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    2011Evaluation of the performance appraisalat Engro Polymer & Chemicals Limited

    SUBMITTED TO:

    MR. ABDUL HAMEED KHAN

    SUBMITTED BY:

    HINA SOHAIL SHEIKH 8130

    MISBAH KODI 9145

    LAILA HUSSAIN 8515

    SUNDUS JAVED 8927AHMED SAYA 9337

    DURRE IMAN 7175

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    LETTER OF ACKNOWLEDGEMENT

    20 th August2011.

    Dear Readers:

    We would first like to thank Al-Mighty ALLAH for giving us the strength and

    endowing us with the privilege of completing our Performance Appraisal and

    Management term report, an evaluation of the performance appraisal at Engro

    Polymer & Chemicals Limited and the satisfaction level of the employees with

    the appraisal system.

    We are extremely thankful and grateful to our mentor and guide Mr. Abdul

    Hameed Khan, for his constant support, encouragement, and guidance,

    without which we could not have successfully achieved our task.

    The persons of contact who supported us in completing this report are Ms.

    Sidrah Maqsood, HR Partner at Engro Polymer & Chemicals Limited and we

    thank her for her co-operation and time.

    Sincerely,

    HINA SOHAIL SHEIKH 8130

    MISBAH KODI 9145

    LAILA HUSSAIN 8515

    SUNDUS JAVED 8927

    AHMED SAYA 9337

    DURRE IMAN 7175

    2 | P a g e

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    Letter of Transmittal

    Institute of Business ManagementKorangi Creek, Karachi-75190, Pakistan

    U.A.N # 021-111-002-004. Telephone # 021-509-0961Fax # 021-509-0968

    Http://www.iobm.edu.pk20 th August2011.Mr. Abdul Hameed KhanLecturer of Performance Appraisal and Management

    Institute of Business ManagementDear Mr. Abdul Hameed Khan,

    Here is the report an evaluation of the performance appraisal at Engro Polymer &

    Chemicals Limited and the satisfaction level of the employees with the appraisal

    system which you authorized us during our course Performance Appraisal and

    Management. The purpose of the report is to study the various aspects of the

    performance appraisal system at Engro Polymer & Chemicals and to apply the

    theories learned during the course.

    In conducting this study, we made use of primary and secondary methods of data

    collection. Primary data collection consisted of the interview with the HR Partner at

    Engro Polymer & Chemicals Limited and the questionnaires filled by the various

    employees at Engro Polymer & Chemicals Limited. The secondary methods of data

    collection mainly consisted of the companys web site and the internet.

    We would like to thank Ms. Sidrah Maqsood, HR Partner at Engro Polymer &

    Chemicals Limited, for her valuable time she spent with us and shared important

    information. If you need any further help in interpreting this report, all of us are gladly

    available any time.

    Sincerely,

    HINA SOHAIL

    http://www.iobm.edu.pk/http://www.iobm.edu.pk/
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    MISBAH KODILAILA HUSSAINSUNDUS JAVEDAHMED SAYADURRE IMAN

    Table of ContentsLETTER OF ACKNOWLEDGEMENT ................................................................................ 2

    Letter of Transmittal .................................................................................................... 3

    Table of Contents ........................................................................................................ 4

    ENGRO Polymer & Chemicals Limited .......................................................................... 5

    INTRODUCTION: ....................................................................................................... 5

    HISTORY: .................................................................................................................. 7

    From Esso to Engro ............................................................................................... 7

    EXPANSION PROJECT: ............................................................................................ 9

    VISION ....................................................................................................................... 11

    MISSION STATEMENT ................................................................................................. 11

    CORPORATE OBJECTIVES: .......................................................................................... 11

    MAN POWER: ............................................................................................................. 12

    ORGANIZATION STRUCTURE: ..................................................................................... 13

    HR ORGANIZATION STRUCTURE: ............................................................................... 14An interview with Sidrah Maqsood HR partner at ENGRO ........................................ 16

    Analysis of the questionnaire .................................................................................... 18

    General analysis on the performance appraisal at Engro ........................................... 18

    Specific Analysis question by question, Part 1: Instrument validity: ........................... 20

    Analysis of the Appraisal form used at ENGRO .......................................................... 33

    Recommendations ..................................................................................................... 37

    Conclusion ................................................................................................................. 38

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    ENGRO Polymer & ChemicalsLimited

    INTRODUCTION:

    Engro is an agro based company. Our core business is manufacturing and

    marketing of chemical fertilizers. We are Pakistans one of the largest

    producers of urea fertilizer which is manufactured at Daharki and marketed

    under brand name Engro.

