PERFORMANCE APPRAISAL IN THE ERA OF NEW NORMAL

DENNIS RAJ A/L DAVEEDU

UNIVERSITI TEKNOLOGI MALAYSIA

UNIVERSITI TEKNOLOGI MALAYSIA
 “I hereby declare that I have read this thesis and in my
opinion this thesis is sufficient in term of scope and quality for the
award of the Professional Diploma in Human Resourcement”

Signature :

Name of Supervisor :

Date :
 ENHANCED PARTICLE SWARM OPTIMIZATION

PERFORMANCE APPRAISAL IN THE ERA OF NEW NORMAL

DENNIS RAJ A/L DAVEEDU

A thesis submitted in fulfilment of the

requirements for the award of the Professional
Diploma in Human Resourcement

Professional Diploma in Human Resourcement

Universiti Teknologi Malaysia

FEB 2021

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 DECLARATION

I declare that this thesis entitled “Performance Appraisal In The Era of New Normal”
is the result of my own research except as cited in the references. The thesis has not
been accepted for any Diploma and is not concurrently submitted in candidature of
any other Diploma.

Signature : ……………………………………….

Name : DENNIS RAJ A/L DAVEEDU

Date :

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 DEDICATION

This thesis is dedicated to my father, who taught me that the best kind of
knowledge to have is that which is learned for its own sake. It is also dedicated to my
mother, who taught me that even the largest task can be accomplished if it is done
one step at a time.

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 ACKNOWLEDGEMENT

I would like to extend my warm thanks to all those who have helped me in this
journey of learning and discovery.

First and foremost, I wish to express my sincere appreciation to my main thesis

supervisor, for her encouragement, guidance, critics, friendship and dedicated
commitment and also for the standards she has set for us, to achieve. Without her
continued support and interest, this thesis would not have been the same as presented
here. The completion of this research work is also made possible through the support
from family and course mates who give each other a great support and cooperation.
My sincere appreciation also extends to all my colleagues and others who have
provided assistance at various occasions. Their view and tips are useful indeed.

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 ABSTRACT

Performance Appraisal is the process of assessing the accomplishments of

workforce & to acknowledge their capabilities for facilitating development.
Performance evaluation is one of the areas in human resource management which is
considerably affected by the spread of pandemic severe acute respiratory syndrome
corona virus 2. This virus outbreak posed new challenges for the companies across
the globe. As a result in order to tackle this uncertainty various organizations have
taken measures to cut down the expenses like deferment in the appraisal cycle or for
muted salary increments. Thus one of the objectives of this paper is to study the
impact of Covid -19 on performance appraisal of employees. Further this pandemic
is equally challenging for the managers also. As social distancing and working
remotely have become a new normal, employees work remotely from each other and
from managers, and this will be more common in the future. Managers are now
searching for new ways to ‘do visibility’ without always being physically present. It
has also become the vital demand of the situation as managers must be aware of the
circumstances in which employees are working in. Therefore another objective of
this paper is to suggest an approach to manage the performance evaluations of
remote working employees. It is recommended that managers should adopt the
choice based approach for performance evaluation instead of control based approach.
The review is formed on articles and reports from various internet sources and
journals. Further some ways of managing the performance assessment of remotely
working employees and scope for the future are also discussed.

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 TABLE OF CONTENT

CHAPTER ITEM PAGE

TITLE PAGE i

AUTHOR’S DECLARATION PAGE ii

DEDICATION iii

ACKNOWLEDGEMENT iv

ABSTRACT v

TABLE OF CONTENTS vi-vii

LIST OF TABLES viii

LIST OF FIGURES ix

1 INTRODUCTION

1.1 Introduction 1-2

1.2 Problem Statement 2-3

1.3 Propose Solution 3-5

1.4 Objective & Scope 5

1.5 Limitation & Constraint 6

2 LITERATURE REVIEW

2.1 Company Background 7-8

2.2 Current System 8-9

2.3 Solution Models 9-12

3 METHODOLOGY

3.1 Team 13

3.2 Timeline 14-15

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 3.3 Implementation 16-18

3.4 Change Management 19-22

4 PROJECT FINANCIAL

4.1 Project Budget 23-27

5 CONCLUSION

5.1 Conclusion 28-29

5.3 Recommendation 30-31

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 LIST OF TABLES

TABLE.NO TITLE PAGE

3.2 Project Milestones 14-15

4.1.4 Example of project budget 27

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 LIST OF FIGURES

FIGURES NO. TITLE PAGE

3.1 Team 13

3.3.1 Effective Appraisal System 17

3.4 Change Management 19

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 CHAPTER 1

INTRODUCTION

1.1 INTRODUCTION

Chapter 1 discusses in general about the project to be carried out. It emphasizes

on the project background, the problem statements it specifies the project objective
and scope, propose solution as well as limitation & constraint. Furthermore, it
defines terms used in this project to give a clearer understanding.

