Performance Appraisal of Social Investment Bank Limited

Executive Summary :Business world is becoming very much complex day by day. Without very much practical experience business becomes difficult and in some cases impossible. The whole world is moving because of business relation. Business plays a very important role is regarded as a media through whom we have an acquaintance with the real world.

The project report titled on “Performance appraisal and its Process of employees of Social Investment Bank Ltd.” is submitted as a partial prerequisite of the BBA Program of University of Liberal Arts Bangladesh. The purpose of this project report is to learn how to apprise the employees in banking sector. The topic was assigned by my supervisor Hasan Shirazi Assistant Professor ULAB School of Business. Performance appraisal plays an important role to develop employee’s performance day by day in progress of bank sectors.

To complete this study I have selected Social Investment Bank Ltd which started its operation on the 22 November, 1995 as a second generation Islamic Bank in close co operation and assistance of some renowned personalities of the Islamic world. Then I used structured Questionnaire & the AVP of HRD has been interviewed through it. The SIBL through its HRD Department, Performance appraisal has different objectives for management and for the employees. Employees are interested in having an assessment of their work from the viewpoint of personal development, work satisfaction and involvement in the organization. Management assesses the performance of employees to maintain organizational control and disburse rewards and punishments to further organizational goals. Thus, a spirit of mutuality is essential in an effective performance appraisal system. For employees, it can impart a better understanding of their job, skills and limitations, and provides an opportunity for self-reflection. It can help identify development needs. It can increase mutuality and strengthen communication between employees and management.

This report deals with the detail description performance appraisal and performance appraisal program of HRD in SIBL. While preparing this report it has been tried to reveal the insights of the HRD program of the bank & a few recommendations and suggestions were also prescribed based on the observations and findings. At the same time for easier understanding of the report, supporting topics and terms are explained in light of textbooks and regulatory guidelines.

As a part of my project program I got a chance to work at this area for a period of two months. During this period I have learned about this bank and its work environment, which inspire me to work on my topic.

Introduction and Background:

The Bachelor of Business Administration (BBA) was introduced by University of Liberal ArtsBangladesh with an objective to supply an adequate number of highly trained and educated graduates to the economy. As the BBA program is the integrated, theoretical and practical method of teaching major disciplines in the preceding years of their courses. To undergo project program each participant has to prepare a report on the particular topic related with the organization. Based on my practical experience as well as theoretical knowledge, I have accomplished the project report regarding Performance Appraisal of Employees of Social Investment Bank Ltd. Performance Appraisal process must be done in any organization in an effective manner under proper management, so HR division must be involved here directly because HRD deals with the viewpoint of personal development, work satisfaction of workers and involvement in the organization.

Rational:

Performance appraisal is one of the key functions of human resource management. To achieve the target goals of the organization, human resources manager has to be very cautious about the performance of the manpower of the organization. In SIBL, performance is appraised on daily basis in the field level and other cases on specific periodic basis. It helps supervisors gain a better understanding of each employee’s abilities with the goal to help train and develop skills and strengths. It provides a chance to evaluate job progress, stimulate interest and improve job performance by recognizing productive work and by pointing out areas of growth and development. It provides a feedback mechanism that might otherwise be overlooked. So, performance appraisal is a continuous process.

Scope of the study:

 As a student of Human Resource Management, as a potential human resource manager, it is very much necessary for me to know about the performance appraisal system in a bank. I have been assigned in Social Investment Bank Ltd. in Mirpur Branch and thus paved me the way to get myself familiarized with the official environment in Bank for the first time. The area of concentration of this report is confined in investigating different aspect of performance appraisals as well as problems and prospects and by the way endeavor is made to give recommendation for handling the problem.

Objectives:

Broad objective: The Broad objective of the report is to learn about the performance appraisal process of Social Investment Bank Bangladesh Ltd.

Specific Objectives:

This term paper has been prepared for fulfilling the following specific objectives:

 To enlarge the dimension of knowledge regarding performance appraisal.

