Presentation Zoinal

Performance Appraisal System: A comparative of systems practiced in Prime Bank
Presented by: Md. Masud Karim 10th Batch ID : 3 06 10 007

1/27/2014 Performance Appraisal System: A Case Study of Prime Bank Ltd. 1
Introduction
Performance management is a system for managing, evaluating and developing the performance of employees, which provides a sound basis for the effective management of performance/development. The main objectives of performance management system are to maximize performance, support the development of competencies, focus on performance which supports objectives in higher level plans, etc. It is really a very sensitive issue which needs to be handled with utmost fairness and transparency.
Performance Appraisal System: A Case Study of Prime Bank Ltd. 2
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Introduction
The study is based on Traditional Performance Appraisal System and Revised (Present) Performance Appraisal System of Prime Bank Limited. The study mainly concentrates on how effective the Revised (Present) Performance Appraisal System are operating and seeks some useful guidelines for further improvement of the present system.
Objectives
i) Make an overview of the performance appraisal system in Prime Bank Limited ii) Undertake a literature review on performance management system. iii) Conduct survey with the employees of the Bank with the help of questionnaire and iv) Provide some recommendations for improving the existing appraisal system in the Bank.
Methodology
Relevant data have been collected both from primary and secondary sources. Indepth interview, questionnaire and observation method were used as a source of primary data when website, service rules, job descriptions, performance evaluation form, and other relevant papers were used as a source of secondary data.
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Company Profiles
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Performance Appraisal System: A Case Study of Prime Bank Ltd.
History
The study is based on Prime Bank Limited, a leading private commercial bank of Bangladesh. It was incorporated as a public company in Bangladesh under Companies Act 1994. It commenced its banking business with one branch from April 17, 1995 under the license issued by Bangladesh Bank. Presently the bank has 50 (fifty) branches all over Bangladesh and a booth located at Dhaka Club, Dhaka. Out of the above 50 (fifty) branches, 05 (Five) branches are designated as Islamic Branch complying with the rules of Islamic Shariah. The principal activities of the Bank are to provide all kinds of commercial banking services to its customer through its branches in Bangladesh.
Special Features of the Bank
Prime Bank Ltd. is engaged in conventional commercial banking. It is the pioneer in introducing and launching different customer friendly Deposit Schemes. For uplifting the standard of living of the limited income group of population, the Bank has introduced Consumer Credit by providing financial assistance in the form of loan, which already have encouraging responses. The Bank is committed to continuous research and development so as to keep pace with modern banking. The operations of the bank are computerized to ensure prompt and efficient services of the customers. The Bank has introduced camera surveillance system to strengthen the security services to the customers. The Bank has introduced customer relation management system to assess the needs of the customers and resolve any problem on the spot.
Vision & Mission of the Bank
Vision: To be the best Private Commercial
Bank in Bangladesh in terms of efficiency, capital adequacy, asset quality, sound management and profitability having strong liquidity. Mission: To build Prime Bank Limited into an efficient, market driven, customer focused institution with good corporate governance structure. Continuous improvement in its business policies, procedure and efficiency through integration of technology at all levels.
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Performance appraisal system in practice in the Prime Bank Limited
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Traditional Appraisal System
Traditional (Prior) Appraisal System is more or less Annual Confidential Report (ACR). It is a performance evaluation report of employee which is written by his superior. In addition to performance it contains specific observations on the character, conduct and integrity of the officer reported upon. This appraisal system is to be countersigned by an officer immediately superior to the officer who writes the report on his immediate subordinate. The report is classified as confidential.
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Traditional Performance Appraisal System
It contains traits and performance related factors. It is reported that this system is mainly trait -based and thus neglects the reviews on direct job related dimensions. The factors are very much subjective in nature. The appraisal systems are applicable to all employees irrespective of grades. However, forms are different for different grades of employees.
The Traditional Performance Appraisal was filled up confidentially. This non-communication keeps the employee in dark about what is expected of them or where they stand.
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Revised (Present) Appraisal System
Revised (Present) Appraisal System of Prime Bank Ltd. is for managing, evaluating and developing the performance of the employee. It applies to all executives (AVP to SEVP), officers (All officers below AVP) and service staffs (Drivers).
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Aim
The Revised (Present) Appraisal System takes care of the following:

The performance appraisal of Prime Bank Ltd. is just not all about measuring performance of employees, but also aims at development of performance in terms of skill and knowledge and leadership behavioural competencies required in the job.
Business performance (on the job accomplishment in terms of a work plan) Depth of skill & knowledge Width of behavioural competencies Individual personal development plan
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Objective
The objective of the revised performance appraisal system is to shape outstanding performance in a competitive way to ensure sustainable profitable growth in business. The performance appraisal will conduct annually.
Length of appraisal
Key elements in the appraisal system
There are three key elements included into the new Performance Appraisal System.
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Key Elements Part-I: The individual Work plan/Targets Part-II: Assessment of competency i.e., behavioural leadership Marks 100 100
Part-III: Assessment of skill & knowledge level

