Term Paper On

“Performance Management system of ACI Limited “

Submitted to:
Dr. Sumayya Begum
Associate Professor
Department of Management
Faculty of Business Studies
Bangladesh University of Professionals

Submitted by: Group 12

Name Roll
Dewan Ashikul Alam 18241101
Moniza Mustary Sumona 18241069
Mohua Tanjin Payel 18241075

Section: A
Session: 2017-2018
Department of Business Administration in Management Studies Faculty of Business Studies
Bangladesh University of Professionals

Date of Submission: 14th October 2019

 ACKNOWLEDGEMENT

We would like to extend our sincerest gratitude to our Course Instructor

Dr. Sumayya Begum who gave us the golden opportunity to do this wonderful
project on “Performance management system of an organization” which also
helped us in doing a lot of research and we came to know about so many things.
We are really thankful to you. Secondly we would also like to thank all the group
mates who worked for this project within the limited time.

We are making this term paper not only for marks but also to gain knowledge.
 Letter of Transmittal

Date: 14 October, 2019

Dr. Sumayya Begum

Associate Professor
Department of BBA in Management
Faculty of Business Studies
Bangladesh University of Professionals

Subject: Submission of the report.

Madame,

With utmost respect, this is to inform you that in the course of ‘Human Resource Management’, we were
assigned the task of completing a paper on ‘Performance Management system of ACI Limited’. We have
completed the task and now would like to submit it.

We hope that you find this report satisfactory.

Yours faithfully,

Members of Group “12”

Section-A, Session: 2017-2018

 Executive Summary

This paper is based on the process of performance management and appraisal of the organization
"ACI Limited". The paper is organized according to the information obtained from the Human
Resource Manager through interview and that form the employees through questionnaires and
informal conversation. We got to know that the organization follows a performance management
system. We conducted our study on the Technical and Operations Department of the
organization compromising engineer, senior technicians and junior technicians. The organization
uses the method graphical rating scale for performance management of the employees.
 Performance Management System of ACI Limited

Introduction

Human resources are the most valuable and unique asset of an organization. The successful
management of an organization's human resources is an exciting, dynamic and challenging task,
especially at a time when the world has become a global village and economies are in a state of
flux. The scarcity of talented resources and the growing expectations of the modern day worker
have further increased the importance of the human resource function

Performance management is the process of creating a work environment or setting in which

people are enabled to perform to the best of their abilities. Performance management is a whole
work system that begins when a job is defined as needed. It ends when an employee leaves your
organization. It includes performance appraisal, training and development and other benefits.

The purpose of this project was to find out how an organization manages it all employees to have

better productivity to contribute to the business success.

Objective of the Study

Mainly the paper analyzes the Performance Management system of ACI Limited and see its
effect on employees from various levels.

 Enlist Human Performance Management system in departments and workers

 Gather information regarding international laws and regulations regarding Performance
Management system of. ACI Limited
 Determine the effect of these practices on workers. How it effects their productivity,
efficiency, satisfaction and willingness to work in ACI Limited .
And further document the following aspects of Human Resource Management from the
perspective of ACI Limited

 Recruitment
 Training and Development
 Performance Management
 Employee and Labor relation
Methodology

We have prepared this report by collecting qualitative and quantitative data from both primary
and secondary sources.

Primary sources:

1. Questionnaire survey: We surveyed on Executives, Officers and Workers.

2. Interviews: We have done face-to-face and telephone interviews with the HR Executive and
department heads

Secondary sources:

1. Official Website: www.aci-bd.com

2. Different Articles on Performance Management system

Statistically weighted scale was used in answering the research questions. The response of the
participants of questionnaire were statistically measured on the scale of: 5. strongly agree, 4.
Agree, 3. not sure, 2. Disagree, 1. strongly disagree. And the sample we chose was relatively
small of 10 Executive and 10 Worker.