    We also produce crop specific NPK fertilizers at our plant at Port Qasim

    Karachi. Engro also markets imported MAP fertilizer under the brand name of

    Zorawar and imported DAP fertilizer. Recognizing the importance of seeds as

    an essential agricultural input, Engro has also launched seed business and is

    marketing imported hybrid and open pollinated seeds of various crops and

    vegetables under brand name of Bemisal. Urea Fertilizer is produced at the

    Manufacturing Division of Engro, located at Daharki about halfway betweenKarachi and Lahore.

    Engro Polymer & Chemicals Limited (EPCL) formerly Engro Asahi Polymer and

    Chemicals Limited (EAPCL) is a sole manufacturer of PVC in Pakistan, EPCL,

    with the installation of EDC/VCM & Chlor Alkali Plants, is also expanding its

    existing PVC Production capacity from 100,000 tons to 150,000 tons per

    annum.

    To facilitate this increase in productions, expansion in the existing utilities of

    the plant will also be undertaken. The new facilities will be installed adjacent

    to the existing EPCL PVC plant in the Eastern Zone of Port Qasim Industrial

    Area. This is about 50 km away from center of the City Karachi. This location is

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    a part of Indus Delta comprising narrow creeks, mangroves forests and mud

    flats. The area has no freshwater body and no ground water resources.

    EPCL is working towards meeting current PVC demand of the existing industry

    and also proactively expanding the PVC market. The trade name of thePolyvinyl Chloride resin produced by EPCL is SABZ. EPCL SABZ has five (05)

    different grades which are based on K-values, namely AU-58, AU-60, AU67R,

    AU-67S and AU-72.

    These grades of suspension resin can be applied to a wide range of products.

    PVC is used in pipes and fittings, construction material including flooring, tiles,

    windows profiles, curtains and mobile homes. PVC is also used in packaging,

    films and sheets and geo-membrane etc. EPCL project has 99% share of

    domestic market. SABZ is also recognized in the international market and is

    exported to nineteen (19) countries. The customers are spread from South

    Africa in the West to Australia in the East.

    The quality of EPCL products meets international standards. The company

    maintains a robust product complaint tracking system which is backed up by

    strong follow-up. A close liaison with customers ensures the highest level of satisfaction of EPCL customers. Market Development and Technical support

    departments of EPCL are playing a vital role not only in supporting PVC

    customers to resolve their processing issues but also in introducing

    environment friendly products in the market.

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    HISTORY:

    From Esso to EngroSearch for oil by Pak Stanvac, an Esso/Mobil joint venture in 1957, led to the

    discovery of Mari gas field situated near Daharki -- a small town in upper Sindh

    province. Esso was the first to study this development in detail and propose

    the establishment of a urea plant in that area.

    The proposal was approved by the government in 1964, which led to a

    fertilizer plant agreement signed in December that year. Subsequently in

    1965, the Esso Pakistan Fertilizer Company Limited was incorporated, with

    75% of the shares owned by Esso and 25% by the general public. The

    construction of a urea plant commenced at Daharki the following year with the

    annual capacity of 173,000 tons and production commenced in 1968. At US $

    43 million, it was the single largest foreign investment by an MNC in the

    country.

    A full-fledged marketing organization was established which undertookagronomic programs to educate the farmers of Pakistan. As the nations first

    fertilizer brand, Engro (then Esso) helped modernize traditional farming

    practices to boost farm yields, directly impacting the quality of life not only for

    farmers and their families, but for the community at large. As a result of these

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    efforts, consumption of fertilizers increased in Pakistan, paving the way for the

    Companys branded urea called "Engro", an acronym for "Energy for Growth".

    As part of an international name change program, Esso became Exxon in 1978

    and the company was renamed Exxon Chemical Pakistan Limited. Thecompany continued to prosper as it relentlessly pursued productivity gains

    and strived to attain professional excellence.

