Zero Error Performance Appraisal System In Future Business Essay

Published: Last Edited:

This essay has been submitted by a student. This is not an example of the work written by our professional essay writers.

In today's competitive business world, it is implicit that organizations can only compete with their rivals if they are Market-Driven. To be a market driven organization, an organization should be innovative, customer focus, competitor intelligence and most important involvement and support of the entire organization. Effective human resource management help organization to achieve its targets within a given time. The human resource system can be more efficient by having a valid and accurate appraisal system used for rating employees performances. Unfortunately, there are very few organizations that use effective performance appraisal system.

The perception of employees about the uses and outcomes of the PAS would be beneficial depending on a number of factors. For example, employees are more likely to be receptive and supportive of a given PA programmed if they perceive the process as a useful source of feedback which helps to improve their performance (Mullins, 2007). Employees are likely to participate in PA if they perceive it as an opportunity for promotion, personal or career development in the future. On the other hand, if employees perceive it as an unreasonable attempt or a formality by management, various reactions may result. The overall PAS will be effective if the appraisal system is clearly explain and satisfy employees.

Accurate appraisal system could only be achieve if raters provide objective and unbiased ratings to employees. However subjective opinions of managers are required sometimes to develop accurate performance checklist. Many organizations use combination of subjective and objective assessment for actual PA. instead of using these two approaches there are numerous problems for actual assessment. The existence of such problems suggests that PAS may become bias or errors resulting in unequal evaluation of different employees. It must be free from biasness.


There are HR Co-coordinators in each branch of Faysal Bank which supervises the applications and practices of HR department. As the business increases with the time the HR department was satisfied by a variety of functions and becomes the backbone of any company because it becomes crystal clear upon them that retaining that employee is the most precious tangible asset of the company, in spite of of including them in companies balance sheet but they are the one upon whom these balance sheets work.

The internationalization of business is well recognized in terms of the importance of trade and growth of international corporations especially in the field of service sector where new innovation takes place rapidly and the older replaces with new each day. The world has become borderless and new emerging markets attracts competitors in the same field which attracts customers with wide range of distinctive and easy services.The (www) saga has changed the way of thinking and defining things, now HR department takes active part into strategic decision making. Companies are now on the view point that valid assessment of an employee make him responsible because it build a strong base and now it is the founding pillar that stands still to support the beams.

The idea of Performance appraisal system has its own distinctive and undivided accomplishments. Companies use performance appraisal activities annually to make employees more productive and loyal to the organization, whereas an employees show his interest because he knows that this performance evaluation paid him in the same company, as well as in the near future.

Keeping in view the international aspect and competition with the local and international banks Faysal bank also making its HR system better and make appraisal system according to international standard to compete in an international environment. Thus strategic focus is to make a loyal and productive workforce.

Statement of Problem

To find out the perception of employees about performance appraisal effectiveness at Faysal Bank Ltd (korangi Branch). A common perception of employees the more we work for organization the more rewards we got. A newly and fresh candidate give his extra efforts no matter It is seen by supervisor. But what happen if a loyal employee work for the whole year and in return get only a small increament in the salary which is far lower than his efforts. Every employee work for the future growth of his career and personal development. PAS is the best tool for the measurement of an employee but the use of this tool by unprofessional employers make jack a dull boy.

Significance of the study

The research study on employees perception about performance appraisal effectiveness has its own strategic importance. For a service oriented organization, it is important to develop a workforce which is entirely committed to the success of organization. They can deal with customers in the way that help a company to make larger loyal customer base. This success for a company can only be achieve through employee involvement and support in the organization. . It rejects the olden thought of labor intensive industries in which you only need to work for the employer but now you don't need to work for the employers because the prospective has changed and transformed the statement into "Work with the employer". This work with the employer means that to gear up the company in a manner that we all grow, it is not only the employer whose wealth account multiplies but it is the worker also whose skills add new domains to his profile.

Currently organizations who work with the theme of traditional top down or seth culture cant achieve their objectives within a given time period. The only reason is dissatisfaction of employees about their future growth and career development. There is a need to improve the traditional culture operates within the local organizations in Karachi. To make it more significant, I have included the examples of perfect appraisal system of big corporate giants and multinational firms.

In this research I have included the importance of performance appraisal system in an organization which leads to the appraisal of an employee because in the end it becomes the basis for his/her growth.

Scope of study

The research study is limited because it demonstrates a universal concept of performance appraisal system and its impact on employees, but there are some limitations and for the purpose of being specific I have chosen Faysal Bank Limited (korangi branch) where 140 employees working. The bank has operations all over Pakistan and is consisted of around 25000+ employees all over Pakistan.


Chapter Two: Research Method & Procedure

Research Design & Methods

Respondents of the Study

Research Instrument

Sources of Data

Treatment of the Data

Research Design:

The research for 'employees perception about performance appraisal effectiveness is chosen in order to hold the major factors i.e. employees satisfaction from appraisal system in their organization, what is its benefits and why this duty is necessary to give a boost to employee performance and company performance. During the course of research at Faysal Bank I have tinted and analyzed the basic building blocks of accurate and valid appraisal system, thus the research study is 'descriptive'.

The study suggests that there is a causal relation between the variable that is the reason I have analyzed the main factor which contributes towards organizations success.

Define the impact and scope of valid appraisal system on employee performance as well upon the company also?

What makes employees unproductive and unlovable to the organization ?

Every manager is eligible to rate his/her subordinates without biasness or favoritism?

General perception of employees about appraisal system in their organization.