We, taking the responses, replicated those in a bar chart to analyze the situation

Limitations

It was not possible to interview all the employees of ACI since they have more than 6500
employees. Some of the information was not available due to their company confidentiality.

Organization Background

Advanced Chemical Industries (ACI) Limited is one of the leading companies in Bangladesh,

with a multinational heritage.

ACI was established as the subsidiary of Imperial Chemical Industries (ICI) in the then East

Pakistan in 1968. After independence the company has been incorporated in Bangladesh on the

24th of January 1973 as ICI Bangladesh Manufacturers Limited and also as Public Limited

Company. This Company also obtained listing with Dhaka Stock Exchange on 28 December,

1976 and its first trading of shares took place on 9 March, 1994. Later on 5 May, 1992, ICI plc

divested 70% of its shareholding to local management. Subsequently the company was registered

in the name of Advanced Chemical Industries Limited. Listing with Chittagong Stock Exchange

was made on 22 October 1995. Subsequently the company was registered in the name of

Advanced Chemical Industries Limited (ACI)

The trading subsidiary of ACI represents in Bangladesh principals like ici, exxon-mobile, bayer,

stahl and ici uniquema. Strategic business unit:

Pharmaceuticals

 Consumer Brands

 Agri Business

 Crop Care & Public Health

 Animal Health
ACI has the following subsidiaries:

 ACI Formulations Ltd.

 ACI Trading Ltd.

 Apex Leather Craft Limited

 ACI Salt Limited

 ACI Foods Limited

 ACI Pure Flour Limited

Mission Statement of ACI

‘ACI’s mission is to enrich the quality of life of people through responsible application of

knowledge, skills and technology. ACI is committed to the pursuit of excellence through

world-class products, innovative processes and empowered employees to provide the highest

level of satisfaction to its customers.’

Values of ACI

 Quality

 Customer Focus

 Fairness

 Transparency

 Continuous Improvements

 Innovation
Human Resource Department of ACI

ACI HR works with a vision for creating a work-environment to foster creativity, innovation and

productivity for achieving business excellence through dynamic and dedicated people.

They believe that Human Resources are the most important asset of the organization. They

identify the training needs and provide trainings accordingly to develop the knowledge and skills

of their human resources. Thought Leadership and Team Building meetings are conducted on a

regular basis. They provide an enabling working environment to unleash the full potential of the

employees and a performance based career progression.

ACI has more than 6500 employees working in this organization. Their mission is to achieve

business excellence through quality by understanding, accepting, meeting and exceeding

customer expectations. They practice modern HR Policies and procedures for Recruitment
&

Selection, Manpower Planning and succession planning.

The HR department is run by Director Corporate Affair is Shima Abed Rahman. Under her

supervision Shamim Ferdous manages all employees.

Analysis

While conducting the report we got to know the motivation techniques of ACI, their motivation

and development programs and their salaries & bonus systems which motivate their
employees.

Our analysis on these topics is extended in this section.

ACI’s Motivation Techniques

Performance appraisal is the process of identifying and evaluating employee performance to

make sure they contribute to the organizational goals. ACI’s appraisal techniques are-

Paired Comparison:

It helps to make the ranking method more precise. According to this technique employees will

be listed in all possible pairs for each trait (e.g. how much products are sold in one week) and it

helps to indicate which is better of each pair. This is practiced only for the sales people.

Performance Appraisal Form:

Each employee is given a form which is filled in consultation with the supervisor to identify

what are the needs of the employee to develop his skill further not only to perform his

responsibility better but also for taking future responsibility.

Weekly Meetings:

The organization arranges meetings for employees every week to review their performance

throughout the week.

The employees share their problems and ideas about work and other job related factors and the

supervisors can have updates about how things are going on in each sector of the organization.
SWOT analysis:

Besides the management committee the employees also try to find out their strengths and

weaknesses within the organization and the external opportunities and threats they may face.

Scanning External Environment:

ACI often scans the external environment for comparing similar industry practices. ACI revise

the remuneration and compensation schemes of them by comparing the job facilities provided by

the competing firms. ACI practices it to increase employee satisfaction and decrease employee

turnover rate. This is mainly used to decide the salaries of employees.

