Term Paper Proposal

On
Performance Appraisal System of Square Toiletries Ltd

Submitted To:
Md. Zafar Ali
Associate Management Counselor
MBA (Management)
Bangladesh Institute of Management (BIM), Dhaka-1207

Submitted By:
Md. Mahedi Hassan
Roll: 15DH026
Program: PGD IN HRM
Batch: PGDHRM EVENING 1

BANGLADESH INSTITUTE OF MANAGEMENT (BIM)

Date of Submission: 3rd November 2015

Introduction:

Performance appraisal is a method of evaluating the behavior of employees in the work spot,
normally including both the quantitative and qualitative aspects of job performance.
Performance here refers to the degree of accomplishment of the tasks that make up an
individuals job. It indicates how well an individual is fulfilling the job demands. Often the
term is confused with effort, but demands. Often the term is confused with effort, but
performance is always measured in terms of results and not efforts.
Performance appraisal is the systematic description of an employees job relevant
strengths and weaknesses.
The basic purpose is to find out how well the employee is performing the job and
establish a plan of improvement.
Appraisals are arranged periodically according to a definite plan.
Performance appraisal is not a job evaluation. Performance appraisal refers to how
well someone is doing the assigned job. Job evaluation determines how much a job is
worth to the organization and, therefore, what range of pay should be assigned to job.
Performance appraisal is a continuous process in every large scale organization.

Background:
This study is conducted to know about the different functions of performance appraisal
system of the Square toiletries ltd. Around 3000 employees work here, so I try to how HRM
department in the square toiletries ltd evaluate their employees performance. I try to find out
what type of performance appraisal system active in square toiletries ltd. Performance
Appraisal has been considered as the most significant tool for an organization. A critical
factor related to an organizations long-term success is its ability to measure how well
employees perform and then use that information to ensure that performance meets present
standards and improves over time. This process is referred to as performance appraisal or
performance evaluation. It can also be defined as the process by which an employees
contribution to the organization during a specified period of time is assessed. If used
effectively, it can improve employee motivation and performance. Performance appraisal is a
formal system that evaluates the quality of a workers performance. An appraisal system is an
important process that links:

Organizational objectives

 Day-to-day performance
Professional development
Rewards and incentives

Objectives of the Study:

Primary Objectives
The primary objective is to know overall Performance Appraisal System of Square
Toiletries Ltd.
Secondary Objective
To create and maintain a satisfactory level of performance.
To contribute to the employees growth and development.
To ensure continuous ranking based on performance.
To facilitate fair and equitable compensation based on Performance.
To ensure organizational effectiveness through employees standard and improved
performance.

Methodology of the Report:

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

Primary Sources

Secondary Sources

The Primary Sources are as follows:

Questioners
Face-to-face conversation with the respective officers.
Practical work exposures on different desks.
Observation

The Secondary Sources are as follows

Periodicals Published (Internal)
Internet was also used as a theoretical source of information.
Websites

Sample Size:
Management of the companies: It includes the view of the personnel who are involved in the
performance appraisal;
Employees of the companies: The general employees who had undergone some performance
appraisal.
I have takes 20 individual as a sample size.

Data analysis:
The quantitative data analysis of the research from questionnaire placed among different
positions of the employees. After data is prepared and entered into the computer, data must be
explored and comprehend through diagrammatic presentation.

Work Plan:
ACTIVITIES
Literature Review
Develop
Methodology
Construct
Questionnaire
Data Collection
Data Analysis
Report Writing
Paper Submission
& Presentation

1st

2nd

3rd

4th

5th

6th

week

week

week

week

week

week

Letter of Transmittal

21th January, 2016

Md. Zafar Ali
Associate Management Counselor
MBA (Management)
Bangladesh Institute of Management (BIM), Dhaka-1207
Subject: Submission of Internship Report
Sir,
It is a pleasure for me to submit you my term paper titled Performance Appraisal System of
Square Toiletries Ltd. I have tried my level best to fulfill all my requirements of this course
and tried to follow my supervisors instructions while preparing this report. This report gave
me the opportunity to apply theoretical knowledge in practical field, which I hope, would
help me in my future career.

It would be a profound pleasure for me if the report can save its purpose. I would be available
in any time to explain you any queries if you feel necessary and I will be glad to respond to
them.
Sincerely Yours
MD. Mahedi Hassan
ID-15DH026
Batch-Evening-1
Program PGDHRM

Acknowledgement

I would like to express my gratitude to all the people that are involve both in directly and
indirectly in the preparation of this report. I apologize those people whose names that I have
not mentioned and their contribution.
At the beginning of this report I would like to thank my academic supervisor Md. Zafar Ali,
Associate Management Counselor, BIM for guiding me and for giving me the opportunity to
prepare this report. More specially, I would like to thank for him for imparting his time and
wisdom.

Declaration

I declare that the Report prepared on Performance Appraisal System of Square Toiletries
Ltd, by me is a part of PGDHRM, BIM. It is my own work, under the supervision, Md.
Zafar Ali, Associate Management Counselor, BIM.
I further affirm that the work reported in this report is original and no part or whole has been
submitted to any where for any purpose.

Sincerely,

MD. Mahedi Hassan

ID-15DH026
Batch-Evening-1
Program PGDHRM

This report is part of the Human Resource Management Course requirement of this program.
MY report portrays the process of performance appraisal System of Square Toiletries Ltd.
We took help from the employees of the Square Pharmaceuticals Company Ltd. and
discussed with them about their performance and appraisal management system and other
things also.
Performance management is the systematic process by which an agency involves its
employees, as individuals and members of a group, in improving organizational effectiveness
in the accomplishment of agency mission and goals. Process of performance appraisal is the
setting up of the standards which will be used to as the base to compare the actual
performance of the employees.
Square Toiletries Ltd Company always measure their staffs, department and performance
behavior also. They create their performance management and appraisal system in a planned
way.

Table of Contents
Chapter

Content
Letter of transmittal
Acknowledgement
Declaration
Executive Summary

Chapter- 1
Introduction
Chapter-2
Profile of Square Toiletries Ltd.
Corporate Mission
Vision
Organ gram
SWOT Analysis
Chapter-3
Origin of the report
Background of the Report
Scope of the Report
Objectives of the Report
Methodology of the Report
Limitations of the Report
Performance appraisal
Steps in Appraising Performance
Appraisal Methods
Chapter-4
Findings:
Recommendation
Conclusion
References

Page number

Introduction
Square Toiletries Ltd. is the leading Toiletries & Cosmetics Manufacturing Company in
Bangladesh; providing value added products and services to bring quality in life. STL
believes equal employment opportunity for all and thus company is committed to achieve
quality objective through continuous Performance Appraisal. The company is wholeheartedly
fostering the best human resource practices in Bangladesh. It is maintaining a good congenial
working atmosphere for both of its male and female employees. In Square Toiletries Ltd., as
per job specification employees are appointed through a competitive recruitment process.
Every employee is having their own job description which makes them more responsible and
accountable to the management. Performance is the major criteria for career progression.
Square is one of the few employers in the country, who encourages women to apply and join.

The company is constantly focusing employee motivation in its journey towards even more
healthy employee and employer relationship.

Square is maintaining a healthy track record of lowest employee turnover rate among the
industry which is a reflection of employee satisfaction and motivation. The Management is
very keen to determine the areas for improvement in HR policy, compensation strategies and
employee satisfaction to achieve optimal employees retention rates. Working for years in
Square creates a sense of belongingness among its proud employees. Square ensures a sound
career prospect through continuous training and development for its employees. The
management and staff analyze the methods for identifying training needs and arrange training
to employees accordingly. Ample opportunities lie for the employees to groom themselves up
and shoulder greater responsibilities. Management and employees

use effective

communication system and problem solving skills necessary for conflict resolution,
neutrality, active listening, assertiveness, analysis of factors leading to conflict, negotiation of
solution. Success of Square lies in its prime focus on healthy employee and employer
relationship.

Square Toiletries
Type: Privately Held
Company Size: 3000 employees
Website: http://www.squaretoiletries.com
Industry: Consumer Goods
Founded: 1994
Managing Director: Anjan Chowdhury Pintu
Headquarters: Rupayan Centre (11th & 12th floor), 72 Mohakhali C/A, Dhaka-1212,
Bangladesh
Tel: +880-2-9841531-40 Fax: +880-2-985342

Square Toiletries Ltd. is one of the largest and leading FMCG Company in Bangladesh with a
turnover of USD 75 million. The company is marketing 20 Brands in different segments like
health & hygiene, oral care, hair care, fabric care etc. Major Brands of the company are Jui,
Chaka, Senora, Magic, Meril Protective Care & Meril Baby. Square is also exporting its
finished products to 13 countries- UAE, Germany, UK, Australia, Malaysia etc.

As Unique As You
We belong to a unique nationality. In our every footstep - from our inimitable history of
cultural heritage to our love for mother dialect to our glorious freedom fight to our beautiful
flora and fauna we are only one of its classes. This unmatchable feature of us is also acutely
rooted to every one of us in our individual affinity, enthusiasm, needs, dreams and hopes. At
STL we believe in the importance of uniqueness both at individual and national level. Being a
part of the most admired local conglomerate of Bangladesh - Square Group, we have gained
the expertise and upheld somber eagerness in fulfilling your expectations with our quality
product ranges through utmost sincerity. We consider you as unique in terms of your needs,
and to satisfy that we have pooled a unique team of dedicated employee and stakeholder.
Only for you we are relentlessly striving to be "as unique as you".

Specialties
Manufacturer of different cosmetic and toiletries product categories, Cosmetic Contract
Manufacturing & Packaging, Marketer of different cosmetic and toiletries product categories.

Our Brands
Jui
Meril Protective Care
Meril Baby
Meril Splash
Revive
Chaka
Chamak
Senora
Freshgel
White Plus

 Magic
Kool
Xpel
Spring
Sepnil
Zerocal
Select Plus
Skakti
Saaf
Madina

Vision
Vision We attempt to understand the unique needs of the consumer and translate that needs
into products which satisfies them in the form of quality products, high level of service and
affordable price range in a unique way.

Mission
To treasure consumer understanding as one of our most valued assets and thereby
exerting every effort to understand consumers' dynamic requirements to enable us in
offering maximum satisfaction.
To offer consumer products at affordable price by strictly maintaining
uncompromising stance with quality. With continuous R&D and innovation we strive
to make our products complying with international quality standards.
To maintain a congenial working environment to build and develop the core asset of
STL its people. As well as to pursue for high level of employee motivation and
satisfaction.
To sincerely uphold the responsibility towards the government and society with
utmost ethical standards as well as make every effort for a social order devoid of
malpractices, anti-environmental behaviors, unethical and corruptive dealings.

Heritage
SQUARE, today symbolizes a name - a state of mind. Fifty years of hard work,
passion and commitment have brought us where we are today from the very inception

in 1958, when Square Pharmaceuticals Ltd, the flagship company of Square Group,
was established. Today Square Group has burgeoned into one of the top-line esteemed
conglomerates in Bangladesh.
Square Toiletries Ltd. started its journey in 1988 with a single product as a separate
division of Square Pharmaceuticals.
In 1994, Square Toiletries Ltd. became a Private Ltd. Company.
At present, STL is the country's leading manufacturer of international quality
cosmetics and toiletries with 20 brands and more than 55 products covering a wide
range of categories like skin care, hair care, oral care, baby care, fabric care, scourers,
male grooming and OTC.
Besides core business functions STL has long been taking active part in different
philanthropic activities like employment generation program for vulnerable
community, financial aid to disadvantaged and natural disaster affected people,
helping acid victims, tree plantation, creating mass awareness on health and hygiene
issues, supporting in education and various local community programs and many
more.

Corporate Governance
Board of Directors a Quarterly Report on business operation and financial position is
presented before the Board of Directors for their information and review, for implementation
by the Executive Management. Every month co-ordination meeting is held congregating all
the department heads to discuss priority issues and solve problems, if any.
Executive Management the Executive Management is headed by the Managing Director, the
Chief Executive Officer (CEO) who has been delegated necessary and adequate authority by
the Board of Directors. The Executive Management operates through further delegations of
authority at every echelon of the line management. The Executive Management is responsible
for preparation of segment plans/sub-segment plans for every profit centers with budgetary
targets for every item of goods and services and is held accountable for deficiencies with
appreciation for exceptional performance. These operations are carried out by the Executive
Management through series of team-bound initiatives.

Values & Principles

Well being of consumer, employee and society are the three foundation pillars of the values
and principles of Square Toiletries Ltd. Square Toiletries Ltd. believes that it is their
obligation to work for the welfare of society. In spite of being a commercial organization STL

doesn't always opt for profit, rather it tries to be even more focused towards the fulfillment of
its commitments to society and hence has an intense sense of responsibility to its customer,
its people and its society as a whole. From the day to day business operation to quality policy,
in every single activity of STL these core values and principals are reflected.

Quality Policy
Dedicated to make every effort to understand consumer needs to provide
maximum satisfaction and to achieve market leadership.
Strive to continuously upgrade manufacturing technology and to maintain
optimum level of quality measures in conformity with the international standard
ISO 9001: 2008.
Committed to achieve quality objective through continuous employee training and
maintaining congenial working environment.

Our People
STL has been built around one core asset, and it is its people. That is what makes working so
special here. STL believes that work is more than a place you go every day. It should be a
place of exploration, professional growth and creativity. It's about being inspired and
motivated to achieve extraordinary things. STL wants its people to take pride in their work.
After all, it's the combined talents, skills, knowledge, experience and passion of our people
that make us who we are.

Currently STL is employing over 3,000 employees ensuring their consistent welfare and
security. Due to its sociable working environment and highly motivated employee, STL is
enjoying one of the lowest employee turnover rates. STL emphasizes on equal employment
opportunity resulting in 38% women employees. Besides, STL also provides employment
opportunity to physically challenges persons.

Manufacturing Unit
Square Toiletries Ltd. symbolizes innovation. STL is the pioneer for bringing in new products
and packaging concepts in Bangladesh. Currently, STL is carrying out its production in its
two fully automated plants at Rupshi and Pabna.
With our state-of-the-art production facilities, most advanced equipment, and high quality
raw materials, we ensure the absolute best for our customers. Depending on the nature of
products, formulation, and packaging, STL has product specific machinery. A group of welltrained people always ensures the smooth operations of all machinery. Imported from various
foreign suppliers, the best quality raw materials are used for all STL products. Each phase of
the production process undergoes rigorous testing to meet international standards, following
the GMP (Good Manufacturing Practice) of production.
Square Toiletries Ltd. has a strong R&D department which is committed towards developing
new products and improving existing products. The international standard products of Square
Toiletries Ltd. meet the needs of Bangladeshi people as well as the people abroad. The
objectives of R&D are
A deep understanding of consumers, their habits, and product needs.
Capabilities to acquire, develop, and apply technology across STL's broad array of
product categories.
The ability to make "connections" between consumers' wants and what technology
can deliver.
Our Partners
All the 20 brands we are manufacturing & marketing are developed by R&D
department of Square Toiletries Ltd. with the sole focus to satisfy the needs of our
customer. In our pursuit to consistently deliver quality products to our consumer
we have also developed technical partnership with the following companies
Germany, Malaysia, Singapore, UK, USA

Where we are reaching

Square Toiletries Ltd. is one of the few Bangladeshi companies that is successfully exporting
its products in foreign countries. Besides serving the people of Bangladesh, STL is exporting
its products in -

 United Kingdom
Germany
Australia
Malaysia
Myanmar
India
Bhutan
United Arab Emirate
South Africa
Bahrain
Qatar
Kuwait
Singapore

Organ gram:
GM

DGM
AGM

Sr. Manager

Manager

Assist. Manager

Sr. Executive

Executive

Jr. Executive

Sr.officer

Officer

Jr. Officer

SWOT Analysis
Opportunities:
In recent years male consumers are showing more interest in skin care and they are
demanding more products appropriate for men skin type.
As no gents body soap is available in the market produced by the toiletries companies
of Bangladesh, except some imported foreign gents soaps those are too much high in
price, so Kool Body Soap will be known as the First local body soap only made for
men and STL will have a great chance to do monopoly business in this segment.
Raw materials are easily available in the current market (such as: Bay of Bengal is
the largest source for the ingredients of Sea mineral soap).

Threats
The main threats that Kool Body Soap may have: Other competitors may introduce
new body soap for men with different fragrances and high quality.
Existing beauty soaps (such as: Lux) or imported foreign soaps for men may disturb
the growth rate of this new product.
Consumers may have the doubt about the quality of this new product.

Strengths
Square Toiletries Ltd. occupies one of the largest manufacturing facilities with world
class technology than other local toiletries companies (such as: automated plants in
Rupshi and Pabna.)
Square Toiletries Limited (STL) is an ISO 9001: 2000 certified Company.
Largest local Toiletries & Cosmetics Company.
Quality compliance with Middle East, Asia, Europe and some other country.
Square occupies one of the largest distribution channels in Bangladesh.
Price of the product is less than other foreign gents soap.

Weaknesses
Lack of research data to improve the product features, like quality, shape, color,
fragrances etc. The brand name of Kool is not much stronger compare to potential
competitors brands.As it is the first gents body soap in Bangladesh, there is no

specific competitor. Any major attacks may come from any potential competitor. So
Square has the lack of information about its potential competitors.

Origin of the Report:

The Term paper is entitled Performance Appraisal System of Square Toiletries Ltd. has
been prepared as a partial fulfillment of PGDHRM program authorized by BIM.

Background of the Report:

After completing my 1 year PGDHRM, I required to do Term paper based on any reputed
organization which would be helpful for my future professional career. I got the opportunity
to perform in Square Toiletries Ltd.

Scope of the Report:

This term paper has been prepared through extensive discussion with my colleagues and with
the clients. While preparing this term paper, I had a great opportunity to have an in depth
knowledge about Performance Appraisal system. It also helped me to acquire a fast hand
perspective of a leading private Company in Bangladesh.

Objectives of the Study:

Primary Objectives
The primary objective is to know overall Performance Appraisal System of Square
Toiletries Ltd.
Secondary Objective
To create and maintain a satisfactory level of performance.
To contribute to the employees growth and development.
To ensure continuous ranking based on performance.
To facilitate fair and equitable compensation based on Performance.
To ensure organizational effectiveness through employees standard and improved
performance.

Methodology of the Report:

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

Primary Sources

Secondary Sources

The Primary Sources are as follows:

Questioners
Face-to-face conversation with the respective officers.
Practical work exposures on different desks.
Observation
The Secondary Sources are as follows
Periodicals Published (Internal)
Internet was also used as a theoretical source of information.
Websites

Limitations of the Report

To prepare this report some limitations have encountered which are as follows:
The main constrain of the study was insufficiency of information, which was required
for the study. There are various information the employee cant provide due to
security and other corporate obligations.
Since the Corporate personnel were very busy, they could not provide enough time.

 Lack of opportunity to visit more employees.

Performance Appraisal
PA means evaluating an employees current or past performance relative to his or her
performance standards.
Gary Dessler

Performance appraisal is defined as evaluating an employees current or past performance

relative to his or her performance standard.

The appraisal process:

Setting work standard or Define the job
Assessing the employees actual performance relative to these standard or Appraise
performance
Providing feedback to the employee with the aim of motivating the person to
eliminate performance deficiencies or to continue to perform above per.
Appraisal Methods: The appraisal itself is generally conducted using predetermines and
formal method like one or more of those described in this section.

Appraisal Methods:
The appraisal itself is generally conducted using predetermine and formal method like one or
more of those described in this section.
a. Graphic Rating Scale:
A scale that listing a number of traits and a range of performance for each. The employee is
then rated by identifying the scale that best describes his or her level of performance for each
trait.
b. Paired Comparison Method:

Ranking comparison method making a chart of all possible pairs of the employees for each
trait and indicate which the better pair of the employees is.
c. Cheek list:
In this system, a large number of statements that describe a specific job are given. Each
statement has a weight or scale value attached to it. While rating an employee the supervisor
checks all those statements that most closely describe the behavior of the individual under
assessment. The rating sheet is then scored by averaging the weights of all the statements
checked by the rater. A checklist is constructed for each job by having persons who are quite
familiar with the jobs. These statements are then categorized by the judges and weights are
assigned to the statements in accordance with the value attached by the judges.

Management by objectives
Commonly referred to as MBO is a performance appraisal method that determines how
closely aligned an employees goals are to organizational goals. MBO appraisals are suitable
for measuring quantitative and qualitative output of high-level employees. High-level
employees such as managers generally report to directors, according to hierarchy and the
chain of authority present in many organizations. Therefore, managers and the directors or
executives they report to often work together to establish MBO goals for this type of
appraisal method.
There are four main steps in MBO:
1. Define the job. Review, with the subordinates, his or her key responsibilities and duties.
2. Define expected results (set objectives). Here specify in measurable terms what the person
is expected to achieve.
3. Measure the results. Compare actual goals achieved with expected results.
4. Provide feedback, appraise. Hold periodic performance review meetings with subordinates
to discuss and evaluate the _latters progress in achieving expected results.

360 Performance Appraisals

The 360 evaluation feedback method was first used in the 1940s. Analogous to the multiple
points on a compass, the 360 method provides each employee the opportunity to receive
performance feedback from his or her supervisor, peers, staff members, co-workers and
customers. 360-degree feedback or multi-source feedback is an appraisal or performance
assessment tool that incorporates feedback from all who observe and are affected by the
performance of a candidate. Usually, this tool is used for employees at middle and senior
level. The complexity of their roles enables the organization to generate sufficient data from
all stakeholders for a meaningful assessment.
360 degree respondents for an employee can be his/her peers, managers (i.e. superior),
subordinates, team members, customers, suppliers/ vendors - anyone who comes into contact
with the employee and can provide valuable insights and information or feedback regarding
the on-the-job performance of the employee.360 degree appraisal has four integral
components:

 Self appraisal
Superiors appraisal
Subordinates appraisal
Peer appraisal.
Self-appraisal gives a chance to the employee to look at his/her strengths and weaknesses, his
achievements, and judge his own performance. Superiors appraisal forms the traditional part
of the 360 degree appraisal where the employees responsibilities and actual performance is
rated by the superior. Subordinates appraisal gives a chance to judge the employee on the
parameters like communication and motivating abilities, superiors ability to delegate the
work, leadership qualities etc. Also known as internal customers, the correct feedback given
by peers can help to find employees abilities to work in a team, co-operation and sensitivity
towards
others.
Self-assessment is an indispensable part of 360 degree appraisals and therefore 360 degree
Performance appraisal have high employee involvement and also have the strongest impact
on behavior and performance. It provides a "360-degree review" of the employees
performance and is considered to be one of the most credible performance appraisal methods.
360 degree appraisal is also a powerful developmental tool because when conducted at
regular intervals (say yearly) it helps to keep a track of the changes others perceptions about
the employees. A 360 degree appraisal is generally found more suitable for the managers as it
helps to assess their leadership and managing styles. This technique is being effectively used
across the globe for performance appraisals. Some of the organizations following it are
Wipro, Infosys, and Reliance Industries etc.

Square Toiletries Appraisal system

The square toiletries ltd follows the 360 degree Appraisal System. Because 360-degree tool to
assess performance and potential of staff and enable the employees to map their career path
based on the feedback. Organizations take 360-degree feedback about an employee before
taking a major decision about the professional's career.
The results from 360-degree feedback are often used by the person receiving the feedback to
plan training and development. Results are also used in making administrative decisions for
pay or promotion.
In The square toiletries the 360 degree knows as PMS- Performance Management System.
The square toiletries limited rated employees in some categories like Education
Service life
Experience
Knowledge about work

 Behavior with others

Taking time to done a work
Abilities to adopt
Culture
Overall performance
Attendance rate
Uses of resources etc.

Dimension of 0F Performance Appraisal

The KPI
Another important consideration in the development of KPIs is the selection of the
appropriate measurement family to capture operational performance over time and then
relate these KPIs to internal business and external industry benchmarks. Although the
following list reflects common measurement families, different industries will have their
own specific business drivers and related measures.
Productivity: Measures employee output (units/ transactions/dollars), the uptime
levels and how employees use their time (sales-to-assets ratio, dollar revenue from
new customers, sales pipeline).
Quality: Measures the ability to meet and/or exceed the requirements and
expectations of the customer (customer complaints, percent returns, DPMO -- defects
per million opportunities).
Profitability: Measures the overall effectiveness of the management organization in
generating profits (profit contribution by segment/customer, margin spreads).
Timeliness: Measures the point in time (day/week/ month) when management and
employee tasks are completed (on-time delivery, percent of late orders).
Process Efficiency: Measures how effectively the management organization
incorporates quality control, Six Sigma and best practices to streamline operational
processes (yield percentage, process uptime, capacity utilization).
Cycle Time: Measures the duration of time (hours/days/months) required by
employees to complete tasks (processing time, time to service customer).

 Resource Utilization: Measures how effectively the management organization

leverages existing business resources such as assets, bricks and mortar, investments
(sales per total assets, sales per channel, win rate).
Cost Savings: Measures how successfully the management organization achieves
economies of scale and scope of work with its people, staff and practices to control
operational and overhead costs (cost per unit, inventory turns, cost of goods).
Growth: Measures the ability of the management organization to maintain
competitive economic position in the growth of the economy and industry (market
share, customer acquisition/retention, account penetration).
Innovation: Measures the capability of the organization to develop new products,
processes and services to penetrate new markets and customer segments (new patents,
new product rollouts, R&D spend).
Technology: Measures how effectively the IT organization develops implements and
maintains information management infrastructure and applications (IT capital
spending, CRM technologies implemented, Web-enabled access).

Organizations are set up to achieve certain objectives. Achievement of goals or targets

depends upon the performance of individual employees. The objectives can be fulfilled when
the tasks are assigned to the employees and they perform the tasks. Otherwise these cannot be
fulfilled. Now the question arises how far the work has been done as per the planning. The
responsibility, accountability and performance standards have been met or not. Hence it is
quite necessary to understand as to what extent employees have been successful at their jobs
for achievement of their goals. This information will be available when the performances of
employees have been evaluated at the end of the year. If it is not done then the management
will not come to know the exact position about the targets achieved. They will be in the dark
and there will be chances of planning failure. The planning is done in the beginning of
performance management process. The performance appraisal is an important stage in this
process. It shows as per planning of objectives, performance standards and behavior the
communication, counseling, coaching, motivation and feedback have been given or not.
Finally to see what is the impact of these planning and action on the performance of the
employees. The performance standards regarding quality, quantity, cost and behavior have
been achieved or not. So it becomes necessary to carry out the performance appraisal of every
one for smooth working of the organization. Thus performance appraisal forms an important
part of HRM. This necessitates the study of the topic of performance appraisal. Performance
appraisal is mainly used for three purposes:
(a) As a basis of reward allocation such as salary increments, promotion and other
rewards etc. In performance appraisal systems slow and fast working employees are
identified. Under compensation, rewards and recognition plans the employees are given
higher pay scales, higher incentives for better performance and appreciation for the work.
Some time the cases of good performers are recommended for further promotion. It leads
to development and motivation of employees.
(b) Performance appraisal will point out the weaknesses of employees and will spot the
areas where development efforts are needed. The weaknesses in initiatives, leadership
quality, problem solving approach, behavior, discipline, difficulties faced during the work

and competencies for performing the tasks. The deficiencies can be pinpointed.
Performance appraisal is a tool for identification of deficiencies. On the basis of
identification the remedial action can be taken to overcome the deficiencies. This way the
performance of employees may improve to a good extent.
(c) It can be used for the selection and development program. It will differentiate
satisfactory performers from unsatisfactory ones. The performance appraisal will help the
management to perform functions relating to selection, development, salary, promotion,
penalties, lay-off and retrenchment.

Valid

Right people right place is the purpose of Performance Appraisal

Frequency
Percent
Valid Percent
Cumulative
Percent
Neutral
2
10.0
10.0
10.0
Agree
11
55.0
55.0
65.0
Strongly Agree
7
35.0
35.0
100.0
Total
20
100.0
100.0

Remarks: Most of the employees agree with the statement that Right people right place is
the purpose of Performance Appraisal

satisfied with your present job

Frequency
Percent
Valid Percent
Valid

Strongly Disagree
Disagree
Neutral
Agree
Total

5
11
3
1
20

25.0
55.0
15.0
5.0
100.0

25.0
55.0
15.0
5.0
100.0

Cumulative
Percent
25.0
80.0
95.0
100.0

Remarks: 95% employees are disagreeing with the statement that they are satisfied with
your present job.

Valid

Employees opinion about the present appraisal system is appropriate

Frequency
Percent
Valid Percent
Cumulative
Percent
Agree
16
80.0
80.0
80.0
Strongly Agree
4
20.0
20.0
100.0
Total
20
100.0
100.0

Remarks: Most of the employees are agree with the statement that the present appraisal
system is appropriate.

The frequency of appraisal is continuous

Frequency
Percent
Valid Percent
Valid

Agree
Strongly Agree
Total

19
1
20

95.0
5.0
100.0

95.0
5.0
100.0

Cumulative
Percent
95.0
100.0

Remarks: Most of the employees are agree with the statement that the present appraisal
system is a continuous process.

Performance Appraisal affects the productivity

Frequency
Percent
Valid Percent
Valid

Agree
Strongly Agree
Total

6
14
20

30.0
70.0
100.0

30.0
70.0
100.0

Cumulative
Percent
30.0
100.0

Remarks: All employees are agreeing with the statement that Performance Appraisal
affects the productivity.

appraisal help in polishing skills and performance

Frequency
Percent
Valid Percent
Valid

Neutral
Agree
Strongly Agree
Total

2
15
3
20

10.0
75.0
15.0
100.0

10.0
75.0
15.0
100.0

Cumulative
Percent
10.0
85.0
100.0

Remarks: 90% employees are agreeing with the statement that appraisal help in polishing
skills and performance and 10% employees are neutral.

Personal bias affects while appraising

Frequency
Percent
Valid Percent
Valid

Neutral
Agree
Total

1
19
20

5.0
95.0
100.0

5.0
95.0
100.0

Cumulative
Percent
5.0
100.0

Remarks: 95% employees are agreeing with the statement that Personal bias affects while
appraising. They believe that personal relationship also affect the result when appraising.

360 degree method of conducting the PA is appropriate methods

Frequency
Agree
Total

20
20

Percent
100.0
100.0

Valid Percent
100.0
100.0

Cumulative
Percent
100.0

Remarks:

100% employees are agreeing with the statement that 360 degree method of

conducting the PA is appropriate methods.

PA leads to identification of hidden potential

Frequency
Percent
Valid Percent
Valid

Agree
Strongly Agree
Total

12
8
20

60.0
40.0
100.0

60.0
40.0
100.0

Cumulative
Percent
60.0
100.0

Remarks: 60% employees are agreeing with the statement and 40% employees are strongly
agreeing that PA leads to identification of hidden potential.

Valid

Important Performance Appraisal is in utilizing the optimal skills

Frequency
Percent
Valid Percent
Cumulative
Percent
Agree
20
100.0
100.0
100.0

Remarks: all employees are agreeing with the statement that Important Performance
Appraisal is in utilizing the optimal skills.

Valid

Experience consider as vital for performance appraisal

Frequency
Percent
Valid Percent
Cumulative
Percent
Agree
20
100.0
100.0
100.0

Remarks: all employees are agreeing with the statement that Experience consider as vital
for performance appraisal.

