Assignment

on
Performance Management System & Practices Companies of
Bangladesh on BSRM Group

Course Title : Human Resource Management

Course Code : HRM-522

Submitted To
Md. Jobair
Lecturer
Department of Business Administration
Bangladesh Islami University

Submitted By
Name : Md. Shohidul Islam
ID No : MBARM43201408
Batch : 43rd
Program : MBA
Semester : Fall

Date of Submission : 14-01-2021

Performance Management System

The execution administration framework is a constant procedure of

characterizing and conveying the activity parts and duties, execution
desires, goals and set their needs between boss (administrator) and
subordinates (workers). It incorporates association, office and
representative shared objective and targets which are lined up with
frameworks and assets. It is the channel of providing clarity about goals
and also to improve the business processes through various methods and
mechanism.
The competency, skills and knowledge gaps are also identified through
this process which can be improved by providing guidance, trainings,
coaching and mentoring to employees or teams at different levels and
designations. It optimizes the results through a roper channel and process
which reduces the conflicts and grievances among teams or employees.
Because each individual is clear about the expectations from his/ her role
and put their efforts to meet performance standards.
This process can be applied to single department / function or to whole
organization. It aims to continuously monitor and measure
the performance standards against the desired goals and objectives.

Purpose of Implementing Performance Management System

Managing employee’s performance is the key objective of establishing

systematic Performance Management system in organization.These
process servers’ six main purposes in the company:
1. Strategic
Performance managed system is a tool which should be align with
overall organization goal followed through department goal and
individual goals. In other words, the organizational strategic goals
should be linked with each activity performed by every department
or employee.
 2. Administrative
Performance management system is also set the deciding factor of
employee’s promotion, demotion, salary increment, transfer and
terminations. It enables to identify the performers, non-performers or
under performer employees in an organization. It merits the
competency and skill level of employees. Hence, it clearly defines
the administrative role as well and supports the management
decisions.

3. Communication
It is the effective communication channel to inform employees about
their goals, job responsibilities, key deliverables and performance
standards. Further, it is also a structure method to indicate the key
areas of improvement required by the employee in order to
improvise his performance. In other words, it provides the platform
to learn and train on skills, and knowledge for better performance
and results.

4. Developmental
It is the structure method of communicating the positive feedbacks,
improvement areas, and development plans. The manager can
use various methods like training, mentoring, coaching etc. and them
their team members to perform better.
5. Organizational Maintenance
Performance management system is the yardstick of measuring
employee, department and organization achievements
and evaluating the performance gaps through various tools and
techniques. Hence, it maintains the health of the organization and its
performance standards.
6. Documentation
The performance management reviews, feedback and forms should
be documented and maintained periodically by every organization. It
would enable them to look forward, set new targets, design
 developmental needs, design training and learning programmes, and
career progression of employee and for department. Hence, it helps
in driving the organizational needs to desirable objectives.

Benefits of Performance Management

In today’s global environment where the market is evolving at a very fast

pace, it is important for an organization to understand the benefits of
performance management. Therefore, managing employee’s performance
is the ultimate need of an organization. The employees are considered as
an asset by the organization. The performance management system serves
various benefits to the organization, which are as follows:
1. It supports to provide data to find the skills and knowledge gaps of
employees in order to improvise them through trainings, coaching and
mentoring systems.
2. It motivates employees to take new challenges and innovate through
structure process.
3. It provides new opportunities to employees for their growth and
development in their professional careers
4. It defuses the grievances and conflicts among team members through
proper performance evaluation system.
5. It assesses the employee’s performance fairly and accurately against
the performance targets and standards.
6. Employees would enable to provide better results because of clarity
on their performance targets.
7. Performance management system provides the platform to discuss,
develop and design the individual and department goals thorough
discussion among manager and their subordinates.
8. The under performer can be identified through performance reviews
and can raise their skills levels objectively. It quantifies the learning
 needs through individual development plans or performance
improvement plans as well.

Main Purposes of Performance Management

 Individual Rewards (Base and Incentive)

 Feedback for Sub-Ordinate (Plus and Minus)
 Recognition of Superior Performance
 Documentation of Weak Performance
 Personnel Decision-Making
 Future Goal Commitments (Planned Achievements)

Methods of Performance Evaluation

Traditional Methods:

 Paired comparison
 Graphic Rating scales
 Forced choice Description method
 Forced Distribution Method
 Checks lists
 Free essay method
 Critical Incidents
 Field Review Method
 Confidential Report
 Ranking
Modern Methods:

 Assessment Centre
 Appraisal by Results or Management by Objectives
 Human Asset Accounting
 Behaviourally Anchored Rating scales
Paired Comparison Method:

Grade representative by making a diagram of every single pair of the

employees for every characteristic and showing which the better employee
of the pair is. In combined assessment the supervisor contrasts every
employee and each other employee in the group and rates each as either
superior or weaker of the pair. After all assessments are made, every
employee is assigned out a summary or grading dependent on the quantity
of superior scores got.

