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Performance management system of

United International University


Strategic Human Resource Management
(HRM 4366)

Group Assignment
HungryNaki
Submitted to:
Jakowan
Assistant Professor
School of Business and Economics

Section: A

Submitted by: Group-2


No. Name ID
1. A. R. B Fahim 111 171 193
2. Ashok Roy 111 171 186
3. Kaisary Jahan 111 171 146
4. Redwan Howlader 111 171 203
5. Mohd. Amir Hamza Abrar Aman 111 171 271

Submission Date:
24 January, 2022
Letter of Transmittal
24 January, 2022
To
Jakowan
Assistant Professor
School of Business & Economics
United International University

Subject: Submission to performance management system of HungryNaki.

Dear Sir,
With due respect, as student of United International University, we have prepared the
assignment for the partial fulfillment of the requirement of the course ‘Strategic Human
Resource Management.’
We have tried the best level to follow your guidelines in every aspect of preparing this
assignment. We have also collected what we believe to be the most important information to
make this assignment as specific and coherent as possible. We enjoyed the challenge of taking
different type of analysis as it is an opportunity to enrich the knowledge. We have tried the best
to make this assignment free of fault and hope that you will look upon any unintentional
mistake with kind consideration.
If you have any query regarding this assignment, we would be very pleased to clarify it to you.

Sincerely yours,
On the behalf of this group,
A. R. B Fahim
Department of BBA

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Acknowledgement
At the very outset, we express our gratefulness to almighty Allah as provides us the capability
to prepare this assignment. Then we express our heartiest thanks to our honorable faculty
member Jakowan, Assistant Professor, Department of School of Business, United International
University, for her continuous guidance and advice.
We have been able to complete this assignment in a comprehensive manner due to the guidance,
support & counseling that Md. Humayun Kabir Himel (Head of Department) has provided
during the periods. We tried our best to implement his constructive suggestions while doing
our assignment. We also like to take this opportunity to acknowledge the help provided to us
by some friends of our university.
Finally, our sincere thanks to each and every one who has helped and supported us significantly
in different stages during the moments.

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Table of Contents
Letter of Transmittal ................................................................................................................... i
Acknowledgement .....................................................................................................................ii
Executive Summary .................................................................................................................. iv
Chapter One ............................................................................................................................... 1
Introduction of the report ....................................................................................................... 1
Objectives .............................................................................................................................. 1
Limitations ............................................................................................................................. 1
Methodology .......................................................................................................................... 1
Chapter Two............................................................................................................................... 2
Overview of the Organization ................................................................................................ 2
Chapter Three............................................................................................................................. 4
Major Strategic Issues ............................................................................................................ 4
Wrong Design .................................................................................................................... 4
Absence of Integration ....................................................................................................... 4
Lack of Leadership Commitment ...................................................................................... 4
Ignoring Change Management in System Implementation ............................................... 5
Incompetence ..................................................................................................................... 5
Performance Evaluation ......................................................................................................... 5
Compensation Practice........................................................................................................... 6
Performance Management System of HungryNaki ............................................................... 6
Business Development Department ................................................................................... 7
Human Resources Management ........................................................................................ 7
Customer Support .............................................................................................................. 8
Finance and Accounts ........................................................................................................ 8
Operation System ............................................................................................................... 8
Information Technology Department ................................................................................ 8
Chapter Four .............................................................................................................................. 9
Analysis.................................................................................................................................. 9
Findings................................................................................................................................ 10
Chapter Five ............................................................................................................................. 11
Conclusion ........................................................................................................................... 11
Bibliography .............................................................................................................................. v