• To identify the difference between theory (what we have learned from the text) and practice (what is really happened).
• To mention the problems that the employees & the managers face with the process.
• To identify the strengths and weakness of the performance process.

Methodology

In order to make the report more meaningful and presentable two sources of data and information have been used widely.

Sources of data: There are 2 kinds of Data.

Primary Data:

 Observe the environment behavior, facts. Action, record and present condition of the program.

• Case study.
• Have conversation with my supervisor and regular employees of the bank.
• Make questionnaire to get relevant information.
• Direct experiment and group discussion there.
• Personal interview through face-to-face and telephone.

Secondary data:

Since advantage in computers and technology, I got data through browsing websites, features books, different HR books and compliments of senior ranked officials of SIBL in different magazines, portfolios, History.

Methods of collecting data: For collecting data I used following methods:

• Make questionnaire

  Such as:

Sex: male [] Female []

Do you prefer to give add for job mostly on line? [Yes]  [No]

 Interviews face to face.

• Direct experiment
• Focus group interviews.
• Observing critical incidents
• Mail, web search, and through Telephone

Limitations:

 I have faced some limitations during preparing report due to the confidentiality of documents and resources of SIBL as mentioned below:

• Time constraints on part of the practicing experts who was otherwise very willing to help.
• Non-availability of data in a systematic way.

• I was not able to visit all branches of SIBL.
• Lack of elaborate discussion with the high ranked officials due to their busyness.

Factors and variables covered:

There are some factors and variables, which need to be covered in performance appraisal process. These are:

                                        1. Time, table and schedule.

                                        2. Investment and return.

                                        3. Educational qualification.

                                        4. Extra curriculum

                                        5. Language proficiency.

                                        6. Technical capability.

                                        7. Employees confidence level.

                                        8. Experience.

Tools and Analysis: To prepare this report I took the help of following tools and analytical process

• Rating scale for appraising employees.

• MS Word, Excel for data processing
• Different manual & Journals
• Web site.
• Interview.

 
Performance Appraisal

Basic Concept:

In HRM, performance appraisal is use to evaluate employees current and past performance relative to his performance standard. Its effect may result in increased pay, a promotion or assistance in personal development areas through training. Evaluating the performance may take the form of a five-minute discussion between employees and their supervisor, or a more elaborate, several week processes involving many specific steps. Performance appraisal also assumes that the employee understood his performance standard and the required areas of improvement. His supervisor provides the employee with the feedback, development and incentives required to help the person eliminate performance deficiencies .The aim should be to improve performance.

Why Performance Appraisals

HR departments use the informal gathered through performance appraisals to evaluate the success of recruitment, selection, orientation, place­ment, training, and other activities. Although informal and ongoing appraisals on a day-to-day basis are necessary to a smooth operation, these methods are insufficient for the HR department’s needs. Formal appraisals are needed to help managers with placement, pay, and other HR decisions. In a study of 324 organizations in southern California, for example, 94 percent had a formal ap­praisal system. This survey research revealed that the major uses of appraisals were for compensation (74.9 percent), performance improvement (48.4 per­cent), feedback (40.4 percent), placement-related decisions (40.1 percent), and documentation (30.2 percent).In appendix part Figure-1describes these and other uses.

