Impact of Key Performance Indicator (KPI) on employee performance evaluation: A Case study on

RAK Paints Limited.

Submitted by
Mst. Monira Pervin
MPHRM Program
Batch: 5th
ID No. 24-05-18-050

Supervisor:
Professor Dr. Faruq Ahmed
Department of Management
Faculty of Business Studies
University of Dhaka.

Submission Date: 19th July, 2020

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LETTER OF TRANSMITTAL
19th July, 2020

To
Professor Dr. Faruq Ahmed
Supervisor
MPHRM Program
Department of Management
University of Dhaka.

Subject: Submission of Thesis Report on “Impact of Key Performance Indicator (KPI) on

employee performance evaluation: A Case study on RAK Paints Limited.”

Dear Sir,
I am submitting herewith my Thesis Report entitled “Impact of Key Performance Indicator (KPI) on
employee performance evaluation: A Case study on RAK Paints Limited.”. I have prepared this
report according to the instructions given by you. I hope this report is informative enough as well as
comprehensive.

I have tried my best to include all the important information in this report and tried to provide an in-
depth idea about the concept of leadership. In fact, I have tried to make it as thorough as possible even
though my knowledge is limited to certain point.

I am sincerely looking forward to your approval about this report and hope that it represents my abilities
the way I wanted to.

If you have any further enquiry concerning any additional information, I would be very pleased to
clarify that. Thank you.

Best regards,
Mst. Monira Pervin
(ID# 24-05-18-050)
MPHRM Program

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ACKNOWLEDGMENT
One of the most pleasant parts of submitting a report is the opportunity to thank those who have
contributed to it. Unfortunately, the list of expression of thanks- no matter how extensive is always
incomplete and inadequate. These acknowledgements are no exception.

My first thank goes to the almighty Allah for bestowing me the patience and courage to finish this task
within its deadline.

My utmost thanks to employees of RAK Paints Ltd. those who gave me an in-depth knowledge about
the company and how it operates and for guiding me throughout the report preparation.

At last, I sincerely acknowledge my debt to Prof Dr. Faruq Ahmed, honorable Thesis Supervisor, for
his valuable counseling towards the improvement of the paper. Without his encouragement, this would
have been impossible.

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ABSTRACT
Key Performance Indicators (KPIs) is an important topic in both professional business practice and
academic research. The literature shows that Key Performance Indicators (KPIs) is a central issue
affecting both financial and non-financial indicators that organizations use in order to estimate and
fortify how successful they are, aiming previously established long lasting goals. Appropriate selection
of indicators that will be used for measuring is of a greatest importance. Process organization of
business is necessary to be constitute in order to realize. This study was focused on assessing the factors
that impact the employees how to measure performance and relationship between organizational
objectives in RAK Paints Limited a sister concern of RAK Group. Qualitative research methods were
used for the study, and a sample population was of 04 were chosen. The depth interview helped the
research to be a package of understanding. This study also established that Business organizations
continuously monitor their environments, looking out for opportunities and threats that may help/hinder
the fulfilment of their objectives. This study also showed that the main causes of process organization of
business is necessary to be constitute in order to realize such effective and efficient system or
performance measuring via KPI.

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Table of Contents
Cahapter-1: Introduction..................................................................................................................................8
1.....................................................................................................................................................Introduction:
...........................................................................................................................................................................8
1.1 . Background of the study:................................................................................................................8
1.2. Rational of the study:..................................................................................................................................9
1.3. Objective of the study:................................................................................................................................9
1.3.1........................................................................................................................................Broad Objectives:
...........................................................................................................................................................................9
1.3.2. Specific Objectives:..................................................................................................................................9
1.4. Scope of the study:....................................................................................................................................10
1.5 Limitation of the study:.............................................................................................................................10
Chapter-2: Methodology...................................................................................................................................10
2.1. Data Collection...........................................................................................................................................10
2.2. Data Analysis:............................................................................................................................................11
2.3. Model Explanation:....................................................................................................................................13
2.4. Hypothesis statement and explanation:.....................................................................................................13
Chapter-3: Theoretical Preview:.......................................................................................................................14
3.1. Definition of KPIs:......................................................................................................................................14
3.2. What makes a KPI effective?......................................................................................................................14
3.3. How to define a KPI?..................................................................................................................................14
3.4. What is a SMART KPI..................................................................................................................................15
3.5. Why KPI is needed to evaluate employee performance?...........................................................................15
3.6. Components of KPI....................................................................................................................................15
3.7. Importance of KPI:.....................................................................................................................................16
3.7.1. Measure our Targets:..............................................................................................................................16
3.7.2. Create an Atmosphere of Learning..........................................................................................................17
3.7. 3. Receive Important Information:.............................................................................................................17
3.7.4. Encourage Accountability:.......................................................................................................................18
3.7.5. Boost Morale:.........................................................................................................................................18
3.7.6. Benefits of KPI:........................................................................................................................................19
3.8. How to write and develop KPIs?................................................................................................................19
3.8.1. Write a clear objective for your KPI:........................................................................................................19
3.8.2. Share your KPI with stakeholders:...........................................................................................................20

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3.8.3. Review the KPI on a weekly or monthly basis:........................................................................................20
3.8.4. Make sure the KPI is actionable:.............................................................................................................21
3.8.5. Evolve KPI to fit the changing needs of the business:..............................................................................21
3.8.6. Check to see that the KPI is attainable:...................................................................................................21
3.8.7. Update KPI objectives as needed:...........................................................................................................22
3.8.8. Bringing it all together:...........................................................................................................................22
Chapter-4: Literature Review:...........................................................................................................................22
4.1. Understand our goals.................................................................................................................................22
4.2. Set relevant KPI metrics.............................................................................................................................23
4.3. Create an action plan:..............................................................................................................................24
4.4. Adopting a Balanced Scorecard:................................................................................................................25
4.5. The Balanced Scorecard in Action:.............................................................................................................26
4.6. Four Critical Processes for Strategic Management:.....................................................................................27
Chapter-5 Organizational profile:......................................................................................................................28
5.1. About RAK Paints Ltd.................................................................................................................................28
5.2. Company at a glance..................................................................................................................................29
5.6. Core Values:...............................................................................................................................................31
5.7. Strategic Business Objectives:....................................................................................................................31
5.10. Organogram of the company:..................................................................................................................35
5.11. Basic financial performance of the company:...........................................................................................36
5.12. Data that related with the theme of the study:........................................................................................37
5.12.2. Performance Evaluation Method:.........................................................................................................37
5.12.3. Performance Management System of RAK Paints Limited:...................................................................38
5.12.4. Performance Management Philosophy:................................................................................................38
5.12.5. Probationary Period Reviews:.................................................................................................................38
5.12.6. Performance Appraisals:.........................................................................................................................39
5.12.7.Filling the Performance Appraisal form:.................................................................................................40
5.12.8. Professional & Personal Development:...................................................................................................41
5.12.10. The Appraisal Discussion:.....................................................................................................................42
5.12.11. Strategy Management and KPI Based PMS:........................................................................................42
5.12.12.The Performance Management System Process Flow:.........................................................................43
5.12.13. Components of Performance Management System:...........................................................................44
5.12.14.Monthly performance management system process:..........................................................................46

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6.2 Findings of the study:..................................................................................................................................66
Chapter: 7-Recommendation and Conclusion:..................................................................................................67
7.1 Recommendations......................................................................................................................................67
7.2 Conclusion:.................................................................................................................................................68
Reference:........................................................................................................................................................71

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Cahapter-1: Introduction
1. Introduction:
“85% of organizational problems can be attributed to processes and management, while workers
are responsible for only 15%” Aurel Brudan, CEO of smartKPIs.com
Performance make difference. Key performance indicators are financial and non-financial indicators that
organizations use in order to estimate and fortify how successful they are, aiming previously established
long lasting goals. Appropriate selection of indicators that will be used for measuring is of a greatest
importance. The perceived importance and the actual use of financial and non-financial indicators were
found to be significantly related among manufacturing and non-manufacturing industries. New business
conditions where information is the most important resource impose new approaches in measuring
performances of organizations, employee’s performance and related to traditional performance
measurement system which evolved just financial and accounting indicators. One of the newer
approaches refer on measuring performances of employee’s via KPI. Organizations must face not only
to more demanding conditions but in the current period to the world financial crisis as well. Due to these
reasons, the organizations are forced to measure performance of the employee’s and contribute to the
stability of the organization in today´s competitive environment. Organizations try to measure
performance according to the financial drivers but in the recent period top leaders attempted to find new
performance indicators which would take the “wind from sail” to their rivals in the market.

1.1 . Background of the study:

Key Performance Indicators (KPIs) are among the most commonly used tools that companies employ
to help manage more effectively and guide their progress. It allows for transparency to any “trouble-
spots” and provides illumination to potential opportunities. In brief, KPIs are the top level data
companies use to measure performance and plan for the future. Use KPIs in business as we would in
our daily life. For example, if our objective is to lose 20 pounds, then that becomes our goal. To
achieve this, we set KPIs (milestones along a timeline) to illustrate our progress toward our goal. For
example, how many pounds do we want to lose each week; each month? Can we cut down on specific
fatty foods and how will we measure that? Do we need to increase the amount of physical exercise?
How do we plan to measure that? Or if our goal is to run a marathon, our KPIs are how many miles we
can run in a day and a week, etc. The same is true within any organization. We establish a set of
objectives first, and then use KPIs to measure our progress toward achieving those goals. It’s important

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not to confuse goals with KPIs. A simple example would be that our goal is to build our cash reserve to
$100,000. Our KPI to reach that goal would be to add $10,000 per month to cash reserves. The metric
would be how much cash I actually contribute toward the total goal. Or if our goal is to increase
overall profits by 30 percent, then our KPI would be the amount of profit increase over the last 30
days.

