Project Title: Implementation of Performance Appraisal System
Type of Project: A system to assess the performance
Project Place: Mau Bank Ltd
Number of participants: All the employees of Mau Bank Ltd
Date of Implementation/Duration: 01-January to 31 December 2018
Project Implementation: 19 Branch and Head office
The Bank objectives become an integrated part of the system in the performance appraisal and will be communicated accordingly (Marchington and Wilkinson, 2005). Performance appraisal includes all formal procedures used to evaluate personalities, contributions and potentials of employees in the bank. It is a continuous process of performance appraisal, which is a systematic evaluation of employees’ performance and potential development align with the strategic objectives of the Bank. Our employees are the most valuable resource in providing efficient and effective customer services to the customer of Mau Bank. It is important that all employees understand their responsibilities and duties to perform well in order to meet their objectives and targets. The Performance Appraisal System (PAS) will provide managers an effective tool to evaluate their bank officers work performance and to help them to improve their work performance. The Performance appraisal system can only work effectively if employees, supervisors, and managers understand it well. The appraisal program will clarify everyone’s roles and responsibilities.
The Performance Appraisal System will provide managers and supervisors with an effective tool to evaluate the performance their employees’ and will help employees to improve their work performance and help to achieve strategic objectives by maintaining and developing employees’ performance. In practice, for the bank to measure the performance of the employee due to the non-measurable factors and the sensitivity of this topic. Appraisal system will offer a controlling tool in developing measurable and non-measurable performance of the employees within the bank. To be successful they should also be used to make development and improvement plans and reaching agreement about what should be done in the future to enhance the bank’s effect and effectiveness where Performance Management Goal Planning Worksheet can be used. Performance Appraisal is often the main support of performance management in the bank to keep employee motivated as through this system employees will be rewarded in such a when achieving their targets. Employees with low performance will be encouraged and trained to improve their performance. Feedback will be provided so that employees can align their individual tasks with organizational goals and objectives. The appraisal system implementation issue is there is one-way communication as some managers simply give the employee the form to quickly sign and they do not even ask for a feedback. Managers and the process scare many employees, and as a result, they say nothing during or after the appraisal. Hence, the management has decided to integrate a performance appraisal system with monthly feedback.
The Performance Appraisal System applies to all employees of the bank, who are full- or part-time and whose appointments are probationary or permanent. The program may also apply to employees serving in other types of non-regular appointments, at the discretion of the department head.
The problem encounter are as follows:
Employees: resistant to change
It is very important to provide resources and support to raise employees’ confidence and clarify all doubts about the system as everyone performance which will depend on the as a standard to plan promotions, empowerment, salary revisions and training and development. However, they may be disconnected from rewards getting a merit raise in salaries; bonus or promotion is completely disconnected from an employee’s performance appraisal scores. When there is a weak link between employees and managers are not likely to take the process seriously. That is why, there will be a clear communication from the from the start till end of year on a monthly. The measures that would mitigate the adverse effects resulting from such risks are communication and feedback. By giving feedback to the employee during the monitoring phase. There are two kinds of feedback that can help the employee, which are praise and constructive comments. By praising, encourages and supports the employee’s work performance. Constructive remark will help employees where they are having performance problems and offer ways to correct those issues. Positive feedback helps the employee to meet performance expectations and requirements; it is a useful learning tool. When it includes praise, feedback is supportive. The result is a more confident and competent employee. According to some researchers feedback show that employees learn faster when feedback is clear and increases motivation, which lead in improving the performance and use performance improvement plan. Timing issues-the process can be time consuming as most of the forms are extremely long and time-consuming. As a result, managers regularly recycle “last year’s” evaluations. However, the Human Resource Manager may require being in the meetings and the amount of time spend increases significantly.
A Gantt chart may be used, as this is a visual representation that provides an instant overview of the status of the project. It outlines all activities involved in the project against a timescale. A basic Gantt chart simply lists what needs to be done and when and the schedule are very simply and easily. They are used to identify plan activities, track and report the progress of the project. It is used as communication tools by showing the team the progress they are making and keeping management updated on project progress.
PURPOSE OF THE PERFORMANCE APPRAISAL SYSTEM
Improve performance, which will lead to the growth and success of the Bank. This will happen only if employees and supervisors have good communication about performance expectations and requirements. This appraisal program will serve as a tools to set up a clear communication and understanding between management and employees. The performance appraisal will be used to decide performance expectations and the requirements will be discussed with all employees. It is important to determine if performance expectations are being met and how well they are being met will be discussed between supervisor and employee performance.
The performance appraisal process is divided into three phases:
Phase I: Performance Planning, Communication of performance expectations and goals
The planning takes place shortly after the beginning of the performance appraisal period. Both employees and managers meet to set the expected outcomes for the year and set objectives that link the employee’s job and branch objectives. Objectives are what employees are expected to accomplish such as in terms of sales target. Employees should know their duties of the job. A successful performance appraisal relies on the ability of organization to measure and develop their employee’s performance by setting objectives, standards and identifying the targets. Objectives and targets should meet the SMART principles (Naisby 2002, 60.)
PHASE II: Performance monitoring and coaching
In the second phase, it is important to observe, monitor, and coach the employee throughout the rating period. This is a continuing phase by monitoring, observing and provide guidance and support as needed. This should regularly keep track and discuss about the job performance. These discussions encourage two-way communication among managers and officers and can be done anytime during the rating period. Generally, these discussions are informal, but are times it is important to let the employees know their strengths or weaknesses.