Covid-19 has a growing impact on the world economy. This disease continues to
spread rapidly around the globe. There is significant hike in the number of cases and
in response it has evolved its action plan of making in the nationwide lockdown
resulting in slowdown in the nation’s economy. This has a huge impact on the
appraisal cycle of the employees.

Performance appraisal is a formal, structured system of measuring and evaluating

an employees job, related behaviour and outcomes to discover how and why the
employee is presently performing on the job and how the employee can perform
more effectively in the future so that the employee, organisation and society all
benefit. (Randall S.Schuler) Performance appraisal is also the systematic evaluation
of the performance of employees and to understand the abilities of a person for
further growth and development.

Appraisal of employee’s performance is also one of the areas of human resource

management where the organizations are taking tough decision to either delay or
waive off the salary of all employees in an effort to decrease expenses and protect the
future and thereby taking the chance of not compensating and incentivizing their
employees well during the Covid-19 crisis. However at the same time it is very
essential to increase the dedication and morale of employees in order to maintain the
company stability and to win the battle with the impact of Covid-19. With the recent
Covid-19 crisis, social distancing has become the new normal. Employees have
started working from home, which in turn has a powerful impact on appraisal of

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2020 employees. Manager and employees work remotely from each other. This
creates the challenging task for managers as they want maximum productivity but
due to social distancing there would be no close supervision of employees.

1.2 PROBLEM STATEMENT

One of the organization’s goals is to maintain a work force that is energetic,

motivated and fully engaged in the work. Employers sometimes chart the path to this
goal by designing an elaborate performance management system that only addresses
one segment of employee performance. But in this crisis situation, the organizations
are majorly facing a dilemma over how to strike the perfect balance between the
employee’s safety and wellbeing, as well as their employee’s efficiency and
productivity. There are several examples of impact on performance appraisals during
Covid-19 situation.

Firstly, to reduce the spread of Covid-19 many organizations are opting for social
distancing and switching to remote working. However many companies oppose for
managing the performance of remote employees. In most of the cases, the workforce
is not well versed with working remotely. Also many employees will have kids and
spouse at home. Work from home will blur the boundaries between work and private
life. It will become a challenge to maintain the balance between work and private life.

Next, there is another important factor is employers expectation on employees

performance during this pandemic situation. It is important to set clear employee and
performance expectations for each person during the onboarding process. The
purpose of having performance expectations is to move toward a specific company
goal and create workplace accountability from one employee to another. Each
employee also needs to understand the importance of their role and how their
responsibilities impact their organization and department. But during this pandemic
situation, employers should not have the same expectations on employees
performance where they were having during a normal situation. Employees are going
into a stressful life nowadays just because to meet employers expectation on them to
reach organization goals and productivity.

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 Lastly, employees compensation during this pandemic situation. Employee
compensation refers to the benefits such as salary, bonus, commision and many more
that an employee receives in exchange for the service they provide to their employer.
Employee compensation is generally one of the largest costs or expenses for any
organization. But as soon as COVID-19 began to spread, it was clear that it would
greatly affect the global economy and marketplace. In order to maintain a healthy
workforce employers have decided to make immediate adjustments on employees
compensation. This immediate action has affected the employees and it also affects
their performance as well.

1.3 PROPOSE SOLUTION

After analysing the problems of this project, there are few solutions that will help
the organizations to overcome Performance Appraisal in the Era of New Normal.
This solutions might be helpful to the employers in order to protect employees
performance and organizations productivity and goals.

Firstly, during this pandemic situation employees who are working from home
should maintain the balance between work and private life. To maintain the
employees performance supervisors should always stay in constant touch with the
employees who are working from home and remotely. Supervisors must be available
to assist employees who need and ask for support. Supervisors should use instant
messaging to employees in order to stay in regular touch. As an example, technology
has changed our lives and there are a lot of platforms to communicate with someone
such as via email, text, phone, chat, video calls or social media. Supervisors are
advised to explore this platform to communicate with employees. Supervisors should
contact the employees who are working remotely once a week or twice a week to
discuss their progress and the current situation the employees are facing. It might
help the employees to improve their productivity.

Secondly, supervisors are encouraged to boost the employee with morale support.
Supervisors should give employees some motivational talk or encourage them how to
explore themselves during this pandemic situation. They should be effective in

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building the employee morale. As an example, supervisors can implement team-
building activities by using the communication platform such as ‘Zoom’. There's a
reason that the largest companies implement a variety of team-building exercises and
activities for their employees it is because it creates a motivated and collaborative
culture in the workplace. It can also help team problem-solving, create an
environment for open and innovative discussion among peers, and enhance
productivity. Team-building also works to boost morale whether in an office or
working from home.The best way to ensure that team-building helps employees
moods, rather than just feeling like more work, is by making the activities
educational as well as entertaining. For instance, a trivia challenge or a scavenger
hunt can be a lot of fun but revolve around skills that are important for day-to-day
work.