    In 1991, Exxon decided to divest its fertilizer business on a global basis. The

    employees of Exxon Chemical Pakistan Limited, in partnership with leading

    international and local financial institutions bought out Exxons 75 percent

    equity. This was at the time and perhaps still is the most successful employee

    buy-out in the corporate history of Pakistan renamed as Engro Chemical

    Pakistan Limited, the Company has gone from strength to strength, reflected

    in its consistent financial performance, growth of the core fertilizer business

    and diversification into other fields.

    Investments in people, process solutions and resource conservation initiatives

    have reduced energy use per ton of urea by a third, whilst increasing urea

    production nearly six-fold since 1968. Not only does this save money, it

    stretches non-renewable energy sources and mitigates the impact of waste.

    Along the way, a major milestone in plant capacity upgrade coincided with the

    employee led buy-out; innovatively optimizing our resources, Engro re-located

    fertilizer manufacturing plants from the UK and US to its Daharki plant site

    an international first.

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    EXPANSION PROJECT:

    EAPCL is planning to expand its existing PVC facility at Port Qasim, by

    installing another PVC train with back integration comprising EDC-VCM and

    Chloralkali production facilities. The cost of the project is approximately US $

    200 million. The Project consists of a production capacity increase and

    backward integration for EAPCL, Specifically, this entails:

    Construction of a new, second plant to produce an additional 50,000 tons per

    annum (tpa) of PVC, increasing EAPCLS capacity to 150,000 tons per annum;

    The dismantling, shipping and re-construction of a second-hand plant

    from the US to produce ethylene dichloride (EDC) (capacity of 230,000

    tpa) and vinyl chloride monomer (VCM) (capacity of 204,000 tpa), the

    primary raw materials for the PVC plants,

    The construction of a new chlor-alkali plant which will produce caustic

    soda (capacity of 106,000 tpa) and chlorine (capacity of 94,200 tpa), the

    latter being a primary raw material for the VCM production; and

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    Utilities infrastructure. This facilitys primary role will be to provide the

    chlorine necessary for EAPCLs VCM production, a primary raw material

    for PVC; caustic soda will also be produced as a saleable product as part

    of the manufacturing process.

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    VISION

    "To be the premier Pakistani enterprise with a global reach,

    passionately pursuing value creation for all stakeholders"

    MISSION STATEMENT

    Our mission is to create value for our customer by offering quality

    products at competitive prices, on-time deliveries, business

    development and technical support to achieve growth while

    maximizing safety, environment and ethical standards as well as

    enhancing value for our stakeholders while maintaining high

    standards of ethics, safety and environmental responsibility.

    CORPORATE OBJECTIVES:

    Increase sales volume and higher profit

    Corporate Social Responsibility.

    Employees & Organization Development.

    Customer Focus & Increase share holder value

    Health, Safety & environment.

    Enhancement in knowledge and know how of manufacturers on quality

    and production parameters

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    Our innovation and financial strength help make us adynamic place to work, giving you the advantage of a largecompany, with the agility of a small company, where your

    voice is heard.

    MAN POWER:

    Our people and our culture drive us to achieve Greater Success.

    Engro has never been a Company to rest on its laurels. Our people and our

    culture drive us to achieve greater success. We look for new and exciting ways

    to return value to our customers and our shareholders. Its tough and

    demanding but also fun and always interesting. You will have every

    opportunity to succeed as an individual and as part of a team.

    Our businesses give you flexibility for change, the opportunity to learn about

    new markets and provide unparalleled career options. Engro people are some

    of the best in the world with a shared passion to learn and stretch beyond

    their limits. It is our people who make Engro a great Company and an exciting

    place to work.

    NUMBER OF PEOPLE: From past nine years EPCL have strength of around

    100 employees on an average. Since the expansion/back integration program,

    the number of employees has risen massively to 340.

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    ORGANIZATION STRUCTURE:

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    HR ORGANIZATION STRUCTURE:

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    HR STATEMENT:

    To recruit high caliber people and give them the

    opportunity to grow and to develop their talents

    Employees are the key to Engros competitive success in the market place.

    Engro aims to match employees personal needs, desires and skills with the

    requirements of the Company for the right person in the right job at the right

    time. The companys HR team provides policies, practices and tools that

    create a workplace capable of motivating, developing and rewarding

    employees to achieve success.