Uses of Performance Appraisals

• Performance improvement: Performance feedback allows the employee, the manager, and personnel specialists to intervene with appropriate actions to improve performance.
  • Compensation adjustments: Performance evaluations help decision makers determine who should receive pay raises. Many firms grant part or all of their pay increases and bonuses on the basis of merit, which is determined mostly through performance appraisals.
  • Placement decisions: Promotions, transfers, and demotions are usually based on past or anticipated performance. Often promotions are a reward for past performance.
  • Development needs Training and: Poor performance may indicate a need for retraining. Likewise, good performance may indicate untapped potential that should be developed.
  • Career planning and development: Performance feedback guides career decisions about specific career paths one should investigate.
  • Staffing process deficiencies: Good or bad performance implies strengths or weaknesses in the personnel department’s staffing procedures.
  • Informational inaccuracies: Poor performance may indicate errors in job analysis information, human resource plans, or other parts of the personnel management information system. Reliance on inaccurate information may have led to inappropriate hiring, training, or counseling decisions.
  • Job-design errors: Poor performance may be a symptom of ill-conceived job designs. Appraisals help diagnose these errors.
  • Equal employment opportunity: Accurate performance appraisals that actually measure job-related performance ensure that internal placement decisions are not discriminatory.
  • External challenges: Sometimes performance is influenced by factors outside the work environment, such as family, financial, health, or other personal matters. If these factors are uncovered through appraisals, the human resource department may be able to provide assistance.
  • Feedback to human resources: Good or bad performance throughout the organization indicates how well the human resource function is performing.

3.4 Methods of Performance appraisal:

 In this section we will look at specific ways in which HRM can actually establish performance standards and devise, instruments that can be used to measure and appraise an employee’s performance. Three different approaches exist for doing appraisals. Employees can be appraised against (1) absolute standards, (2) rela­tive standards, or (3) objectives. No one approach is always best; each has its strengths and weaknesses.

Absolute Standards

Our first group of appraisal methods uses absolute standards. This means that employees’ are compared to a standard; and their evaluation is independent of any other employee in a work group. Included in this group are the following methods-, the essay appraisal, the critical incident appraisal, the checklist, the adjective rating scale, forced choice and behaviorally anchored rating scales. Let’s look at each of these, focusing on their strengths and weaknesses

1. Essay Appraisal: The Essay Appraisal probably the simplest method of appraisal is to have the appraiser write a narrative describing an employee’s strengths, weaknesses, past performance, potential, and suggestions for improvement. The strength of the es­say appraisal lies in its simplicity. It requires no complex forms or extensive train­ing to complete. The essay appraisal is also valuable in providing specific informa­tion, much of which can be easily by the employee.

However, inherent in this method are several weaknesses. Because the essays are unstructured, they are likely to vary widely in terms of length and content. This method also provides only qualitative data. HRM decisions generally improve when useful quantitative data is ob­tained because it enables employees to be compared and ranked more objec­tively.

2. Critical Incident Appraisal: The Critical incident appraisal focuses the rater’s attention on those critical or key behaviors that make the difference be­tween doing a job effectively and doing it ineffectively. The appraiser writes down anecdotes describing what the employee did that was especially effective or ineffective. For example, a police sergeant might write the following critical incident about one of her officers: “Brought order to a volatile situation by calmly discussing options with an armed suspect during a hostage situation which resulted in all hostages being released, and the suspect being appre­hended without injury to any individual. Note that with this approach to appraisal, specific behaviors are cited, not vaguely defined individual traits. A be­havior-based appraisal such as this should be more valid than trait-based appraisals because it is clearly more job related. It is one thing to say that an employee is “aggressive,” “imaginative,” or “relaxed,” but that does not tell us anything about how well the job is being done. Critical incidents, with their fo­cus on behaviors, judge performance rather than personalities.

The strength of the critical incident method is that it looks at behaviors. Its drawbacks are basically that- appraisers are required to regularly write these incidents down, and doing this on a daily or weekly basis for all employees is time-consuming and burden­some for supervisors.

3. Checklist appraisal: In the checklist appraisal, the evaluator uses a list of behavioral descriptions and checks off those behaviors that apply to the employee.

Once the checklist is complete, it is usually evaluated by the HRM staff, not the appraiser completing the checklist. Therefore the rater does not actually evaluate the employee’s performance; he or she merely records it. An analyst in HRM then scores the checklist, often weighing the factors in relationship to their importance to that specific job. The final evaluation can then be returned to the appraiser for discussion with the employee, or someone from HRM can provide the feedback to the employee.

