Designing Effective Performance Appraisal System

HRM 418
Job Evaluation & Performance Appraisal

Submitted to
Laila Zaman
Assistant Professor
East West University

Submitted By
Name ID
Shuverthee Shameem Brinto 2019-1-10-143
Md. Hasan Shahriar Himel 2019-1-10-164
Al Shahrier 2019-2-10-091
MD. Shazed Hossain Ovi 2019-2-10-051
Mahmud Ibne Kabir Saad 2019-2-10-211
Mohammad Abu Sayem 2019-3-10-194

Submission Date

22th August, 2023

 Letter of Transmittal
22th August, 2023

Laila Zaman

Assistant Professor,

Department of Business Administration

East West University, Dhaka, Bangladesh

Subject: Term paper on “Designing Effective Performance Appraisal System”

Dear, ma'am

The paper on “Designing effective Performance appraisal systems of the telecommunication

sector is something we are pleased to provide to you. We extensively concentrated on the subject
when writing the report to deliver the most comprehensive data possible. We are certain that it
will provide you with a clear picture of each of the employees’ unique performance appraisal
forms based on their function and role. Set up 360-degree feedback to get each employee's fair
and comprehensive appraisal.

We appreciate your letting us write a term paper on a novel concept. We will undoubtedly get
experience from this that we can apply to our professional lives. Any further inquiries about this
report can be directed to us at any time, and we would be happy to respond.

Sincerely,

Mohammad Abu Sayem

2019-3-10-194

On behalf of the Group

 Acknowledgment

I would like to express my utmost gratitude and wholehearted appreciation to all those who
helped me and allowed me to complete and present this report.

First, I would like to thank my honorable faculty supervisor, Laila Zaman, Assistant Professor,
Department of Business Administration, and East West University for providing me with the
opportunity to observe and analyze such an interesting topic and for her supervision, relentless
guidance, and invaluable advice whenever needed. I am much obliged to our interviewees to
make time from their tight schedules to enlighten us with the presented information.
EXECUTIVE SUMMARY
Robi, a leading telecommunications company, is proposing an effective performance appraisal
system to improve employee engagement and alignment with organizational objectives. The
current system lacks consistency and provides insufficient insights into employee performance,
hindering growth opportunities and employee morale. The new system aims to align individual
performance with Robi's strategic objectives, ensuring that employees' efforts directly contribute
to the company's success. The system will ensure fairness and transparency, replacing the
traditional annual review model with regular feedback. Performance appraisals will identify skill
gaps and create personalized development plans to enhance employee capabilities. Regular
feedback and recognition will boost employee engagement and motivation, leading to improved
job satisfaction and retention rates. Regular informal check-ins between employees and
managers will promote ongoing dialogue and quick issue resolution. Clear performance metrics
will be defined, ensuring consistency and objective evaluations. 360-degree feedback will be
incorporated to provide a well-rounded view of an employee's performance. Skill assessments
will be introduced to identify strengths and areas needing improvement, enabling targeted
development plans. A multi-level performance rating scale will be implemented, linking each
level's expectations to corresponding rewards and recognition. Development plans will be
designed collaboratively by managers and employees, focusing on skill enhancement and career
growth. Technology integration will be leveraged to streamline the appraisal process. The
proposed system will be implemented with comprehensive training for managers and employees,
a pilot phase with select departments, and channels for employee feedback. Regular monitoring
and adjustments will be made based on feedback and outcomes.
 TABLE of INDEX

CHAPTER-1 : Introduction...................................................................................7
Origin of the report....................................................................................................8
Scope of the study......................................................................................................8
Limitation of the study..............................................................................................8
Methodology of the Study.........................................................................................9
CHAPTER-2 : Company Profile..........................................................................10
CHAPTER-3 : Literature Review........................................................................11
CHAPTER-4 : FINDINGS...................................................................................13
CHAPTER-5 : DISCUSSION...............................................................................16
Types of Performance Appraisal.............................................................................16
Performance Appraisal System in ROBI Axiata Limited.......................................18
Performance Appraisal Conduction System in ROBI Axiata Limited....................18
Effectiveness in Case of Productivity.....................................................................19
Lack of alternative option of Appraisal...................................................................21
Pro’s and Con’s of Present Method.........................................................................21
CHAPTER-6 : Recommendation.........................................................................23
CHAPTER-7 : Conclusion....................................................................................24
APPENDIX.............................................................................................................25
CHAPTER-1 : Introduction