1.2. Rational of the study:

The term “key performance indicator” tends to be misunderstood and overused. Managers tend to use a
KPI as a catch-all descriptor to describe any form of measurement of business data. For KPIs to work
for our business, I need to identify those metrics that matter to our business performance (see Pdf: “49
essential KPI Tips”). I will offer an overview of KPIs and how they are measured using a balanced
scorecard, and then drill down into the KPIs that I use most frequently with our clients – those that
relate to fiscal performance. As part of the discussion, I will also offer an example from one of our
clients who were able to quadruple their profits with the help of KPIs.

1.3. Objective of the study:

KPIs for several objectives:
1.3.1. Broad Objectives:
The primary purpose of this study report is to acquire knowledge about impact Key Performance
Indicator (KPI) on employee performance to attain organization goals.
1.3.2. Specific Objectives:
1. To examine the employee performance evaluation method practiced by the company.

2. To identify the perception of employees about the evaluation methods of the company.

3. To provide some suggestions to overcome the problems of employee performance evaluation methods of
RAK Paints Limited.

4. To investigate the KPI effectiveness for employee performance.

Key Performance Indicators (KPIs) help managers understand how their organizations are performing
about their strategic goals and objectives. When set and used properly, KPIs provide an indicator to
senior managers and stakeholders as to how the employees are performing and whether performance is
on track with projections.

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1.4. Scope of the study:
Organizations intend to attain success it will be helped to establish accurate performance indicator which
will be measure employee’s success through organizational attainable goals, analyzing areas where
business excel and where it can be improved. Key performance indicator provides the accurate
information to make right decision. It is a systematic approach which is to ensure accountability. It helps
to measure individual, departmental and organization goals accurately. It helps to improve individual
weakness as well as an organizational strategy. Key performance indicator metaphase organizational
vision and strategy. Key performance indicator focus on employee’s activities alike what is to be done?
It helps to measure both financial and operational goal.

1.5 Limitation of the study:

With the prime focus on getting results for short-term goals, there is a good chance of employees losing
focus on the quality of the work. Due to the setting of financial goals, there is a tendency for metrics
gaining more weight rather than the authenticity of the task. KPIs are useful for attaining short-term
goals but may prove to be equally disadvantageous in the case of achieving long-term goals. There are a
lot of sources to measure success in a single area cannot be acceptable. As the goals are more result-
oriented, there may be a chance of a decrease in the level of creativity of the employees. They become
more aligned with their traditional work methods as that helps those complete tasks quicker and team
member do not collaborate with colleagues for fear of losing their personal benefits. As a result, it
discourages employees to implement or consider innovative approaches. Since KPIs only show the
progress levels, it gets difficult to track the quality of the work and in return might affect the loyalty that
is there between the organization and the client. Because of the organization may lose them and weaken
the bond between them. To conclude, KPIs are very useful for short-term goals whereas; it may not
prove to be as valuable for long-term goals. It is essential to consider all the factors before considering a
KPI for the organization.

Chapter-2: Methodology
2.1. Data Collection.
Data collection is very important for preparing a report. In order to make this report more presentable
and meaningful I used both primary and secondary resources. The sources of data are as follow:

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Primary Sources:
1) Interview: Interviewing with the company officials, specially the various officers from HR &
Admin department of RAK Paints limited. It has helped me to collect confidential data about the
organization. Here I have interviewed three persons from HR department, two from sales and
marketing department, three from production department, one from quality control department,
one from finance and accounts department and one from IT department.
2) Direct observation: Direct observation is the method which collects information followed by
the employee’s day to day activities. It has helped me to collect the top-level personnel data who
are not available for all time.
Secondary Sources:
1) Annual Report of RAK Paints Limited: The annual report provides the public information about
any organization. It has helped me to find out the category of the company, type of the company,
financial information, business ways and its employee records etc. so I have collected valuable
information about the organization.
2) Company information record related to the topic: Company information record provides the
recorded information about the company. This was more valuable for me.
3) Various books related with the subject: The company employee handbook contains the huge
information about the topic, so it has helped me by providing huge amount related information
about my report topic.
4) Web sites of RAK Paints Limited Now a day the website is the main source of the companies’
information. It serves very quickly rather than other sources. I can easily access the web
anywhere, where internet connection is available. So, the website has helped me to access
information easy and reliably ways.
2.2. Data Analysis:
2.2.1. Refers to extracting key information from large volumes of data in order to:

 Predict future trends

 Identify patterns  Support decision making

SMART Objectives Dissection:

Objective: Increase market share to 28% by the end of the financial year under Marketing Director
Coordination.
Objective : Increase market share
KPI : % Market share
Target : 28%

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2.2.2. KPI Typology
1. Leading vs. Lagging KPIs
2. Qualitative vs. Quantitative KPIs
3. Efficiency vs. Effectiveness KPIs
 Leading vs. Lagging KPIs

Leading indicators = measure things that address
what can create future value
Outcomes, Forward looking indicator
Advantage: Being Predictive allows the
organization to take better decision to address
future events.
Challenge: May be difficult to identify and
capture result.
Lagging indicators= look back at past
performance
Measures events/incident and consequence
retrospective.
Advantage: Easy to identify and to
measure/Collect results
Challenge: Indicates past performance, does not
reflect current activities.

 Qualitative vs. Quantitative KPIs

Qualitative data : Descriptive , Narrative Quantitative Data: Number And Statistic

 Interview  Calculation
 Focus Group  Survey
 Observation session
Qualitative Data =Qualitative KPIs

All KPIs are quantitative, but they can measure different aspects of an objectives such as:
 Volume # Products sold
 Quantity-% products error rate, % Customer satisfaction with brought product
 Monetary Values -$ Sales
 Effectiveness Vs. Efficiency KPIs

Effectiveness =the extent to which desire Efficiency= Extent to which time effort or cost are
outputs /outcomes is achieved. well used for the desire results.
For examples: For examples:
$: Sales $ : Cost Per Call
# Customer satisfaction # : Time to process Requests
% Compliance with Quality Standard. % : Equipment Utilization Rate
Do the right things. Do things right.

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Qualitative and Quantitative tools: In this report, the researcher used quantitative and some other
qualitative approach to find out the employee’s performance evaluation how it impact on KPIs.
Initially the researcher though to analyze the data by using these qualitative tools through typology, case
study, and intensive interview. For the qualitative data the researcher collected some open ended
comments from the respondents.
For the data analysis the researcher followed descriptive analysis using MS Excel.
2.3. Model Explanation:
Measure

Target

Source

Frequency

Measure – Measure is the simple verbal expression of what you are. A plan of action taken to achieve a
particular purpose.

Target – target is the numeric value that we want to achieve. The target needs to be applies-to-applies
when a goal date is set or the due date is set.

Data source – where is it coming from? Be clear about what the source is.

Frequency – The frequency ratio can be calculated from the formula. F=⅟T.

2.4. Hypothesis statement and explanation:

The hypothesis statement are –
1. When establish KPI, then employee engagement will be increase.
2. If the employees have acknowledged their KPI, then self-motivation will be increase.
3. If the organization ensure their KPI, then employee turnover rate will be reduced.
4. If the organization maintain KPI base outcomes, then employee will be expand their time knowledge
to seek their achieving goals.
5. When establish KPI, then consistently develop of leadership skill and strengthen manager’s role as a
coach and a mentor. .

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6. If the management ensure KPI base performance, then internal flexibility will be enhance.
7. When establish KPI, then customer satisfaction will increase.
Chapter-3: Theoretical Preview:
3.1. Definition of KPIs:
Organizations use KPIs at multiple levels to evaluate their success at reaching targets. High-level
KPIs may focus on the overall performance of the business, while low-level KPIs may focus on
processes in departments such as sales, marketing, HR, support and others.
3.2. What makes a KPI effective?
Now that we know KPI stands for key performance indicator it is only as valuable as the action it
inspires. Too often, organizations blindly adopt industry-recognized KPI and then wonder why that
KPI doesn't reflect their own business and fails to affect any positive change. One of the most
important, but often overlooked, aspects of KPI is that they are a form of communication. As such,
they abide by the same rules and best-practices as any other form of communication. Brief, clear
and relevant information is much more likely to be absorbed and acted upon.
3.3. How to define a KPI?
Follow these steps when defining a KPI:
 What is your desired outcome?
 Why does this outcome matter?
 How are you going to measure progress?
 How can you influence the outcome?
 Who is responsible for the business outcome?
 How will you know you’ve achieved your outcome?
 How often will you review progress towards the outcome?
As an example, let’s say your objective is to increase sales revenue this year. You’re going to call this
your Sales Growth KPI. Here’s how you might define the KPI:
 To increase sales revenue by 20% this year
 Achieving this target will allow the business to become profitable
 Progress will be measured as an increase in revenue measured in dollars spent
 By hiring additional sales staff, by promoting existing customers to buy more product
 The Chief Sales Officer is responsible for this metric

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  Revenue will have increased by 20% this year
 Will be reviewed on a monthly basis

3.4. What is a SMART KPI

SMART KPI: One way to evaluate the relevance of a performance indicator is to use the SMART
criteria. The letters are typically taken to stand for Specific, Measurable, Attainable, Relevant, and
Time-bound. In other words:
 Is your objective Specific?
 Can you Measure progress towards that goal?
 Is the goal realistically Attainable?
 How Relevant is the goal to your organization?
 What is the Time-frame for achieving this goal?