Employee Consultancy:

Consultants talk with employees individually to know about their ongoing work- whether they

are facing any problems or anything.

The consultants try to figure out if an employee is facing problem in working with co-workers or

having problem in adapting any new company policy.

The consultants also try to point out if a particular employee is satisfied with his or her job

responsibilities and performance.

Brainstorming:

Employees arrange brainstorming sessions to share their ideas and knowledge about their

upcoming works. They also discuss about their experience and problems of their current works

with each other.

In these sessions the employees are given a problem and each employee comes up with different

types of solutions of the problem and from all these solutions the most feasible solution is taken

up and employees all together start to work on that.

Balanced Score Cards:

ACI uses BSC for its all business units except the agro base sector to measure their employee
performance.

Executives & Managers Appraisal:

MD, Directors and subordinates do this. This is a bottom-top approach of appraisal technique. In

this appraisal technique subordinates’ performance affect managers’ performance appraisal e.g.

if a sales manager is given a target of selling ten thousand pharmaceutical products in one week

then he would assign his sales executives to accomplish this job and in such case the manager’s

performance would depend on how successfully the sales executives perform their jobs.
Survey for diversified workforce:

ACI is an equal opportunity employer and it follows the principle of diversity in recruitment,

training and giving opportunity to its employees for career progression and growth.

The company has a mixed workforce from all parts of the country from different religious

background. The employee benefits package of the company was developed with the intention

for the entire employee to have access to his right as part of the ACI family. Regular survey is

conducted to find out whether diversified workforce is working as one single team.

Graphic rating scale:

This appraisal technique is to find out employees’ performance level. Employee who is the

highest or lowest on the characteristics are being measured. Each employee is rated in the scale

of 1-9.

Succession Planning:

This technique is conducted to fill executive positions. The employees who show promising

performance are selected and given adequate training and provided with appropriate

development sessions to improve their level of skill and be eligible for the future executives.

ACI prefer in succession planning rather than recruiting executives from outside because of its

cost effectiveness and it takes less time to grip the job responsibilities for current employees.

The succession planning is also helpful to develop morale among the employees and they

become more dedicated towards their work.

Monthly employee Meeting:

The organization held meetings between supervisors and subordinates to review their
performance throughout the month.

These sessions are very effective appraisal technique for the employees as these make flow of

information and experience throughout the organization and help the employees to enrich their

knowledge.

Individual Department Survey:

These surveys are conducted at the end of every month. Mainly sales department of every sector

and inventory management department of chemical, pharmaceuticals and agro based business of

ACI need frequent review.

MBO:

This appraisal technique is used primarily for the farmers under the agro-based unit and sales

people.

In this case the employees are given some specific task e.g. selling a particular product,

measurable e.g. selling ten thousand products, achievable, realistic and within a time frame e.g.

selling ten thousand product within a week for a very skilled group of sales executives, to accomplish.
ACI’s Performance Training and Development Programs

The term training refers to the acquisition of knowledge, skills, and competencies as a result of

the teaching of vocational or practical skills and knowledge that relate to specific useful

competencies. In another word training is he process of providing employees with the

knowledge, skills and attitudes they need to successfully perform their job.

At ACI when a training program is run, an evaluation takes place not only after the training but

also prior to the training to find the learning that the person got from the training. All training

needs which are identified in the review are included in the training plan of the company to the

development and growth of the employee. They can train 300-400 employees at a time.