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    An interview with Sidrah Maqsood HRpartner at ENGRO

    1. What is the Performance Appraisal system of Engro

    Polymer & Chemicals Ltd.?

    Ans. Employee does his/her own performance evaluation at the end of the

    year and also makes the next year goals for him/herself. Employee initiates

    the evaluation and it closes at the supervisor level. The good thing is that

    performance and potential are assessed separately for each employee for e.g.

    A person might be very good at his technical skills and an excellent performerbut dont have leadership potential so we make bifurcation on the basis of

    performance and potential. The people who have high potential and high

    performance move up the ladder quickly while in order to reward high

    performers we groom them in their respective fields.

    2. Does performance appraisal contains both quantity

    and quality aspects?

    Ans. The system of salary grades is maintained at Engro and to judge

    employees performance each individuals scorecard is maintained.

    Performance appraisal system is based on both qualitative and quantitative

    judgment by every supervisor from HR to Technical. Since each individuals

    scorecard is maintained therefore the system is very much transparent.

    3. Is promotion and increment in salaries dependent

    upon the appraisal?

    Ans. Performance ranking system is based on forced ranking and promotions

    and increments are based on the bell curve maintained by the organization.

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    4. What are the gaps in communication process at

    organization?

    Ans. To minimize this communication gap quarterly communication meetings

    are held between employees and CEO where the CEO provides complete

    picture about companys progress to the employees and get their feedback

    and suggestions for improvements. Moreover the routine information floats

    through email to all employees. Also notice boards at all sites are used for

    informing employees about any change and development.

    5. What is the employee development program?

    Ans. As I mentioned earlier we have continues training and development

    program for our employees. Besides these regular trainings we provide in-

    house, local and foreign training to our employees on the basis of their job

    requirement.

    6. How employee attitudes are measured? How do you

    measure job satisfaction?

    Ans. Since Engro culture is based on direct interaction at all levels, therefore

    employees can share any problem at any level. Clear performance

    management and appraisal system also provides feedback about an employee

    job satisfaction. Supervisors provide feedback about the attitude of

    employees.

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    Analysis of the questionnaire

    General analysis on the performance appraisal at

    Engro

    Performance Appraisal is a vital area of the HR department at Engro. Each

    employee is separately, individually appraised. All employees do a self

    appraisal followed by a meeting with the immediate supervisor. The supervisor

    carefully assesses each employee, identifies the strengths, and highlights theweakness. The supervisor also recommends changes and new measures to be

    adopted so as to improve the performance of the employees.

    The areas which are good performing areas should be made consistently good

    areas and the areas which are weak or underperforming areas must be

    improved by training and development.

    Moreover, at Engro the performance appraisal is used as a tool for promoting

    the employees and whether to give increment to employees. Hence the

    Appraisal is also used in the reward management system.

    Key Areas of Engros performance appraisals are as follows:

    There is a clear performance appraisal criteria and proper performance

    appraisal instruments.

    Performance appraisal instruments do measure what each and everyemployee does on his/ her job.

    Performance appraisal instruments, identifies the KRA and the

    competency requirements for the job.

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    There is no biasness in the appraisal system and each employee is fairly

    assessed and appraised.

    The best workers receive the highest performance scores.

    The performance appraisal is very effective, and hence improves

    performances and identifies the weak areas and the methodology to overcome

    the weakness and convert them into strengths

    The supervisors are appropriately trained as to how to appraise the

    subordinates effectively and efficiently

    There is little or no communication gap and the employee can openlyvoice his / her concerns during appraisal session.

    Since self appraisal is the key factor of engros performance appraisal,

    the self appraisal is basis of discussion during appraisal meeting.

    Performance appraisal is a regular task at engro not just the year end

    routine job

    Performance appraisal is not taken as yearend routine job, but instead is

    an ongoing process of personal development

    It is received timely, in sufficient detail and is useful in achievement of

    timely goals

    Performance appraisal is linked with promotions and pay scales

    It is a source of motivation for all employees .

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    0

    1234567

    S/Disagree Disagree Agree S.Agree

    The performance appraisal instrument has accurate and clear standards andMeasures

    0

    2

    4

    6

    8

    S/Disagree Disagree Agree S.Agree

    The performance appraisal instrument has clear and valid measures of job-related

    activities

    Specific Analysis question by question, Part 1:

    Instrument validity:

    Question Number# 1:

    Majority of the people agree strongly on the clear and accurate standards and

    measures that performance appraisal instrument consists of. Not a single

    person is known to disagree in this regard.