3.5. Why KPI is needed to evaluate employee performance?

You may use key performance indicators for employee performance evaluation, team management
issues, pricing policy, and project management strategies to an optimal level. This is because they
allow you to identify problems on time. Last but not least, KPIs are useful in assessing payroll
operations

3.6. Components of KPI

A good KPI story contains most, if not all, of these 13 elements:
1. Quantitative aspects of the KPI such as Actual, Target, and Best Performance
2. KPI card with description, owner, data source, frequency, intention, thresholds, and much more
3. Charts showing the visualized performance of the KPI in a context such as time
4. Analysis that shows the build-up of metrics from which the KPI is derived – this is often
displayed via “drill down” capabilities
5. Benchmarks to see show how an entity is performing compared to competition (or as compared
to internal benchmarks)
6. Written assessments from the KPI owner of his/ her evaluation of performance
7. Corrective actions to get back on track if performance has deviated
8. Initiatives to improve performance and reach the defined target set for the KPI

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9. If the KPI is a part of a value driver tree, it should also be shown in context of the value driver
tree
10. Governance rules – what will happen if KPI is not performing? Will there be notifications,
processes to initiate escalations, approvals?
11. Analytics – what has caused the current performance level? You should be able to explore and
analyze the performance as well as perform “what if’s” and conduct even more analysis to gain
knowledge on where resources should be allocated to improve performance
12. Risk factors and risk mitigation plans – every KPI can be subject to unexpected risks. What are
they? What can we do to mitigate the risk factors, if they occur?
13. Linkages to overall business context – no KPI stands alone. It is a part of something “bigger”
such as a process or a part of a strategy. Therefore, the KPI needs to be put into this specific
business context
Not every KPI must have all 13 elements, but certainly, every element should have been considered.
At Corporate we believe that ‘A KPI is more than a number’, and that is why we enable our
customers to use the rich Business Management Platform to tell their unique KPI story.

3.7. Importance of KPI:

From reviewing employee performances to tracking company progress, there are a number of
reasons why KPI’s are an important factor in assisting your company’s growth.
 Measure our target
 Focus everyone on the goal
 Create an atmosphere of learning
 Receive important information
 Encourage accountability
 To provide an opportunity
 Boos morale
3.7.1. Measure our Targets:
KPI’s are not only company goals or targets, but also measurement of goals and targets. For
instance, if our company goal is to sell a certain amount of high products each month, our KPI’s will
show how close or far from reaching those targets.

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A KPI in this instance may indicate that our sales team is only generating 20% of the desired amount
of leads our company has set as a benchmark. As a manager in this situation, we are instantly made
aware of our sales team’s progress and the reason for not hitting the desired numbers of leads. When
we’re able to measure our goals this way, it gives the opportunity to see where we’re going wrong
and subsequently make decisions that help to reach our goals faster. This is arguably the most
important reason why KPI’s should be used and the most significant usage of a KPI.

3.7.2. Create an Atmosphere of Learning

Being able to measure targets using KPI’s can create an educative atmosphere within our company.
According to Root Cause, the data that is generated by measuring KPI’s leads to important
conversations within the workplace. When we notice an unfavorable reading on a KPI, I have the
chance to talk to the individual or team involved with that specific KPI. This a great opportunity for
me to teach the employees how to do things differently and perform better in order to reach set
targets.
Additionally, I can analyses whether the set KPI’s are an effective measurement, and conversely,
make necessary modifications if the employee feels that the targets are unrealistic to meet.

3.7. 3. Receive Important Information:

KPI’s provide an immediate snapshot of the overall performance of our company. When we’re in a
highly competitive market, that information can be a crucial part of our attempts to “beat” our
competition.
The real-time data that KPI’s provide allow to make systematic adjustments so that we’re not left
making frantic changes at the end of each month to reach our goals.
Some companies use KPI’s to measure how well they are reaching certain standards that may not be
directly related to their business or profits. For instance, protecting the environment may be a
priority for their business and this may be something that helps to enhance their company’s
reputation amidst growing political pressure.
For Example, Pfizer claims that it’s committed to enhancing its safety and environmental
performance, as well as being transparent through reporting. Pfizer states that it will accomplish this
by measuring its performance, setting progress targets, and publicly disclosing its efforts. They
conclude:

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“We use key performance indicators (KPIs) to measure and externally report our global
performance. Our strong focus on measuring and monitoring EHS (environment, health and safety)
performance data enables us to highlight successes and identify program areas for continuous
improvement.”
Here, I see that the monitoring of KPI’s gives Pfizer important information for them to evaluate their
progress.

3.7.4. Encourage Accountability:

Without KPI’s revealing vital statistics about performance, I run the risk of making inaccurate
decisions about employees during reviews. I may assume that an employee is performing poorly
because he/she has punctuality issues or a perceived lack of company engagement, but you have no
quantifiable proof. A KPI may reveal that our assessment is incorrect and the perceived “poor
performer” may have some favorable stats and delivers good results.
On the contrary, poorly performing employees can hardly argue their case if their KPI stats show
unfavorable readings.
Essentially, KPI’s encourage accountability for both employees (if they’re not performing) and
employers (if KPI’s are deemed unreachable).

3.7.5. Boost Morale:

Employee motivation and job satisfaction are extremely important in order to improve company
performance and culture. It can often be difficult to motivate our team when set targets can only be
achieved once a quarter or once a year.
It can be quite rewarding and motivating for employees to receive positive reports for meeting
certain KPI’s in the interim. The results are often instant. It creates a sense of purpose and keeps
them focused on meeting our goals.
Viewpoint Construction Software reinforces this point by emphasizing the importance of an
effective KPI strategy toward employee satisfaction. They report that if you were to take a
professional, industry-accepted survey of your company’s employees, you’ll likely find that most
supervisors are only utilizing about 60% of their team’s capability. That’s a damning stat for most
motivated leaders. A good KPI system will increase that number by keeping our leadership abreast
of their team’s performance. They could use this information to document employee’s actions and

18
progress, discuss their findings, provide feedback, and ultimately increase job satisfaction as
forthcoming targets are met.

3.7.6. Benefits of KPI:

 Monitor the performance of different process with the minimum time and effort needed.
 KPI’s validate the strategic plan.
 KPI’s can be used to monitor performance at any organization.
 Using KPI based PMS for impartial evaluation
 Encourage teamwork
 Encourage performance
 Guiding action plan
 Increasing individual Performance
 To attain individual goals.

3.8. How to write and develop KPIs?

When writing or developing a KPI, I need to consider how that KPI relates to a specific business
outcome or objective. KPIs need to be customized to our business situation and should be
developed to help me achieve our goals. Follow these steps when writing a KPI:

3.8.1. Write a clear objective for your KPI:

Writing a clear objective for KPI is one of the most important – if not THE most important – part of
developing KPIs. A KPI needs to be intimately connected with a key business objective. Not just a
business objective, or something that someone in your organization might happen to think is
important. It needs to be integral to the organization’s success. Otherwise I am aiming for a target
that fails to address a business outcome. That means that, at best, we’re working towards a goal that
has no impact for our organization. At worst, it will result in our business wasting time, money and
other resources that would have best been directed elsewhere. The key takeaway is this: KPIs need
to be more than just arbitrary numbers. They need to express something strategic about what our
organization is trying to do. I can (or should be able to) learn a lot about a company’s business
model just by looking at their KPIs.
Without writing out a clear objective, all of this will be lost.
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3.8.2. Share your KPI with stakeholders:
KPI is useless if it doesn’t get communicated properly. How are our employees – the people tasked
with carrying out our vision for the organization – supposed to follow through on our goals if they
don’t know what they are? Or perhaps worse: Not sharing our KPI risks alienating and frustrating
our employees and other stakeholders who are unable to see the direction in which our organization
is heading. But sharing KPIs with our stakeholders is one thing. More than that, though, we need to
be communicated in the right away. KPIs need context to be effective. This can only be
accomplished if I explain not just what we’re measuring, but why we’re measuring it. Otherwise we
are just numbers on a screen that have no meaning to our employees.
Explain to our employees why we’re measuring what we’re measuring. Answer questions about
why we’ve decided on one KPI over another. And most important of all? Listen. KPIs aren’t
infallible. Nor will they necessarily be obvious to all involved. Listening to employees will help to
identify where our organization’s underlying goals aren’t being communicated properly.
Say we’re getting lots of questions about why profit isn’t a KPI for our company. It’s a reasonable
belief for our employees to have. Making money is, after all, an essential part of what any business
does. But maybe revenue isn’t the be all and end all for our organization at a given time. Maybe
we’re looking to make major investments into research and development or are on a major
acquisition spree. Getting lots of questions like this is a sign I need to do a better job of
communicating our KPIs and the strategic goals behind them.
And who knows: Employees might even give some ideas on how to improve their KPIs.

3.8.3. Review the KPI on a weekly or monthly basis:

Checking in on our KPIs regularly is essential to maintenance and development. Obviously tracking
our progress against the KPI is important (what else would be the point of setting it in the first
place?) But equally essential is tracking our progress so I can assess how successful we were in
developing the KPI in the first place.
Not all KPIs are successful. Some have objectives that are unachievable (more on that below).
Some fail to track the underlying business goal they were supposed to achieve. Only by checking in
regularly can decide if it’s time to change our KPIs.

20
3.8.4. Make sure the KPI is actionable:
Making sure the KPIs actionable is a five-step process:
 Review business objectives
 Analyze your current performance
 Set short and long term KPI targets
 Review targets with our team
 Review progress and readjust

3.8.5. Evolve KPI to fit the changing needs of the business:

KPIs that never get updated can quickly become obsolete.
Let’s say, for example, that our organization recently started a new product line or expanded
overseas. If we don’t update our KPIs, our team will continue to chase targets that don’t necessarily
capture the change in tactical or strategic direction.
I may think, based on our results that are continuing to perform at a high level. In reality, though,
may be tracking KPIs that fail to capture the impact our efforts are having on underlying strategic
goals. Reviewing our KPIs on a monthly (or, ideally, weekly) basis will give me a chance to fine
tune – or change course entirely. I might even find new and possibly more efficient ways of getting
to the same destination.

