Case Report

“Carter Cleaning Company: The Performance Appraisal”

Bus601.2: Human Resource Management

Prepared By
A M Shahed Istiaque (141-1897-660)
Mohammad Sakibur Rahman (143-0862-660)
Md. Rafizul Haque (142-0900-060)

Submitted To
Dr. Md. Abbas Ali Khan
School of Business, NSU.

Date of Submission: 8th August, 2015.

Letter of Transmittal

8th August 2015

Dr. Md. Abbas Ali Khan
School Of Business,
North South University, Dhaka.

Subject: Submission of Case Report on “Carter Cleaning Company: The Performance

Appraisal”.

Dear Sir,
This is to notify you that this Case report is based on the learnings of initiating the Performance
Appraisal Method in a company that is correlated with the course materials. The opportunity,
infact, provided us a deep understanding and practical knowledge of what we learned so far.
Thank You very much for your guidance.

We beg your kind excuse for the unintentional errors that may take place in the report in spite
of the best effort. We hope that you would be kind enough to accept this report and evaluate
with your wise judgment.

Sincerely yours

…………………….......... …........………………….
A M Shahed Istiaque Md. Rafizul Haque

………………………………………...
Mohammad Sakibur Rahman
 Table of Contents

Chapter One Case Report Description Page

no
1.1 Origin of this Report 01
1.2 Purpose of the Report 01
1.3 Methodology of the Report 02
1.4 Limitations of the Report 02
1.5 Performance Appraisal Overview 02

Chapter Two Case Scenario

2.1 Criteria to be evaluated 03
2.2 Quality Standards 03
2.3 Accomplishments 04
2.4 Factors to be considered 4-5
Chapter Three Question-Answer
3.1 Question 1 5-6
3.2 Question 2 6-9

Bibliography 9-10

2|Carter Cleaning Company: The Performance Appraisal

 Chapter one: Case Report Description
1.1 Origin of this Report

In today’s world, education is the tool to understand the real world and apply knowledge
for the betterment of the society as well as business. From education, the theoretical
knowledge is obtained from courses of study, which is only the half way of the subject
matter. Practical knowledge has no alternative. The perfect coordination between theory
and practice is of supreme importance in the context of the modern business world in
order to resolve the contrast between these two areas. Therefore, our course instructor
Dr. Md. Abbas Ali Khan gave us an opportunity of making a project report that we
choose to prepare and compile on FDI Climate in Bangladesh’s perspective.

1.2 Purpose of the Report

Performance Appraisal is an important part of Human Resource activities for a company.
We analysed the case scenario for the carter cleaning company and found out some
criteria to recommend the best possible method of performance appraisal for the carter
cleaning company. The specific objectives of this case report are as follows:
• To identify an appropriate appraisal method for a small firm like Carter cleaning
company;
• To observe if the appraisal helps the supervisor to assess the work performance of its
employees;
• To observe if the appraisal helps to review the potentiality of employees so that their
future capability is anticipated;
• To provide grounds for employees to correct their mistakes in this line of business;
• To recommend ways to improve employee engagement through proper appraisal
method;

1|Carter Cleaning Company: The Performance Appraisal

1.3 Methodology of the Report
The paper is fully based on case scenario presented by the author (Gary Dessler) in the book
“Fundamentals of Human Resource management”. The relevant information needed to solve
the case regarding the Performance Appraisal are collected through the secondary data from
the websites, some articles and journals, some case study to know the actual scenario. Online
articles and journals helped us to gather information about the theoretical concept along
with the book.

1.4 Limitations of the Report

Limited Materials: The case scenario presented in the book is very short one. We couldn’t
get that much of inside information about carter cleaning company regarding the actual
situation, employee turnover rate and budgeting to elaborately analyse the actual situation.

1.5 Performance Appraisal Overview

Employee appraisals are important for improving communications between the employee
and reviewer. By speaking openly about the job performance and issues that may be affecting
it, the employee and reviewer can develop a sense of trust that may have been lacking.
Employees who previously did not feel comfortable approaching the reviewer with a
problem may become more likely to voice her concerns, which can prevent a small issue from
escalating into a major problem over time. Besides, an effective employee appraisal provides
an opportunity to give feedback as well as receive it. The employee receives important
information as to what areas of the job he/she is performing well and those that need
improvement, so he knows exactly where he stands. The reviewer can also receive feedback
from an employee that can help him make improvements in the work environment. The
reviewer may also uncover issues that could be impeding employees from performing their
best, and can take corrective measures if necessary.