    Question Number# 2:

    Most of the people also agree upon that the instrument has clear valid

    measures of job related activities, but we see that there are less people

    comparatively who strongly agree to this statement. Again we find no one

    disagreeing to it.

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    0

    1

    2

    3

    4

    5

    6

    S/Disagree Disagree Agree S.Agree

    The performance appraisal instrument accurately measures what I do on my job

    0

    1

    234

    567

    8

    S/Disagree Disagree Agree S.Agree

    I understand the measures used to evaluate my performance.

    Question Number# 3:

    Mostly employees believe that the appraisal accurately measures their

    performance. However there are many do not do so.

    Question Number# 4:

    Most people have agreed that they understand the measures used to evaluate

    their performance, but less people tend to agree strongly to this point. There

    are few who do not understand those measures.

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    0

    1

    2

    3

    4

    5

    6

    S/Disagree Disagree Agree S.Agree

    The most important parts of my job performance are emphasized in my Appraisal

    0

    1

    2

    3

    4

    5

    6

    7

    S/Disagree Disagree Agree S.Agree

    The performance appraisal process results in a clear and unbiased appraisal

    Question Number# 5:

    Now this statement holds different views from employees. Most agree that the

    important part of their performance is emphasized in their appraisal. Very few

    strongly believe on this and there are some who do not think this way at all.

    Part 2: Distributive justice:

    Question Number# 1:

    Majority of the employees there are convinced that their appraisals are clear

    and always unbiased. Few opine that they are not.

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    0

    2

    4

    6

    8

    10

    S/Disagree Disagree Agree S.Agree

    The performance appraisal process results in better communication between myself and my supervisor

    0

    1

    2

    3

    4

    5

    6

    7

    S/Disagree Disagree Agree S.Agree

    The best workers receive the highest evaluation scores.

    Question Number# 2:

    Nearly all people believe that this appraisal process results in better

    communication between them and their supervisor.

    Question Number# 3:

    Most employees are of the opinion that the best workers get the highestevaluation scores, however there are some who do not tend to agree to this.

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    0

    2

    4

    6

    8

    S/Disagree Disagree Agree S.Agree

    The performance appraisal is well designed and leads to better performance andwork quality

    0

    2

    4

    6

    810

    S/Disagree Disagree Agree S.Agree

    My supervisor possesses adequate knowledge and training to properly implementmy performance evaluation

    Question Number# 4:

    Nearly all agree to that appraisals are well designed leading to improvedperformance and quality of work.

    Question Number# 5:

    Again majority of the people opine that their respective supervisors have

    adequate knowledge and training in order to implement their performance

    evaluation in a proper manner.

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    0

    1

    2

    3

    4

    S/Disagree Disagree Agree S.Agree

    If I have problems with my performance evaluation I can communicate my concernsopenly to my supervisor

    0

    1

    2345

    67

    8

    S/Disagree Disagree Agree S.Agree

    I feel treated fairly during the performance appraisal process.

    Question Number# 6:

    Most employees feel comfortable in discussing their problems regarding their

    appraisals with their supervisors. However there are some who do not feel the

    same way.

    Question Number# 7:

    Most people at Engro believe they are treated fairly during their appraisal

    process.

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    0

    24

    6

    8

    10

    S/Disagree Disagree Agree S.Agree

    The performance feedback I receive is helpful in improving my on-the jobperformance and in attaining my goals

    0

    2

    4

    6

    8

    10

    S/Disagree Disagree Agree S.Agree

    I receive regular and timely performance feedback beside the annual performancereview

    Part3: Performance feedback

    Question Number# 1:

    All employees think that the feedback they receive is helpful in improving their

    on-the-job performance and also attaining their goals.

    Question Number# 2:

    All employees received timely performance feedback apart from their annual

    performance review.

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    0

    1

    2

    3

    4

    S/Disagree Disagree Agree S.Agree

    The information provided by my supervisor during my performance feedback issufficiently lucid

    0

    1

    2

    3

    4

    S/Disagree Disagree Agree S.Agree

    The information provided by my supervisor during my performance feedback isufficiently detailed

    Question Number# 3:

    Most of the employees feel that the feedback provided by their supervisors islogical, however a few disagree.