3.8.6. Check to see that the KPI is attainable:

Setting achievable targets for our team is essential. A target that’s too high risks our team giving up
even before they start. Set a target too low and I’ll quickly find ourselves wondering what to do with
ourselves once we’ve achieved our annual goals two months into the calendar year.
An analysis of our current performance is essential. Without this we’re left to search blindly for
numbers that have no root in reality. Our current performance is also a good starting place for
deciding on areas upon which we need to improve.
Start rooting around in the data we’ve already collected to set a baseline for what we’ve
accomplished in the past. Tools like Google Analytics are great for this, but so are more traditional
accounting tools that track revenue and gross margin.

21
 3.8.7. Update KPI objectives as needed:
KPIs aren’t static. They always need to evolve, update and change as needed. If we’re setting and
forgetting our KPIs, I risk chasing objectives that are no longer relevant to our business. Make a
habit of regularly checking in not just to see how I am performing against our KPIs, but on which
KPIs need to be changed or scrapped completely. To someone who’s never developed a KPI before,
all of this might sound exhausting. But here’s the good news: Once I have gone through this process
a few times, it’ll be that much easier to use it again in the future.

3.8.8. Bringing it all together:

KPIs generally are an essential tool for measuring the success of our business and making the
adjustments required to make it successful. The usefulness of individual KPIs, though, have their
limits. The most important part of any KPI is its utility. Once it’s outlived its usefulness, I shouldn’t
hesitate to toss it and get started on new ones that better align with our underlying business
objectives.

Chapter-4: Literature Review:

KPIs need to be clearly linked to the overall business strategy, which means to first identify what
matters the most and what provides the proper measurement (Heleta.et.al.,2008)... Once the strategic
objectives have been defined and mapped, the KPIs can be designed and customized to most
effectively track the progress and provide insights to manage operations and improve performance
(Pesalj.et.al.,2006). When structured to reflect business strategy, KPIs can provide business owners
with answers to our most important business questions. As consultants, PCG approaches KPIs as a part
of our consulting practice for our clients, but the same principals can be applied whether looking
internally into the organization or externally (Stamatović, M.et.al.,2010). Three basic steps can be
applied to building a foundation for effective KPIs:

4.1. Understand our goals:

As a business owner, it is imperative to understand what I would like to achieve. It is important to be
clear about understanding where our company is and what direction for me - as the owner, want it to
go in. What are our real business objectives and what does success look like for our company?
(Pesalj.et.al.,2006)

22
For example, If I may want to have a 15% profit margin. That’s easy to say, but at the expense or
opportunity cost of what? Does that mean sacrificing quality? Does that mean taking on “any” client?
our business goals need to be relative to something, and some goals may be a higher priority than
others in achieving the desired direction of our business (Smith, J..et.al.,2001)...
To understand our business objectives, it is important to drill down into specific aspects of why our
company exists. What is its vision and current mission? Is it about making money now, or making
money later? Are there altruistic reasons driving our business operations like providing clean water for
everyone, or are there more simplistic goals like increasing sales volume to be more profitable? Be
clear about our business goals in both long term and short term (Stamatović, M.et.al.,2010).Remember
that the primary goal of many companies is to be profitable and self-sustaining. What this really means
is, as a function, the business value extends beyond the participation of the business owner or strategic
managers (Heleta.et.al.,2008)
This is all part of clearly knowing our business’s current position, where it is going and implementing
functions to get there. Once it is established as to what the true goals are, the KPIs can be cultivated
and customized to show whether our business is making progress toward those goals
(Heleta.et.al.,2008)

4.2. Set relevant KPI metrics:

It is difficult to tell if our business is on the right track unless proper measures illustrate the progress
towards the business goals. KPIs are concrete measurements that provide empirical data about our
businesses progress (Heleta.et.al.,2008).As an owner, it is dangerous to assume our business is on the
right track if it “feels right” or “think you are on track.” Solid, relevant measures need to be
implemented to track progress to determine if our strategy and plan are in alignment and working.
For example, if our goal is to grow from $1 million to $10 million in revenue within 10 years,
milestones need to be established to assure targets are being hit along an allotted timeline. How do you
measure incremental progress? Do you want to grow $500,000 in the next year and $2 million the year
after that? What elements are missing to achieve the identified goals? Should expansion or relocation
be considered? Is it possible to scale profits? What is needed to reach our business’ objective? (Smith,
J..et.al.,2001).
KPIs are solid tools to determine parameters needed to measure and illuminate where me and our
business are with regard to the long-term goals. Are there financial or performance metrics needed to

23
reach each month? Does marketing or fulfillment need to be increased? Is there a target threshold
amount needed to bring in qualified sales leads each month in order to make your goal? (Stamatović,
M.et.al.,2010).
If you have a medical practice, are there a needed number of patients to bring in a month? Do
operating expenses need to be reduced in proportion to profits? (Stamatović, M.et.al.,2010).
Whatever the key performance indicators are, define them and track them - stay consistent, yet adjust
the KPIs as conditions change. You may want to reassess your supporting goals periodically to track
the progress toward success (Heleta.et.al.,2008).

4.3. Create an action plan:

Create a plan that best supports our goals, and implement the KPIs that measure those goals. Adjust it
as necessary moving forward - the KPI’s may change as markets may change (Heleta.et.al.,2008).An
action plan will create a foundation and roadmap, but be careful not to get lost in the details; it may
cause to lose sight of the bigger objective. In doing so, the plan begins to veer from your initial
objective and stray from the goals originally set. By setting a foundation and roadmap - it forces the
business owner/entrepreneur to stick to the company’s vision and strategy and stay focused, yet allows
flexibility to the market’s changing needs (Heleta.et.al.,2008).
Conduct a periodic SWOT analysis (strengths, weaknesses, opportunities, threats) relative to our goals
and objectives, and determine how best to fill in the gaps. Our goals will change as our company
changes (Stamatović, M.et.al.,2010).What worked to get our company from $1 to $ 2 million in
revenue might not work to take you from $2 to $5 million. Each month look at our KPIs and make
adjustments. Look at how well I did, and where I need to make changes to reach our next goal
(Heleta.et.al.,2008)... Ask our-self two important questions:
a) How did I do last week or last month?
b) What can or will I do differently in the next week or month to reach our goals? Is it necessary to
make any changes to make our goals?
Businesses that survive are the ones that can adjust and change, but there has to be a happy medium.
Too much change and the company can’t keep up; no change and the company will become stagnant
and fall to the competition that does change (Stamatović, M.et.al.,2010).

24
Thus, in establishing KPI’s, it is important to:
a. Establish goals
b. Create metrics to achieve your goals
c. Execute according to our metrics.
In short, establishing measurements initially may seem daunting, and just another item to add to our
plate of things to do (Heleta.et.al.,2008)... However, they pay off immensely in the long run. Once
implemented, I won’t be able to make decisions until I see our KPI report! This is the due diligence
for small businesses – the more I know, the better and more effective your decision – making process
will be (Heleta.et.al.,2008).

4.4. Adopting a Balanced Scorecard:

To track overarching KPIs that affect the business as a whole, most companies use a Balanced
Scorecard. This is a tool that has long been used in strategic business management and is designed to
provide a framework to manage resources to achieve strategic objectives (Heleta.et.al.,2008).There are
four basic viewpoints or perspectives to take with the KPI balanced scorecard, and I work best in a
hierarchical order. The four perspectives are (Smith, J..et.al.,2001):
1. Financial perspective – Establish KPIs to track the financial performance of the company,
including individual departments, functions, and divisions.
2. Customer perspective – KPIs to track customer satisfaction, attitudes, and market share goals.
3. Internal process perspective – These KPIs provide metrics for the specific internal operational
goals needed to meet customer objectives.
4. The learning and growth or innovation perspective- Intangible drivers for future
Success such as human capital, organizational capital, training, informational systems, etc.

25
These four perspectives are interdependent and hierarchical. Growth is driven by better learning and
innovation, which in turn leads to better internal processes, which then improves customer satisfaction,
in turn improving financial performance (Heleta.et.al.,2008).
Using this insight, this model has been refined into the concept of the balanced scorecard or strategic
performance management tool, described in detail by Robert Kaplan and David Norton in their book,
The Balanced Scorecard: Translating Strategy into Action. While interpretation of how to apply the
balanced scorecard in specific business situations may vary widely, the basic idea of linking corporate
strategy to operational tactics remains sound, combining financial and non-financial data to offer good
framework to map any company’s progress toward success (Pesalj.et.al.,2006).

4.5. The Balanced Scorecard in Action:

Here is one example of a balanced scorecard in action.
A regional airline is looking to increase its profits by increasing revenue and lowering operational
costs (the financial perspective). In order to increase profits, they set a goal to increase per-seat
revenue and control airplane leasing costs. To achieve part of that goal, the airline decides to lower
prices and improve on-time arrivals to attract more customers (the customer perspective), so the
performance metrics include such things as satisfaction ratings and customer rankings
(Heleta.et.al.,2008).To improve their on-time record, they decide to improve. The aircraft turnaround
time (the internal process perspective), using a cycle-time optimization program with a target of 93

26
percent on-time departures. To help improve on- time departures they launch an initiative to better
align the ground crew operations to improve efficiency (learning/innovative perspective), offering a
stock incentive program and more training with specific targets for the number of employees trained
(Heleta.et.al.,2008).
From the example, it is clear that the four perspectives each have their own operational significance,
and each require their own unique performance measurements or KPIs. It’s also clear that the four
perspectives are interdependent and hierarchical, and that the success of one perspective is built on
another. Achieving the balance between all four perspectives will help drive business success, and the
balanced scorecard will provide the means of identifying areas that need attention (Pesalj.et.al.,2006).