Total Marks
100
300
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Three different appraisal forms
The appraisal system has been designed taking into consideration three categories of employees as follows. : a) AVP to SEVP b) All officers below AVP c) Other non-Management/ Service staff
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Standard of performance measures Excellent (EX) Very Good (VG) Good+ (G+) Good (G) 255+ 225+ 195+ 165+
Fair (F) Modest (M/P)
135+ Below 135
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Uses of Performance Appraisal System Payment of incentive bonus. Promotions Merit increment Punishment
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The employee populations after completion of performance appraisal
Excellent (EX) Very Good (VG) Good (G) Fair (F) Poor (P)
=15%+=20%+=50%+=10%+=05%+-
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The normal performance curve looks like this: (approximation)
Good
Very Good Poor & Fair
15% +50% +20% +15% +-
Excellent
Normal Distribution of performance in an Organization

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Excellent Its means an outstanding & dynamic employee all the way i.e., (EX) Knows the job having full & updated knowledge & skills. Exceeds targets usually and meets job objectives consistently. Capable of shouldering higher responsibilities. Contributes new ideas, deeps commitment & manages time. Demonstrates high integrity/ honesty In a word, these employees are clearly excellent performance exemplary Very good (VG) Definitely Superior to the standard expected of a competent, experienced and acceptable employee. Such employee must have at least 75%+ of the attributes / quality of a dynamic manager as stated in Excellent grade In a word, these employees are Clearly fully satisfactory performance exceeding expectations.

Good (G) A good all-around employee, well-suited to his/ her work and of the standard expected. Potential may be limited, but, capable to move up the ladder of higher responsibilities. Such employee mush have at least 65%+of the attributes & qualities of a dynamic manager as stated in the excellent grade. In a word, these employees are Clearly standard performance meeting exception.
Work is not considered fully satisfactory owing to one or few deficiencies or weakness in the standards of work, but, considered acceptable but needs improvement & development. Such employee must have at least 50%+ of the attributes & qualities a dynamic manager as stated in the Excellent grade.
Fair (F)
Modest/ Work is purely unsatisfactory far below standard expected, necessary Poor (P) to take a call for replacement.
Major differences between Traditional Performance Appraisal System and Revised (Present) Performance Appraisal System
Traditional Performance Appraisal System
Traditional Performance Appraisal System is more or less Annual Confidential Report
Revised (Present) Performance Appraisal System

Revised (Present) Performance Appraisal System is just not all about measuring performance of employees but also aims at development of performance in terms of skill & knowledge and leadership competencies required by the job. This system helps in finding skill gaps to be addressed for personal development.
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This system is quite ineffective to find out the skill gaps for the job.
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Traditional Appraisal System Again the revised system helps in finding out also not allows finding out the competency gaps to be addressed for personal competency gaps for the job. development. The prior system is only stick to performance appraisal which only occurred once a year. However, Revised Performance Appraisal System helps in identifying high potential people in different grades as checked by globally and by locations. For example, by this system HR can know how many Excellent, Very Good, Good, fair and modest employee a branch/department possess. Again, this system ensures the HR to know how many Excellent, Very Good, Good, fair and modest employee each of the job grade possess.
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Traditional Appraisal System guarantee only promotion for the employee in due time. But the revised system guarantee not only promotion in due time but also ensures bonus, incentives and special promotion. For example, the Bank gave special promotion to some of the excellent grade employees in 2006. Again in this system the amount of annual bonus was not same for all employees in 2006.
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Findings & Analysis
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Respondents Profile
Particulars Variables Up to 30 years Age Group 31-39 years More than 40 years Education Graduate Post-Graduate Sex Male Female Above AVP-SEVP Position Principal Officer-FAVP Trainee Assistant-Senior Officer Service Staff Up to 2 years Length of Service 2-5 years No. of Respondents 7 5 3 3 12 11 4 2 6 6 1 4 5 % 46.67 33.33 20.00 20.00 80.00 73.33 26.67 13.33 40.00 40.00 6.67 26.67 33.33 15 15 15 15 Total 15
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More than 5 years 6 Performance Appraisal System: A Case Study of Prime Bank Ltd.
40.00
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Findings & Analysis

