Management appraisal at Pakistan Tobacco Company

Case Study Analysis

3/24/2013

Group members
Adil Mumtaz Ahmer Mirza Hurriya Tazeen Muzzamil Hussain Naqi Shaukat Nudba Ayatullah Uzair Asif

MANAGEMENT APPRAISAL AT PAKISTAN TOBACCO COMPANY

Contents
Case summary and background .................................................................................................................... 3 Case Analysis ................................................................................................................................................. 3 Key issues .................................................................................................................................................. 3 Problem 1: ............................................................................................................................................. 3 Problem 2: ............................................................................................................................................. 3 Problem 3: ............................................................................................................................................. 3 Problem 4: ............................................................................................................................................. 4 Problem 5: ............................................................................................................................................. 4 Core Problem ................................................................................................................................................ 5 Recommendations ........................................................................................................................................ 5 Appendix ....................................................................................................................................................... 7

MANAGEMENT APPRAISAL AT PAKISTAN TOBACCO COMPANY

Case summary and background

This case basically talks about the Validity of the Management Appraisal techniques being used by the Pakistan Tobacco Companys Personnel Department. Companys Top management is facing a dilemma regarding their performance appraisal system, either they should keep the appraisal process the way it is, or should they need to bring some changes into it, so that it could be more effective in evaluating the performance of the individual employees and becomes a winwin situation for both the appraiser and the appraisee.

Case Analysis
Key issues
Problem 1:

Exhibit 1 suggests that the appraisal form being used at the Pakistan Tobacco Company is unattractive and subjective in nature. The form is qualitative in nature and needs to be improved with the addition of some quantitative features as well so that the appraiser, as well as, the appraisee is interested to go through the form and can easily interpret it.
Problem 2:

There are four sections being used in the current form, where the employee is compelled to sign only the second section. While, the third and the fourth section of the form are important and the employee should be able to know, what is the feedback of different senior personnel about the performance and attitude of the appraisee.
Problem 3:

There is a psychological barrier that people find it hard to give negative feedback to anybody. Appraiser requires training in communicating negative weak point of appraisee.

MANAGEMENT APPRAISAL AT PAKISTAN TOBACCO COMPANY Problem 4:

Mr. Haq hates poor communicators and believes that Zahid is weak communicator so slight chances of Halo effect can come into play
Problem 5:

Appraisal system is conducted annually without any objectives review during the year. So if there is some problem with the objectives to be achieved you cannot modify or alter them for next 6 months so that performance may become better.

MANAGEMENT APPRAISAL AT PAKISTAN TOBACCO COMPANY

Core Problem
All of the above mentioned problems lead to one CORE Problem that LACK OF TRANSPARENCY IN APPRAISAL SYSTEM which is entirely the fault of HR Department There are four sections being used in the current form, where the employee is compelled to sign only the second section. While, the third and the fourth section of the form are important and the employee should be able to know, what is the feedback of different senior personnel about the performance and attitude of the appraise that means. High Chances of Conflict may arise during final interview and convincing the appriasee at that point would be difficult.

Recommendations
1. Appraisal system should be Open and Appraiser and Apparisee should agree to all the points discuss 2. Appraiser Should be Trained by HR Department that how should weak points be communicated e.g. Dont Say: I dont like your attitude and because of your attitude you wont succeed Say: You have the ability to perform well but there are certain behaviors you need change which are hindering in your way to success. (cite few examples) 3. Appraiser should have a log of employees qualitative factors so that he can clearly communicate that what are his strengths and weaknesses 4. There are no quantitative factors like Annual Attendance (his and department under him), Cost Saving Data etc that clearly demonstrates employees is aligned towards improving the company. 5. Establish an action plan for future that performance can be improved

MANAGEMENT APPRAISAL AT PAKISTAN TOBACCO COMPANY

6. Rather than annual Appraisal system, objectives should be reviewed bi annually so the employee should get a fair chance of improving in next 6 months before final appraisal.

MANAGEMENT APPRAISAL AT PAKISTAN TOBACCO COMPANY

Appendix