Performance Appraisal helps in retention

Frequency
Percent
Valid Percent
Valid

Agree
Strongly Agree
Total

7
13
20

35.0
65.0
100.0

35.0
65.0
100.0

Cumulative
Percent
35.0
100.0

Remarks: 65% employees are agreeing and 35% strongly agree with the statement that
Performance Appraisal helps in retention.

aware about Performance Appraisal System

Frequency
Percent
Valid Percent
Valid

Strongly Disagree
Disagree
Neutral
Total

5
13
2
20

25.0
65.0
10.0
100.0

25.0
65.0
10.0
100.0

Cumulative
Percent
25.0
90.0
100.0

Remarks: Maximum Employees are not agreeing with the statement that they aware about
Performance Appraisal System.

Performance Appraisal helps build relationships between managers and employees

Frequency
Percent
Valid Percent
Cumulative
Percent
Valid
Agree
16
80.0
80.0
80.0
Strongly Agree
4
20.0
20.0
100.0
Total
20
100.0
100.0

Remarks: 80% employees are agreeing and 20% strongly agree with the statement that
Performance Appraisal helps build relationships between managers and employees

Valid

Performance Appraisal System Motivates the employee

Frequency
Percent
Valid Percent
Cumulative
Percent
Agree
20
100.0
100.0
100.0

Remarks: 100% employees are agreeing with the statement that Performance Appraisal
System motivates the employee.

Who should do the appraisal

Frequency
Percent
Valid Percent
Valid

Superior

20

100.0

100.0

Cumulative
Percent
100.0

Remarks: 100% employees are agreeing with the statement that their immediate supervisor
or superior conduct the appraisal.

Findings

These appraisal systems differ on the factors on which a person is rated and the
nature of duties handled by him.
It is seen that the employees are not satisfied with the way they are appraised or
they havent been appraised properly. For this matter, almost all the companies
have interview and discussion.
The frequency of appraisal in all organizations is yearly. Where appraisal is
based on Key Result Areas, a mid-term review is also undertaken. This data is
then compiled and the final appraisal is conducted at the end of the year.
In most of the cases the immediate supervisors is the appraiser but sometimes it
is also the HR department
All organizations have goal setting as part of appraisal. The performance is
evaluated against these targets.
Maximum of the employees in an organization are motivated by performance
appraisal.
Most of the Employees are not are about the Performance Appraisal system.

Recommendation

Performance appraisal should not be perceived just as a regular activity but its
importance should be recognized and communicated to all the employees.
There should be a review of job analysis, job design and work environment
based on the performance appraisal.
It should provide more empowerment to the employees.
For excellent performance should be used as a mentor to motivate employees
Employees should be given feedback regarding their appraisal. This will help
them to improve on their weak areas and understand the employees and their
needs, behavior better and to find out the loopholes.
Financial and non-financial incentives should be linked to the annual appraisal
system so that employees would be motivated to perform better.
The frequency of training program for the appraiser should be provided
The awareness sessions for the employees should be consideration.

 It should bring more clarity in objective and more transparency should be

brought about in the appraisal system.

Conclusion:

Dear Respondents,
I am a student PGDHRM Program at BIM. I am doing term paper title of my term paper is
Performance Appraisal System of Square Toiletries Ltd.. To complete the report following
information are required and in this regard I need your help. It is assured that all the information will
keep confidential and will use in this report only.
Put a tick () to the following questions.
Name:
Designation:
Sex:
1. Male
2. Female
Age:
24-30 31-40 41-50 Above 50
Respondent academic qualification: Undergraduate Graduate Post graduate
Please give your important response to the following questions:
Particulars

Strongly
Disagree

Disagree

Neutral

Agree

Strongly
Agree

Right people right place is the purpose of

Performance Appraisal
You are satisfied with your present job

Employees opinion as to the

appraisal system is appropriate

present

made

The frequency
continuously

of

appraisal

is

Performance
Appraisal
affects
the
productivity of the employees
Appraisal help in polishing skills &
performance
Personal bias effects while appraising
employees
360 degree method of conducting the PA is
appropriate methods
performance appraisal leads to identification
of hidden potential
Performance Appraisal is important in
utilizing the optimal skills, knowledge and
abilities

Experience consider as vital for performance

appraisal

Performance Appraisal helps in retention of

employees
Employee
aware
about
Performance
Appraisal System

Performance Appraisal helps build relationships

between managers and employees

Performance Appraisal System Motivates the

employee

Who should do the appraisal

Superior

Peer

Subordinates

Self

All