4.6. Four Critical Processes for Strategic Management:

As part of its evolution, Kaplan and Norton have refined the balanced scorecard, defining strategic
management as four critical processes (Pesalj.et.al.,2006):
1. Clarifying and translating vision into strategy – This requires identifying strategic objectives and
capturing them in a strategic map. The business leaders need to reach a consensus on what the strategic
objectives truly are, and verify that all objectives are linked to deliverables to avoid “pet projects.”
2. Communicating strategic objectives and measures and linking them to operations – This
includes establishing two-way communications with stakeholders to encourage dialogue to refine
processes and promote feedback. By empowering all parties concerned with a two-way dialogue, it can
be adjusted Strategic objectives and reach a consensus on how to adjust operations effective to achieve
those objectives.
3. Planning and setting targets to align strategic initiatives – This process includes identifying
targets for each of the objectives to be measured by the KPIs. Individual targets are set for strategic
objectives and projects, which are in turn linked to the larger strategic objectives. The targets are
interdependent and hierarchical so each one contributes to the larger strategic objectives.
4. Enhancing strategic feedback and learning – The balanced scorecard is designed to be more than
a simple yardstick, but provide a guide to strategic change. By learning from performance information
and using the findings from the balanced scorecard, as a business owner, can refine decision-making to
realign goals with strategic objectives, and measure accordingly. This can be further broken down into
four segments (Pesalj.et.al.,2006):
a. Human Capital – Employee development and training
b. Information Capital – Technology infrastructure
27
c. Organization Capital – Company culture, teamwork, aligning goals and leadership
d. Supply Chain Value- added Capital – improvements with vendors and supplier relationships
These are just some of the basics to consider if I plan to create a balanced scorecard to harness KPI’s
for our business (Heleta.et.al.,2008).
The key points to remember include:

a) Creating a cause-and-effect map (plan) that reflects our strategy;

b) Aligning processes to the strategy map;

c) Using meaningful key performance indicators; and

d) Learn from the process and improve decision-making.

Chapter-5 Organizational profile:

5.1. About RAK Paints Ltd.

RAK Paints began its painting in Bangladesh since independence. And this has been a footstep to bring
more than 6 years of global paint industry experience into Bangladesh. Over the decades, RAK Paints
has evolved to becoming the leading paint solution provider in this country and has diversified into
every sphere of the industry –from Decorative Paints to Industrial Coatings, from Marine Coatings to
Power Coatings and many more.

To give a comprehensive and sustainable painting solution to the need of the industry, RAK Paints has
invested more on technology and Research & Development(R & D) than any other manufacturer in this
market. It selects the raw materials from some of the best-known names in the world: MITSUI, MOBIL,
DUPONT and HOECHST are a few to name. The superior quality of RAK products has been possible
because of support from its advanced plants and an international-standard of strict quality. Following
TQM it ensures the best to managing its efforts.

RAK Paints Limited is one of the leading companies of RAK Group Bangladesh. It is a joint venture
between UAE and Bangladesh. It not only intends to establish the largest paint industry in the country
with the state-of-the-art machineries but also to provide quality branded products.

28
Its vision is to become a world class paint manufacturer and lead the paint industry by establishing itself
as a producer with the finest manufacturing practice, through outstanding product quality with
diversification in different areas, innovative and eco-friendly approaches in all the functions that are
necessary to keep its customers satisfied.

RAK Paints Limited is one of the leading companies of RAK Groups in Bangladesh. RAK Paints
Limited has its paint manufacturing plant at Madhobpur Upazilla in Hobigonj District, which is
approximately 140 kilometers from Dhaka. The plant includes all facilities that are required for any
modern paint industry. As a responsible global leader in the ceramic industry, protection and
preservation of the environment is a top priority for RAK Paints. We believe the long-term success of
the company depends on the satisfaction of its customers and the stakeholder’s commitment in
environmental friendly and sustainable operations. Protection of the environment, reducing climate
change and emissions and minimizing ecological impact are the main reasons of RAK Paints in
supporting and getting involved in the Green Building Construction. As testimony, the company
invested on mechanisms that reduce the adverse impact of the company’s operations and products, to the
natural resources and environment.

5.2. Company at a glance.

Title Details

Name of the Organization RAK Paints LTD.

Status Group of Company

Established 2009

Industry Interior & Exterior Paints, Industrial Paints, Marine Paints.

Head Office House-05,Road-1/A, Sector-5,Uttara, Dhaka 1230 Bangladesh

Chairman S.A.K. Ekramuzzaman

Number of Employees Approximately 1000

Logo

Web Site www.rakpaintbd.com

Certification

Name of Product Impressions Ultra HD, Excel Mica Marble, Beauty Gold, Excel
WDF (Weather Defense Formula), Synthetic Enamel, etc.
29
5.3. History of the company:
RAK Paints Limited is one of the leading companies of RAK Group Bangladesh. It was a joint venture
between UAE and Bangladesh back in 2009.
RAK Paints started its journey in 2011 with the motto of providing high quality products at an economic
range to Bangladeshi people. RAK Paints Limited, a name in Bangladesh that carries a ‘new spectrum of
colors’ in the atmosphere with a promise to ensure ‘bright and elegant living everyday’ of the people of
this country. It envisages becoming a world class paint manufacturer and leading the paint industry by
establishing itself as a producer with the finest manufacturing practices, through outstanding product
quality with diversification in different areas, innovative and eco-friendly approaches in all the functions
that are necessary to keep its customers satisfied. It not only intends to establish the largest paint factory
in the country with the state of art machineries but also to provide quality branded paints products.
Staring from 2011 to till date, RAK paints is providing high quality products with an economic price
range. Ensuring customer satisfaction by providing quality product is one of the major objectives of
RAK Paints. RAK Paints entered into Dhaka Stock Exchange from a Private Limited company into a
Public Limited Company in 2017. RAK Paints has the largest and eco-friendly production base in the
paint industry of Bangladesh with 600 human resources.
RAK Paints vision is to become a world class paint manufacturer and lead the paint industry by
establishing ourselves as a producer with the finest manufacturing practices, through outstanding
product quality and innovative approaches in all the functions that is necessary to keep our customers
satisfied

5.4. Vision of the company:

RAK Paints Limited is one of the leading companies of RAK Group Bangladesh. It is a joint venture
between UAE and Bangladesh. At RAK Paints, we not only intend to establish the largest paint industry
in the country with the state-of-the-art machineries but also to provide quality branded products.
Our vision is to become excellent paint manufacturer and lead the paint industry by establishing itself as
a producer with the finest manufacturing practices. We deeply focus on outstanding product quality with
diversification, covering maximum areas in different business regions, Innovative and eco-friendly
approaches in all the functions as to keep our customers delighted.

Two of the noble reasons for promoting the use of RAK Paints' for wall, wood and metal structure
finishing are 'achieving lower operating lifecycle costs “for building and “creating a non-hazardous
indoor and outdoor environment" for all. The cost involved for the maintenance of RAK Paints' is less
and the life cycle is longer than other fit-outs. RAK paints commits to produce green building products
(with no added Lead, Mercury. Arsenic 8: Chromium). International research has clearly shown that
green building fit-outs are not just better for the environment but more importantly. They are better for
the health and productivity of those who live or work in them.

5.5. Mission of the company:

 Prioritize customer satisfaction.

30
  International Standard quality products.
 Optimal utilization of available resources at all times.
 Optimal use of information & technology.
 Continuous development & growth of human capital.
 Every action of every person to be sincere and profit oriented.
 Create environment that drives intelligence & sincerity amongst all involved.

5.6. Core Values:

Teamwork: Embedding the spirit of teamwork through knowledge transfer in order to achieve the
ultimate objectives and goal.
Trust: Adopting an organizational culture centered on providing a supportive working environment
based on mutual trust.
Integrity and Ownership: Always being honest, moral and taking full responsibility for the work. The
company will honor their commitments and assume the consequences of their actions.
Innovation: Developing its capacity to proactively providing and developing innovative/diverse
solutions towards achieving excellence.
Commitment to Quality: Taking on the utmost commitment when it comes to delivering quality
services to our customer.
Culture: Team based culture with high focus on control in process and drive for result.
1. Every employee has the freedom to express his/her opinion, creativity or ideas which is
encouraged, appreciated and valued by management and employer.
2. High job security.

3. Employer and employee both treat each other like family as a unit.

4. Diversified and innovative business ideas from the young enthusiastic directors give hope
and satisfaction to the employee & progression of the company.

5. Healthy work environment for all employee especially female employees in comparison to
other companies.

Last but not the least, the good will of the company and its legacy is an asset to pride.

31
5.7. Strategic Business Objectives:
1. Maximize shareholder value.
2. Find new revenue sources.
3. Manage cost, profit & capital efficiency.
4. Improved assets utilization.
5. Increase volume of sales.
6. Increase customer satisfaction.
7. Continuously optimize marketing cost.
8. Drive brand preference.
9. Continuously optimize selling cost.
10. Partner effectively with customer to fulfill the demand.
11. Maximize distribution efficiency & effectiveness.
12. Create partnership with suppliers.