Traditional Performance Appraisal System: The participants of the questionnaire do have good clarity about Traditional Performance Appraisal System because they were used to this system for a long time. But they viewed that this system was an ineffective tool for fairly assessment of the appraisee. They viewed that this System is acceptable but needs improvement and development. The observation, in a word, reflects that Traditional Performance Appraisal System is not an effective tool at all. This necessitated the revision of the Traditional Performance Appraisal System.
Different appraisal forms of Revised (Present) Performance Appraisal System: The observation reflects that the employees of the bank are very satisfied with the different appraisal forms. Because there are actually three categories of employees and their job nature is also different.
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Findings & Analysis
Acceptation of Revised (Present) Performance Appraisal System: The study shows that the acceptation of the new system is not that much satisfactory. The participants informed that a major portion of the employees were reluctant to accept the new system. The observation also suggests that the employees are not very sure about the successful implementation of the new system.
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Key elements of Revised (Present) Performance Appraisal System: It is found from the data that both the supervisor/appraiser and the appraisee do possess little understanding about key elements of the new system. Again the respondents reported that the employees of the bank have different ideas about the rating scale.
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Findings & Analysis
Performance measures of Revised (Present) Performance Appraisal System: The observation suggests that except few, employees are pleased with the performance measures of the new system. It is found that the decision of only very good and excellent holder employee will get promotion in due time is wellaccepted by the competent employees. But low performer employees did not like this system.
Performance planning of Revised (Present) Performance Appraisal System: It is found from the data that employees do have very different views about the performance planning of the Revised System. The study suggests that the employees of the bank understand and agree what is expected from the job, but not very sure about their position in consistent of job description of the new system. Finally, respondents show their satisfaction about work plan of the new system. They viewed that the new system helps in developing their performance and preparing themselves for future career moves.
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Findings & Analysis
Job Review of Revised (Present) Performance Appraisal System: The respondents reveal very positive ideas about job review of the Revised (Present) Performance Appraisal System. It is found that this revised system most importantly finds out the potential gaps and development opportunities of the employee of the Bank. The study finds that the orientation/training which the employees are getting now is satisfactory. Except few, many of the respondents strongly believe that the feedback from the supervisor/manager is satisfactory.
Formation of committees in Revised (Present) Performance Appraisal System: It is found that most of the employees are satisfied with the decision of the committee though few are not satisfied at certain cases.
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Findings & Analysis
Job Evaluation of Revised (Present) Performance Appraisal System: The respondents state that supervisor/appraiser is marginally fair enough to diagnose exactly what the appraisee deserves. Other than few, many of the employees agree with supervisor/manager about appraising performance. The study also reveals that the employees enjoyed much liberty while preparing self appraisal, competency assessment and skill & knowledge assessment.
Success of Revised (Present) Performance Appraisal System: It is found from the respondents view that the satisfaction level of the employee for the Revised (Present) Performance Appraisal System is good. They state that in the Revised (Present) Appraisal System, fair assessment is possible. The respondents are also satisfied with revised system which helps in their performance.
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Recommendations
Performance appraisal of a Bank is a very crucial part both for the management and for the employees because the successes and the failures of the employees largely depend on it. It has been observed that some of the employees do not possess much knowledge about Revised (Present) Performance Appraisal System. Therefore, each and every employee needs adequate training on the revised system. The HR should organize such training at least once a year and should also ensure feedback from the employees that they have acquired adequate knowledge on this.
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The findings of the analysis reveal that employees have some dissatisfaction in case of promotion or continuation of service. Therefore, within the organization performance should be the basis for employment references for promotion of employees or continuation of service. The management should establish it through practice.
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Recommendations
Promotion or demotion, training or attachment, transfer or posting, recruitment or selection, salary fixation or increment, there is no single area where performance does not play any role. Since the employees do not have adequate training on the system, management should organize training emphasizing on this component.
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It is evident that performance management deals with performance of an individual employee. It also recommends training or attachment for the poor-performer, which helps in developing the performance of concerned employees. For not agreeing with its consequence means, the staffs do not have adequate knowledge on the performance management system and its fair and transparent use. The management should look into these areas i.e. if any officer is recommended for training he/ she should be sent for training. Similarly, if anybody deserves promotion for outstanding performance he/she should be given promotion or increment, whichever is applicable.
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Recommendations
It is an important issue for both the supervisor/appraiser and the appraisee. If they do not know what is expected in the job then the objectives of the organization will not be met. The training/ orientation on the performance management system and the agreement on the job while recorded in the job description must be ensured by the supervisor/appraiser.
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In most of the cases we find that a good number of respondents express their moderate agreement almost in every area. I think we will agree on the issue that moderate means 50:50 possibilities in favor of the concerned areas and also against the areas. Therefore, the management should consider their case as a weak area and recommend training for them.
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Recommendations
According to the policy, if an employee is rated poor then an improvement plan must be agreed between the supervisor and the officer. It seems that the exercise of this part of the performance management system in not being used properly. The management should look into this matter so that the recommendations of the supervisor can be implemented.
Right people for the right job and right people for promotion is the area where Human Resource Division should look for. Though the bank is now in a stable position in the banking arena, still HR should give more emphasis on this side to have a steady and secured growth of the bank.
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Recommendations
It is observed from the respondents view that Revised (Present) Performance Appraisal System finds the potential gaps and development opportunities of the employees. Therefore the task of the HR should provide perfect training and other educational opportunities for the employee to have more expert and trained people.
It is found from the respondents view that still there are some areas where biases may occur. Thus biases should be reduced in the performance appraisal system as well as HR policy of the Bank. There should be a fair recruitment system in order to get the cream crop. The reason is that if the employee will be better then it is for sure that the performance system will be better.
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Recent edition
Human Resources Division of Prime Bank Ltd. are now thinking of different pay scale in each job grade. This system is expected to implement very soon based on the performance appraisal on the year 2006. Suppose there are three persons in job grade Senior Officer. One person got Excellent, another person got Good and the last person got Poor in his performance appraisal form. Their pay scale will be different based on the performance measures, he/she possesses. Thus Revised (Present) Performance Appraisal System will also take a major part to determine the pay structure of the employees of Prime Bank Ltd.
Conclusion
Although the Revised (Present) Performance Appraisal System, being used in the Prime Bank Limited, is found effective, yet there are some disagreements and dissatisfactions on some areas of the system, which we can call system errors and can be overcome through training and orientation. If the management of the Bank is sincere enough to fully implement the system in the organization, the performance as well as efficiency of the employees will surely improve. The Prime Bank Limited can be a model organization for other banks, who are really interested to implement the performance appraisal system in their organization.
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Thanks for being patience
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Performance Appraisal System: A comparative of systems practiced in Prime Bank