2| Carter Cleaning Company: The Performance Appraisal

 Chapter two: Case Scenario
The case basically discusses about whether the cartel cleaning company should take a formal
appraisal approach to evaluate its employees. The fact is that the company is solely owned
and managed by Jack carter who has been running the business on his own way. He didn’t
have any formal methods to evaluate the performance of his employees and also didn’t have
any records of employee turnover. Most of his employees worked there in short term
because when those employees got uncomfortable, they left. This has been the scenario in
the recent past. But now the company is expanded to six different locations with six stores
with a store manager in each to manage it. The employee pools are larger than before. Since
jack’s daughter Jennifer, a business graduate from state university joined in, she observed
these issues. She wanted to bring in some changes in the company. Now she wants to turn
her father’s “informal way of doing business” into more formal one.

2.1 Criteria to be evaluated

Should be evaluated periodically:
Quality: Correctness, completeness, and accuracy of work duties performed.
Quantity: Amount of work done during workday.
Attendance: Regularity to work hours.
Punctuality: timely attendance at the workplace and meetings.

2.2 Quality Standards that store managers should have

Store Cleanliness: basically the outlook of the stores.

Efficiency: The output rate of each employee
Safety: Good working condition
Adherence to budget: Compliance with the company’s monetary condition.

3| Carter Cleaning Company: The Performance Appraisal

2.3 Accomplishments
An appropriate performance appraisal of the employees will enable the carter cleaning
company to:

Lead from the front. The company might have a clear idea of where the business is going and
whether the employees understand the vision and tie it in with their daily activities?

Listen to the employee’s real concerns and pick up on their ideas. Employees will feel
happier and perform better if they have a recognized system for talking to their store
manager, getting feedback and getting help to improve and develop.

Understand what makes the employees tick and how they contribute to the business
success. This understanding can only really develop through the kind of regular and open
interaction provided by performance appraisal.

Achieve results. If the company buys a new piece of equipment or machinery, it usually
comes with a manual that explains how to get the best out of it. It is not so simple with people.
To work best, the employees need an ongoing system of tweaking, adjusting and reviewing
the way they work in order to continually improve.

2.4 Factors to be considered

What is the nature of the problem? If it is a very serious issue that is potentially damaging
to your business, it will need to be dealt with urgently. In these cases you may instigate
formal disciplinary action much sooner.

How long it has been going on? If you have already discussed the issue at appraisal
meetings and attempted to resolve the problem, you may decide it is time to follow your
disciplinary procedure.

4| Carter Cleaning Company: The Performance Appraisal

What is causing the problem? If it is beyond the employee’s control, for example, the lack
of adequate training, this needs to be addressed before you begin any formal action.

Is the employee capable of meeting their targets? If they are capable of meeting their
targets, then their failure to do so may be due to a lack of motivation or hard work.

Is there a pattern of unsatisfactory performance? If you notice that an employee has a

pattern of only meeting their objectives as a last resort, when all other options are exhausted,
you may decide that an informal approach is not working.

Chapter three: Question-Answer

Question 1
Is Jennifer right about the need to evaluate the workers formally? The Managers? Why
or why not?
Jennifer is absolutely correct in having these employee evaluations done formally. After
spending several weeks on the job she was surprised to discover that her father had not
formal evaluated any employee’s performance. He had focused on other things like boosting
the sales, lowering the production cost etc. He had a very informal praised system for the
manual workers. Informal evaluations can lead to unfair appraisals which can open
unexpected problems like discriminations, demotivation, biasness etc.
So, Jennifer believes that a more formal appraisal approach is required. She also believes that
there are criteria such as Quality, Quantity, Attendance, Punctuality, Sincerity, Behavior,
Efficiency etc. that should evaluated periodically even if a worker is paid on piece rate.
Furthermore, she feels quite strongly that the manager needs to have a list of quality
standards for matters such as store cleanliness, efficiency, safety, and adherence to budget
on which they know they are to be formally evaluated periodically.
Reason for is to protect Carter Cleaning Company and its business goals from discrimination
charges or violations of Title VII of the 1964 Civil rights Act. All employees should receive

5| Carter Cleaning Company: The Performance Appraisal

formal evaluations via by paper or electronic forms in order to have a documented history.
Every individual company has its own Standard operating procedure (SOP) to evaluate their
employees. There are some key things that the supervisors are observed and after a certain
period of time, they evaluate on that basis. Keeping employee evaluations on file makes it
easier for employers to reference certain information needed for promotions, increments or
transfer etc.
There are three main reasons to appraise performance.
1. Firstly, appraisals provide important data the supervisor then use to make promotion
& salary raise decisions.
2. Secondly, the appraisal let the boss & subordinate develop a plan for correcting any
deficiencies the appraisals might have unearthed, and to reinforce the things the
subordinate does correctly.
3. Finally, appraisals can serve a useful career-plan purpose, by providing the
opportunity to review the employee’s career plans in light of his or her appetent
strengths and weaknesses.

Jennifer should get with Jack to discuss what performance dimensions should be measured
and how to measure them. Once they’ve come to a decision, Jennifer should look in to
developing a sort of graphic rating scale.