5.8. Valued Customer:

1. Zamil Steel Construction Company Ltd.
2. Mcdonald Steel Building Products Ltd.
3 .National Electric Power Corporation (China)
4. Samsung Samsung
5. Bangladesh Building Systems Ltd.
6. Rakeen Development Company Bd Limited
7. Unilever Bangladesh Kalurghat, Chittagong
8. Larsen & Toubro Ltd.
9. Cocacola International Bevarages Private Limited
10. British Ameracian Tobacoo
11. Bangladesh Edible Oil Ltd. 1
12. Ruppur Power Plant Ruppur Power Plant,
13. Magnus Power Siddirgonj Power Plant & Etp
14. Lafargeholcim Bd Limited Chatok,
15.China National Chemical Engineering No.7 Construction Company Ltd.
16. Nde Steel Ltd. British Ameracian Tobacoo

32
17. Tsk-Ashogonj Power Plant Through Sarker Steel,
18. Sarker Steel Limited Cckl
19. Aman Cement Limited Through Sarker Steel,
20 Square Toiletries Ltd Through Sarker Steel,
21 Kodomtoly Flyover Bridge,
22 Isolux- Siddirgonj Power Plant Through Sarker Steel,
23 Lnt, Ashugonj Pp, Ps Through Mcdonald Steel
24 Voirob Footover Bridge Through Mcdonald Steel
25 Mymensing Footover Bridge Through Mcdonald Steel
26 Pioneer Knit Fashion Ltd.
27 Pioneer Denim Ltd. (Badsha Group)
28 Ha-Meem Group 34 Projects Of Ha-Meem Group
29 Buildtrade Engineering Ltd Buildtrade Engineering Ltd
30 Antim Knitting Dyeing & Finishing Ltd.
31 Mondol Group 12 Projects Of Mondol Group
32 Noman Group Of Industries 48 Projects Of Noman Group
33 Akij Group All Projects Of Akij Group
34 Bsrm All Project
35 Walton Group All Project
36 Bangladesh Building Systems Ltd. Bbs
37 Peb Steel Ltd Coca-Cola Project Gazipur
38 M & J Group Genesis Washing & Columbia Washing
39 Partex Group All Projects Of Partex Group
40 S M Group All Projects Of S M Group
41 Square Group Square Denims & Textile
42 Kazi Farm All Projects Kazi Farm
43 Giant Textile Giant Tower & All Projects
44 Zaman Group All Projects Of Zaman Group
45 Purbani Group All Projects Of Purbani Group
46 Apex Group All Projects Of Apex Group
47 Badsha Group All Projects Of Badsha Group

33
48 The Acme Laboratories Ltd. All Projects
49 Dbl Group All Projects
50 Ifad Group All Projects
5.9. Competitors:

Company Name
ACI Formulations Ltd. Moon Star Paints & Chemical Ind. Ltd.
Al-Hossain Paints & Chemical Works Ltd. Nazrul Brothers Paint Industries. (Ujala Paint)
Al-Karim Paints & Chemicals Ltd. Nippon Paint (Bangladesh Private Ltd.
Anchor Paint Industries (Pvt.) Ltd. Pailac Paint & Chemical Co. Ltd.
Aqua Paints Paintex Paint & Coating Ind. Ltd.
Arafat Paint & Chemical Ind. Ltd. Polac Paint & Chemical Co. Ltd.
Asian Paints (Bangladesh) Ltd. Elite Paint Ltd.
Romana Paint Robin Chemical Industries
Berger Paints Bangladesh Ltd. Roxy Paints Ltd.
Disha Paints (BD) Ltd. Sagar Chemical & Paint Ind. (Romana Paint)
Dunlop Paints & Chemicals Super Refinery (Pvt.) Ltd.
Eastern Chemical Works Ltd. Zaman Chemical & Varnish Co. (Duncan Paints)
Echo Chemical Complex Ltd. Jotun Bangladesh Ltd.
Euro Classic Paints & Chemical Ind. Imperial Paints & Chemical Co. Ltd.
Farzana Unique Chemical Works Jamuna Plus Paint Industries
Fisco Paint & Chemical Ltd. Rainbow Paints Ltd.

34
 5.10. Organogram of the company:
RAK Paints Limited
Chairman

Managing Director

CEO (Chief Executive Officer)

& technology
Factory Technical Purchase IT Marketing HR & Admin Accounts, Planning & Sales
Finance & VAT Distribution

Plant Manager Manager Manager Manager Sr.GM CFO Manager

Manager Trade Corporate
GM
Production Deputy. Deputy. Deputy. Deputy. Manager
Deputy. GM-Corp.
Manager MGR MGR MGR MGR GM-Trade
Manager MGR

Deputy. MGR DGM-T DGM-Corp

Manager Asst. MGR Asst. MGR Asst. MGR Asst. MGR Asst. MGR
Asst. MGR
FG, R&D,
Prod, Main. AGM-T AGM-Corp
Sr. Sr. Sr. Sr. Sr. Sr. Executive
Asst. MGR
Executive Executive Executive Executive Executive Manager-T Manager-C.
Deputy.
MGR
Executive Deputy. MGR
Executive Executive Executive Executive Executive Sr. Executive Deputy. MGR
Asst. MGR

Sr. Jr. Asst. MGR Asst. MGR

Jr. Jr. Jr. Executive Jr. Jr. Executive
Executive Executive
Executive Executive Executive Executive
ASM Sr. Executive
Executive Jr. Executive Asst.
Asst. Asst. Asst. Asst. Asst. TSI Executive
Executive Executive
Jr. Executive Executive Executive Executive Executive
Sr. Executive
Asst. Jr. Executive
Asst. Supervisor,
TSI Executive
Executive Security, off. Asst. Executive Asst. Executive
35
Supervisor
DSA
5.11. Basic financial performance of the company:
Financial Statements summary:
Year New Investment Income (million Expenditure Profit/Loss (million
(million in USD) in USD) (million in USD) in USD)

2015 4 260 220 40

2016 4 300 255 45
2017 3 320 275 45
2018 3 350 300 50
Financial Statement; Figure: 1

Milion in USD
800

700

600

500

400

300

200

100

0
2015 2016 2017 2018

Series 1 Series 2 Series 3 Series 4

Financial Statement; Figure: 2

36
5.12. Data that related with the theme of the study:

5.12.1. What is Performance Evaluation?

Performance Evaluation is defined as a formal and productive procedure to measure an employee’s work
and results based on their job responsibilities. It is used to gauge the amount of value added by an
employee in terms of increased business revenue, in comparison to industry standards and overall
employee return on investment (ROI).
An organizations that have learned the art of “winning from within” by focusing inward towards their
employees rely on a systematic performance evaluation process to regularly measure and evaluate
employee performance. Ideally, employees are graded annually on their work anniversaries on the basis
of which, they are either promoted or suitable distribution of salary raises. Performance evaluation also
plays a direct role in providing periodic feedback to employees, such that they are more self-aware in
terms of their own performance metrics.

5.12.2. Performance Evaluation Method:

There are two major methods of employee performance evaluation which are:
1. Traditional Methods.
2. Modern Methods.
Traditional Methods:
1. Ranking Method.
2. Paired Comparison.
3. Grading Method.
4. Forced Distribution Method.
5. Forced-Choice Method.
6. Check-List Method.
7. Critical Incidents Method.
8. Graphic Rating Scales Method.
9. Essay Method.
10. Field Review Method.
11. Confidential Report.

37
Modern Methods:
1. Management by Objectives (MBO).
2. Behaviorally Anchored Rating Scales (BRS).
3. Assessment Centers.
4. 360-Degree Appraisal.
5. KPI Based Evaluation

5.12.3. Performance Management System of RAK Paints Limited:

RAK Paints Limited aimed to be an employer of choice-one where people want to work. As a business
house they are committed to giving all members of the team every opportunity to develop their careers,
to contribute to the business and to share in its success. The Performance Management System is
designed to support the completion of the work of the organization. It will also define measure and
recognize the contribution of individuals and help the organization establish achievable goals of its
entire people – it is a team-based approach.

5.12.4. Performance Management Philosophy:

RAK Paints Limited believe everyone who comes to work really does want to realise their potential
and develop their relationships with others (managers, colleagues and clients).Work is characterised by
feelings of satisfaction, frustration, opportunity, exasperation, stimulation, excitement and even feelings
of fairness and dishonesty. To succeed and excel, they recognise people need to know what is expected
of them, what authority they have and how they are performing. In addition, the approach to managing
them needs to be consistent. In the organisation, RAK Paints Limited can help its people feel more of
the positive emotions and eliminate most of the negative, then it will have come a long way to being an
employer of choice. The Performance Management System is designed to be the foundation for
fulfilling careers at RAK Paints Limited.

5.12.5. Probationary Period Reviews:

Policy Statement: All new employees will serve three/six months’ probationary period to ensure both
RAK Paints Limited. and the employee are happy with a permanent commitment to the role. Prior to
the completion of the three-month/six-month probationary period new employees will undergo a

38
performance appraisal to provide feedback on performance, guidance on future direction and to set
selected specific objectives for the next performance appraisal period. The new employee will get
provide a job confirmation form. This form will act as performance evaluation form for the probationary
employees.

Objectives: The objective of the probationary performance appraisal is to ensure both RAK Paints
Limited and the employees are satisfied the role is as agreed and a re-commitment & alignment of
values to the permanent nature of the position can be made.

Application: The policy on probationary performance appraisals will be successfully applied when all
probationary appraisals are completed within three months/six-months of employment commencing.

Process:

1. The manager and the employee will agree on the date for a performance appraisal meeting. In
the case of all probationary period appraisals, this must be before the completion of three
months/ six-months of service.
2. The manager will provide Job Confirmation Form to the employee at least 48 hours before the
meeting.
3. The manager and the employee will meet and agree any objectives for the next appraisal period.

5.12.6. Performance Appraisals:

Policy Statement: All employees will undergo performance appraisals with their immediate managers
on timing that is based on the level of their job role. All performance appraisals will be timed half yearly
and yearly basis. This is to ensure performance management is a regular, rather than occasional
management responsibility.

Objectives: The objective of the performance appraisal system is to constantly monitor progress of the
capabilities and achievements of employees, to facilitate the ongoing development of team members and
to identify when an employee has demonstrated readiness for greater responsibility. The objective of
individual performance appraisals is to review work performance on the basis of both capabilities and
achievement of specific performance objectives. Performance appraisals also provide feedback to RAK
Paints Limited on the achievability of objectives and the capability of managers to manage their
employees.