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Executive Summary
Online food delivery businesses are bringing tremendous change and convenience in the
Bangladeshi food-scene. July of 2013, the country’s first online food delivery service,
HungryNaki was launched by Ahmad AD, Sazid Rahman, and Tausif Ahmad. This assignment
explains the inner workings of HungryNaki. It is also descriptive in nature. It is entirely based
on primary data and secondary data as well. Primary data has been collected from Md.
Humayun Kabir Himel (Head of Department), and secondary data collected through the
following sources Annual report and website. Along with Food HungryNaki also provides all
your necessary groceries in HN Dokan. From Cleaning items to toiletries, cooking items to
dairy products-HN Dokan delivers the necessities. Its goal is Expand the food delivery service
all over the Bangladesh and earn highest market in the food delivery sector of Bangladesh.
Major Strategic Issues
• Wrong Design
• Absence of Integration.
• Lack of Leadership Commitment.
• Ignoring Change Management in System Implementation.
• Incompetence.
Performance Evaluation: After 5 years we can see several changes in the performance
evaluation system of HungryNaki. After joining of the new HR head things have changed
drastically. Now employees join the organization contractually (3 months) with a high salary.
In this period employees have to meet their KPI in order to get some extra benefits. Which
motivates them to put extra effort on the job.
Compensation Practice: Compensation practice of HungryNaki is dependent on the
performance of the individual. If an employee completes his or her task very effectively then
he/she will be compensated.
Performance Management System of HungryNaki: HungryNaki as an online food delivery
organization divided its management system into six department and these departments also
have some sub-department. The following departments are given below:
i. Business Development
ii. Human Resources Management
iii. Customer Support
iv. Finance and Accounts
v. Operation System
vi. Information Technology Department.
Analysis: Performance management is a continuous process not a once a year activity.
Performance management is the continuous process of improving performance by setting
individual and team goals which are aligned to the strategic goals of the organization, planning
performance to achieve the goals. After several years of analysis, acquisition with Daraz and
along with other departments there’s a big contribution of HRM department of HungryNaki
and its performance management system that makes them the 2ns largest food delivering
company in the country.

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Chapter One
Introduction of the report
HungyNaki was first introduced in the year 2013. It is the first online food delivery service
provider in Bangladesh. This can assignment can identify the major strategic issues an
employer faces in designing a performance management system, performance evaluation
systems, and compensation practice is dependent on the performance of individual employees.

Objectives
• Identify the major strategies issues of HungryNaki
• Performance management system of this organization
• Evaluation and compensation practice of individual employees.

Limitations
Some of the limitations we faced while preparing this report was:

• Relevant papers and documents on performance management system of HungryNaki


was not readily available on the internet.
• Some data can be taken hypothetically.

Methodology
This assignment is a result of explanatory research as it explains the inner workings of
HungryNaki. It is also descriptive in nature. It is entirely based on primary data and secondary
data as well.
Primary data has been collected from Md. Humayun Kabir Himel (Head of Department),
HungryNaki.

• Office record
• Industry record
And secondary data collected through the following sources:

• Annual reports
• Website

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Chapter Two
Overview of the Organization
HungryNaki is a name that mixes the words “Hungry” and “Naki”; and this translates to “Are
You Hungry?”. “That is the basic yet profound philosophy that drives HungryNaki. Established
in 2013, HungryNaki is Bangladesh’s first online food delivery service. We are passionate
about food and deliver food to your doorstep with the same passion. Now more than 6,000
restaurants and 400,000+ items are just waiting for your tap on the app, to roll out with your
favorite food.” (HungryNaki, 2013)
HungryNaki has expanded its
reach across Bangladesh in a Founded in 2013
massive way with 17 major
cities in its radius. These
Operating in 17+ Major Cities
include: Dhaka, Gazipur,
Keraniganj, Savar, Tongi,
Cumilla, Narayanganj, Sylhet, 6,000+ restaurant and 400,000+ items
Chittagong, Cox's-Bazar,
Rangpur, Barisal, Rajshahi,
4,000+ HungryNaki Delivery Tigers
Jessore, Bogura, Khulna,
Mymensingh. We are ever
expanding our reach in Order your favorite food, daily groceries
Bangladesh and spreading the and Medicines
taste of quality food with top
notch service.
Whether you are a deshi foodie and Biryani, Kacchi, Khichuri, Chui jhal, Kala Bhuna is your
menu or you like your western cuisine items like Burger, Pizza, Pasta, Fried chicken;
HungryNaki brings the best restaurants to your doorstep with the ease of an ice cream scoop
melting in your mouth! This is possible because our ever-growing HungryNaki Food Delivery
Tigers are working diligently. In the time of lockdowns, with delivery precision and necessary
precautions, HungryNaki never compromised your need for your favorite food!
HungryNaki also provides all your necessary groceries in HN Dokan. From Cleaning items to
toiletries, cooking items to dairy products, HN Dokan delivers your necessities.
Health is wealth, and as a food delivery app we know how important it is. That is why your
essential Covid medication, OTC Medicine, medicinal instruments are available for your
convenience. We understand that this time your health precautions are of paramount
importance and we deliver just that.
All your favorite food, daily groceries, and medicine are now just a tap away on your phone to
be delivered to your home with swift and effective service! HungryNaki is expanding its reach
and service capabilities every day.

