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SNGPL

The document discusses performance appraisal systems used by various organizations in Pakistan. It describes the existing performance appraisal system at SNGPL which consists of three parts and evaluates objectives, performance, and competencies. Issues with the current system include it being time-consuming and not user-friendly. The SGM HR is considering adopting a forced distribution system used by other companies to make the performance evaluations more consistent and objective. This involves rating employees on a curve with predefined percentages for performance levels. The SGM HR must determine how to introduce changes to the existing system.

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Roshan Zamir
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381 views43 pages

SNGPL

The document discusses performance appraisal systems used by various organizations in Pakistan. It describes the existing performance appraisal system at SNGPL which consists of three parts and evaluates objectives, performance, and competencies. Issues with the current system include it being time-consuming and not user-friendly. The SGM HR is considering adopting a forced distribution system used by other companies to make the performance evaluations more consistent and objective. This involves rating employees on a curve with predefined percentages for performance levels. The SGM HR must determine how to introduce changes to the existing system.

Uploaded by

Roshan Zamir
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Group Members:

O Nafeesa Khalid
O Moattar Iqbal O Zainab bint-e-Irfan O Sana Zahid O Roshan Zameer

The Performance Appraisal Forms:


Consisted of three parts:
PAD l

Objectives for upcoming year

PAD ll

Evaluated the performance achievement against predetermined objectives Meant to access the competencies associated with objective realization.

PAD lll

Setting of annual objectives based on:


Specific

Time Bound

Measurable

Result Oriented

Attainable

O These objectives were assigned different

weightings based on their relative importance. O PAD meant to assess two types of competencies:
O Core Competencies O Advance Competencies

Core Competencies:
O Oral communication
O Written communication O Negotiation skills O Product knowledge & procedures O Policies

Advance Competencies:
O Customer focus, O Sales Focus, O Result Focus, O Building relationships and network, O Understanding the business, O Problem solving, O Concern for Quality, O Listening and responding,

O Demonstrating initiative,
O Team Network.

O These competencies varied from one

functional area to another. O SGM find a way to:


O Simplify the appraisal form. O Develop a directory of competencies with

their operational definitions.

First factor
O Principle of meritocracy O Solid performers v/s not so solid

performers

Second Factor:

O Overarching objectives O Evaluative objectives v/s

developmental objectives

Brainstorming Session:
O Objective performance appraisal
O Superior long-term performance O Basis for annual rewards O Potential for career growth O Assess the development needs O Greater objectivity and fairness

Continued
O Increase timely feedback
O Encourage teamwork O Increase consistency and

confidentiality O More discriminating to ensure just distribution of annual rewards

Evaluation objectives
O Development needs
O Rewards and promotion decisions O Discriminating manner for equitable

distribution of rewards O Absolute v/s relative evaluation systems

Performance appraisal form

problems
O Time consuming
O Tasks that require extensive writing O Recalling of events O Burdensome because of work load O Immense pressure to achieve

performance target

Continued
O Not User friendly
O Not applicable to certain employees. O Problem of consistency and confidentiality O Appraisers bias towards an employee. O Evaluators weakness to defend poor

raters O Leniency versus strictness

Employees Feedback
O Unfair and unsatisfactory

performance appraisal system O Performance appraisal should be done objectively

Relative Grading:
Meisler defined relative grading as:
It is a work force management tool based on premise that in order to develop and thrive, a corporation must identify its best and worst performance, then nurture the former and rehabilitate and / or discard the letter. Its an elixir that in these slow growth times has proved irresistible to score of desperate corporate chieftains but indigestible to a good many employees.

Purpose of using Relative Grading Performance Evaluation:


O Identify leaders &
O Slackers with in the organization

Objectivity of using Relative Grading Performance Evaluation:


O Objectively reflect on how each team

member was performing:


O Relative to ultimate goal

Relative to others

Relative vs. Absolute Performance Apprais


Different view point

O The SGM HR was wondering what changes should be

made to the existing system.


O One of the views being considered was of normal

distribution curve.
O GM HR SNGPL had also learned that a forced

distribution system could be used to bring consistency to the performance appraisal system.

O GEs Vitality Curve corresponds with the normal

curve of distribution and was a relative measure of performance appraisal. O In GE employees were forced to a distribution of 20-7010 model. O This model meant that 20% of the people were top performers and most productive, 70% of the workforce worked adequately but the last 10% were non performers and were fired

O Many local companies have successfully

implemented this concept.


O This system is also implemented in Pakistan

Tobacco as well as Pakistan State Oil.

Pakistan Tobacco Company


O PTC used a five level scale.
O It adopted a forced distribution of 3% in

top performance bands, 14% in the next band, 66% in the middle and 4% for below average and the remaining 3% for unsatisfactory category O Based on experience, however, the top and bottom two levels were further refined for relative ranking as 1/2/2/1 (+/-3 SD).

Pakistan State Oil


O Adopted an evolutionary approach to forced

distribution. O Year 1 and Year 2 were evaluated on 5/20/50/20/5 (Outstanding, Above Average, Average, Below Average and Inadequate). O In Year 3 , PSO eliminated the inadequate category based on 5/20/55/2 and an SD +/-2.

O SGM HR while thinking about determining the forced

distribution bands for his company liked the way the bands had been decided by the public as well as private sector companies.
O He thought that such forced distribution could be helpful

in a public sector organization like SNGPL because it would not only measure the relative performance of the employees but also identify leaders and weak performers in the organization.

O He considered adopting forced distribution for

SNGPL of 5/15/75/3/2 with an SD of +/-2 but was not sure how his managers would react to it.

Moving Forward:
O SGM HR had to grapple with many issues

in reinforcing the current PAS but the most ticklish of these was the forced distribution method. O The simplification of the form was not considered by him to be too daunting a task. O He could surely make it more user friendly by seeking inputs from different managers.

O Similarly , he also felt that clarifying the main

objectives of the PAS could also be achieved without much difficulty. O While brooding over the many issues identified in the present PAS, SGM HR wondered how he should proceed in tackling the same. O Should he bring about different changes simultaneously or should he sequence his interventions to facilitate their implementation?

O He was also contemplating about the

process he should pursue to finalize his recommendations before presenting them to the Company Board.

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