ACI recognizes the responsibility to enhance the employee’s opportunity to develop competence

level for ensuring satisfactory performance. The training program includes some of the following

as mentioned below:

 Training Need Assessment & Performance Development Planning

 Training Plan

 Training Design & Development

 Training Evaluation

 Management Development Plan

 Individual Development Plan

Coaching:

Coaching is an ongoing training process that is especially designed to promote work efficiency

and makes the new employees familiar with the working condition of the organization. Actually

it is a programme that makes the fresh recruits employees of ACI limited. Actually it is a training

method that is organized by almost all the standard organizations. The specialty of this process in

ACI is that it is an on-the-job training that takes place in the usual working condition. It is very

effective in a sense that this method instills a sense of familiarity with the new environment in

the minds of the new employees which is a must for the organization.

Monthly Seminars:

As the name suggests, monthly seminar is held once a month. It is a way of judge the continued

functions of ACI with that of its competitors. At present this business organization is running

three business units: Pharmaceuticals, Consumer Brands and Agro Business. Furthermore, it has

twelve subsidiaries and joint ventures. In the seminars, numerous data of ACI and its competitors

continuing business is presented before the employees. Later on analysis and comparison among

various data is done to figure out the do’s and don ’t’ s of ACI’s future business. Apart from

future business planning, in the seminars, evaluating past performances and finding out the faults

are also highly prioritized.

Job Rotation:

This particular method is an inter-organization process that is directed towards the prospective

executives. First, the higher authority of ACI limited selects some potential executives who have

the qualities to lead ACI in future from the front line. To make these future managers well

acquainted with the different facets of ACI, the higher authority rotates them to different

departments on a frequent basis- sometimes on weekly and sometimes on daily basis. This

technique gives the probable executives better understanding about the diversified businesses

ACI is running.

Skill Diversity:

Although it has a different name, skill diversity is another form of job rotation that takes place in

almost all the levels. To diversify the employers’ experience, rotation from one department to

another related department takes place within the arena of the organization. Rotating an

employee from accounts to treasury department is one of the most common practices that can be

categorized under skill diversity. Monotony is an outcome of any regular work. When an

employee has to go through a specific work plan over and over again he or she may not find the

job interesting. Through skill diversity this clumsiness in the work environment can largely be
solved.

Inside Training:

It is specially designed to figure out the lacking of the existing employees and what sorts of

measures are needed to develop their skills. This is mostly done by people from different private
universities who are specialists in the respective field. Sometimes, experts from abroad also

conduct this in-house training on performance measures.

This training helps the employees to identify their weaknesses in their day to day job and grow

extensively in their work. Besides, it assists them in learning the contemporary methods and

thoughts regarding their job responsibility and team work which enables them to become more

efficient and motivated.

Outside Training:

This form of training takes place in organizations similar to ACI or where the work

environment and job responsibility are almost same. At first, the organization decides whether

the training is relevant and valuable for the employees or not. After evaluating, if the training is

found to be up to the mark, employees are chosen for the training. Other organizations also

practice this routine in terms of AC. implemented in their organization and afterwards, if fruitful,
they can use them in their work. In

addition, ACI also do not have to go through the hazards of organizing the training.

Farmer training: practical training

Since ACI puts a lot of emphasis on its agro products, it conducts a third form of training

focusing on its agro-based consumers, farmers. It usually takes place nationwide, close to the

farmers but occasionally, held inside the organization. During the training period, farmers learn

firsthand how to maximize the utility of seed, fertilizers and what time of the year is appropriate

for planting. There is a special group of employees devoted to this cause only who train and

teach the farmers all these. ACI has a practical setup to simulate this process.
This training enables the farmer to gain knowledge about scientific ways of cultivation and helps

them enhance their productivity.

Strategic Learning Roadmap:

The in-house session sometimes also design a roadmap for some short- term goals which creates

a path for the employee future development. For example, the trainers may set a goal which the

employees have to achieve may be within two or three months. Once it is done, then another

roadmap may be set for another period of time in next session.

Leadership Skill:

Special trainings are given to all the employee as per the job requirements and also to enhance

their leadership skills for future developments. This is extremely necessary as ACI wants its

employees to develop themselves as the future leaders of the organization.

