Performance Appraisal Means Evaluating Commerce Essay

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HBL use KPI's or targets which they give annually to employees as a criteria to appraise their employees and measure their employee performance by observation the achieved targets out of 100% which is standard or a benchmark that is quality of work, team work, goal fulfillments, performance, customer services, behavior with colleagues and supervisors/managers and growth.

HBL process of performance appraisal system is they define their expectations, and then they measure or evaluate and provide feedback and hence their performance recorded. They judge their employee on achieving the annual targets which have provided them to achieve, even manager's evaluate the performance of employee by behavior of employees and punctuality and how productive they are, how knowledgeable employees are or are they satisfying their employees by giving time to them and the way they dress up.

HBL has assigned different weight ages out of 100, employee doing more than 100 or achieving target more than the benchmark that is an excellent job employee performing but if employee performing average discussion takes place between manager and its subordinate if employee becomes defensive, manager could easily sort out through his managerial skills.

HR is responsible for training of supervisors to improve their appraisal skills.

HBL use GRAPHICAL RATING SCALE METHOD or RANKING METHOD for appraising performance of an employee. HBL's Graphic Rating Scale method appraisal form contains three sheets; one is FORM B1, FORM B2, and FORM B3.

Form B1: contains information about employees or the criteria through which employee should appraise.

Form B2: contains two points through which they evaluate performance, i.e., FACTORS through which they determine if employee is productive or how the job is performing or the employee knows how to use technology he is being assessed and to see how responsive is an employee towards customers and motivated or dedicated to work and even employees are appraised through the factor of their own personality, i.e., how punctual employee is, behavior, personal hygiene. Even another criteria is determined on the B2 Form is the level of achievement s points being 4 the highest or 1 the least in form of grading A the highest which is 4 and D the lowest consider 1.

FORM B3: This form contains the supervisor comments or evaluate the overall performance by given the grading(A,B,C,D) and appraise the comments in the form of agree/disagree then after evaluation is finalized in form signatures take by supervisor who conducted and send to the Hr department.

HBL even use Ranking method to appraise their employees in which ranking employees from best to worst on a trait or traits. It is the most popular method, in which firstly, list all subordinates to be rated and in this method those names are not included which are well enough to rank. In ranking form indicates the employee who is on the highest on the characteristic being measured and the one who is lowest, then, choose the next highest and the next lowest, alternating between highest or lowest until all employees have been ranked.

HBL also use Forced Distribution Method is similar to grading on a curve. With this method, you place predetermined percentages of ratees into several performance categories. By forced distribution method as demonstrated by manager for example that manager must rate its employees under him according to following distribution: 10% low, 20% below average, 40%average, 20% above average, 10%high. In a group of 20 employees, two would have to be placed in the low category, four in the below-average category, eight in the average, four above average, and two would be placed in the highest category. It reflects the normal curve, a small percentage of ratees are required to be placed in the extremes (best and worst performers) larger percentages of ratees are placed toward the middle of the performance distribution. It is used for high executive level - Vice president and above him in HBL.A separate bell curve is developed according to function/branch category/division and group.

MBO (Management By Objectives) also used by HBL in which objectives are told to the management and employees what targets they have to achieve. This method is easy to evaluate the performance of employees according to the goals and objectives have been told to them and how much they achieved. HBL applies MBO process to increase organizational performance. MBO includes tracking and feedback in the process to reach objectives

Steps of MBO:

STEP1: Review organizational objectives

HBL's objective is to make customer satisfy and to create value for them.

STEP2: Set Objectives

To earn profit for the organization

STEP3: Monitor progress

•Less complaints

•Timely service is provided

•Monthly revenue and cost

STEP4: Evaluate performance

How efficiently or effectively employee achieve his goals and targets Then his/ her appraised with the goals allocated as benchmark to achieve

 STEP5: Give rewards


•Special salary increase

•Cash price

Problems HBL goes through while making performance appraisal are the employee participation, feedback-seeking and unclear goals and standards, regency effects. Promotable or UN -promotable appraisal interviews both conducted in HBL.


Performance management is the process of identifying, measuring,and developing the performance of the human resources in an organization. Basically we are trying to figure out how well employees perform and then to ultimately improve that performance level. When used correctly, performance management is a systematic analysis and measurement of worker performance (including communication of that assessment to the individual) that we use to improve performance over time.

Performance management at HBL is a forward looking process for setting goals and regularly checking progress towards achieving those goals. At HBL it is a continual feedback process whereby the observed outputs are measured and compared with the desired goals. Performance management ensures that goals are consistently being met. Performance management at HBL is to evaluate employees to reach their goals and through which company performs better .In HBL's performance management model employees are given opportunities to work on harder projects, paired less-skilled employees with expert employees and employees can direct and make decisions. At HBL growth does not matter but performance does.

Tools used by HBL for performance management are:

Developmental goal setting

Ongoing performance monitoring

Ongoing feedback

Coaching and support

Performance appraisal

Rewards, recognition, and compensation

At HBL if employee performing good he gets an increment of 10% annually. They monthly evaluate the performance which is effective for the employees to work best. Managers and Supervisors keep on giving their constructive feedback to increase employee's performance.

HBL performance management system covers all employees under the function sales, operational, finance, Hr, administration.

Purpose of Performance Management System

To access the performance

Basis for reward (Increment Bonus)

Basis for promotion Placement

Ascertain training and development needs

The results of process measured by with the will help in measuring the performance, based on balanced measure approach and to standardize format across the organization, which is the ranking method or graphical rating method, it depends on employee performance on average, below average, low or good.

HR performance Management System helps in increasing profit and Reducing Hr turnover.HR measured their satisfaction level through exit interview which can be good, excellent or poor. There is no involvement of stakeholders in ensuring performance management system.