Phase III: Review
The Phase III performance review summarizes the employee’s contributions over the whole appraisal period (usually one year). It may occur as often as is necessary to acknowledge the employee for accomplishments and to plan together for improved performance. Reviewing performance should be carried out before the formal meeting. It is important to prepare a self-evaluation, list all accomplishments, identify areas for improvement, and provide names of key clients who can give feedback on the employee’s performance. Recommend work-related and professional objectives for the next review period. Managers should review the employee’s objectives and progress made during the whole year and input feedback from clients and colleagues from other department.
The objective of this literature reviews to establish the basis for this research. Performance appraisal is one of the most widely used methods to measure the employee performance. The success of performance appraisal depends on how effectively it is implemented. It also depends on how well the employees have understood the performance appraisal system and how positively they are focused on towards this system.
Dr. Shambhu Nath Chowdhury (2008), banking services is one sector where a high degree of attention is being paid to Performance Appraisal Systems. Y. Zhang (2009) suggested that in Chinese banking industry, employees’ perception of fariness has a positive relationship to their overall satisfaction with both the performance appraisal process and its outcomes. However, statistically significant differences were found in relation to whether employees had received training in performance appraisal or not.
According to Armstrong (2006), the performance appraisal is a tool of looking forward to what need to be done by employee in order to achieve the purpose of the job to meet new challenges. Better use of technology skills and qualities (Szilagy &Wallace 1990) in addition will develop both organizational and individual capabilities to achieve the objectives and goals where employee performance needs on the effectiveness and influences decision making of the company.
Annual performance appraisals enable management to measure and monitor whether institutional standards, expectations, objectives, and delegation of responsibilities and tasks are achieved. Staff performance appraisals also establish training needs. Normally, performance appraisal has been regulated to a feedback process between employees and supervisors. However, with the increased focus on teamwork, employee development, and customer service, the emphasis has moved to employee feedback from the full circle of sources depicted in the multiple-input approach to performance feedback is sometimes called “360-degree assessment” (McLean, VA, U.S., 1997). The performance appraisal approach is that the performance effectively enable the employee to meet their own targets with the organization targets through motivated self-learning, also this helps the organization to exceed their strategic targets by linking individual performance targets to the overall strategic target of the organization.
The performance management system in Maubank is based on rating and deposit mobilization. The performance is measured on both individual and whole branch performance. If the performance rating is satisfactory and excellent then outcome of appraisal would be positive and bonuses (rewards) are provided based on rating. If outcome comes negative due to low performance then improvement measures need to be taken. In performance management, system the appraisal is done on the appearance, attitude, behavior and personality base. The criteria of positive appraisal are predefined. Total scores are 100. If obtained are 60 then C rate is given, if 60-70 then B rate, if 70-80 then A rate and if 80-100 then A+ is assigned. This report is sent to area office then to Human resource department after the approval of CEO. Then a feedback letters are sent to employees in whom bonuses, increment etc based on rating performance are written. Performance management system in Maubank motivates the employees for more productive tasks. Reward system in bank increase the efficiency and effectiveness if employees. Feedback provide employees a guideline through which they can judge their performance and make proper improvements.
Performance Appraisal Integrated with Monthly Feedback
Upon completion of panning and setting objectives, managers should check in regularly with employees to discuss the status of objectives and to provide feedback based on observations of an employee’s performance. It is equally important to provide feedback on areas of success and justify taking action required to resolve underperformance. The second phase is the Check in which provide the opportunity to adjust objectives as the year unfolds. The new performance appraisal system is a never-ending process, it will be done annually but will be an ongoing cycle of planning and evaluation of employee performance meaning the performance will be monitor on a monthly feedback. The end of year appraisal interview should not be viewed as the only time during the year that managers and employees communicate about the employee’s performance. There should be more frequent conversations between managers and officers about current performance, develop a stronger relationship between employees and managers, and make annual reviews less stressful. For the bank, the aim is to establish high performance teams for the managers to give monthly feedback in a One on One Template (diagram shown below) and to align this feedback with the performance Annual Plan (diagram shown below) and development goals established in the appraisal-planning meeting.The key is to set a tone that is open and productive, and to ensure that by the end of the discussion both manager and employee have reached an understanding on any issues that require further discussion, timelines for completion, objectives that need to be met for the next year, and review points. The diagram below illustrate the performance appraisal and one on one process as an integrated performance feedback process.
Performance Management Cycle
Performance Appraisal Integrated with Monthly Feedback diagram
One on One Template and Annual Performance Plan
A Gantt Chart
Aguinis, H., & Pierce, C. A. (2008). Enhancing the relevance of organizational behavior by embracing performance management research. Journal of Organizational Behavior, 29(1), 139-145.
Armstrong, M. Armstrong’s handbook of human resource management practice: Buy now from Kogan Page.
Armstrong M, Baron A, Managing performance: performance management in action, London: Chartered Institute of Personnel and Development, 2005.
Armstrong M, Performance Management. Key Strategies and Practical Guidelines, 3rd ed., Ed. Kogan Page, USA, 2006. 3
Armstrong, M. (2003). A handbook of human resource management practice: Kogan Page Limited.
International Journal of Economics and Management Sciences Vol. 2, No. 03, 2012, pp. 55-62