    Question Number# 4:

    We found varying believes of employees in this regard. Most think that the

    information provided by their supervisor is sufficiently detailed. But there are a

    fairly large number of employees who negate this statement.

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    0

    1

    2345

    67

    8

    S/Disagree Disagree Agree S.Agree

    I am satisfied with my performance feedback.

    0

    1

    2

    3

    4

    5

    S/Disagree Disagree Agree S.Agree

    Throughout my performance feedback I feel that I have the possibility to discusswork-related issues with the supervisor

    Question Number# 5:

    Most of the employees believe that they are pleased with their performance

    feedback, yet a few disagree.

    Question Number# 6:

    Again very few people felt that they did not have the possibility to discuss

    work related issues with their supervisors. While rest of them said they did

    have this possibility.

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    0

    2

    4

    6

    8

    10

    S/Disagree Disagree Agree S.Agree

    Level of in volveme nt in m y performance evaluation is adequate.

    0

    2

    4

    6

    8

    S/Disagree Disagree Agree S.Agree

    There is a clear, direct and compelling linkage between performance a nd pay in theperformance appraisal s ystem

    Question Number# 7:

    All except a few believe that the level of involvement in their performanceevaluation is adequate.

    Part 4: Performance-based pay

    Question Number# 1:

    Everyone at Engro believes that there is a clear, direct and compelling linkage

    between performance and pay in performance appraisal system.

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    0

    2

    4

    6

    8

    10

    S/Disagree Disagree Agree S.Agree

    There is a clear and reas onable proces s es tablished for grieving both evaluation andperformance-based pay results

    0

    1

    2

    3

    4

    5

    S/Disagree Disagree Agree S.Agree

    I believe the am ount of performance-based pay I can ea rn through high evaluationratings will m ake a n oticeable difference in m y future performance

    Question Number# 2:

    Everyone also believes that there is a clear reasonable process established forgiving both evaluation and performance based pay results.

    Question Number# 3:

    A large number of employees agree and a fairly large number of employees

    disagree on this statement.

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    0

    2

    4

    6

    8

    10

    S/Disagree Disagree Agree S.Agree

    I am s ufficiently trained in all skills nee ded in apprais ing performance.

    Question Number # 4

    Everyone a Engro agrees that performance based pay on performance ratings

    is the most effective method for motivating employees to sustain plus improve

    performance.

    Part 5

    Question Number# 1:

    All employees opine that they are sufficiently trained in all skills needed in

    appraisal performance.

    01234567

    S/Disagree Disagree Agree S.Agree

    Performance-based pay based on performance ratings is the mos t effective m ethod for motivating employees to improve/sustain performance

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    00.5

    11.5

    22.5

    33.5

    4

    S/Disagree Disagree Agree S.Agree

    I need m ore training in conducting performance appraisa l interviews.

    0

    2

    4

    6

    8

    10

    S/Disagree Disagree Agree S.Agree

    I am a ble to give us eful feedback.

    Question Number# 2:

    There is large controversy regarding the need for more training in conductingappraisal interviews. Many agree to this and a lot of do not.

    Question Number# 3:

    Everyone believes that he/she is able to give useful feedback.

    Question Number# 4:

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    0

    2

    4

    68

    10

    S/Disagree Disagree Agree S.Agree

    I am able to clearly set goals that are relevant for the em ployees position

    0123

    45678

    S/Disagree Disagree Agree S.Agree

    I am able to use the appraisal ins trume nt as intended.

    Everyone believes that he/she is able to clearly set goals that are relevant for

    the employees position.

    Question Number# 5:

    Most of them believe that he/she is able to use the appraisal instrument as

    intended. There however are some who think that they cannot do so.

    Analysis of the Appraisal form used atENGRO

    ENGRO appraises the employees through 5 performance appraisal forms

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    First form is the personal development report. It is actually a self

    appraisal form and it deals with the following areas:

    1. strengths of the employees

    2. areas which require development

    3. What education is already acquired by the employee and what further

    training and education will he acquire in the forthcoming year?