Performance Appraisal Systems are critical for assessing and enhancing employee performance
in today's competitive corporate sector. Performance Appraisal Systems have progressed from
annual assessments to dynamic systems that provide constant feedback. When it comes to team
management, one of the most essential things managers can do is evaluate the performance of
their staff. This allows you to not only identify areas where staff need to improve but also to
document and reward triumphs. Each business designs a performance appraisal based on what
they desire. Designing a successful system entails combining HR best practices, aligning with
business culture, and fostering justice. This tutorial will go through goal planning, feedback,
objective evaluation, technology, and cultivating a growth mentality. It seeks to provide HR
professionals, managers, and leaders with the tools they need to build systems that promote
individual and organizational success. A strong Performance Appraisal Systems fosters
cooperation, progress, and achievement.

Origin of the report

This report was given to us as a part of the partial requirement of the “Job Evaluation &
Performance Approval” HRM 418 of the Bachelor of Business Administration program of East
West University. Our course instructor Laila Zaman, Assistant Professor has assigned us this
report as a part of the course. Ma’am has authorized the task of writing this report on a group
basis.

Scope of the study

This research will assist in recognizing the variations among the subject matter. Important
aspects that were missing were highlighted, highlighting the areas that needed implementation.
Limitation of the study

The capacity of our team to collect data was constrained by the short time frame available. We
were only able to gather information from one interviewee. This can be a drawback because
there aren't enough details to demonstrate all the variances and distinctions. Cooperation from
the interviewees and employees was also limited by their reluctance to provide information
owing to business policy and information confidentiality.

Methodology of the Study

To gather data, we used both primary and secondary methodologies. In order to match the data
with secondary information from Google Scholar, we questioned both employees and trues.
CHAPTER-2 : Company Profile

Robi Axiata Limited is a public limited company in which Axiata Group Berhad of Malaysia
owns 61.82%, Bharti Airtel of India owns 28.18%, and the general public owns the remaining
10%. On the 24th of December 2020, the firm made its debut on the country's twin stock
exchanges of Dhaka and Chattogram with the largest-ever IPO.

The company was founded in 1997 as Telekom Malaysia International (Bangladesh) under the
brand name Aktel. It was rebranded as 'Robi' in 2010, and the firm was renamed Robi Axiata
Limited.

As of the end of the second quarter of 2023 (Q2'23), Robi was the second largest mobile network
operator in Bangladesh, with 56.4Mn subscribers, representing 30% of the subscriber market
share, of which close to 32.4Mn were 4G subscribers, or 57% of total subscribers, and 75% of
data users were 4G users.

Robi's 4G network provided 98.5% population coverage with over 16,000 4G stations. The firm
also has the industry's largest percentage of data users (76.5%).

The combined business, Robi Axiata Limited (Robi), began commercial operations on November
16, 2016, following the merger with Airtel Bangladesh. As of now, this is the country's largest
merger and the first merger in Bangladesh's mobile telecom sector.

The company has led the delivery of mobile financial services to underserved groups in rural and
semi-urban regions, introducing various first-of-their-kind digital services in the country. It is
Bangladesh's first mobile operator to have successfully completed a 5G trial run and the first to
introduce Voice over LTE technology on its 4.5G network.