39
Application: The policy on performance appraisals will be successfully applied when all employees’
appraisals are completed within the required time frames.

Process: The performance appraisal form will be sent to all eligible employees directly on email in the
month of June for half yearly& November for yearly for Management Employee and Non-Management
employee. The performance appraisal form consists of the following sections:

 Observable Competencies
 Observable Behavior
 Development Plan
 For Non-Management Employee, performance appraisal to be held once in a year.
 For Management Employee, performance appraisal to be held twice in a year. Half yearly
performance appraisal with informal feedback. The management employee performance
appraisal form is comprised of different competencies and behaviour based on strategic style and
requirement of the role.
5.12.7. Filling the Performance Appraisal form:
Step-1
On receipt of the performance appraisal form, the manager will provide PMS Evaluation Form to the
employee at least 48 hours before the meeting. The employee will fill in the Personal Details and his/her
competencies and commitment to behavior.

Step-2
The individual employee will appraise himself, on the given dimensions. This is to provide the
employee a chance to state without any inhibition/reservation, his competencies and behavioral
commitment. The employee should have a rationale for his self-assessment.

Step-3
The Appraiser will review the above assessment and based on his own observations rate the employee.
In case the supervisor disagrees with the self-rating given by the employee, then the Appraiser will give
a rationale in writing for the difference in opinion in a separate sheet.

Step-4
Discussions shall be held between the employee and the Supervisor for Career Development Planning,
Identification of Training Needs and Job Rotation etc.

Step-5

The Performance Appraisal Form will be forwarded to the HR Department by the Appraiser for
calculating the consolidated final ratings.

40
Step-6
HR Department, based on consolidated rating shall undertake career plan.
5.12.8. Professional & Personal Development:
Policy Statement: Manager in partnership with the employee will maintain a professional and personal
development plan for each employee. Manager’s role in this is as a supportive facilitator. It will be up to
the employee to take a leading role in managing their own development within an approved structure.
Employee development plan require employees to attend specific training or instruction delivered by
internal or external facilitators. This may be on or off-site. Development may take the form of training,
education, mentoring, coaching or counselling.

Objectives: The objective of the professional and personal development policy is to provide a structured
environment for learning and development for the individual within and external to the company.

Application: The policy on professional and personal development will be successfully applied when
employees are managing their own development plans.

Process:

1. During the appraisal process the manager will identify and document which areas the employee’s
performance may be enhanced by further training. The manager will identify specific courses where
possible.
2. The employee and manager will then work together to complete a professional development plan for
the employee.
3. In response to this the employee can source their own solutions instead of, or in addition to, the
manager’s suggestions. Requests to attend these should be submitted in writing to the employee’s
immediate manager and must include:
 Suggested dates
 Costs
 Anticipated outcomes
5.12.9. Career Development:

 Inputs from the Performance Review exercise can be used for planning the career development of
the individual.
41
 To ensure the growth of an individual, development strategies like training, coaching, mentoring, job
rotation & job enlargement may be deployed.
 To achieve career enhancement, areas for development needs to be identified with focus on the
current as well as future job responsibilities of the employee.
 Promotions will be based on the performance rating and the potential for moving into the next level.

5.12.10. The Appraisal Discussion:

The appraisal discussion will allow an opportunity for both the appraisee and the appraiser to reflect and
comment on the previous year’s achievements. It will praise achievement and encourage the appraisee in
his/her role. The appraiser is accountable for giving the employee constructive, timely and honest
appraisals of their performance, which should take into account both the goals of the organization and of
the individual. The appropriate forms will be completed and signed by both parties. The appraisee will
be given the opportunity to note any comments that he/she does not agree with and complete a self-
assessment. Any training needs, future training requirements, planned qualifications, development
opportunities and career planning should be discussed in the light of the Personal Development Plan.

5.12.11. Strategy Management and KPI Based PMS:

1. Policy Statement: To institutionalize the Performance Management System by developing an

integrated process of objective setting, assessment and evaluation that will support individual employee,
departmental & organizational growth and help create a performance driven culture.

2. Applicability: This policy is applicable to all the management employees of RAK Paints Limited.

3. Objective:

1. To provide a framework for strategy execution of the company and systematic planning of
Performance Objectives at the beginning of the year.
2. To ensure that individual objectives are aligned to the organizations goals.
3. To ensure an objective and scientific evaluation of employee performance.
4. To identify gaps in performance and take necessary actions to ensure the achievement of
organizational and individual goals.
5. To define a proper career planning process.
6. To provide inputs for determining the Compensation, Rewards & Recognition.

42
5.12.12. The Performance Management System Process Flow:

Vision, Mission Rewards& Recognition

Values & Goals

Organizational
Annual Business Accumulation
Plan Of Final Rating

Specific Organizational
Objectives
Review of KPI result
monthly

Departmental
Objectives

Key
Definite
Individual Performance
Objectives Indicator

Figure 1: Performance Management System Process Flow

43
5.12.13. Components of Performance Management System:

1. Performance Planning & Objective Setting

2. Key Performance Indicator

3. Competencies assessment

4. Behavioral commitment

5. Performance Assessment

6. Career Development

7. Rewards
1. Performance Planning & Objective Setting:

Performance Planning is an important part of the Performance Management System as it makes the
objectives of business and individual performance clear and simple.

a. It also aligns individual goals to organizational objectives at every level in the Organizational
Hierarchy.

b. Performance Planning starts with the finalization of business and functional objectives, which flow
from the vision and mission of the organization.

c. Individual objectives which are translated in to KPIs are then finalized for the financial year through
consultation and mutual agreement between the appraise and the appraiser by the end of the financial
year.

2. Performance Assessment: Performance Assessment is done in an objective and scientific manner as

explained below at the end of the financial year before 31stDecember.

44
3. Components of Performance Assessment Form:

a. Competency Assessment Form.

b. Behavior Assessment Form.
c. KPIs Result.
4. Scoring of Assessment:
a. Key Performance Indicator : 70
b. Competency Assessment (KPIs) : 20
c. Behaviour Assessment : 10
Total Score : 100

5. Objective: A specific result that a person or system aims to achieve within a time frame and with
available resources. In general, objectives are more specific and easier to measure than goals.
Objectives are basic tools that underlie all planning activities. They serve as the basis for creating
policy and evaluating performance. Some examples of business objectives include minimizing
expenses, expanding internationally, or making a profit. The objective should be simple, specific,
and measurable time bound. The objective should not exceed more than five.

1. Key Performance Indicator (KPIs): “A measurable expression for the achievement of a desired
level of results in an area relevant to the evaluated entity’s activity”. Simply to say, a metric that reflect
performance and aligned with business result.

2. A Target: A specific level of outcome to achieve in relation to a KPI.

3. Weightage: Each KPI needs to be given a weightage depending on its importance in the individual
employee’s job profile. The total weightage of all KPIs should be 70.

4. Target Achieved: The actual target achieved need to be captured in the column.

5. Final Score: The Data Custodian would calculate the score for every KPI (Score = Target
Achieved/Target * Weightage). The score for each individual KPI is totaled to obtain the Total Score.
2. Interpretation of Final Score:

45
 The score needs to be interpreted and the final rating needs to be arrived at based on the rating scale
given below:

Outstanding Good Average Poor Performer

Performance Performer Excellent Performer Performer

Rating Performer

Meets
Description Exceptional Exceeds Needs Unsatisfactory
Expectations
Expectations Improvement

Final Score >105% 100-105% 95-100% 80-95% <80%

Figure 2: Interpretation of Final Score.

5.12.14. Monthly performance management system process:

Monthly PMS Management Process

KPIs, target and scorecard is set. As the PMS Review Meeting is eminent, 05
Monthly PMS review meeting Month end – data collection days are timeline to complete the data
date is fixed. commences collection.

An email reminder is sent out to A courtesy notification is sent out by the Data
each data custodian/KPI Owner, custodian/BSC administrator to remind KPI
E-mail Reminder
having attached the data Owner that their data is due in a week’s time.
collection template. Example, the reminder date is first day of each
month.
The performance data for the past KPI Report Form is to be collected from the KPI
month is due. Data is due Owner by the PMS administrator on the same
day. Example, the reminder date is first day of
each month.
Data is captured from the KPI
Report Form and processed in the It should generally take no more than one day for
Data Processing the PMS administrator to process the data,
Scorecard/software.
extract the reports and prepare the PMS results
- Monthly performance reports are for the month. The date set aside for this is 3rd
discussed in team meetings. and 4th day.
- A feedback and analysis process 46
Performance Reporting
takes place.
- Initiatives are established to adjust
areas of improvement.
 A performance report is presented in team
monthly meetings. For this example, the date is7
or 8 each month

Performance Reports are promoted Performance reports communicated to wider

using face-to-face and electronic Staff Communication
team.
channels

Initiatives established for the
current month are entered in the
PMS software/Initiative portfolio
form, communicated to all team
and monitored to completion.
By the end of the 2nd week initiatives are
Initiatives Tracking established, communicated to teams and tracked.
Review the initiatives next month

Performance Reports / comments KPI Owner are responsible for Portfolio Initiatives
are to be monitored and recorded Initiative Portfolio and are to be reviewed in the PMS Meeting
in the initiative portfolio form

Description Process Note

Figure 3: Monthly PMS Management Process

Chapter: 6-Findings and Analysis

6.1 Analysis of the KPI calculation

A measurable expression for the achievement of a desired level of results in the area which is relevant to
the evaluated entity’s activity. Simply to say, a metric that reflect performance and aligned with business
result. A specific result that a person or system aims to achieve within a time frame and with available
resources. In general, objectives are more specific and easier to measure than goals. Objectives are basic
tools that underlie all planning activities. They serve as the basis for creating policy and evaluating
performance. Some examples of business objectives include minimizing expenses, expanding
internationally, or making a profit. The objectives should be simple, specific, and measurable & time