    4. what are the development considerations

    5. what are the career objectives and career considerations

    6. and whether he/she is interested in relocation to any other areas or fields

    or even location

    Second form deals with performance planning and assessment. It is

    filled by the supervisor as well as the employee. And focuses on the following

    areas:

    1. business objectives

    2. key tasks

    3. any changes in the plans

    4. additional work involvement

    5. half yearly and annual reviews

    Third form deals with performance dimensions. And is prepared by theemployee and reviewed by the supervisor. It measures the performance in the

    following areas:

    1. Job Knowledge

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    2. Adaptability to Time Pressure and Changing priorities

    3. Communication Skills

    4. Comprehension and Analytical Skills

    5. Coordination and Teamwork

    6. Creativity and Innovation

    7. Decision-making and Business Judgment

    8. Initiative and Self-Monitoring

    9. Interacting with Others

    10. Planning and Organizing

    11. Customers/Clients Orientation

    12. Safety Awareness

    13. Quantity of Work

    14. Quality and Continuous Improvement

    15. Business Practice Standards

    16. Organization/Unit Management Skills

    17. Supervision of Employees

    18. Leadership Abilities

    The fourth form is filled by the supervisor and the manager and

    contains the following details:

    1. what are the strengths of the employee

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    2. are there any areas of improvement

    3. What trainings are recommended by the supervisor and why?

    4. and over all general comments of the supervisor

    The last form is aimed at 360 degree appraisal and is called feedback

    from knowledgeable others. It contains the following:

    1. Leadership Abilities -

    Includes the ability to inspire, motivate and command respect

    of others by providing vision, direction, support and feedback;demonstrated effectiveness in getting others to work towards

    common objectives and goals; ability to delegate effectively.

    2. Interacting with Others -

    Involves interacting effectively with others; exhibiting

    appropriate behavior, particularly in difficult situations; responding

    productively to constructive criticism; maintaining motivation even in

    the face of disappointment.

    3. Initiative -

    The extent to which an employee seeks out new assignments

    and expands capabilities, personally and professionally; recognizes

    needed information of resources.

    4. Quality of Work -

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    Involves quality of performance such as thoroughness,

    freedom from errors, analytical soundness, creation of useful work

    products, etc.

    5. Customer / Client Orientation -

    Involves gathering information from internal and external

    customers'/clients' concerning their needs; advocating their position

    in the organization; taking action to ensure alignment between

    customer'/clients' needs and those of supplier.

    6. Communications -

    Involves writing and speaking clearly, concisely and

    persuasively. May involve either formal presentations or more

    informal communications.

    Recommendations

    There are employees who feel it difficult to have their say when they

    had problems with their employees. So we recommend that the

    supervisors should make sure that they get the employees talk about

    what aspect of the evaluation they do not feel is correct.

    Change is a major factor which must be accepted eagerly and worked

    upon in order to meet the upcoming challenges and agreed by both the

    managers and employees

    Few employees who feel that the feedback provided by their supervisors

    is either not detailed or lucid. Therefore we recommend that there

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    should be more logical explanation on the supervisors feedback and

    that too in detail, so that employees feel more satisfied with the system

    Even though Engro has a very efficient performance appraisal system

    we recommend that the employees should be more trained for

    conducting the performance appraisal interviews. This is because most

    of the employees felt that training regarding the interviews is necessary

    for them

    The process has to be reviewed on a continuous basis to eliminate any

    surprise and astonishing factors during this year round activity.

    A healthy self-esteem will lower an individuals fear of identifying

    weaknesses and trying something new so, continuous training and

    development programs ought to be conducted in order to achieve

    targets in a mutually defined timeline.

    We also conclude that number; letter grades and check mark rating

    systems are an inefficient way of assessing and improving performance. They may be good for managers and HR department during compilation

    and disseminating of bonuses and increments. However, they do little to

    help the employee assess how to improve performance or what they

    have done right.

    Conclusion The Appraisal system adopted by ENGRO is quite up to mark and sufficiently

    measuring all areas. Majority of the employees are happy with the appraisal

    technique and are satisfied with their feedback.

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    The employees are adequately trained regarding the need for self appraisals

    and both the appraiser and appraisee and aware of their responsibilities and

    what is required of them.

    Most of the respondents were satisfied with their company performancemanagement systems and with the development opportunities available to

    them in their respective companies.Hence we find ENGRO to be following HR

    practices and especially the core area of performance appraisal, which is not

    an annual ritual at engro but an integral part of their culture and the reason

    for the success.