CHAPTER-3 : Literature Review

Every organization requires a strong performance appraisal system to assess and improve
employee performance. It should have specific goals that are aligned with those of the
organization, as well as regular feedback and 360-degree feedback from peers and subordinates.
Fair and unbiased assessments, as well as assistant training that eliminates bias, ensure
consistency. The system must prioritize employee development and provide actionable
improvement strategies. Employee motivation and sense of ownership are increased when
exceptional work is rewarded and recognized. Employee accountability is increased by allowing
them to participate in goal setting and self-evaluation. Documentation helps to maintain
consistency and adaptability. Continuous improvement and reward integration boost employee
growth and motivation. Finally, an effective performance evaluation system fosters a learning
and development culture within the organization. Robi Axiata Limited (Robi) employs a
performance appraisal method that is based on the job description and performance goals of the
employee. The system employs a few assessment techniques, including Self-assessment,
Manager Evaluation, Management by Objectives (MBO) and 360-degree feedback. The
feedback from various assessment methods is utilized to construct a performance appraisal
report, which is then discussed with the employee's boss. The conversation focuses on the
employee's strengths, flaws, and areas for development. The performance appraisal system is a
continual procedure that keeps staff on track and gives them the opportunity to develop. Robi
mostly uses MBO as their performance appraisal method.

 It tends to improve the work performance, communication expectations, determining

employees’ potential and aiding employee counseling (Aggarwal & Thakur, 2013).
 Management by objectives (MBO) is a strategic approach to increase company
performance by aligning company and team objectives. In this article, we’ll explain how
the MBO process works. We’ll also discuss the pros and cons of using the MBO model
(Team Asana, October 12th, 2022).
  Management by objectives (MBO) or management by objectives and self-control comes
from classical management methods and its wide scope of use includes measuring
teamwork effectiveness (Kinga Homann-Burdzińskaa, Olaf Flak, April 2016).

The effectiveness of management by objectives (MBO) methods in measuring performance

compared to other methods depends on several factors, including company culture, the nature of
the job, and the level of employee engagement. MBOs are very effective when there is clear
alignment of goals, employee engagement, and continuous feedback because they promote
ownership and motivation. However, no single method is universally superior, and the choice of
assessment method should be based on an organization's specific needs and goals. Combining
multiple assessment methods provides a more comprehensive assessment of employee
performance and leverages the strengths of each approach. Ultimately, the effectiveness of any
performance evaluation method depends on whether it is well implemented and aligned with the
organization's goals and values.

Robi uses MBO method for it works for achieving both Organizational and Employees goal as
Robi is employee oriented organization. They are using this method as they are focusing in this
from their starting point. Robi set the goals of their employees in a attainable way so that
employees work hard for it and that lead to achieving organizational goals and the collaborative
approach between management and staffs to establish precise performance standards. MBO
system is based on setting clear & specific goals for employees, aligning their individual efforts
with organizational objectives, reviewing progress, and providing feedback to enhance
performance and achieve desired outcomes. Not every appraisal system is fully correct but Robi
try to minimize unethical activities. Robi thinks that MBO is better in terms of judgement
compared to other performance evaluation methods. To measure performance ROBI uses internal
corporate experts’ people rather than professional SME's (Subject Matter Expert). Every
appraisal method has some advantages and disadvantages. The advantages of MBO are
employees know how to go up the corporate ladder, how they can gain their personal goals,
which lead to getting promotion, incentives etc. Also, the top management, peers, and supervisor
all provide most of the time excellent support, but the disadvantages of this method are
sometimes its biasness and other important aspects of organization is ignored sometimes.
CHAPTER-4 : FINDINGS

We took an interview of Mrs. Wordina Islam, General Manager, HR Tech & Talent Development,
Human Resources of Robi Axiata Limited and gathered our necessary information and data.
First, we ask some of the basic questions about performance appraisal, and then how it affects
the company on a continuous basis.

First, we asked how she defines performance appraisal from his viewpoint. Mrs. Wordina
replied, “I can say it as the practice of evaluating a person's job performance in the related field.”

Secondly, we asked if they use any kind of appraisal system in ROBI. Then she replied that,
“ROBI Axiata Limited encourages staff members through the performance appraisal procedure.
The technique aids in fostering an understanding that incentives increase with work. The
Management by Objective (MBO) appraisal method is used by ROBI to assess employee
performance.

Next, we asked her about the satisfaction level of her for the company's performance appraisal
process. She replied, “Our company is employee oriented. MBO works for achieving
organizational as well as employees’ goals. So, everyone is happy regarding this, since from the
beginning of ROBI's journey it tries to focus on this.