The checklist appraisal reduces some bias in the evaluation process since the rater and the scorer are different: However, the rater usually can pick up the positive and negative connections in each item—so bias can still be introduced. From a cost standpoint, too, this appraisal method may be inefficient if there are a number of job categories for which an individualized checklist of items must be prepared.

4. The Behaviorally Anchored Rating Scales: The Behaviorally Anchored Rating Scales (BARS) combine major elements from the critical incident and adjective rating scale approaches. The appraiser rates the employees based on items along a continuum, but the points are examples of actual behavior on the given job rather than general descriptions or traits. Behaviorally anchored rating scales specify definite, observable, and mea­surable job behavior.

Possibly its major advantage stems from the dimensions generated, rather than from any particular superiority of behavior over trait an­chors. The process of developing the behavioral scales is valuable for clarifying to both the employee and the rater which behaviors represent good per­formance and which don’t. Unfortunately, it, too, suffers from the distortions inherent in most rating methods.

Relative Standards

In the second general category of appraisal methods, individuals are com­pared against other individuals. These methods are relative standards rather than absolute measuring devices. The most popular of the relative methods are group order ranking, individual ranking, and paired comparison.

1. Group Order Ranking: Group order ranking requires the evaluator to place employees into a particular classification, such as “top 20 percent.” This method, for instance, is often used in recommending students to graduate schools. Evaluators are asked to rank the student in the top 5 percent, the next 5 percent, the next 15 percent, and so forth. But when used by appraisers to evaluate employees, raters deal with all their employees in their area. So, for example, if a rater has twenty employees, only four can be in the top fifth; and, of course, four also must be relegated to the bottom fifth.

The advantage of this group ordering is that it prevents raters from inflating their evaluations so everyone looks good or from forcing the evaluations so everyone is rated near the average—outcomes that are not unusual with the ad­jective rating scale. The main disadvantages surface, however, when the number of employees being compared is small.

2. Individual Ranking: The individual ranking method requires the evaluator merely to list the employees in order from highest to lowest. In this process, only one employee can be rated “best.'” If the evaluator is required to appraise thirty individuals, this method assumes that the difference between the first and second employee is the same as that between the twenty-first and the twenty-second. Even though some of these employees may be closely grouped, this method typically allows for no ties. In terms of advantages and disadvantages, the individual ranking method carries the same pluses and minuses as group or­der ranking. For example, individual ranking may be more manageable in a de­partment of six employees than in one where a supervisor must evaluate the 19 employees that report to her.

3. Paired Comparison: The paired comparison method is calculated by taking the total of [N(N— 1)1/2 comparisons. A score is obtained for each employee by simply counting the number of pairs in which the individual is the preferred member. It ranks each individual in relationship to all others on a one-on-one basis. If ten employees are being evaluated, the first person is compared, one by one, with each of the other nine, and the number of times this person is pre­ferred in any of the nine pairs is tabulated. Each of the remaining nine persons, in turn, is compared in the same way, and a ranking is formed by the greatest number of preferred “victories.” This method ensures that each employee is compared against every other, but the method can become unwieldy when large numbers of employees are being compared.

Objectives

The third approach to appraisal makes use of objectives. Employees are evaluated on how well they accomplished a specific set of objectives that have been determined to be critical in the successful completion of their job. This ap­proach is frequently referred to as management by objectives (MBO). Man­agement by objectives is a process that converts organizational .objectives into individual objectives. It consists of four steps: (1) goal setting, (2) action plan­ning, (3) self-control, and (4) periodic reviews.

(1) Goal setting: In goal setting, the organization’s overall objectives are used as guidelines from which departmental and individual objectives are set. At the individual level, the supervisor and employee jointly identify those goals that are critical to fulfilling the requirements of the job as determined by job analysis? These goals are agreed on and then become the standards by which the employee’s suits will be evaluated.