Thirdly, supervisors should provide feedback to the employees once a given task
is completed. Supervisors should make their feedback have the impact it deserves by
the manner and the approach they use when they want to provide employees with
performance feedback. Their feedback can make a difference to people if they can
avoid provoking a defensive response. Especially to perceived negative or less than
positive feedback, employees have a tendency to react defensively because people
tend to take feedback personally and not professionally. This is a deterrent to their
ability to help the employee improve their performance. These guidelines will help
the employees to develop their performance through the positive use of feedback.

Next, supervisors are also advised to set clear expectations for employees. As a
supervisor, they should redefine their expectations for how to get the job done.
Setting expectations for employees is an essential responsibility that many business
owners gloss over. Most importantly, there should not be any strict boundaries for
accomplishing the tasks. At this stage communication plays a main role in it.
Supervisors communication with the employees should be clear and specific as
possible regarding the task that is handed over to the employees. Supervisors can
conduct one to one meetings to the employees who are working remotely to discuss
the progress or give the employees an opportunity to ask questions to avoid
confusion in future. Most importantly, supervisors should provide flexibility to the
employees to complete the tasks and should focus on the end results.

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 Last but not least, employers should provide flexibility to the employees. The
freedom for employees to work from locations outside of the office can be an
attractive recruiting pitch. And during this pandemic situation, remote work allows
employees to be more productive and manage their own workflows with less
pressure. As an example, having flexible work hours creates a balance between work
life and personal life, which all employees will appreciate. It also means that
employees can start and stop their work day to their convenience to fulfill other
duties they have. It will help the employees to reduce stress and become more
focused and productive while they are on job.

Finally, employers should consider the reward and recognition system. All the
employees who are working remotely should be treated equally and supervisors
should evaluate their performance equally and it is the way how employers
understand and appreciate their employees. As an example, employees can be
rewarded by giving them a small bonus or allowance which can make a precious
moment to the employees to value their contribution even in a pandemic situation.
These types of benefits will make the employees stay positive and encourage
themselves to perform well and give more satisfaction to them in future.

1.4 OBJECTIVE OF PROJECT

The objective of the project is to:

1.4.1 To study the impact of Covid-19 on performance appraisal of employees.

1.4.2 To suggest an approach to manage the performance evaluations of remote

working employees.

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1.5 PROJECT LIMITATION

In producing this project, there are some limitations which are focusing on the
time factor which is a major constraint for the project as it is limited by a tight
schedule of mine where I need to focus on this project while doing my current job
morning till late night.

Another limitation of this project is scope constraint where this project is based on
secondary data which all those information collected through ‘Internet and couldn’t
provide and collect data by using more methods and give a clear documentation of
the full project scope.

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 CHAPTER 2

LITERATURE REVIEW

2.1 BACKGROUND

Marrybrown Sdn Bhd doing business as Marrybrown is a Malaysian-based halal-

certified fast food restaurant chain. The founder of Marrybrown is a Chinese couple
Dato Lawrence Liew and Datin Nancy Liew and established at 1981 and it almost
operated for 40 years. It was the first local fast food chain to franchise its business in
Malaysia with more than 198 restaurants locally. The headquarters of Marrybrown
located at Dewani Industrial Park, Johor Bahru, Johor. At present, Marrybrown is
available in 20 countries, with the majority being based in Asian continent.

Recently, I went to one of the Marrybrown which located at Johor Jaya, Johor
Bahru and interview the supervisor of Marrybrown Johor Jaya Ms Nor Haryati binti
Daraman for my final year project. From that interview I know that, supervisor of
Marrybrown Johor Jaya is having some challenges in evaluating employees
Performance Appraisal in the era of New Normal. Performance appraisal is the
process of evaluating and documenting an employee’s performance with a view to
enhancing work quality, output and efficiency. Different issues which are needed to
be clarified for a research in performance appraisal are presented brief in this study.
As Covid-19 is expanding across the globe, people have started living through a time
of uncertainty. Organizations are taking important steps, in order to maintain a
healthy workforce. (Balani, 2020)

Lewis, D (2020) CEO of OperationsInc, identifies that managers must play a

guiding role in helping employees get adapted to the new normal as best they can.
According to him, managers are required to reset their expectations for productivity.
Employers have to retain their best of the talent and also support their staff and
ensure their job security (Mellvaine, 2020). According to (Forbes, 2020), with
current covid crisis the forced based distribution has to be changed to choice based

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distribution for performance and employees should be compensated accordingly.
This is done to strike the balance between managing the costs and at the same time
retaining the effective employees.

2.2 CURRENT SYSTEM

This project study used SWOT business tools in identifying internal and external
factors which can be used to help Performance Appraisal at Marrybrown Johor Jaya.

SWOT stands for strengths, weaknesses, opportunities and threats. Strengths and
weaknesses are internal factors and opportunities and threats are external factors. A
SWOT diagram analyses a project or identified problems of student finding in
Performance Appraisal by focusing on each of these factors.