Later one of our teammates asked her if the goal is attainable through this. She said, “Yes, that is
why we applied for it in our company. Employees work to achieve their own goal, which leads to
receiving the goal of the company. It entails a collaborative approach between management and
staff to establish precise performance standards and assess advancement towards those goals.

We asked about what aspects the appraisal system is based on. She told us that, “the appraisal
system is based on setting clear & specific goals for employees, aligning their individual efforts
with organizational objectives, reviewing progress, and providing feedbacks to enhance
performance and achieve desired outcomes. It emphasizes collaboration, goal alignment, and
ongoing communication between managers and employees.

Then we ask an internal question for better knowledge, Is the performance system is ethical as
well as fair. She told us, “The company looks for an ethical and fair system because production
depends on how moral the system is. Otherwise, demotivation would result. Not every system is
fully perfect, but we tried to control the unethical activities.”

One of the questions of us is how the performance evaluation conducted. According to her
answer” First the management along with employees set quantifiable standards to measure the
performance of the company and employees. Later, actual performance is compared to those
standards and the manager can find the improving areas of the company.

We asked if there were any better alternative in her eyes. Her answer was, “Now, they did not
think about changing the appraisal method. MBO is better in terms of judgement compared to
other performance evaluation methods.

Later we asked if she believes that performance appraisal helps in increasing productivity. The
answer was, “If performance reviews are conducted equitably and people receive what they are
due to, then the productivity will increase.”

On of the question from our side is, if they are conducting this with help of any SME's (Subject
Matter Expert) or not. She told us that, “For performance measure ROBI uses internal corporate
experts’ people rather than professional SME's.”

And our last question was the advantages and disadvantages of the present appraisal technique.
She said, “Here employees know how to go up the corporate ladder, how they can gain their
personal goals, which lead to getting promotion, incentives etc. Also, the top management, peers,
and supervisor all provide most of the time excellent support. Negative aspects are, sometimes it
potential for biasness, ignoring other important part of the organization.”
CHAPTER-5 : DISCUSSION

Types of Performance Appraisal

Performance appraisal is a vital tool for organizations to evaluate the effectiveness and
productivity of their employees. Various types of performance appraisal methods are employed
to assess different aspects of employee performance. One widely used method is the Rating
Scale, where employees are evaluated based on predetermined criteria and assigned scores or
ratings. This method simplifies the assessment process and provides a quantitative measure of
performance.

Another possible method could be the Critical Incident Technique, where specific incidents,
both positive and negative, are documented to highlight exceptional or subpar performance. This
approach can lead to actionable insights for enhancing employee effectiveness.

The Management by Objectives (MBO) method, if utilized, would entail collaborative goal
setting between employees and managers. Performance is then evaluated based on the
achievement of these predetermined objectives. This method aligns individual efforts with
organizational goals, fostering a results-driven culture.

Behaviorally Anchored Rating Scales (BARS) could also be implemented, combining

elements of the rating scale and critical incident methods. BARS involves defining specific
behavioral examples for each performance level, making evaluations more concrete and
observable.

Additionally, Robi might encourage employees to engage in self-assessment, enabling them to

reflect on their own performance, strengths, and areas for growth. This method can foster a sense
of ownership and personal development.

Performance Appraisal System

Robi, as a dynamic telecommunications company, likely implements a well-structured

performance appraisal system customized to its organizational goals. The system could
encompass several stages to comprehensively evaluate employee performance.

In the context of Robi, a leading telecommunications company, they might employ the 360-
Degree Feedback approach. This method involves collecting feedback from multiple sources,
including supervisors, peers, subordinates, and even customers. Such a comprehensive
assessment offers a well-rounded perspective on an employee's performance, helping to identify
strengths and areas needing improvement.

The process may set about with Goal Setting, where employees collaborate with their managers
to establish SMART (Specific, Measurable, Achievable, Relevant, Time-bound) goals aligned
with the company's objectives. These goals provide a clear direction for employee efforts
throughout the appraisal period.