(2) Action plan­ning: In action planning, the means are determined for achieving the ends established. In goal setting; that is, realistic plans are developed to attain the object. This step includes identifying the activities necessary to accomplish the objective, establishing the critical relationship between these activities, estimat­ing the time requirements for each activity, and determining the resources re­quired to complete each activity.

(3) Self-control: Self-control refers to the systematic monitoring and measuring of perform­ance—ideally, by having the employee review his or her own performance. In­herent in allowing employees to control their own performance is a positive image of human nature. The MBO philosophy is built on the assumption that employees can be responsible, can exercise self-direction, and do not require external controls and threats of punishment to motivate them to work toward their objectives.

(4) Periodic reviews: Finally, with periodic progress reviews, corrective action is initiated when behavior deviates from the standards established in the goal-setting phase. Again, consistent with the MBO philosophy, these supervisor-employee reviews are conducted in a constructive rather than punitive manner. Reviews are not meant to degrade the employee but to aid in future performance. These reviews should take place at least two or three times a year. What will these objectives look like? It is important that they be tangible, verifiable, and measurable. This means that, wherever possible, we should avoid qualitative objectives and sub­stitute quantifiable statements. For example, a quantitative objective might be “to cut, each day, 3,500 yards of cable to standard five-foot lengths, with a max­imum scrap of 50 yards,” or “to prepare, process, and transfer to the treasurer’s office, all accounts payable vouchers within three working days from the re­ceipt of the invoice.”

Advantages: MBO’s advantages lie in its results-oriented emphasis. It assists the planning and control functions and provides motivation, as well as being an approach to performance appraisal. That’s because employees know exactly what is ex­pected of them and how they will be evaluated. Moreover, employees under­stand that their evaluation will be based on the success -in achieving mutually agreed on objectives. Finally, it’s expected that employees should have a greater commitment to the objectives they have participated in developing than to those unilaterally set by their boss.

Disadvantage: The major disadvantage of MBO is that it is unlikely to be effective in an environment where management has little trust in its employees. This type of environment could be one where management makes decisions autocratically and relies heavily on external controls to direct employee behavior. The amount of time needed to implement and maintain an MBO process may also cause problems. Many activities must occur to set it up, such as meetings between su­pervisors and employees to set and monitor objectives. These meetings can be very time-consuming. Additionally, it may be difficult to measure whether the MBO activities are being carried out properly. The difficulty involved in prop­erly appraising the supervisor’s efforts and performance as they carry out their MBO activities may cause it to fail.

3.5 Steps of performance appraisal:

There are several steps regarding the performance appraisal process. One of the standard appraisal processes is shown below:

However, customize appraisal system is used in the job sector depending on HR policy of the company. For example, educational intuitions evaluate their employee’s performance involving the consent of the students sometimes. In other service sectors dealing with customers or reaching the requisite target can be the dominating factor for appraising/grading employees. However, in the challenging jobs like sales and marketing or developing projects, the standard of appraisal can be different from the other employees of the organization. In the form of the report namely Annual Confidential Report (ACR) the employee comes to know about his performance in the respective job followed by increment, promotion, bonus or permanent appointment offer in the company.

At the end of the appraisal the employees can get the following feedback about his performance.

Or can be graded as       A+, A, B, C

Finally the assessment can be concluded followed by recommendation made by the authority.

Performance Appraisal process of the Employees of Social Investment Bank Ltd.

The steps of appraisal in Social Investment Bank Limited:

Action plans of performance Appraisal: At first the HR department makes an action plan. On the basis of this plan, they perform their activities. Methods are made on the basis of some indicators and these important tasks are done by a committee in which top level management plays an important role. Now let us see the action plan of SIBL.