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Mission
“To be the number one online food delivery service of Bangladesh
by offering top quality service to the consumer’’

Vision
Expand the food delivery service all over the Bangladesh and earn highest market in the food
delivery sector of Bangladesh and beyond the border of the country as well becoming a best
food solution service for the consumer.

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Chapter Three
Major Strategic Issues
Identify the major strategic issues an employer faces in designing a performance
management system.
The essential goal of execution the executives is to create and further develop the
presentation viability of colleagues. The supervisor and the colleague cooperate to design,
screen, survey and assess the last option's work destinations and by and large commitment
to accomplishing the association's objectives. Different kinds of devices are utilized in this
cycle, going from qualities based or conduct based to result based. Both formal and casual
interchanges are utilized to give input. The input could be standard or unpredictable. A ton
of time and energy is spent in getting the objectives and measures right, surveying execution,
and evaluating it. Be that as it may, things could turn out badly and the necessary adequacy
of representative execution isn't acquired. A portion of the significant difficulties in
overseeing execution could be as per the following:

Wrong Design
The performance management system and apparatuses should fit with the particular
requirements of the association. It can't be a duplication of a framework planned and
executed in another association, even an association in a similar industry or a similar
business bunch. Extraordinary interview with different partners and clients of the framework
is important. Client trust is an outright need for the achievement of the framework. The plan
ought to be given a shot on a pilot premise before it is carried out to the association all in all.
All reports and structures should be set up. The framework ought to be fair and evenhanded.
Execution the board ought to be seen as a consistent cycle and not a movement led a few
times per year. The plan ought to likewise incorporate components for remunerating
execution and taking care of helpless entertainers.

Absence of Integration
The performance management system must be incorporated with the essential preparation
and human asset the executive’s frameworks just as with the hierarchical culture, structure
and any remaining major authoritative frameworks and cycles.

Lack of Leadership Commitment


Authority responsibility and backing is an absolute necessity for smooth performance
management. Pioneers should drive the interaction and make execution the board a vital
piece of the administration of the organization. Pioneers contribute not just in setting the
essential course and execution gauges yet in addition in observing and surveying execution
across the association. They additionally support the presentation cycle by perceiving and
compensating execution.

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Ignoring Change Management in System Implementation
Vital administration of progress is an indispensable piece of executing the framework.
Driven by the top administration, it includes cautious administration of opposition.
Correspondence would be a significant mediation and a critical instrument in dealing with
the change. Execution achievements and timetables should be followed. Legitimate reports
should be set up.

Incompetence
Competence to use the performance management system is necessary to ensure smooth
implementation of the system. Some of the major skills would include:
• Characterizing vital targets, execution markers, center capabilities and execution
contracts.
• Characterizing execution estimates that compare to the KPIs
• Compromising input, directing examination meetings, and active listening.
• Performance trainer which is a separate department (Learning and Development
Team).

Performance Evaluation
How have company’s performance evaluation systems grown and changed over the last
5 years?
A performance evaluation system is a method of consistently analyzing an employee's job
performance. Performance appraisals, performance evaluations, and employee appraisals are
all terms used to describe performance evaluations. It is necessary to create a performance
evaluation system. The assessment process should, first and foremost, support positive
performance and conduct. Second, it's a strategy to reduce employee curiosity about how well
they're doing at work. It can also be utilized for employee training. Finally, it can serve as a
foundation for rises in salary, promotions, and legal disciplinary measures.
As we are working on HungryNaki's performance evaluation system. We can see that it has
changed from time to time. When HungryNaki was started in 2013. The employees joined the
organization permanently with a low starting salary. After 5 years we can see several changes
in the performance evaluation system of HungryNaki. After joining of the new HR head things
have changed drastically. Now employees join the organization contractually (3 months) with
a high salary. In this period employees have to meet their KPI in order to get some extra
benefits. Which motivates them to put extra effort on the job. Then the employees who meet
their desired KPI are offered another 3 months contract.