Performance Monitoring is integral, involving regular check-ins, feedback sessions, and progress
reviews. Managers may engage in ongoing discussions with employees, providing guidance and
addressing any challenges.
Robi's performance appraisal system likely includes Data Collection from various sources, such
as self-assessments, manager evaluations, peer feedback, and relevant performance metrics. This
comprehensive data enables a well-rounded assessment.

The Appraisal Meetings stage involves formal discussions between managers and employees.
Performance achievements, challenges, and areas for improvement are discussed, fostering open
communication and mutual understanding.

Using the collected data and insights from appraisal meetings, Performance Evaluation takes
place. Managers assess employees' performance against predefined criteria, offering a holistic
view of their contributions.

Development Planning is a crucial outcome of the appraisal process. Robi may facilitate the
creation of personalized development plans to nurture employees' strengths and address areas
needing improvement. These plans may include training, mentoring, and skill-building
opportunities.

Performance Appraisal Conduction System

The Performance Appraisal Conduction System in ROBI outlines the step-by-step approach
followed to execute the performance appraisal process effectively. The system likely commences
with Pre-Appraisal Preparation, where managers familiarize themselves with the performance
evaluation criteria, gather necessary data, and schedule appraisal meetings. Employees may be
informed about the upcoming process and the importance of their active participation.

Data Collection is a significant phase, involving the collection of various performance-related

information. This could encompass self-assessment forms, manager evaluations, feedback from
colleagues and customers, and relevant performance metrics.

Appraisal Meetings are a central component. Managers and employees engage in constructive
discussions about the employee's achievements, strengths, areas needing improvement, and
developmental aspirations. These conversations may also involve setting performance goals for
the upcoming period.
Performance Evaluation follows, during which managers analyze the collected data and feedback
to assess the employee's overall performance. This evaluation is likely based on predetermined
criteria aligned with Robi's organizational objectives.

Post-appraisal, Development Planning takes place. Employees and managers collaborate to

create actionable plans aimed at enhancing performance and skills. These plans may include
training sessions, cross-functional projects, mentoring, and career advancement opportunities.

Continuous Feedback and Monitoring occur throughout the appraisal cycle. Managers may
conduct periodic check-ins to ensure progress, offer guidance, and make any necessary
adjustments to the development plan.

The Performance Appraisal Conduction System in Robi is designed to be transparent, fair, and
supportive. It values open communication, employee development, and alignment with the
company's strategic direction. This systematic approach contributes to a culture of growth,
accountability, and excellence within the organization.

Effectiveness in Case of Productivity

In our interview, General Manager, HR Tech & Talent Development, Human Resources of Robi
Axiata Limited told us that performance appraisal helps in increasing productivity. The answer
was, “If performance reviews are conducted equitably and people receive what they are due to,
then the productivity will increase.”When Robi Axiata Limited conducted effectively and fairly,
they can indeed contribute to increased productivity within an organization.To determine the
effectiveness of a performance appraisal system in enhancing productivity, several factors need
to be considered:

● Equitable Treatment:As the General Manager mentioned, conducting performance

reviews equitably is crucial. Fair and unbiased evaluations ensure that employees are
rewarded and recognized based on their actual contributions, which fosters a sense of
justice and fairness in the workplace and encourages productivity.
 ● Fairness and Transparency:An appraisal system should be perceived as fair and
transparent. If employees believe that their efforts are recognized and rewarded
appropriately, their motivation and productivity can increase.

● Clear Expectations: Performance appraisals provide a platform to set clear performance

expectations and goals for employees. When employees know what is expected of them,
they are more likely to align their efforts towards achieving those goals, leading to
improved productivity.

● Regular Feedback: A good system provides regular feedback to employees on their

performance. Constructive feedback can help employees understand their strengths and
areas for improvement, leading to increased productivity.

● Development Opportunities: Effective performance appraisal systems identify training

and development needs, helping employees improve their skills and knowledge. This can
lead to increased productivity as employees become more capable of handling their
tasks.

● Continuous Improvement: An effective system evolves over time based on feedback

and changing business needs. Regular reviews and updates ensure that the system
remains relevant and effective in driving productivity.