The whole research structure is qualitative, whereas the research is based on primary as well as secondary data. Survey research through questionnaire from professional bank employees proved to be the major source of data collection on primary level. On the other hand internet source and case studies become the secondary source.

Unit of analysis Employees perception about performance appraisal effectiveness

Purpose of the research:

Exploratory research.


The respondents are employees from Faysal Bank (korangi brach) which includes middle and lower level management. The sample size of 50 respondents have taken to determine the perception of employees whose performance is evaluated by their supervisors on daily, weekly, monthly or annual basis.


The survey questionnaire is the main source of data collection to find out the respondents perception about performance appraisal effectiveness. A format of 30 close end questions were filled by the employees which helps to know the general perception about PAS.

Time Horizon

Time horizon is Cross-sectional. A cross-sectional study is done where data is collected for analysis and information once.

Treatment of the Data:

The data that was gathered during primary data collection has only been analyzed in unwritten context that is qualitative framework and not in numerical context (quantitatively).The secondary data was gathered on the basis of its relevance to the topic and it is also qualitative.


For an in-depth analysis I have distributed and fill up the questionnaire from 50 respondents:

Company name

Faysal Bank Limited

Sample size

50 people


Head Office

D-40 Block 2,PECHS, Block 6 Karachi

Factory Location

1/1-4, Aorangi Industrial Area. Karachi

Literature Review


A large amount of information is gathered from Internet, whereas associated books of human Resource, Marketing books and banking employees who can provide better information and insights that is difficult to find for a outsider is also a part of the entire research. The research is specific to a single branch of faysal bank to focus an in-depth perception of the employees of the system as well as strategic importance of training and development.

Company literature:

Faysal Bank Limited one of the top ten banks in Pakistan is undertaken for my research work. However its banking network is spread over 260 branches in 70 cities which is difficult to approach that's why korangi branch was selected for research. The bank is symbol of its solidarity in terms of its financial investment in corporate, commercial, retail, and Islamic banking activities. The Pakistan Credit Rating Agency Limited (PACRA) and JCR-VIS Credit Rating Company Limited have determined the Bank's long-term rating as 'AA' and short term rating as 'A1 +' with "Stable" outlook. the major reason for selecting Faysal Bank is its foreign investment is the country. As the local banking sector still follows the traditional HR system or Seth culture where employees performance are not fairly assessed and evaluated. To analyze the PAS in multinational bank its specific branch has been selected which may be ideal for local banks.

Local literature:

Foreign literature:

A large amount of data and information on employees perception about performance appraisal effectiveness gathered from internet and how other multinationals use this HR tool to keep employees happy and loyal to the organization. In this context, I have gone through some research papers of international writers and great amount of emphasis is also given to some multinational banks operating in Karachi to witness the impact of effective appraisal system. The following sources used for literature review:

A research was conducted in the form of case study by Francis o. Boachie- Mensah, university of cape coast Ghana. The whole research is based on employees perception on performance appraisal effectiveness. For this purpose an educational institute in Takoradi, Ghana has been selected. The overall focus on appraisal biasness and errors and employees perception about was collected from 140 employees of the institution which include both academic and administrative staff who had worked in the organization for atleast 2 consecutive years.a content-validated semi-structured interview schedule was used to interview the respondents. The data collected was analyzed, using using descriptive statistics, in order to address research question.

The results of the study indicate that employees of the institution perceive that the performance appraisal system of the institution is affected by subjectivity, and is influenced by some major errors. The findings have serious managerial implications for training, motivation and provision of resources for effective performance appraisal. A major limitation of the study is that, due to financial constraints, it was conducted in only one institution. Therefore, the findings may not be described as a reflection of the general state of affairs in the other educational institutions in the country.

Studies show that there are many approaches for evaluating employee behaviour and performance with respect to job tasks and/or organisational culture. As a result, various applications of PA have left many managers in a state of confusion and frustration with the employee evaluation process (Gurbuz & Dikmenli, 2007). This situation seems to negatively impact the popularity of appraisal systems in many organisations. Most people support the concept and purpose of PA, in spite of their concerns about the process and application of appraisal outcomes by managers (Grote, 1996). The biggest complaint from managers is that they are not given sufficient guidelines to assess people; and the biggest complaint from employees is that the process is not equitable and fair. PA concentrates much in assessing past behaviours of employees, a situation some managers exploit to victimise unfavoured employees (Bersin, 2008).

The research on factors affecting employee's perceptions of the performance appraisal process by Anton Beletskiy on middle ans lower level managers to examine the importance of effective performance appraisal system. The findings of the research is to revealed a number of patterns concerning the roles of the design characteristics of the PA process, supervisor, HR managers, and general manager of a unit, and associate factors, in influencing employees perception of the performance appraisal features. The factors which influence perceptions of HRM process were discussed in this literature is the PA process itself, role of the supervisor,role of general manager of the unit, role of HR manager of the unit, employee collegues, work situation.

The research by Rosena binti Mohd Ali in university Putra Malaysia, indicates that In today's dynamic workforce, enlightened companies recognize that employees want an environment that encourages constant dialogue between the employer and employee. Employees want to be recognized, rewarded for their accomplishments and need continuous performance feedback. Most employees want frequent

feedback and just annually if their performance is missing the mark so they can make appropriate changes. The research suggest that To be truly successful, a performance appraisal system should involve their

employees in the design and later - required revisions of their performance appraisal. Feedback must be clear, objective and constructive by telling both sides of the performance story - the positive and negative which will make the feedback to be more credible, palatable and useful.

Future prospects/Areas for further studies:

Zero error Performance Appraisal System in future? How raters could be unbiased?