SWOT diagrams can be especially useful when trying to decide whether or not to
embark on a certain venture or strategy by visualizing the pros and cons. By clearly
outlining all positives and negative of a project, SWOT analysis makes it easier to
decide whether or not to move forward.

2.2.1 Strengths

Strengths are factors which company holds expertise in and contribute to the
continued success of the project. There is the basis for the continued success of the
project and will assist in gaining the project mission.

2.2.2 Weakness
Weakness are factors that prevent a project from meeting its mission and
achieving full potential. These weaknesses hamper the project success and growth.

2.2.3 Opportunities
The environment within which our project operates offers opportunities. A project
can identify such opportunities and enjoy benefit arising from them by planning and
executing required strategies.

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2.2.4 Threats

Threats are factors existing in the external environment that jeopardize the
profitability and reliability of the project. Such threats are uncontrollable and prove
to be risk to the stability and survival of the project.

2.2.5 TOWS MATRIX

TOWS Matrix can be defined as the tool to analyze, generate, compare and select
the business strategies to attain the overall goals and objectives of the company such
as higher sales, increased profits and enhanced brand value among other crucial ones.

TOWS Matrix follows the roots of SWOT analysis but is quite indifferent from
the same as SWOT analysis mainly focuses on the aspects of opportunities and
threats whereas TOWS Matrix is the tool for strategy generation and selection.

SWOT analysis is the tool for audit and analysis of the business and is used at the
beginning of the planning process and TOWS Matrix is opted at the later part of the
planning process to decide the way forward for the business.

It is the work of the trade-off between the internal and external factors of the
company and the outside environment that affects the operations and overall
objectives of the business.

2.3 SOLUTION MODELS

A literature review is both of summary and explanation of the complete and

current state of knowledge on a limited topic as found in journal articles. A
performance appraisal is a regular review of an employee's job performance and
overall contribution to a company. Also known as an annual review, performance
review or evaluation, or employee appraisal, a performance appraisal evaluates an
employee’s skills, achievements, and growth or lack thereof. The focus and
perspective of our review is based on Fiedler’s Contingency Theory. By definition,

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contingency means that something is dependent or contingent on something else
(Merriam-Webster, n.d.). This is a fancy way of saying, it depends, and is also the
premise behind this model. According to Ayman, Chemers and Fiedler (1995) “The
model predicts that a leader’s effectiveness is based on two main factors: A leader’s
attributes, referred to as task or relationship motivational orientation, and a leader’s
situational control. In other words, a leader’s effectiveness depends on the leader’s
personal attributes related to task and relationship motivation and the leader’s control
over the situation. It is important to match a leader’s qualities with the correct
situation in order to achieve a successful leadership situation. In this way, the
contingency model of leadership is prescriptive- it determines which leader will work
best in a given situation. In this theory, it is assumed that a person’s leadership style
is unchanging or fixed (Ayman, Chemers, & Fiedler, 1995; Northouse, 2007; Penn
State University, 2018).

2.3.1 CONCEPT OF PROJECT

2.3.1 PERFORMANCE APPRAISAL

According to C.Heyel (1973), “Performance Appraisal is the process of

evaluating the performance and qualifications of the employees in terms of the
requirements of the job for which he is employed, for the purposes of administration
including placement, selection for promotions, providing financial rewards and other
actions which require differential treatment among the members of a group as
distinguished from actions affecting all members equally. It is organized on the
principle of goals and management by objectives.

2.3.2 BASIC STEPS TO FIEDLER’S CONTINGENCY MODEL

i. Identify your leadership style

In order to determine the leader’s ability to work and be successful in a given

situation, the leader must be assessed. In the contingency model, this is done by

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using an assessment called the least-preferred-coworker scale (LPC). Despite the fact
that this is an integral part of the theory, there is very little known about the validity
of this measure. The LPC asks a leader to answer a series of bipolar scales while
thinking of the person with which he or she has had the most difficulty in working.
When interpreted, this assessment actually reveals information about the leader,
rather than the person of whom he or she was thinking. The leader’s score is simply
the total of the numbers that were circled on the assessment. If a leader score a 57 or
below he or she is considered to be task motivated, which is represented by the low
LPC score. A high LPC score is any score of 64 and above and indicates the leader is
relationship oriented. A score that falls between 58-63 is considered to be moderate
and that leader can be motivated by tasks and/or relationships (Ayman, Chemers, &
Fiedler, 1995; Northouse, 2007; Penn State University, 2018).

ii. Identify your situation

Situational favorability is the amount of influence or control a leader has over his
or her followers supplied by a given situation. The leader prefers to have as much
influence in a situation as it tends to lead to better outcomes. There are three
elements or variables of situational favorability, leader-member relations, task
structure and position power. Leader-member relations is the strongest of these three
in determining situational favorability and speaks to the general relationship between
the leader and the followers. A leader who is supported by his or her followers is able
to spend all of his or her time and attention on planning and problem-solving to
achieve the group goals, rather than diverting time and energy to deal with group
dynamics issues. Task structure is how well tasks are defined and determines if there
are adequate standard operating procedures and descriptions of work goals to which
followers can adhere. This is the second strongest link in determining situational
favorability. The weakest contributor to situational favorability is position power.
Position power entails the level of authority a leader has over his or her followers.
This can be comprised of the leader’s title or the leader’s ability to provide rewards
and/or punishments.