ANNUAL APPRAISAL ‘08

   ACTION PLAN of SIBL:

Business status and fix-upSenior Management

02Discussion Meeting with Section in charges for better understanding about new form and distribution of the sameSVP, EVP03Appraisal Completion by In-chargesIn-charges04Appraisal Completion by the Department HeadsDepartment Heads05Appraisal Completion by the Appraisal CommitteeSVP,EVP.AMD06Approval by the MD/ DMDMD,DMD07Handed Over to Accounts Department for necessary implementation.HRD

 4.2 Performance appraisal categories of SIBL:

Performances are appraised by SIBL in different categories. There may not be over all appraisal formats. Job descriptions and specifications are not same for everybody.  The tasks of a cargo driver as well as the tasks of a manager are different. So their performance management systems will be different. In SIBL, performances are measured for the following categories:

1. Performance review for corporate level,
2. Performance review for salaried workers,
3. Performance review for rating management skills.

About these three categories are discussed in details below:

Performance review for corporate level:

Definition of Ratings:

Exceptional (5): Consistently meets and often exceeds all relevant performance standards. Provides leadership, fosters teamwork, is highly productive, innovative, and responsive and generates top quality work. Active in industry related professional and/or community groups.

Exceeds Expectations (4): Exceeds expectations means consistently meets and sometimes exceeds all relevant performance standards. Show initiative and versatility, works collaboratively, has strong technical and interpersonal Skills or has achieved significant improvement in these areas.

Meets Expectations (3):  Meets all relevant performance standards. Seldom exceeds or falls short of desired results. Lacks appropriate level of skills or is inexperienced/ still learning the scope of the job.

Below Expectations (2): Sometimes meets the performance standards. Seldom exceeds and often falls short of desired results. Performance has declined significantly, or employee has not sustained adequate improvement, as required, since the last performance review.

Needs Improvement (1): Consistently falls short of performance standards.

Criteria and performance elements

Quality of work:

• Demonstrates competence in required job skills and knowledge.
• Attendance, punctuality, time management.
• Accuracy, clarity, consistency and thoroughness of work.
• Gives feedback for continuous improvement of work product.
• Understanding and mastery of process, methods, systems and procedures.
• Measures business decisions with client and shareholder satisfaction in mind
• Exhibits good interpersonal skills.

Productivity:

Technical knowledge:

 Communication & Team work:

Leadership & project management skills:

Performance review for salaried workers

For the salaried workers the following things are considered as the key performance indicators:

Job knowledge: It includes the knowledge of products, policies and procedures; or knowledge of techniques, skills, equipment, procedures, and materials. Here rating system is varied from 1 to 9.

Here grading system is:

Job well, occasionally requires assistance or instruction6-5-4Limited knowledge of job, further training required, frequently requires

Assistance or instruction.3-2Lack of knowledge to perform job properly1

Quality of work:

 Here the considering issues are:

• Freedoms from errors and mistakes
• Accuracy
• Quality of work in general

                 Excessive errors and mistakes, very poor quality = 1 (rate)

                 Highest quality possible, final job virtually perfect = 9

Quantity of work: Here the performance is measured on the basis of work output of the employee. If an employee does more than expected level, s/he gets high rate (9). If an employee does extremely low output, s/he gets lowest rate (1).

 Reliability: The extent to which the employee can be depended upon to be available for work, do it properly, and complete it on time. The degree to which the employee’s are reliable, trustworthy, and persistent.

   Here

• highly persistent, always gets the job done on time is rated = 9 (highest)
• Usually unreliable, does not accept responsibility, gives up easily is rated =1(lowest)
• Usually gets the job done on time, works well under pressure is rated = (4-6).

 Initiative and Creativity:

Here the appraiser committee searches the worker’s ability to plan work and to go ahead with a task without being told every detail, and the ability to make constructive suggestions.

Judgment: Here the management looks about the judgment power of the workers, the extent to which the employee makes decisions which are sound. Ability to base decisions on fact rather than emotion.

Here rating system is:

• Uses exceptionally good judgment when analyzing facts and solving problems= 9 (highest)
• Uses poor judgment when dealing with people and situations = 1 (lowest)
• Handles most situations very well and makes sound decisions under normal circumstances = 4-6 (moderate)

 Cooperation: Cooperation is one of the major ingredients for the achievement of the target goals. So the management gives the rate to appraise the performance of the workers. Actually they find the willingness to work harmoniously with others in getting a job done. Readiness to respond positively to instructions and procedures.

Group or department3-2Negative and hard to get along with1

Attendance: Attendance is the important factor to perform well. Low absenteeism can ensure the high productivity of the workers. So management is very conscious about the faithfulness in coming to work daily and conforming to scheduled work hours.

The following issues are considered only for supervisory personnel: 

Planning and organizing:  Effective planning and organizing are the pre conditions for the goal achievement of the organizations. The ability to analyze work, goal setting, developing action plan, time utilization, requirement of supervision etc are considered to measure the performance of supervisory personnel.

Directing and controlling:  Directing and controlling power is also measured. It is very important that how well a supervisor can direct and control his/her employees. Here the considering issues are:

• The ability to create a motivating climate
• Achievement of teamwork,
• Training and development
• Taking the corrective actions.

 SIBL follows the following rating system:

6-5-4Needs to improve motivational and team work skills

3-2Unacceptable directing and controlling skills1

 Decision-making: The appraisal committee of SIBL, in case of supervisory personnel, appraises the ability to make decisions and the quality and timeliness of those decisions.

SIBL follows the following rating system:

6-5-4Needs to improve decision making and/ or timeliness of  decisions

3-2Unacceptable decisions and/ or timeliness1

 Performance levels:

Distinguished (9): Truly outstanding performance that results in extraordinary and exceptional accomplishments with significant contributions to objectives of the department, division, group or company

Commendable (8-7) consistently generates results above those expected of the position. Contributes in a superior manner to innovations both technical and functional.

Fully satisfactory (6-5-4) Good performance with incumbent fulfilling all position requirements and many on occasion generates results above those expected of the position.

Needs improvement (3-2): Performance levels room for improvement. This performance level may be the result of new or inexperienced incumbent on the job or an incumbent not responding favorably to instruction.

Marginal (1): Lowest performance level which is clearly less than acceptable, and which is obviously well below minimum position requirements. Situation requires immediate review and action. Possible separation or reassignment is in order without significant and performance improvement.

4.2.3. Performance Appraisal for rating management skills:

Definition of performance rating:

Exceptional: Employee consistently exceeds performance objectives with virtually no detected   preventable / controllable errors.  S/he makes significant contributions well beyond normal job responsibilities. Individual requires little direction or supervision.

Exceeds objectives:  Employee exceeds performance objectives on a regular basis. Employee is making a valuable contribution to the company. Errors are infrequent and typically detected and corrected by employee.

Expected performance: Employee consistently meets but does not exceed performance objectives. Employee is fully competent and is satisfactorily performing job.

Marginal / needs improvement: Employee does not adequately accomplish objectives nor fulfill all responsibilities; must improve performance within a designated time period. Or, the employee is new to the position and tasks presently assigned are adequately performed as expected.

Unsatisfactory: Unacceptable performance, below exceptions. Employee does not accomplish most or all position objectives.

Methods used those behaviors that are critical to job success.

Job knowledge: Technical knowledge and skills, analytical ability, problem solving skills.

Communications: Verbal and written communications, presentation skills, and listening skills. Are communications clear, concise, courteous?

Quality of work: Accuracy, neatness, thoroughness, completeness of work.

Quantity of work: Work output, speed, timeliness, effectiveness, work habits.

Dependability: How reliable is the employee in completing assignments and meeting deadlines? Attendance? Punctuality?

Interpersonal skills: Does employee work harmoniously and effectively with subordinates, peers, supervisors, and the public? Team player? Shares information with others as needed? Resolves conflicts? Welcomes and seeks constructive feedback on own performance? Cooperative ?

Initiative: Does employee work independently? Solves problems? Assumes additional responsibility? Looks for more efficient and cost effective ways?

Adaptability: Is employee able to adjust to a variety of situations?  Flexible?

Decision making: Use logical and sound judgment.

Performance improvements: Briefly identify areas showing improvement or areas that required attention from last review.

Appraisal of Management skills: This section should be completed on those employees who have supervisory responsibilities. Use the comment section to explain strengths and weakness in each area. List specific action needed to correct any deficiencies.

1. Planning and organizing: Forecasting, setting objectives, anticipating changes, securing and budgeting resources, structuring tasks, establishing priorities.
2. 2.       Leadership:

Ability to take charge. Select, direct, and coordinate activities of others to do better work, assume more responsibility, or prepare for future job opportunities. Coach, motivate, and develop others. Serve as a role model. Make decisions, communicate.

1. 3.       control :

Select control points, measure and report results, evaluate and correct performance, direct policy and procedure, operate within budget.

Overall performance rating:

The appraisal committee will consider all performance criteria and indicate overall rating, using definitions of performance levels as a guide.

• Exceptional
• Exceeds objectives
• Expected performance
• Marginal / needs improvement
• Unsatisfactory

5.0 Analysis and Findings

5.1Strengths of the process:

The performance appraisal system used by SIBL has some strength which has been identified through HRM manuals of the bank and interviewing different level of employees (approx. 15 persons) of the bank.  These are like as below:

 5.2 Weakness of the process:

 The performance appraisal system used by SIBL has some limitation like as below:

 6.0 Conclusion and Recommendation

6.2 Recommendations:

The performance appraisal system has to be based on clearly specified and measurable standards and indicators. Goals have to be consistent and mutually decided by the employee and management. But this practice is not available in SIBL. If necessary, the appraisal system could be directed towards a particular client. The appraisal system has to be reliable and consistent, and should include both objective and subjective ratings. The appraisal format should be practical and simple. The process should be participatory and open. It should be linked with rewards. Feedback is an important part of appraisal, and has to be timely, impersonal and noticeable.

1. 360 Degree performance appraisal method: The Company may follow 360 Degree performance appraisal method. In this method, employee is evaluated by his/her peers, subordinates, superior, etc. in this method; there is the less scope to be biased.

2. Management by objectives (MOB): SIBL may follow this method. In this method the employees are asked to set or help set their own performance goals. This avoids the feeling among employees that they are being judged by unfairly high standards.

3. Work standard approach: This method is very fruitful. SIBL may follow this approach. In this technique, management establishes the goals openly and sets targets against realistic output standards. These standards are incorporated into the organizational performance appraisal system. Thus each employee has a clear understanding of their duties and knows well what is expected of them. Performance appraisal and interview comments are related to these duties. This makes the appraisal process objective and more accurate.

4. Assessment problems:

It is difficult to observe behavior and interpret it in terms of its causes, effects and desirability. Rating behavior on an appraisal form is quite difficult. The human element plays a significant role in the appraisal process and introduces subjectivity and bias. This can be minimized by

• documenting performance from time to time;
• basing criteria for evaluation on observable behavior;
• training the supervisors; and
• effectively communicating the expectations which management has of staff.

Conclusion:

Performance appraisals are one of the most effective supervisory tools to communicate expectations, provide feedback, plan work, acknowledge contributions, and help employees gain the skills to be successful. As SIBL is committed to do away with disparity and establish justice in the economy, trade, commerce and industry, build socio economic infrastructure and create employment opportunities. So SIBL should do justice with the employees while appraising them perfectly on the basis of their performance. The appraisal system has to be reliable and consistent, and should include both objective and subjective ratings. The appraisal format should be practical and simple. The process should be participatory and open. It should be linked with rewards. Feedback is an important part of appraisal, and has to be timely, impersonal and noticeable. It should be noted that an appraisal system can be effective only if it is accepted by employees and if management is fully committed.