their feedback.

The employees are adequately trained regarding the need for self appraisals
and both the appraiser and appraisee and aware of their responsibilities and
what is required of them.

Most of the respondents were satisfied with their company performance

management systems and with the development opportunities available to
them in their respective companies.Hence we find ENGRO to be following HR
practices and especially the core area of performance appraisal, which is not
an annual ritual at engro but an integral part of their culture and the reason
for the success.