Lack of alternative option of Appraisal

The Robi Axiata Limited performance appraisal process is currently on a limited set of
evaluation criteria.Robi Axiata Limited, a telecommunications company in Bangladesh, uses
internal corporate experts for performance measurement for several reasons

Cost Efficiency: While hiring external consultants can be expensive, utilizing internal experts
can be more cost-effective in the long run. The company can leverage existing resources without
incurring additional consulting fees.
Employee Engagement and Ownership:Involving internal experts in performance
measurement can boost employee engagement and ownership. Employees who contribute to
designing metrics are more likely to feel invested in their achievement and success

Long-term Sustainability: Building internal expertise in performance measurement allows the

company to have a sustainable approach to evaluating its performance. It reduces dependence on
external consultants and builds a knowledge base within the organization.

On the other hand,they can have alternative options like Professional SMEs (Subject Matter
Expert) on the other hand, might provide a more neutral and unbiased perspective. They can
bring in fresh ideas and best practices from the broader industry, offering a different viewpoint
that could lead to valuable insights and improvements.An alternative option could involve a
more comprehensive view of an employee's contributions.

Pro’s and Con’s of Present Method

Advantages

● Through performance appraisal, motivation, more productive outputs can be achieved.

● Build a strong professional network within the organization. Engage with colleagues,
managers, and even top management

● Also, the top management, peers, and supervisor all provide most of the time excellent
support

● Employees can set clear and specific goals aligned with the company's objectives.

Disadvantages

● Bias and Favoritism: Large organizations can sometimes experience issues of bias and
favoritism, where certain employees or departments receive preferential treatment while
others are marginalized. This can lead to demotivation and dissatisfaction among
employees who feel unfairly treated
● Ethics if not maintained will put mental pressure on each employee.

● Ignoring other important part of the organization

CHAPTER-6 : Recommendation
The Management by Objective (MBO) appraisal method is used by ROBI to assess employee
performance. MBO works for achieving organizational as well as employees’ goals. So, they
claim that they are not thinking about changing the appraisal method. They also believe that
MBO is better in terms of judgment compared to other performance evaluation methods. That
means there is no alternative method used for appraising.

From our point of view we would like to recommend that "360-Degree Feedback" method which
approach is a popular and effective method for performance appraisal. In this method, feedback
is collected from multiple sources who interact with the employee on a regular basis. This can
include supervisors, colleagues, subordinates, and even external stakeholders like clients or
customers. The feedback typically focuses on the employee's skills, behaviors, and competencies
related to their job role.

By using this method they can get several advantages. Such as-

 Enhances self-awareness and personal development for employees.

 360-Degree Feedback can uncover blind spots and areas that might have been
overlooked in traditional evaluations.
 It encourages open dialogue and constructive discussions about performance.
 Provides a broader perspective on performance by involving multiple viewpoints.
 It helps leaders understand their impact on their teams and the organization as a whole.
 This approach emphasizes employee growth and improvement, making it conducive to
fostering a learning culture within the organization.

Eventually this level of involvement can lead to increased engagement and ownership of one's
own. Also its successful implementation requires careful planning, clear communication, and
training for both employees and the people who rate them.
CHAPTER-7 : Conclusion

In conclusion, designing an effective performance appraisal system in Robi is crucial for the
organization’s success. It enables objective evaluation of employee performance, helps identify
strengths and areas for improvement, and facilitates fair and transparent reward decisions. By
incorporating clear goals, regular feedback, and a focus on employee development, Robi can
enhance productivity, engagement, and overall organizational performance.
APPENDIX

1. https://scholar.google.com/scholar_lookup?title=Techniques%20of%20performance
%20appraisal-a%20review&publication_year=2013&author=A.
%20Aggarwal&author=G.S.M.%20Thakur
2. https://asana.com/resources/management-by-objectives
3. https://www.researchgate.net/publication/
301597505_MANAGEMENT_BY_OBJECTIVES_AS_A_METHOD_OF_MEASURIN
G_TEAMS%27_EFFECTIVENESS