Situations that are considered most favorable have positive leader-follower

relationships, tasks that have ample structured and a leader in a true position of

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power over the followers. Situations in which the leader-follower relationship is
negative, tasks are unstructured and a weak leadership role are considered the least
favorable (Ayman, Chemers, & Fiedler, 1995; Penn State University, 2018).

iii. Determine the best leadership style for your situation

The ability to measure a leader's LPC score and the three situational variables
allows one to determine what type of leader is best in a given situation and whether
or not a particular individual will be a good leader in that situation. Task oriented
leaders, those that score low on the LPC, are extremely skilled at completing tasks.
However, these leaders often sacrifice relationships in the process. Situations that
would be considered to be unfavorable or very favorable should be led by leaders
who are concerned with task-motivated situations (low LPC). If the situation is
moderately favorable, groups that are led by leaders who are concerned with
maintaining relationships (high LPC) generally do the best. There is speculation that
leaders with high LPC scores are effective in moderately favorable situations because
they can use the benefits of their leader/follower relationship to smooth a situation
over. Followers are more likely to follow through because of the relationship they
have with their leader. In 1995, Fiedler stated that individuals in mismatched
situations are not practical. Situations like this can cause stress and anxiety for both
the leader and the followers. Fiedler suggests that a leader who is under stress will
revert to less mature ways of managing the situation such as poor decisions and will
most likely end with adverse work product outcomes (Ayman, Chemers, & Fiedler,
1995; Penn State University, 2018).

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 CHAPTER 3

IMPLEMENTATION STRATEGY

3.1 TEAM

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3.2 TIMELINE

PROJECT MILESTONES

Stage Deadline Activity

1st Week i) 1st meeting - Briefing
(20 - 27th February) ii) Registration &
identification of project
scope & title.
iii) Prepare slide for
proposal presentation.
1st Week i) 2nd meeting - Proposal
(28th February) presentation.
2nd - 3rd Week i) Identification of
(1 - 12 March) Introduction, Problem
Project Proposal & Statements, Propose
Implementation Solution, Objectives &
Scope, Limitation &
Constraint.
ii) Writing draft of
Chapter 1.
3rd Week i) 3rd meeting - Discussion
(13th March) & submission of draft
Chapter 1.

4th - 5th Week i) Identification of

(14th - 25th March) Company Background,
Current System, Solution
Models, Team, Timeline,
Implementation & Change
Management.
ii) Writing draft of

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 Chapter 2 & 3.
5th Week i) 4th meeting - Discussion
Project Proposal & (26th March) & submission of draft
Implementation Chapter 2 & 3.
6th - 7th Week i) Identification of Project
(27th - 9th April) Budget & Conclusion.
ii) Writing draft of
Chapter 4 & 5.
7th Week i) 5th meeting - Discussion
(10th April) & submission of draft
Chapter 4 & 5.
8th - 9th Week i) Writing of report
(11th - 23rd April) according to APA format.
ii) Submission of project
report.
iii) Correction & editing
Project Report & of project report.
Presentation iv) Preparation of
presentation slides.
9th Week i) 6th meeting -
(24th April) Presentation/Formatting.
Amendment 10th Week i) Correction of project
(25th - 1st May) report.
Final Report 10 Week
th
i) Submission of final
(2nd May) project report.

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3.3 IMPLEMENTATION

Strategy implementation is the process by which an organization translates its

chosen strategy into action plans and activities, which will steer the organization in
the direction set out in the strategy and enable the organization to achieve
its strategic objectives. Same goes to Creating and Implementing an Effective
Performance Appraisal System in the era of new normal.

Performance appraisals are a part of the performance management process. An

effective performance appraisal helps improve employee performance and provides
reliable data that helps management make the right decisions. Performance appraisal
is the process of assessing an employee for their work throughout the year. It is
usually conducted by an immediate manager, who during the appraisal process, goes
over the employee’s achievements, performance, areas that need improvement, and
helps chart out the way forward.

The key purpose of a Performance Appraisal System is to evaluate how well the
employees performed during the year. It evaluates employee performance in line
with the company’s goals and objectives, which help the company identify and
categorize employees. This, in turn, helps the company devise suitable development
plans and training programs for the employees.

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3.3.1 EFFECTIVE APPRAISAL SYSTEM

Performance Appraisal Systems can turn out to be very disappointing for some
organizations if the expectations are set very high, the timing is not right, and if there
isn’t regular dialog between the manager and his / her team members. A lot of
performance management and appraisal systems come with diverse features, but that
doesn’t always make it effective. Certain features engineered together can make an
effective performance appraisal system. For an example:

1) Clear Appraisal Objectives

The objectives of appraisal should be specific. An effective performance review

system will be designed in a manner such that it matches the employee’s job
description.

2) Match the Company’s Needs

During this pandemic situation an effective performance appraisal system

matches the needs of the organization. Each member of the team must be aware of
what their goals are, what the company’s goals are, and how their individual goals tie
in with the company’s goals in the era of new normal.

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3) Managers are Mentors

Managers must bear in mind to not assume a hierarchical position. But be a

mentor who can lead the employee on to a path of development. They should not
only focus on the negatives, but also acknowledge and highlight the achievements to
motivate the employee.

4) Continuous Feedback

The appraisal system is now a process that happens throughout the year; it’s not
just a once a year process anymore. Since it’s a continuous dialog and review process
that happens throughout the year, the ratings are not a surprise at the end of the year
because of the continuous feedback that the manager gives on the employee’s
performance. This continuous feedback helps employees better their performance
and skills through the year, and motivate the employees who feel depress during this
pandemic situation.

5) Well Defined Performance Criteria

Top-rated appraisal forms, appraisal formats, rules and procedures are some of the
pre-requisites for an effective appraisal system. For example, you can rate a
copywriter based only on the skill that is present in his / her job description.

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3.4 CHANGE MANAGEMENT

1) Assessment Center Method

The Assessment Center Method gives employees a clear idea about how others
observe them and the impact it has on their performance. While it assesses the
existing performance of an individual, it also predicts future job performance. During
the assessment, employees are asked to take part in social-simulation exercises like
in-basket exercises, informal discussions, fact-finding exercises, decision-making
problems, role-play, and other exercises that ensure success in a role.

The Advantages of the Assessment Center Method are:

i. It enhances a participant’s knowledge, boosts his/her thought process, and

improves employee efficiency.

ii. It can be tailored to fit different roles, competencies, and business needs.

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iii. Offers an insight into the employee’s personality.

How to Implement an Effective Assessment Center Method:

1. Identify performance metrics that can be measured using this assessment center.

2. Identify assessment techniques that can elicit ideal behavioral information.

3. Spot assessors and assessees excluding immediate supervisors.

4. Provide thorough training to assessors and reviewers.

5. Maintain a system of performance records for each candidate.

6. Review records and reward employees or provide training accordingly.

2) Management by Objective

This form of appraisal system has the employee and manager both jointly setting
goals to be achieved within a certain time. The thinking behind this appraisal format
is that when the employee is involved in goal setting, he/she will be more inclined to
achieve the goals.

The managers are required to establish measurable targets and standards of

performance and priorities for these targets. Also, the responsibilities and authority
of the personnel are clearly established.

This appraisal format is ideal for measuring the quantitative and qualitative output
of senior management like managers, directors, and executives (business of any size).

The format involves a lot of planning and being proactive rather than being
reactive to events. It’s not subjective. Instead, this type of performance appraisal
format helps assess the employee’s capabilities for himself/herself which helps
improve his/her ability to perform well.

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The Advantages of the Management by Objective method are:

i. Since in this method, the manager and the employee are jointly involved, they
know what the expectations are and there is no ambiguity.

i. The employees are more aware of the company’s goals and are proud of being
involved in the organizational goals. This improves their morale and commitment.

i. This method highlights the area in which the employees need further training,
leading to career development.

iv. MBO puts strong emphasis on quantifiable objectives and therefore, the
measurement and appraisal can be more objective, specific and equitable.

v. It improves communication between managers and subordinates.

How to Implement an Effective Management by Objective program:

1. Every manager must have 5-10 SMART goals clearly listed.

2. Along with a clear description of the SMART goals, it must also have a clear
plan on how to accomplish it.

3. Determine how progress will be measured and how frequently (minimum

quarterly).

4. List down corrective actions that will be taken if progress is not in accordance
with plans.

5. Ensure that goals at each level are related to the organizational objectives and
levels above/below.

3) 360-Degree Appraisals

Including reviews from co-workers and others who have contact with the
employee in the performance review process helps authenticate the employee’s
report and potentially help cover more ground during the review process, keeping
biases at bay. The 360-degree appraisal system is considered the best performance

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appraisal system as it gives a good understanding of an employee. This type of
appraisal system also helps the employee learn about his/her strengths and
weaknesses.

The Advantages of using the 360-degree feedback are:

i. It increases the individual’s awareness of how they perform and the impact it has
on other stakeholders.

ii. Serves as a key to initiate coaching, counselling, and career development

activities.

iii. Encourages employees to invest in self-development and embrace change

management.

How to Implement an Effective 360-degree review:

1. Check that the people providing feedback have worked for at least 6 months
with the candidate who is receiving feedback. Also check that all participants
really trust that this process is meant to help everyone succeed.

2. The candidate should choose the people that they would like to receive feedback
from, and they should also be open to feedback and suggestions from their
manager / coach.

3. Inform all participants about the purpose and process of the 360-degree, what’s
expected of them, and why.

4. Check in, everyday or every other day, to see how completion of the assessment
is coming along.

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 CHAPTER 4

PROJECT FINANCIAL

4.1 PROJECT FINANCIAL

A project budget is the total projected costs needed to complete a project over a
defined period of time. It’s used to estimate what the costs of the project will be for
every phase of the project.

The project budget will include such things as labor costs, material procurement
costs and operating costs. But it’s not a static document. Project budget will be
reviewed and revived throughout the project.

4.1.1 IMPORTANCE OF PROJECT BUDGET

Budget is one of the criteria commonly used to determine whether a project was
completed successfully especially it is very important to an organization during this
pandemic. The definition of a successful project is one that meets four success
criteria which is that the project’s scope is delivered on schedule, it is delivered
within budget and, once delivered, it meets the quality expectations of the donor
and beneficiaries.

For project managers to be truly successful they must concentrate on meeting all
of those criteria. The reality is that most project managers spend most of their
efforts on completing the project on schedule. They spend most of their time on
managing and controlling the schedule and tend to forget about monitoring and
controlling the budget.

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4.1.2 CREATING A PROJECT BUDGET

It’s possible to use project budgeting methods below or stick to a simple project
budget planning routine. Essentially, these five steps can help the finances together
and create a project budget summary.

1. Break down the project into tasks and milestones.

Working with the task list will give an understanding of what need to accomplish
and help with project cost management. If already have a task list, that’s fine, and
can start right off. But if don’t, start creating a scope and writing down everything
that the team needs to do.

2. Estimate each item in the task list.

Now it’s time to give each item that have written down an optimistic estimation.
At this point, identify all the resources and materials will need to perform well and
include them into the estimate when calculating the price.

3. Add estimates together.

This is probably one of the easiest parts of the project budgeting process,
especially if have a spreadsheet with two columns: Tasks and Costs. Then, it will be
able to calculate the total fast.

4. Get approval.

Talking to the manager to approve project costs would be the last thing in the
project budget creation process.

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4.1.3 MANAGING PROJECT BUDGET

1. Recognize when circumstances have changed

When it comes time to estimate costs, be realistic leave room for unforeseen
changes. When circumstances change, make sure to get input from all applicable
stakeholders. More importantly, build in contingencies. This step is essential as most
companies discovered during the pandemic. Many factors outside of your control can
impact your budget, including the pricing of supplies, resources, labor, financing,
product/service shortages, currency exchanges, and so on. Today's price for many
essential products or services is much higher than at the start of most projects prior to
COVID-19. Make sure vendors can deliver on their promises and prepare a backup
plan. Getting input from other stakeholders and vetting suppliers and vendors can go
a long way to setting a more realistic budget that can be met, even when there are
unforeseen circumstances that impact costs. I've seen many project managers get
caught off guard with escalating costs, suppliers that couldn't meet quoted
obligations, or other issues. Plan for surprises, so you aren't blindsided.

2. Precisely identify and manage change

Change management is one of the most underestimated areas when managing

projects. Project management specialists understand the importance of
communication and how processes impact stakeholders. Something may seem like a
slight change in any process yet can significantly increase costs and throw off
budgets. Change management specialists should work with project teams to identify,
document, and communicate the precise strategies to deal with internal and external
changes that can push costs over budget.

3. Understand stakeholder’s true needs and wants

What stakeholders say they need or want in a project often isn't as simple as it
may seem upfront. This can lead to unidentified goals and expectations on both sides
of the table. Suppose a project manager, sponsors, team members, and vendors don't
have a solid grasp of stakeholders' true desires. In that case, it's almost impossible to
identify what the requirements are for the project. Be sure to put in as much time as
is required to get a deeper understanding of what stakeholders expect. Ultimately
everything, including the budget, is defined by stakeholder expectations, deliverables,

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and other requirements. So the first step to an effectively managed project budget is
to ensure project requirements are accurately identified, documented, and confirmed
with all stakeholders and that these are communicated to all parties involved. This
crucial step should be completed before budgets are set. Many projects have been
initiated around needs but executed around wants, automatically putting projects at
risk of budget overruns that leave everyone disappointed.

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 4.1.4 EXAMPLE OF PROJECT BUDGET

Benefits Expenses Cost Monthly (RM) Cost Yearly (RM)

Training NA

Leadership
Team Building

HRMS System NA 3,000

Annual Medical Checkup NA 15,000
including Counseling Session

Construction NA 5,500
Attendance Allowance NA 96,000
Company trip NA 250,000
Sport and Recreation Club NA 15,000
(SRC)

Bowling tournament
Badminton tournament

Festival Lunch treat for NA 25,000

Chinese New Year, Hari Raya,
Deepavali and Christmas.