Informal training for diversity:

This is done frequently without any prefix date or schedule. Employees themselves conduct this

training session among themselves where they talk about their strength and weaknesses and

share there their experiences and views on how to overcome the drawbacks. Another benefit of it

is that it strengthens the bond among the employees and helps bringing a friendly work

environment.
ACI’s Salaries, Bonus and Other Benefits

Salary:

The salaries of the different levels of the organizational hierarchy are decided through external

environmental scanning and industry standards. By this method the company decides its position

as an employer among other companies – whether it wants to pay more or less than another.

Leave Fair Assistance Bonus:

Employees are given a special 5 days leave bonus as a sign of goodwill by the company, giving

the employees a few days off to spend some quality time with their loved ones at home. The

company encourages employees to take consecutively 5 days leave. Because working through

the whole month and year creates pressure on them which makes the employees dissatisfied. But

ACI want happy employees. That is why they give this bonus to have happy and productive workforce.

The Best Employee Award:

ACI never overlooks employees’ contribution to the company. Their efforts are rewarded and

well appreciated by the company. These employees are used be set as examples to others

working in the organization. The employees are evaluated through 360 degree scale rating

system consisting of a total of 9 points. The highest rated ones are given the award.

Performance Bonus:

Performance bonus and sales bonus are given to the employees, calculated by special formulas.

These bonuses are decided by comparison of their target given to them at the beginning of the

month and compared to their achievements to those targets by the end of the month. This bonus
is a greater significant part of the income mainly for the sales people.

Festival Bonus:

Festival bonuses are offered to the employees on Eid. This is usually a percentage bonus that is

added to their salaries. Festival bonus does not include yearend bonus which is actually a case of

profit sharing that I will discuss later in the presentation.

Regular Sales Bonus:

By the end of the year, employees get a percentage of their annual achievement that gets added

to their salaries. This initiative unifies the employee’s individual goals to the company’s. Thus

having them to work harder to get more profits by the end of the year because they will earn

more.

Gratuity Scheme:

A gratuity is paid to employees at the end of a fixed term contract and is often based on their

remuneration and length of the contract. By setting up and participating in a Gratuity Scheme,

ACI can prepare and plan for their contract gratuity obligations by building up a special fund that

is managed and looked after by investment professionals.

Provident Fund:

Employees' Provident Fund Scheme means an employee who having been a member of the fund

has withdraw the full amount of accumulation in the fund on retirement from service after
attaining the age of 55 years. At ACI it mainly deals with retirement.

Medical Rules for all Permanent Management Staff:

ACI is giving 10% of their basic salary as medical treatment to the employees. In any

emergency, they are getting a large sum amount from the employee fund.

Annual Payments to Management Staff:

This company is giving various types of compensations to the workers at the end of the year.

Telephone at Residence:

ACI is giving land phones to the residence of the employees especially the higher ranked

officers for immediate contacting to them and for their personal service at home.

Policy on Mobile Phone:

In modern age cell phone is necessary to maintain communication with the employees who are

working at outside or mobile workers and to contact the officers especially marketing and sales

officers who are outside the office often for official purpose. They are getting a fixed charge of

cell phone bill based on their salary.

Procedure for Staff Canteen:

They are supplying foods at canteen for only for their employees at a very cheap rate where
foods are made inside the canteen and made by a clean process for a better health.

Scholarship Scheme:

The children of employees who have extra merit are getting scholarship from the company so the

employees get motivated in their works and they can feel pure loyalty for the company.

The performance of the organization’s people is what actually generates money for the company

to work on. It is necessary that they be kept well and their needs be looked upon carefully and

fairly. Periodical audits are done by the Human Resources department to ensure that all these

techniques are rightly implemented and monitored at all levels to boost the performances of their

employees. This keeps the company well aligned and robust.

Findings

After all these analysis we have found some information which are the key to the success of ACI

limited. They are-

 ACI consider its workforce the most valuable asset to the organization

 One of their missions is to achieve business excellence through quality by understanding,

accepting, meeting and exceeding customer expectations.