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Compensation Practice
Do you find the compensation practice is dependent on the performance of individual
employees?
HungryNaki’s Human Resources Department is responsible for hiring and interviewing new
employees, as well as investigating potential job candidates. It also decides on compensation
and promotion levels. The Human Resources department also investigates comparable roles
and interviews, with potential employees, to evaluate their abilities and salary. It also manages
the company's payroll system and pays structure.
Yes, I find that HungryNaki compensation practice is dependent on the performance of
individual employees. HungryNaki hires people on a contractual and permanent basis. They
set a KPI for their employee’s contractual basis employees. If their KPI meets 85% then
employees can get incentives. HungryNaki gives their contractual employees mostly at
15,000BDT salary per month but they can earn more than that if they meet their KPI.
Contractual Employees can earn a maximum of 20,000 BDT per month. The permanent
employee has also incentives based on the performance of employees who are working under
them. Permanent employees like Team Leaders, Point of Conduct of Issue Resolution,
Assistant Managers, Managers have employees who are working under them, the employees
who are working under them if they perform well their average KPI meets 85% then the
permanent employee will get the incentive. That average KPI will be the KPI of the permanent
employee and the permanent employee gets a 5% incentive annually. Also, the permanent
employee gets an annual leave of 20days but if they don’t take annual leave, they will get
7000BDT, HungryNaki motivates their employees to don't take annual leave.
So, definitely compensation practice of HungryNaki is dependent on the performance of the
individual. If an employee completes his or her task very effectively then he/she will be
compensated.

Performance Management System of HungryNaki


Devise an appropriate performance management system for your selected organization.
HungryNaki as an online food delivery organization divided its management system into six
department and these department also have some sub-department. The following departments
are given below:
i. Business Development
ii. Human Resources Management
iii. Customer Support
iv. Finance and Accounts
v. Operation System
vi. Information Technology Department

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Brand Development Team

Coordinator

Senior Executive Senior Executive Senior Executive Senior Executive


Dhaka Chittagong Sylhet Narayangonj

Junior Junior Junior Junior


Executive Field Executive Field Executive Field Executive Field

Junior Junior Junior Junior


Executive Executive Executive Executive
Client Client Client Client
Management Management Management Management

Business Development Department


This department is looking for new opportunities so that they can improve their business model
and capture the prime market share in their industry. They contact with the potential client over
the phone and email and deal with restaurant around Dhaka, Chittagong, Sylhet, and
Narayanganj. They are responsible for planning and developing new business model by
analyzing new market trends.
Business development department has three divisions these are helping to its business properly.
a. Client Management
b. Field Operation
c. Data Entry Operator

Human Resources Management


This management team is responsible for hiring new employees, training and skill
development, set the compensation based on performance evaluation, determine the
remuneration and pay roll system of the organization.

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Customer Support
This department deals with potential clients and interact with their customers query. They are
resolving customer problem and improved their information system for betterment.

Finance and Accounts


This department is responsible for maintaining regular financial transaction of the organization.
Finance department is taking decision for investment, and tracing monthly and yearly revenue
of the organization.

Operation System
This department is responsible for monitoring and controlling the delivery system. Their
customer panel is automated support system so that customer can order food by Mobile App.

Information Technology Department


This department is working on designing and programming their website and app. They are
continuously developing their website and especially app UI/UX design so that it can be more
user friendly to customers. They also maintain operating and database system.