Graphic Rating Scale Method:

It records various qualities (correspondence, hierarchical skill,

cooperation, and so forth.), and a scope of execution for each. The
employee is then appraised by distinguishing the score that best portray
his/her degree of performance for every quality. Assigned qualities for
characteristics are then totalled.
Forced Choice Method:

In this, the ratter is given a progression of reports about an employee.

These reports are prepared in blocks of at least two, and the ratter
demonstrates which report is most or least expressive of the employee.
This methodology is known as the forced choice method in light of the fact
that the ratter is compelled to choose explanations which are readymade.

Forced Distribution Method:

Like rating on a bend; prearranged percentage of rates are put in different

classes (top 10%, centre 80% and base 10%, and so on.) are put in
different execution classifications. The extents in every classification need
not to be even.
Critical Incident Method:

To track strangely positive or negative instances of a representative's

business related conduct and survey with the employee. The supervisor’s
consideration is centred on explicit or basic practices that different
compelling from inadequate performance.

Performance Management System at BSRM

Aim of Existing Performance Appraisal System at BSRM

The management of BSRM perspectives execution the board as an
essential pieces of a far reaching human asset the executives’
methodology. Its goal is to boost person's exhibition and potential with the
end goal of accomplishing hierarchical objectives and upgrading in general
adequacy and efficiency, it additionally improves correspondence among
supervisors and staff on overseeing execution.

Performance goals are set toward the start of the presentation the
executives cycle (January to December) through open talk between the
managers and the appraises. Progress is checked consistently and criticism
from staff and managers is gathered to help explain destinations and yield
desire and upgrade execution

Performance Appraisal System at BSRM

BSRM has four useful sub-branch of HR office. The divisions are HR
Development, HR Services, Compensation, Industrial Relations.
Execution examination is drilled under Operation of HR Services.
BSRM has isolated it’s all out workers into 2 classes for evaluation:
 (1) Management representatives and

(2) Non-the executives representatives

For the management representatives, it has been demonstrated

hatred for into Manager and Officer. There are two classifications
of official. One is office based official and another is field power
official.

All Appraisal procedure has been led once in a year. Appraisal process in
referenced underneath.

Figure: Classification of Employees from the Point of View of Performance

Appraisal.
1. Manager’s Appraisal Processing:
 SELF REPORTING

Line Manager

Department Head

Managing Director

2. Officer’s Appraisal Process in BSRM:

Self-Evaluation

Immediate

Department Head

Managing Director
The evaluation model which is pursued on yearly premise beginning from
month of December till January has been amazingly compelling for the
workers of BSRM

Evaluation Period

The assessment time of BSRM is from 01 January to 31 December if there

should arise an occurrence of all representatives other than laborers.

Responsibility for Appraisal

Regularly the human asset office is liable for planning the structure and
usage of execution evaluation programs. Notwithstanding, it is fundamental
that line supervisors assume a key job from start to finish. These people as a
rule lead the examinations, and they should legitimately take part in the
program in the event that it is to succeed.

Employee Self-Evaluation

The representative's yearly exhibition assessment, it is prescribed that each

worker be required to assemble a rundown of their achievements during the
assessment time frame. This ought to incorporate the last status of recently
settled objectives, any extraordinary undertakings finished or in progress,
and some other extra assignments, trainings, advisory group cooperation,
and so forth. Moreover, the representative should make a rundown of
objectives as well as interests for the forthcoming year, and arrange some
other documentation or potentially takes note of that they may have gathered
over a similar time span. This documentation ought to be given and talked
about the immediate administrator in a pre-assessment meeting which the
chief/director can then properly consolidate into the worker's survey. This
basic expansion to the exhibition the board procedure upgrades the
experience for the representative by including them as a functioning member
in their activity execution and improvement, as opposed to latently accepting
scores on past errands. Furthermore, with this communitarian design,
correspondence is upgraded and workers are more averse to be amazed or
feel misjudged when the assessment is concluded – as they were engaged
with the procedure from the earliest starting point.

Immediate Supervisor

A worker's quick director has generally been the most sensible decision for
assessing execution and this keeps on being the situation. The manager is
ordinarily in an amazing situation to watch the worker's activity execution
and the administrator has the obligation regarding dealing with a specific
unit. At the point when another person has the errand of assessing
subordinates, the manager's power might be undermined. Likewise,
subordinate preparing and advancement is a significant component in each
supervisor's activity and, as recently referenced, examination projects and
worker improvement are generally firmly related

Policy for Employee Performance Evaluation (Yearly)

• The all-out assessment was under 100 imprints. For Self Evaluation
there were 40 imprints and other 40 imprints were given by Reporting
Officer and 20 Marks gets by his/her Performance Evaluation Report.
 • For section A: Hear descript about Employee and Employee
subtleties

• For part B: For Self Evaluation and determined the all-out imprints
40 by the representative.