Annual Dinner NA 65,000

Total - 564,500

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 CHAPTER 5

CONCLUSION AND RECOMMENDATION

5.1 CONCLUSION

Performance Appraisals is not only an evaluation process of a person’s

performance with reward / punishments as an outcome of it. Rather, its intent is to
align and improve the performance of an individual to meet the overall
organizational goal. A good Performance Appraisal should,

1. Serve as holistic measurement system impartial & impersonal and can be used
across the organization.

2. It should provide a way to create an effective individual development plan,

completely tailored to individual needs and aspirations.

The supervisor and employee should couple together to have a free flow of
discussion on strengths, weaknesses, career aspiration and competency gaps, this
reciprocation and involvement is important for performance management to yield
any benefits.

Different forms of appraisal systems can be used to conduct the performance

appraisal. 360 Degree Feedback enhances the effectiveness of the performance
appraisals by providing a all-round view of the employees accomplishments.

The difference between the Standard Performance and Actual performance gives
rise to training needs. Training and Development is about imparting knowledge to
improve the skills and abilities of the employees to meet the current or future
competency needs.

In all, the performance appraisal and the performance management system should
help an employee in achieving the results efficiently and effectively thereby also
fulfilling the organizational goals. Constant learning and improving based on the

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performance appraisal allows for more effective decision making followed by
leading and influencing larger teams to achieve their goals.

It is clear that at this time of uncertainty there would be some deep and perhaps
long lasting impact to our work practices. As pandemic hitting the globe from
various directions, companies are exposed to new challenges like shutting down the
offices and reducing the business operations. Due to this many renowned
organizations have taken the decisions to either defer the appraisal cycle or go for
muted salary increments or opting for working remotely. However many managers
are arguing against managing a largely remote workforce.

According to them if large numbers of workers are working remotely, close

supervision is not even an option. Managers are concerned about the productivity
therefore as an alternative to this situation they are looking for new ways of assessing
the performance of employees. This is done to retain the effective employees and to
maintain the balance between private and work life of the employees, which is very
essential to this time of crisis. As it turns out, giving freedom is a good thing.

Thus this highlighted the impact of novel corona virus on performance appraisal
of employees and suggested managers performance management approach to
manage the performance assessment of employees. As there is so much uncertainty
about how 2020 will play out, it’s on us business leaders to help our workforce with
the right tools and resources to sustain the situation and face the challenge. It is being
recommended that changing performance management philosophy to align with this
change and adopting performance management for new normal is critical for
organizations in order to succeed.

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5.2 RECOMMENDATION

With the onset of pandemic, the question arises of managing remote working
employees. If companies have largely remote workforce, close supervision will be a
challenging task for managers. There are certain recommendations for the managers
in order to deal with performance appraisals and its impact on compensation and
retention of effective employees and the overall morale of employees.

(i) Redefining expectations:

Managers should redefine their expectations for how to get the job done. There
should not be any strict boundaries for accomplishing the tasks. Managers should
provide flexibility to the employees to complete the tasks and should focus on the
end results.

(ii) Boosting the employee morale:

Managers should be effective in building the employee morale. Shorter

communication cycle times helps in sustaining the employee engagement.

(iii) Use of continuous and micro learning:

During the Covid-19 crisis where remote working has become the new normal
learning should not stop. Use of micro learning is more beneficial in this new
environment. There should be focus on giving short lessons on a single topic in a five
to ten minute segment. Employees should be allowed to identify their own topics for
training.

(iv) Shared Leadership:

Assign buddies and peer coaches to provide mutual support to employees. This
will prevent the managers from getting exhausted by attending the queries of all team
members. Employees could be organized into pairs and a buddy or a peer coach can
be assigned to them. In this way responsibility can be shared among the employees.

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(v) Interpreting tone and voice as representative of direct feedback:

It is difficult to understand the emotional cues of remote working employees in

comparison to the one when manager and employees work in same room. Manager
must understand proxy indicators such as tone and voice of employees in video
communication. If manager knows his employees, changes in these patterns will help
him find out promptly that an employee needs some additional support.

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 REFERENCES

https://www.profit.co/blog/performance-management/creating-and-implementing-an-
effective-performance-appraisal-system/

https://www.businessnewsdaily.com/9451-clear-employee-expectations.html

https://yourstory.com/2020/07/covid-19-employees-performance-management-hr-
organisation-role

https://www.msn.com/en-in/money/topstories/covid-19-effect-reliance-industries-to-
cut-pay-defer-bonuses-for-hydrocarbon-biz-staff/ar- BB13rJcB?
ocid=spartandhp

https://www.ukessays.com/essays/management/performance-management-in-an-
organization-management- essay.php#:~:text=Conclusion%3A,meet%20the
%20overall%20organization al%20goal

https://www.umsl.edu/~sauterv/analysis/6840_f09_papers/Tongwan/

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conclusion.html#:~:text=Project%20management%20is%20not%20a,launch
%20and%20the%20ongoing%20operations

https://www.projectmanager.com/training/create-and-manage-project-budget

https://www.clearpointstrategy.com/project-budget-management/

https://www.linkedin.com/pulse/new-era-performance-management-abdulaziz-
alkhamis