BACHELOR OF HUMAN RESOURCE MANAGEMENT WITH HONOURS

SEPTEMBER / 2022

HUMAN RESOURCE DEVELOPMENT

BBDH4103
 Table of Contents

PART I: ESSAY........................................................................................................................1

1.0 INTRODUCTION...........................................................................................................1

2.0 PERFORMANCE APPRAISAL DESIGNING PROCESS...........................................3

3.0 METHODS FOR MEASURING PERFORMANCE.....................................................6

4.0 SOURCES FOR PERFORMANCE ASSESSORS......................................................13

5.0 SUMMARY..................................................................................................................15

Part II: ONLINE CLASS PARTICIPATION..........................................................................17

1.0 Question A....................................................................................................................17

2.0 Question B.....................................................................................................................19

PART I: ESSAY

1.0 INTRODUCTION

The development of human resources is increasingly influenced by client needs,

technology, and competition. Organizations must improve their coordination of human
resources and take measures to guarantee that they are utilised effectively. The identification,
allocation, and integration of a company's competitive advantages can lead to its long-term
success. An organization must be able to measure how well its employees perform and then
use that information to identify and reward high-performance employees. This task requires
the use of appropriate tools, such as performance appraisals. It is important to ensure that the
appraisal measurement tool is valid, reliable and free of bias.
A performance appraisal is a method of evaluating the behaviour of employees in the
workplace. It involves determining and communicating to an employee how he or she is
performing, and, ideally, establishing a plan for improvement. The success of a performance
appraisal depends on how effectively it is implemented. Therefore, using Detik Harapan Sdn
Bhd as an example of how the performance appraisal designing process is carried out in that
organisation, what is the method used in measuring performance appraisal, and how is the
justification of the sources of performance accessory in the organisation accomplished.
Detik Harapan Sdn Bhd is an organization that conducts business in the education
industry under the institutional name IGB International School (IGBIS). Syarikat Detik
Harapan Sdn Bhd was established in 2013 in Sierramas, Sungai Buloh Selangor. IGB
International School started its operations in 2014 and has a staff of 120 people including
both locally and internationally labour. IGB International School (IGBIS) is a vibrant Early
Years to Grade 12 international school that provides a dynamic, innovative and inclusive
learning environment. An International Baccalaureate (IB) World School, IGBIS is the only
school in Malaysia authorized for the full continuum of IB programs. IBIS teachers are those
who have successful experience with IB PYP, IB MYP, IB CP and/or IB Diploma Program.
IGBIS teachers embody the spirit of both the IB and of the inclusiveness that underlies the

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school's Vision and Mission.

Figure 1 : Organisation Chart of Detik Harapan Sdn Bhd / IGB Internation School (IGBS)

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2.0 PERFORMANCE APPRAISAL DESIGNING PROCESS

A performance evaluation system is a way to look at how well an employee is doing

his or her job in a structured way. It can be used to help employees improve and can be used
as a basis for pay raises, promotions, and legal punishments. Performance appraisals,
performance assessments, and employee evaluations are all names for performance
evaluations.
Before making a new performance review system or changing an old one, there are a
number of things to think about. Some researchers (Lawrie, 1990) say that the performance
appraisal system might be one of the most important parts of the organisation, while others
(Derven, 1990) say that performance appraisal systems are ultimately flawed, which makes
them useless.
The manner in which an evaluation system is created directly affects how successfully
it is implemented. Therefore, it is necessary to place an emphasis on questions such as who
should be involved in this process, what activities they should accomplish, and how they may
work together effectively as a team. When it comes to the design of the system, Mohmarn,
Resnick-West and Lawler III (1989) recommend following a basic process that includes the
seven steps listed below:

i. Select a suitably qualified candidate - It's important to decide who should be involved
in the design stage, and it's suggested that top management, human resource
professionals, and the users themselves should all be directly involved. The
performance review is political and has to be carried out in a complicated setting.
Because of this, their opinions are important to make sure that the evaluation system
really measures what it is supposed to measure. IGBIS has set up a small group
involving the following individuals to build the company’s employee performance
appraisal system:
 Head of School – He is the policy and decision maker for the
organization. He needs to make sure the mission and the vision of the
system must be align with the organization goals.
 Human Resource Manager – He responsible to managing and
implementing the system accordingly.
 Manage or user – He/she is the direct user to evaluating the
performance appraisal system.