 They are continuously identifying their employee needs and performance and according

to them developing plans to improve the efficiency of their employees.

 All of their training, appraisal, and benefit packages are to maintain a happy, productive

and successful workforce.

 ACI Limited is committed to provide a working and social environment in which the

rights and dignity of all its members are respected, and which is free from discrimination,

prejudice, intimidation and all forms of harassment.

 ACI is an equal opportunity employer and it follows the principle of diversity in

recruitment, training and giving opportunity to its employees for career progression and

growth.

Conclusion of Analysis

After all these analysis, we have come to the idea that- even though ACI have a big workforce

with more than 6500 employees, it successfully run the training programs for them by

identifying their needs during appraisal session. Which results in very low employees turnover

rate and powerful workforce.

Recommendations

Our recommendations include Training on Ethical Behavior, Extra Medical facility and Safety

and Health bonus for workers under the pharmaceutical unit, and more training for diversified

workforce to reduce the differences.

It is very tough to recover a ruined image caused due to unethical practices done by employees.

Strict measures need to be taken to resolve that which may include supporting other employees

to state their complaints on unethical practices to the HR and Admin. Safety precautions are

needed where dangerous equipments are handled at the pharmaceutical unit. Some employees

are exposed to numerous chemicals which may pose threat to employees’ health. This may need

to be taken into deep consideration.

There has also been a lot of cases where employees do not perform at the same level they are

suppose to in even some of the simplest of tasks. This is primarily attributed to the lack of

training given to the employees. The training and development of ACI for the employees should

be made more through and tougher in ways that makes all employees’ performance same across

the company. This would help keep performances measureable by the upper management which

is very important in planning.

Conclusion

Even though ACI face some problems like every other organization, it manages to deal with the

employee problems effectively which ensures the employees’ satisfaction and company’s

success and thus has made the organization one of the leading companies in our country.
Attachment

Questionnaire on performance management and appraisal

This questionnaire is developed only for researching purpose for a course titled "Human Resource
Management" for the "ACI Limited." You are requested to go through the questions and choose the
appropriate answer.

Thank you for your time.

1. Name

2. Designation

3. How long have you been working in this organization?

Check all that apply.

Less than a year 1-

3 years

4-6 years

7-9 years

10-12 years

More than 12 years

4. Sex
Male

Female
5. Do the organization maintain a proper performance management system for you?
Mark only one oval.

Yes

No

6. Are you satisfied with the performance appraisal system of your organization?
Mark only one oval.

Yes

No

7. Do you think that your performances are evaluated rationally?

Mark only one oval.

Yes

No

Maybe

8. Are you comfortable with your organization culture, and are there areas that need improvement?

Mark only one oval.

Yes

No

9. Do you think that performance appraisal is working equally ?

Mark only one oval.

Yes

No

Maybe
 10. Do you have training programs to increase your skills and productivity?
Mark only one oval.

Yes

No

11. Do you think the company needs to bring change in the procedure of performance appraisal to motivate
the employees more?
Mark only one oval.

Yes

No

Maybe

12. Do you receive proper feedback from your supervisor about your performance?
Mark only one oval.

Yes

No

13. Do the organization provide you enough benefits as the employee?

Mark only one oval.

Yes

No

14. Does the company hear out your problems and help you to solve them out?
Mark only one oval.

Yes

No
15. Do you Have everything you need to perform your work ?
Mark only one oval.

Yes

No

16. Signature

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 Question for HR Manager

1. Does every employee get an appraisal?

Answer:

2. How should employees who are on leave during the review process timeframe handle their 2018-2019
reviews?

Answer:

3. What are major criteria to assess the performance of employees?

Answer:

4. What is the optimal outcome for performance management?

Answer:

5. Do you feel that the team is working well collaboratively?

Answer:

6. If I’m a new employee, what’s the process for me?

Answer:

7. What can I do if I disagree with my Manager's appraisal of my performance?

Answer:

8. Can you explain your department organ gum?

Answer: