MZUMBE UNIVERSITY

MBEYA CAMPUS COLLEGE

DEPARTMENT OF ADMINISTRATIVE STUDIES

STUDENT NAME: HAWA LACKSONE

REG. NO: 2634032/T.20

COURSE NAME BHRM III

COURSE CODE: PUB 324

SUBJECT NAME: PERFORMANCE AND REWARD MANAGEMENT

LECTURER NAME: MADAM CHITUNCHI

NATURE OF TASK: INDIVIDUAL ASSIGNMENT

SUBMISSION DATE: 06th April, 2023

QUESTION:
Cici Cement Limited has about 1600 employees in its plants. The company faces intense
competition on a daily basis due to the rapid changes of the industry. It undertakes performance
assessment very serious as it was done through self-assessment, peer review and appraisal by
supervisors. Merit raises for individuals were linked to the Performance Appraisal System
(PAS). Despite having a strong workforce, the appraisal system used seemed to be sound.
Majority of employees were not impressed and distrust the process as well. Therefore,
consultation was done and it was recommended that CC Ltd has to redesign the PAS.

a) What problem do you think were inherit in the existing PAS used at CC Ltd?
b) What steps would you recommend to the management of CC Ltd to make the appraisal
acceptable and effective in the organization?
c) What are the contributions of having an effective implemented PAS in the company as
CC Ltd?
First of all, must be to understand the root of our scenario question. This scenario is all about the
performance appraisal approaches but based more on the 360-degree appraisal approach, this
scenario show that there is components of 360-degree appraisal approach for example self-
assessment, peer review and supervisor appraisal which were used by Cici Ltd. So the answers
of question A and B will come from the 360-degree appraisal approach.

a) What problem do you think were inherit in the existing PAS used at CC Ltd?

Personal biases. The biases were problem inherit in the existing performance appraisal system
in CC Ltd. In the 360-degree appraisal technique, overall biases had stronger influence on the
performance ratings for all combinations of rater perspectives and performance dimensions for
peer ratings, self-assessment ratings and supervisor appraisal ratings as used by CC Ltd. In this
context the issue of biases become a dominant problem where the various types of biases
emerge for example CC Ltd used self-assessment as something which make employees to defend
him or herself, this cannot make negative or bad recommendation even if his or her performance
is poor, the peer review provide recommendation on the performance of particular employee so
if there was long term conflict between peer raptors and employees always will recommend
negatively even if the employee is a good performer, the supervisor appraisal, if the supervisor
is a friend or relative of employee always supervisor will recommend positively to the employee
to be a good performer while is poor performer but also if there is long-term enmity among the
two parties always the supervisor will recommend negatively as poor performer even if is a
good performer therefore the biases seemed to be a major problem inherit in PAS in CC Ltd.

b) What steps would you recommend to the management of CC Ltd to make the
appraisal acceptable and effective in the organization?

The performance appraisal system of one organization may vary from other organizations
thought I would recommend some of the specific steps to the management of CC Ltd that may
follow are as follows;

Establishing performance standards; Involves identifying different dimensions of job

performance and setting up performance standards based on dimension. Before conducting any
appraisal, it is important to identify the important elements in a given job that is the job criteria.
Different organization use different basis for evaluating the performance of employees.
Communicating the standards set for an employee; Refer to the second step of the
performance appraisal process that occurs after the identification of the expected level of
performance in each job evaluation criteria. Performance standards determine the expected level
of performance, goal, or targets. The performance standards with respect to a sales person could
be maximizing the sales volume by selling a number of units of a particular product by the end of
the year.

Determining who will conduct the Appraisal; Involves selecting the appraiser who will
conduct the performance appraisal of the employee. Usually, the immediate superior of
employees who will most familiar with the employees work, is considered the most appropriate
person to appraise them. Employee during their period of work in any organization has to
interact with their seniors, subordinates, colleagues, customers, and other individuals associated
with the organization directly or indirectly. Therefore, the appraiser can also be any one or more
than one of these individuals.

Measuring the Actual performance; lays down the foundation for the appraisal of employees
after the end of a specific period. This helps in judging the actual performance of an employee
against the pre-established standards and actual performance helps the organization in revealing
gaps in the employee performance.

Discussion with the concern employee; in this step performance of the employee is
communicated and discussed. It gives an idea to the employee regarding their strength and
weakness. The impact of this discussion may be positive or negative. The impression that
subordinates receive from their assessment has a very strong impact on their self-esteem and is
very important, for their future performance.

Taking corrective actions; Forms the last step of the performance appraisal process, in which
an employer discusses the shortcoming and accomplishments of employees. It also helps
employees in overcoming their shortcomings. The performance of employees can be improved
by using various methods such as coaching, guiding, counseling and training.
 c) What are the contributions of having an effective implemented PAS in the
company?

Improves overall organizational productivity. Where targets of performance or production

per unit of time have been specified, employees try their best to achieve these and even go
beyond within the specified time in expectation of consequential rewards. The employees usually
also develop a spirit of competition, which ultimately results in enhancement of their
productivity, thus assuring the organization a minimum level of production. Similar phenomenon
applies also to the processes where the piece-rate system is prevalent.