User Interface of HungryNaki

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Chapter Four
Analysis
Performance management is the continuous process of improving performance by setting
individual and team goals which are aligned to the strategic goals of the organization, planning
performance to achieve the goals, reviewing and assessing progress, and developing the
knowledge, skills, and abilities of people.
In the previous years, HungryNaki’s human resource management department used to hired
potential job candidates as their contractual agent. And based on their performance of work,
they used to offer them permanent job proposal. For doing that, obviously employees started
felt motivated but after analyzing some fact about them, HR have come to the point, Where
Employees are no longer worry about their KPI. They didn’t take this as a good push. They
just completed their job on time but other than this, they were no longer interest to meet their
best performance or giving the organization something more interesting ideas. And that’s why
HungryNaki users also used to face a lot of problem with the app. They stared writing on the
social media about their bad experience with the applications.
So basically, it was the problem of their HR system for recruiting the wrong one, after seeing
some month’s performance.
After passing several-year in the marketplace, “Country’s largest e-commerce site Daraz, a
concern of Alibaba Group, has added another feather by acquiring the food delivery service
company HungryNaki. Both the concerns came up with this development in a joint press
conference arranged by them at BICC on March 4, 2021.” (Daraz Life, 2021)
This acquisition is expected to accrue operational efficiency of HungryNaki owing to the fact
that the expertise and experience gathered in customer service and management over the year.
At the moment, the company is serving more than 500,000 customers across Dhaka,
Chittagong, Sylhet, Cox’s Bazar and Narayanganj. It is now the 2nd best food delivering
company in the Bangladesh.
Not only this acquisition helped them to grow, in the behind, there’s a big contribution of HRM
department of HungryNaki and its performance management system. Now HR department not
only sees the potentiality of the agent, they analyze the fact that, how innovative and effective
their ideas are and for meeting their KPI how hardworking they can be. Obviously based on
their performance they give the contractual agent a compensation but not hire them. Only those
who are effective for the organization got the opportunity to become permanent employee. It
gives other agent more push to take their job seriously and become the most efficient one.
Here, the key point is that performance management is a continuous process not a once a year
activity. Quality performance management should, therefore, bring together a number of
different, integrated activities to form an ongoing performance management cycle.

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SWOT Analysis
Strengths

• Decision-making process is very much data-driven.


• have unique idea about welcoming new users, this term is called Nobin-Boron
discount.
• Quick response over phone or chatting system
• Everyday update about new offer.
• If the food is late-the updated information gives to the customer time to time.
Weaknesses

• It is still on its way to serving its service outside Dhaka city. (only few-city they are
serving)
• Sometimes can-not reach customer within 30 min.
Opportunities

• To capture the huge market outside Dhaka city.


• Daraz promotes HungryNaki. So, its customer can also be their customer as well.
Threats

• One of the main threats for HungryNaki is its competitors. By seeing the offer, the next
they also give the discount to the competitors.
• Customer can switch/exit to another brand easily if they feel it is not worth it.

Findings
Positive

• Daraz, a concern of Alibaba Group is acquiring HungryNaki. After that their


operational efficiency and performance has become positive changed.
• Their IT department are more efficient to improve service quality by enhancing website
design and reliable User Interface (UI) of Mobile App so that they can provide better
User Experience (UX) to customers.
• They established friendly and productive work environment.
• There has no biased in recruitment process, they hired employee from different culture.
Negative

• Contractual basis recruitment.


• They are not focused on long term employee training and development.
• Excessive task storage.
• Their delivery service area coverage is comparatively lower than others.

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Chapter Five
Conclusion
HungryNaki sees huge growth potential for on demand food delivery in Bangladesh. Initially
It considered food quality while signing restaurants but recently restaurants are put through a
trial process where they are judged based on their compliance in managing orders, hygiene and
customer satisfaction. Market potential is huge for online food delivery. Today the place
HungryNaki belongs to the place they planned to achieve it through all hard work and right
strategy planning. Along with all department, HR department had played a major role for
achieving its success. Starting from its performance evaluation to compensation practice and
appropriate performance management system is responsibility in the hand of HR department.
There are some issues as well but we all know along with pros there will be some cons as well.
With the right decision, proper strategy, unique ideas, innovative planning it is now one of the
leading food delivery service in our country.

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Bibliography
Daraz Life. (2021, March 4). Retrieved from Daraz:
https://blog.daraz.com.bd/2021/03/04/daraz-acquires-
hungrynaki/?fbclid=IwAR2XXblhvQqGBHHNnjn3suHDjGdZxjZW8dV5egD
U5-7dP55vtlXBBfENoP4
HungryNaki. (2013, August 18). Retrieved from Facebook:
https://www.facebook.com/HungryNaki/?ref=page_internal

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