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 ii. Determine a process which will be useful to you when designing - Most organisations
will ask outside consultants what they think about the system before starting to design
it. Consultants will help set up the framework to make it easy for the team to start
designing. IGBIS has sought consultation from the Senior Manager of Group Human
Capital of Corporate Office to assist in developing the performance appraisal.
iii. Evaluate current situation of organisation - The team needs to know about the human
resources system, the company culture, and the legal requirements. They also need to
know the company's strategy, direction, and changes so that the system fits with what
the company wants. Due to changes in working hours and places, such as the need to
work from home and online learning, the team decided that the manual performance
evaluation forms that were already in place were no longer useful. So, the team has
decided to use the Google Document platform to build a digital and online
performance review system. Users can also participate in online discussions by giving
ratings and comments. It also saves money because you don't have to buy special
software or paper.
iv. Develop aims and objectives of evaluation system - The evaluation system has a lot of
goals, and it's up to each organisation to decide what they are. These goals can be
used to do things like pay salaries and bonuses, plan careers, organise human
resources, improve performance, and so on. The team has determined that the purpose
of the performance appraisal system at IGBIS is to reflect on the professional growth
of employees and to identify areas of improvement that are required to align the
company's vision, mission, and objectives.
v. Design performance evaluation system - The team has to decide on the evaluation's
goals and objectives, the measurements that need to be made, who should be the
evaluators, how and when the evaluation will be done, etc. The team can choose any
method that works and meets the goals or objectives they have set. In IGBIS, the team
has combined the quantitative and qualitative data to fully comprehend the
effectiveness of the performance management system and to understand how to
improve it. It is important to get data about the benchmarks, objectives, and success
measures to the extent available. To collect this data, the team used the method of:
 Interview a sample of employees and managers about their experience
with performance management.
 Extract reports from online performance management systems.

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 Following data collection, the team analysed the findings based on the defined
success measures and benchmarks met, and then compared the findings to industry
benchmarks, such as similar international schools in Klang Valley.
vi. Test system through implementation - A pilot test provides an opportunity to gauge
reactions to the system and make adjustments that will facilitate organization wide
implementation. Pilot testing will show if the system functions smoothly and
efficiently, and if managers and employees understand and support the process. At
IGBIS, the team has decided that the Human Resources Department will be the one to
carry out the pilot test. In addition, alterations and fixes are carried out on the basis of
the findings of the tests.
vii. Evaluate and monitor the developed system - An organisation's evaluation system will
be tested to see whether or not it meets its objectives before it is implemented. The
information obtained from this will help the organisation improve itself from time to
time and ensure that the system continues to be effective. In addition, feedback can be
obtained from employees to see if they are satisfied with the newly-developed system.
Evaluation and ongoing progress toward enhancement of performance management
systems are essential tenets of IGBIS. There are a number of metrics that need to be
monitored in order to get an accurate picture of how well the system is functioning.
 Track the completion of training - Users or employees get training to help
them understand the purpose of performance reviews and learn how to use the
system.
 Track completion of performance management activities - It is the
responsibility of Human Resources in IGBIS to manage the completion of the
assessment and gather the response data from the system in order to prepare
action as a result.
 Management review - The decision will be made once the Head of School has
reviewed the rating result of the evaluation to verify that high or poor ratings
have been properly justified.

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3.0 METHODS FOR MEASURING PERFORMANCE

Because there are so many distinct approaches and procedures to choose from, an
organisation has a wide variety of options to consider when conducting a performance
appraisal of an employee. In addition, each company may have its own distinctive ideology,
which may have an effect on the manner in which the performance evaluation is created and
carried out. At a minimum, a performance review is often conducted once per year or twice
per year; however, some companies do it more frequently than that. There are a few
approaches that have gained widespread adoption and are used often by organisations. The
scenarios shown in Figure 1 include assessments made on the basis of a person's work,
conduct, personality, and the results of their efforts.

In
this

assignment, IGBIS conducts annual performance reviews for its staff members and rates
Figure 2 : Methods for measuring performance (Sources: OUM Notes BBDH4103)
them according to the Graphic Rating Scale as a means of determining how well they are
doing in their jobs. A Graphic Rating Scale is a method of performance evaluation in which
an employee is scored against a set of attributes or behaviours that are thought vital and
relevant for successful employee performance and productivity. In this approach, the
employee is rated on a scale from one to ten. IGBIS is effectively able to measure the
behaviours demonstrated by its employees as a result of the rating scale.
IGBIS has developed the performance appraisal system by dividing it into five
sections:

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 i. Section A: Identifying the purpose of the appraisal and providing employee
information.

Figure 3 : IGBIS Performance Appraisal - REFLECTION OF AREAS OF GROWTH/ACCOMPLISHMENTS

ii. Section B: Contains attribution assessments that need to be measured according to the
indicator rating scale. The employees are required to have a self-assessment by
inserting the performance rating in the appropriate box and calculating the point
allocation before they meet with the respective superior or line manager. Employees
are also given the opportunity to justify the rating by placing comments or
justification in the box provided. Similarly, superior or line managers need to do the
same to obtain feedback on employees' overall growth and development. If relevant,
line supervisors may also gather feedback from the other sources, i.e., staff members
or customers (if any), to help in the process.

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 Figure 4 : IGBIS Performance Appraisal - ATTRIBUTE ASSESSMENT

iii. Section C: The total overall performance rating will be published automatically, and
the category indicator rating scale can be used to see how well an employee did.

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 Figure 5: IGBIS Performance Appraisal - OVERALL GROWTH AND DEVELOPMENT SUMMARY

iv. Section D: Between employees and managers, there should be a discussion process
regarding performance and other aspects of the job role. It is one of the best ways for
an employee to increase productivity and change work habits. In an appraisal
interview, the employer and the employee discuss the performance of the individual
and the key areas of improvement. They also discuss how the employee can grow
through a feedback mechanism.

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 Figure 6 : IGBIS Performance Appraisal - IGBIS Performance Appraisal -

v. Section E: Last but not least in this section is the feedback, the outcome that will be
reviewed by the head of department and head of school to support or approve the
proposal for employees.

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 Figure 7: IGBIS Performance Appraisal - SUPERVISOR’S/MANAGER’S COMMENTS

The Graphic Rating Scale is the method that IGBIS has decided to use since it is an
effective method for portraying the behaviours of workers in forms that are measurable and
comparative. These evaluations may be compared across all of the workers and stakeholders,
and they can also be used to measure and enhance overall performance. An IGBIS may
identify the average performance ratings of the whole organisation by using this approach
and then benchmarking those ratings. The results of this technique may then be utilised to
design a strategy for how employees whose scores are below the necessary standard might
improve their performance. By raising the ratings of employee who now have lower ratings,
management will be able to raise the general average and enhance the benchmarks, which
will lead to the productivity of the organisation increasing on an ongoing basis.
In addition to that, IGBIS chose to use this method due to its many good
characteristics and advantages. Some of the good characteristics of the Graphic Rating Scale
are that there is a clear understanding of the metrics that need to be used to judge an
employee's performance. Scales are based on observable behaviour. Avoiding behaviours that
have unclear definitions, such as loyalty and honesty, among others, is possible. Assessment
is relevant to the behaviour being measured. Its advantages are that it is a user-friendly
approach that has straightforward instructions, making it an attractive alternative to other
rating systems. A standardised approach to the evaluation criteria is needed. The evaluation
process is simplified as a result of the quantification of behaviours.

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 Any system has disadvantages, including the graphic rating scale, such as the fact that
rating behaviours may not be correct since judges' perceptions differ. Rating against terms
like "excellent" and "poor" may be challenging, even complicated, since the scale doesn't
show the desired behaviours needed for a rating. The halo effect, recency effect, stereotyping,
etc. might produce wrong evaluations. Employers can distinguish the best and the worst
employees. It doesn't distinguish the typical employee, not knowing employee strengths.
Different employees' strong attributes may equal the same score.

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4.0 SOURCES FOR PERFORMANCE ASSESSORS

Determining who should evaluate an employee is not an easy task, especially for jobs
that are so complex that sometimes it is not enough if only one person makes the evaluation.
To measure the actual performance of employees, we need to get all kinds of relevant
information. This means that not only managers can do appraisals, but there are several other
individuals who can appraise an employee's performance. The individuals listed below have
been chosen to serve as IGBIS's sources of employee rating performance assessors.
i. Managers and Supervisors - Managers and supervisors are the most suitable people
to do this job because they should know the work being done by their subordinates.
Sometimes the manager had to do other work that left him with little time to observe
all the work done by his subordinates. So, he had to look at employment records and
log books to figure out how well people were doing.
ii. Self-assessment - Employees are required to evaluate themselves by filling out a
performance evaluation form as part of the performance appraisal process. This
ensures that employees are actively participating in the process. However, sceptics
argue that persons who evaluate themselves tend to have more accurate opinions of
themselves. Consequently, the exclusive objective of self-improvement is the only
context in which this strategy may be considered appropriate.
iii. Subordinate - Evaluation by subordinates is used to find out subordinates' opinions
about managers. Subordinates are the most suitable individuals to evaluate managers
in terms of leadership, communication, delegation of authority, and so on. However,
many managers want to perform appraisals through subordinates because it seems to
empower employees, especially if the information used is intended for promotion. But
managers are more likely to use evaluation information if it is used only to improve
things.
iv. Customers - Customers are divided into two types, namely internal and external
customers. Internal customers are those in the organisation that depend on the work
results of the employees being evaluated, while external customers are customers
sending their children to IGBIS, i.e., parents. They are becoming a more important
source of information for appraisals, which can help improve customer satisfaction
and increase company productivity.

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 When it comes to determining an employee's overall performance, the organisation uses
the Multi-resource Approach/360 Degree Evaluation assessment at the end of the
performance evaluation process. This is done by all the individuals who have been
mentioned, i.e., managers, employees, subordinates, and customers. This aims to get more
comprehensive feedback on an employee’s performance.

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5.0 SUMMARY

It is not an easy task to design an evaluation system for employee performance.

Organizations need to be careful when deciding what to measure because they might not want
to risk losing a truly talented employee and might also not want to risk any legal action for
abusing performance appraisals and using them to fire their employees. Because of this,
organisations need to decide what to measure with utmost caution. The process of system
design is a common method that is used in measuring employee performance and identifying
appraiser resources. The development of a quality and effective appraisal system is dependent
on the process of system design.
During the development of the performance management system of an organisation,
we need to ensure that the system must align with and support its strategy and essential
success criteria. It must also provide observable, value-added advantages in the areas of
performance planning, development, feedback, and outcome attainment. To make the system
easy to use and popular with members, it needs well-designed tools and procedures that are
run well.
When designing criteria for performance evaluation, it is essential to keep in mind
that the criteria should be job- and industry-specific. The job requirements for each individual
position should serve as the foundation for the criteria used in performance reviews. The use
of general performance criteria to assess an employee's performance is not an effective
method. The rating serves as the scale that will be used while doing the evaluation of each
item of the criterion. There are several distinct approaches of rate anything, such as scales
ranging from 1 to 5, questions with a yes-or-no answer choice, and essays. An employee's
performance is evaluated using a graphic rating if the individual has certain desired
characteristics. This approach is adaptable to a number of different scales of evaluation. One
possible disadvantage is the existence of subjectivity.
Supervisors are the obvious option when they are in regular touch with the
subordinate in question and are familiar with the duties associated with the subordinate's
position. When the supervisor may not spend a lot of time with the individual employee,
peers may be a better choice as evaluators because they may know the job of the individual
employee better than the supervisor does and are more directly affected by the employee's
actions. Peers may also be a better choice when the supervisor may not spend a lot of time
with the individual employee. The assessments of subordinates may provide us with valuable
knowledge about the managers who are in charge of employees in our organisation. Because

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we need to know how our customers feel about their interactions with our employees, we
may want to use customers as evaluators when the individual being evaluated has frequent
contact with those customers. This is because we need to know how customers feel about the
interactions they have with our employees. The practise of self-evaluation is beneficial in a
variety of management procedures, including but not limited to training and development,
counselling, and disciplinary actions, among others.
Overall, the practise of conducting performance appraisals is an important part of
human resource management. Evaluations of employees' performances are often carried out
with two primary goals in mind: the management of the firm and the advancement of its
workforce. When it comes to assessing the efficiency of one's employees, an organisation has
access to a wide variety of tools, strategies, and practises to choose from. However, the most
crucial is the performance evaluation interview. This is because employees will have a better
understanding of their jobs and the degree of performance that is expected of them by the
business by participating in the performance appraisal interview. They are now aware of what
has to be done in order to enhance their performance and, as a result, accomplish the
objectives of the company.

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No of words: 3428

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