Presented by: Md. Masud Karim 10th Batch ID : 3 06 10 007

Performance Appraisal System: A Case Study of Prime Bank Ltd.

Special Features of the Bank

Vision & Mission of the Bank

Vision: To be the best Private Commercial

Performance appraisal system in practice in the Prime Bank Limited

Performance Appraisal System: A Case Study of Prime Bank Ltd.

Traditional Appraisal System

Traditional Performance Appraisal System

Performance Appraisal System: A Case Study of Prime Bank Ltd.

Revised (Present) Appraisal System

Revised (Present) Appraisal System

The Revised (Present) Appraisal System takes care of the following:

Revised (Present) Appraisal System

Key elements in the appraisal system

Revised (Present) Appraisal System

Part-III: Assessment of skill & knowledge level

Revised (Present) Appraisal System

Three different appraisal forms

Performance Appraisal System: A Case Study of Prime Bank Ltd.

Revised (Present) Appraisal System

Fair (F) Modest (M/P)

135+ Below 135

Performance Appraisal System: A Case Study of Prime Bank Ltd.

Revised (Present) Appraisal System

Performance Appraisal System: A Case Study of Prime Bank Ltd.

Revised (Present) Appraisal System

The employee populations after completion of performance appraisal

Performance Appraisal System: A Case Study of Prime Bank Ltd.

Revised (Present) Appraisal System

Normal Distribution of performance in an Organization

Revised (Present) Appraisal System

Revised (Present) Appraisal System

Revised (Present) Performance Appraisal System

Performance Appraisal System: A Case Study of Prime Bank Ltd.

Performance Appraisal System: A Case Study of Prime Bank Ltd.

Findings & Analysis

Performance Appraisal System: A Case Study of Prime Bank Ltd.

Findings & Analysis

Performance Appraisal System: A Case Study of Prime Bank Ltd.

Findings & Analysis

Performance Appraisal System: A Case Study of Prime Bank Ltd.

Findings & Analysis

Performance Appraisal System: A Case Study of Prime Bank Ltd.

Findings & Analysis

Performance Appraisal System: A Case Study of Prime Bank Ltd.

Findings & Analysis

Performance Appraisal System: A Case Study of Prime Bank Ltd.

Performance Appraisal System: A Case Study of Prime Bank Ltd.

Performance Appraisal System: A Case Study of Prime Bank Ltd.

Performance Appraisal System: A Case Study of Prime Bank Ltd.

Performance Appraisal System: A Case Study of Prime Bank Ltd.

Performance Appraisal System: A Case Study of Prime Bank Ltd.

Thanks for being patience

Performance Appraisal System: A Case Study of Prime Bank Ltd.

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