Segment - 2: In Supervisor's Evaluation for Section 2 there

will be just 25 imprints which will be given by Reporting
Officer

Rating Scale of BSRM

Sl.No Particulars Marks

1 Length of Service 15

2 Academic Qualification 10

3 Professional Qualification 05

4 Training 10

5 Employees performance Report PER 20

6 Performance Factor Rating 15

7 Job Description 15

8 Employee Performance 10

Total=100

Uses of Performance Management System at Rangs Motors Limited

Following are the determinations for which the performance of employees

are appraised-
Development

Performance Management System at BSRM can figure out which employee

needs all the more preparing and it can assess the consequences of the
preparation programs. It helps the subordinate-supervisor counseling
relationship and it urges manager to watch subordinates' conduct to support
workers.

Basis of Reward Allocation

It is utilized as the premise of remuneration assignment. It causes the
organization to choose who gets pay rise, give legitimate ground at the time
of promotion and different prizes.

Motivation
The nearness of well-planned assessment framework propels individuals at
Rangs Motors Limited. It supports activities, builds up an awareness of
other's expectations and animates to perform better.

Legal Compliance
Performance evaluation fills in as a lawfully faultless purpose behind
advancements, transfer, release and rewards.

Training and Development

Performance Management System at BSRM can figure out which employee
needs additionally preparing and it can assess the aftereffects of the
preparation programs. It additionally figures out which sorts of training need
and best for worker.
HR Planning
It functions as a significant contribution to aptitudes inventories and HR
planning. At the point when all the practical heads finishes the entire
methodology of assessment they send it to HR Department for their record
and ensuing procedure.

Compensation
It gives data that can be utilized to figure out what to pay and what will fill
in as evenhanded monetary package. Base on the exhibition the Supervisor
wards Individual Performance Multiplier (IPM) at last that IPM in a
roundabout way chooses how a lot of pay rise one will get.

Communication
Assessment is a reason for a progressing conversation among superior and
subordinate about employment related issues. Through connections the
parties become more acquainted with one another better. BSRM is giving
accentuation on this viewpoint.

Annual Increment:

• Normal yearly augmentation will be granted once every year to the

employee who has finished one year's administration dependent on
yearly performance evaluation.

• Annual Increment will become due consistently (subject to

acceptable execution) from the date of joining which will be given
after survey of performance of the employees.
• Increments are typically 1 stage in unique cases more than one-advance
increase might be prescribed relying upon performance subject to
endorsement of the Board of Directors.

• An employee who got cautioning letter as an issue of disciplinary activity

may not be given yearly increases relies on gravity of the offense.

• However increment will be given rely upon organization money related position.

Promotion:
Promotions of employee of all under working in BSRM are made by Head
Office HR. The HR of Head Office will set up the rundown of employee
for promotion to the following higher evaluation based on the Performance
Evaluation Report (PER) and on the suggestion of the particular Head of
Dept. /Offices. For that reason Heads of Dept./Offices must send the PER
for the year finished on 31st December of every year to Head Office HR
by the fifteenth January of the following year.
Promotion is the progress of an employee to the following higher step in a
similar evaluation/class of starting with one classification then onto the
next class.
• Promotion may possibly be given to an employee if his obligations are
upgraded. (Extra assignments don't really expand one's duty level)
• An employee might be viewed as qualified for promotion to next higher
position contingent upon his/her nature of performance and subject to
accessibility of the situation at the higher evaluation/classification.
• Promotion will typically not surpass each evaluation in turn. In any case,
in uncommon cases more than one evaluation advancement might be
 Special Promotion:
Special promotion might be given to a meriting employee for his/her
remarkable exhibition, dedication to obligations, activity and drive in the
release of obligations paying little heed to position and rank, if so affirmed
by the Appraisal Committee.

Special Increment
All Special Increment past one addition might be endorsed by a
Committee comprising of DCEO, Rangs Motors Limited as Chairman and
Director – HRD, Adviser, Rangs Motors Limited and GM, HRD as part
based on suggestion made on the ACR.The advantage of such Special
Increment will be compelling from first day of January consistently and
appropriately affirmed by CEO, Rangs Motors Limited.

Probation and Confirmation

All entry level officials and staff other than arrangement made on
contractual premise will be on post-trial supervision for at least 6 (Six)
months and for Trainee Officer probation period is for 1 Year .After the
probation time frame, their exhibition will be assessed by their senior
reporting official and share the report to HRD.
Whenever found appropriate, they will be affirmed by CEO. Whenever
found unsatisfactory their trial period might be additionally expanded or
their administrations will be ended by the equipped position.

Reward and Compensation System

The reward arrangement of an association incorporates whatever an
employee may esteem and want and that the business is capable or ready
to offer in return for worker commitments. The reward system comprises
of a compensation and non-compensation structure.
Pay Structure
Pay structure is the overall compensation of various occupations (work
structure) and the amount they are paid. The compensation structure for
employees of the supply chain department of SPL is appeared: Basic
Salary + Home Rent + Transport + Medical Allowance.