Question 2

Develop a Performance appraisal method for the workers and the managers in each
store.

6| Carter Cleaning Company: The Performance Appraisal

Performance appraisal method for Carter Cleaning Company
If you are finding a better method of evaluating, in full aspects, the company culture, the
accuracy of the job descriptions, employee performance and the effectiveness of practices
and business operations, you may consider applying 360 Appraisal Method.

This is an Appraisal Method based on the feedback from many points of view such as of
employees under other managers, direct managers, subordinates, Director Board members
or of customers and suppliers, etc.

This method requires no computer software to have an accurate appraisal result. Many small
enterprises have developed themselves "low-tech" programs that mainly use paper, but still,
have many advantages in appraisal process. According to Rim Yurkus and Diane Irvin -
directors of LISTEN Co. (a company with headquarter in Denver, the US, which specializes in
helping corporations to develop their human resource and apply appraisal methods), when
developing 360 Appraisal Method, a company need to focus on the following:

1. Making agreement with the employees

It shall be necessary to hold a meeting in which the purpose, procedures to apply 360
Appraisal Method and people who will receive the appraisal results will be clearly explained.
If the purpose is to develop professionalism, the results should be shared among the
evaluated employee and his manager or instructor at work.

If the purpose is to consider the performance for bonus, it shall be necessary to explain
clearly the role (by percent) of the Appraisal Method of 360. For example, an employee will
get a bonus on considering his general performance (50%), fulfillment level of the business
goals (25%) and the result of 3600 Appraisal Method (25%).

7| Carter Cleaning Company: The Performance Appraisal

It shall be crucial for the company to clearly explain to their employees about How the
appraisal process will be supervised, How the results will be collected, what the next step is,
when the next appraisal will be and about any training or instruction course after evaluating.

2. Building up a Common Job Description

You should begin by establishing a professional board which consists of representatives of

different departments, to work out a description with skills, knowledge and experience
required for each job.
The description should consider the core value and strategy of the company as a Lodestar
and consider high performance employees as typical when establishing a job description.
When skills and professional qualifications for each job are unified, they shall be divided
into smaller, more specific and easier to observe behaviors.

3. Convert the behaviors above into appraisal questions

To have an accurate appraisal result, based on small behaviors as mentioned above,

appraisal questions must be extracted from so as to any evaluator can understand and give
the similar feedback when being asked with such question no matter when he is asked (6
weeks, 6 months or 6 years periodically)
The important point is that these questions must be unified and suitable to the company
condition. Finally, the list of appraisal questions on the employee behaviors will be revised
by summarizing and adding more or less question (if necessary), then submit to the
Director Board for approval.

4. Holding Training Course for responsible People for evaluating

The evaluators shall be instructed about how to give a valuable and objective feedback. They
should as well be reminded of the importance of the accuracy and of following the
Information Privacy Principle. They will be pre-informed of the employees, behaviors and
score scale to be evaluated.

8| Carter Cleaning Company: The Performance Appraisal

It will be appropriate to apply 1 - 7 appraisal score scale, in which 1 is "unacceptable" and 7
is "excellent". A section of "Not Applied (or N/A)" will be applied as for the appraisal not
relating to the job or employee to be evaluated. In addition, there should be some questions
requiring feedback in writing, for example: "What do you think are the benefits that Mrs. A
has brought us?"; "What do you think Mr. B should do first to improve his performance in
the future?"

5. Action after Evaluating

The evaluated people may hold a meeting to give thank to all the evaluators for their
feedbacks, make future engagement to improve and do better with their help and timely
advices. Based on the appraisal result, the company may consider the employees with high
and outstanding performance at work and skills and the opposites, for whom appropriate
training shall be decided if necessary.

6. Calculating the score and Announcing the result

The score should be calculated for different jobs, departments and managers. These results
may be used in the interview for recruitment or for leaving off work. The scores will be
classified according to the relationship between the employee and the evaluators (co-
worker, subordinate, customer...)

Bibliography

Book
Dessler, Gary & Varkkey, Biju. “Fundamentals of Human resource management-Content,
competencies and application”. Subcontinent Ed. India/Boston: Prentice Hall, 2011.

Online Research Paper

ACAS (2014), “Managing Performance for Small Firms”. Retrieved from
www.acas.org.uk/.../Managing-performance-for-small-firms-accessible- version.pdf

9| Carter Cleaning Company: The Performance Appraisal

The University of Texas of the Permian Besin (2013), “Performance Appraisal”. Retrieved from
https://www.utpb.edu/docs/default.../pe3_performance_appraisal.pdf

Website

10 | C a r t e r C l e a n i n g C o m p a n y : T h e P e r f o r m a n c e A p p r a i s a l