Employees’ Capabilities and Competence. Performance appraisal makes it possible to identify

the points of strength and weaknesses of employees. The organization can conveniently adopt
measures to rectify their deficiencies through suitable training and development programmes.
Performance appraisal can also be helpful to employees in their career planning and
development. (Bana, B 2009)

It facilitates the process of promotions and transfers. The potentials of employees revealed
through performance appraisal enable the management to take objective decision about the
employees deserving promotion and those who are unsuitable. The employees also become
aware that their level of performance and it will be a deciding factor in their future advancement.
Even where unions pressurize for adopting seniority criterion as the basis for promotion, it is
conceded that there must be a certain level of efficiency in deciding promotion cases.
Performance appraisal also makes it possible for the HR professionals to identify the employees
whose services could be more fruitfully utilized by their transfer to some other suitable jobs.
Habitual low performing employees may, have to face termination of their services. (Armstrong.
1998)

Compensation management. In many organizations, various categories of employees including

supervisors, managers and executives are paid handsome additional compensation packages for
their high level of performance as revealed by the appraisal. The additional compensation
packages for high performing employees usually comprise performance-based lump sum bonus,
enhanced annual increment and improved fringe benefits. Such inducements act as a potential
motivational factor not only for the high performing employees, but also for those whose level of
performance is not up to the mark. The low performing employees start making efforts to
improve their performance in expectation of higher earnings and improved facilities. (Mayala,
(2009).

It facilitates the recruitment and selection process. Performance appraisal also enables the
organization to identify those employees whose potentials could be more fruitfully utilized for
higher positions. It also reveals the unavailability of suitable candidates from internal sources,
with the only option to look to the external supply. Performance appraisal is useful for taking
inventory of quality of human resources available in the organization. This information helps in
future planning and development of human resources. As per the assessment, the HRD can plan
to recruit new employees or develop the quality of existing workforce in the organization. This
ensures that organization has required quality and quantity of manpower to carry out its
activities. (Rao.2004).

It facilitates human resources Planning and development. Information about points of

strength and weaknesses of existing employees as revealed by performance appraisal is also
useful while making plans in regard to human resources requirements of the organization’s
information will be helpful to the organization in framing workable plans in regard to the present
and future requirements of the organization, adoption of an appropriate Training and
Development programme for developing need skills and capabilities of employees,
determination of compensation packages and incentives, adjustments of workforce and taking
decisions on other related issues.(Armstrong. 1998)

It facilitates effective communication between employees and Managers. Performance

appraisal is also an opportunity for the employees to convey their needs and expectations to
superiors. Further, employee can seek guidance of their managers to improve performance and
also for career advancement. In other side performance appraisal also useful in ensuring useful
communication in the organization. When the employees are convinced about the objectivity of
their performance appraisals, they generally feel free in communicating with their superiors and
peers about their strength and weaknesses. Performance appraisals are also useful in making the
process of identifying, measuring and developing the performance of individuals teams and
aligning their performance with the organization’s goals more effective and acceptable.
(Armstrong. 1998)
It facilitates employees motivation. The process involves recognizing and rewarding
employee’s efforts and performance. It boosts their morale and confidence. Further, greater
awareness of one’s true potential motivates employees to give their best performance. The
organization acknowledges efforts of employees by giving higher salary, higher responsibilities,
certificates and other monetary and non-monetary benefits. These benefits and recognition also
motivates other employees to perform better at their job. (Mayola, (2009).

Planning and Designing Training Programmes. The assessment of strengths and weaknesses
of employees is useful for HR department to plan and design training programmes. The
employees are provided with right training at right time to overcome their weaknesses and to
develop their strengths. The content and method of training can be modified according to the
human resource requirements. (Armstrong. 1998)

It improves labor - management relationship. Performance appraisal is also an opportunity

for the employees to discuss work related problems with their superiors & to find out ways to
resolve them. Promotions and transfers are done on the basis of performance of employees. The
fair promotion and transfer policies improve relationship between employees & management. It
also facilitates good work atmosphere which directly benefits the final output (. Gupta 2012)

It assist to Improve employee’s performance. The manager / team head shares evaluation
result with the respective employees. Such feedback is useful as it enables employees to focus on
improving their strengths. The managers also suggest ideas and methods through which
employees can overcome their weaknesses. Thus, the process helps in personal & career
development of employees. (Casio.2006)

Generally. Performance appraisal is key point for the organization success, so management of
any organization should consider more on the issue of appraising their employees by using
various approach of performance appraisal approach taken will depend on the organizations
circumstances. for example, small organization there are few opportunities for promotion or
career development within the organization, a formal system may be unnecessary. On the other
hand, a large organization with several branches and several people making people management
decisions will need a formal system to help with planning and employee development.
 REFERENCES

Armstrong, M. and Baron, A. (1998) Performance management: the new realities. London:
Institute of Personnel and Development.

Bana, B and Shitindi, E (2009). “Performance Management in the Tanzania Public Service”, A
Paper Presented at the Conference on Governance Excellence: Managing Human Potential” held
at Arusha International Conference Centre, United Republic of Tanzania, from 2nd – 4th March,
2009.

Mayala, M. G. (2009). “Factors affecting Application of Employee Performance Appraisal in

Public Institutions in Tanzania: A Case of Tanzania Automotive Technology Centre (TATC)”.
MBA thesis, University of Dar es Salaam.

Mohrman, A. M., Resnick-West, S. M., & Lawler III, E. E. (1989). “Designing performance
appraisal systems: Aligning appraisals and organizational realities”. San Francisco: Jossey-
Bass.

Rao, T. V. (2004). “Performance Management and Appraisal System: HR Tools for Global
Competitiveness”. London: Sage