47
bound. The calculation of four different department officer’s PMS based on KPI method are stated
below:

1) Name: Md. Abul Hossain

Designation: Sr. Officer (Sales Dept.)
Employee ID: 10727
2) Name: Abdullah Al Mamun
Designation: Sr. Officer (Finance & Accounting Dept.)
Employee ID: 10222
3) Name: Al Amin
Designation: Sr. Officer (HR & Admin Dept.)
Employee ID: 10227
4) Name: Farhana Akter
Designation: Sr. Officer (Business Development Dept.)
Employee ID: 10250

KPI Target Form, Report form, Competencies and Behaviors Commitment Form with Calculation:

48
Figure 1.1: Target Form

49
Figure 1.2: Report Form

50
Figure 1.3: Competencies Form

51
Figure 1.4: Behaviors Commitment Form

52
Figure 1.5: Target Form

53
Figure 1.6: Report Form

54
Figure 1.7: Competencies Form

55
Figure 1.8: Behaviors Commitment Form

56
Figure 1.9: Target Form

57
Figure 2: Report Form
58
Figure 2.1: Competencies Form

59
Figure 2.2: Behaviors Commitment Form

60
Figure 2.3: Target Form

61
62
 Figure 2.4: Report Form

Figure 2.5: Competencies Form

63
Figure 2.6: Behaviors Commitment Form

64
 Employee KPI Calculation Sheet (RAK Paints Limited)
Beha
Position Depart Actual Final Achiev Compe Tatal
Sl# ID Name KPI Name SRF Weight Target
Result
Score
Score ement tence
viorn
Score
Title ment s

KPI Calculation

1 10727 Md. Abul Hossain Tk. Sales 20 10 9.5 66.50 19.00

Y
2 10727 Md. Abul Hossain % Sales Growth 5 5 11 154.00 11.00
Y
3 10727 Md. Abul Hossain Tk. Collection 20 9 7.8 60.67 17.33
Sr. Sales Y
Sales 73.00 17.5 7.5 98.00
Officer
4 10727 Md. Abul Hossain % Collection Growth 5 3 4 93.33 6.67
Y
5 10727 Md. Abul Hossain Tk. Old dues collection 10 0.1 0.09 63.00 9.00
Y
6 10727 Md. Abul Hossain # Training hours Received 10 8 8 70.00 10.00
Y
1 10222 Abdullah Al Mamun % Check issue accuracy 20 1500 1475 68.83 19.67
Y
On time incentive
2 10222 Abdullah Al Mamun disbursement ( within 10 15 12 10 58.33 12.50
Y
days)
Sr. Officer-
3 10222 Abdullah Al Mamun F & A Software entry accutary 20 240 220 64.17 18.33 64.60 14.5 5 84.10
Account Y
4 10222 Abdullah Al Mamun # Adjustment posting made 5 585 480 57.44 4.10
Y
5 10222 Abdullah Al Mamun # Training hours Received 10 8 8 70.00 10.00
Y
1 10227 Al Amin Tk Cost of License Renewal 15 12 11.5 67.08 14.38
Y
% On time completion of
2 10227 Al Amin license, regulatory, BRTA, 15 125 110 61.60 13.20
Y
printing etc. works
# Social event completed
3 10227 Al Amin Sr. Officer- 10 5 4 56.00 8.00
HR & for employee engagement Y
HR & 64.91 17 8 89.91
Admin % Performance appraisal
4 10227 Al Amin Admin 10 12 12 70.00 10.00
completed Y
# Average number of
5 10227 Al Amin training hours per employee 10 450 420 65.33 9.33
Y
( 8 Hours).
6 10227 Al Amin # Hours of training received 10 8 8 70.00 10.00
Y
10250 Farhana Akter
# Social event provided 15 40 33 16.00 3.43
1 Y
10250 Farhana Akter # New enlistment with
15 20 18 63.00 13.50
2 Govt./Non-Govt. bodies Y
Business
10250 Farhana Akter
Developme % Business growth 10 7.69 10.17 92.57 13.22 61.58 14 5 80.58
3 Y
nt
10250 Farhana Akter # BD personnel training
10 8 8 70.00 10.00
4 received. Y
Figure 2.7: Calculation of KPI

65
Final Score:

According to the KPI calculation result the following KPI owner’s current position are stated below:

Performanc Outstanding Excellent Good Average Poor

e Performer Performer Performer
Performer Performer
Rating

Exceeds Meets Needs

Description Exceptional Unsatisfactory
Expectations Expectations Improvement

Final Score >105% 100-105% 95-100% 80-95% <80%

KPI Owner ---------- Total Score -------- Position

Md. Abul Hossain (Sr. Sales Officer) 98.00 Meets Expectations

Abdullah Al Mamun (Sr. Officer Finance & A/C) 84.10 Needs Improvement

Al Amin (Sr. HR & Admin Officer) 89.91 Needs Improvement

Farhana Akter (Sr. Officer Business Development) 80.58 Needs Improvement

66
6.2 Findings of the study:
In my report at The RAK Paints Limited., I have observed and found different issues. These are:

1. They need to develop and implement customized KPI base action plans designed to increase
better performance.
2. They need to be more careful and constructive in setting KPI targets for the KPI owner in
according to the organizations goals.
3. They should conduct more employee satisfaction survey and get feedback from them about the
performance management system of the company.
4. There is no software based or app PMS system in order to save time and minimize error.
5. Lack of initiative of taking new module or update the existing KPI based performance
management system.
6. Need KPI based performance management system knowledge sharing, training and development
program and need more KPI awareness program for better understanding.
7. Lack of performance based incentive policy to increase employee efficiency and productivity.
8. There is a lot of paper works for performance management system in RAK Paints Limited.
9. RAK Paints Limited need to make sure each indicator must give information about a specific
area of activity and the purpose they are pursuing with the particular choice as well as what
information they expect to receive and what action they will take if the KPI behaves a certain
way.
10. Need to make sure that the total evaluation procedure is in timely manner.

67
Chapter: 7-Recommendation and Conclusion:

7.1 Recommendations

1. Developing and implementing customized KPI base action plans designed to increase better
performance.
2. Analyze the feedback from employee satisfaction survey and monthly KPI bases performance
management system can definitely help building an image.
3. RAK Paints Limited needs to take software based or app PMS system in order to save time and
minimize error.
4. RAK Paints Limited should use new module or update the existing KPI based performance
management system.
5. RAK Paints Limited should take more KPI based performance management system knowledge
sharing, training and development program and need more KPI awareness program for better
understanding.
6. HR department should also focus on performance based incentive. It will help the employee’s
efficiency and productivity.
7. HR department can also minimize the use of paper works by using computerized system.
8. RAK Paints Limited need to make sure that they're SMART. This stands for:
Specific: Be clear about what each KPI measure and why it is important.
Measurable: The KPI must be measurable to a defined standard.
Achievable: You must be able to deliver on the KPI.
Relevant: Your KPI must measure something that matters and improves performance.
Time-Bound: It’s achievable within an agreed time frame.

68
7.2 Conclusion:
A Key Performance Indicator (KPI) is a quantifiable measurement that shows how well RAK Paints
Limited as a good organization, team, or individual is performing against a predetermined goal or
objective. KPIs can be applied to any area of performance, and should align with the organization's
critical success factors and its stated vision and strategy. Needless to say, the HR Performance
Management Unit is one of the most efficient and effective teams of RAK Paints Limited. While
writing the report, I realized that during my internship though PMS was the main area of focus, I also
gained knowledge & insight on the other functional areas of the Human Resource Department. I have
learnt a lot from RAK Paints Limited HR. I really have enjoyed working with the PMS team where I
got to see the real life experience along with wonderful human beings.

69
 QUESTIONNAIRE ON EMPLOYEE’S PERCEPTION TOWARDS KPI’s:

QUESTIONS Moderately Agree Neutral Moderately

Agree Disagree

KPI will improve working skill with clear objectives in mind

✅
Introduction of KPI will help in enhancing the performance of the
individual as well as organization as a whole. ✅
Biasness of the immediate supervisor affects the performance of an
individual. ✅
The performance of an individual within the department affects the
vision and mission of the organization. ✅
If the employee is not given the proper reward for his/her work, the
level of motivation of him towards his job decreases. ✅
KPI will prove too beneficial to the company as well as an individual
employee. ✅
All behavioral aspects are also included as indicators to measure
performance which will improve the organizational culture. ✅
KPI will encourage performance against objectives and targets that
can be easily quantifiable. ✅
The appraise will be benefited by knowing the measures of
performance evaluation. ✅
The scope of review in targets after 6 months is beneficial.
✅
As KPI is part of PMS, it involves the creation of an open and
interactive work environment. ✅
The PMS should be driven in such a way that it is owned by all
HOD’s and not only by the HR department. ✅
KPI helps in knowing the areas of improvement of an individual.
✅
If an employee completes his individual target and rewarded, his
motivation level will increase. ✅
PMS increase the competition amongst and enhances positive
attitude. ✅
PMS creates enthusiasm to reach the target.
✅

70
PMS develops confidence in employees to comfortably reach their
targets. ✅
PMS is a system to drive the performance of an individual towards
organizational goals. ✅
KPI should be SMART (Specific, measurable, Achievable, Realistic,
time bound.) ✅
Behavioral competencies (Aptitude, Attitude, Skills, and Knowledge)
may be considered as a part of KPI. ✅
Parameter of KPIs are different for various positions, so mutually
agreed conclusion is difficult to achieve. ✅
Behavioral competencies should be rated as per the definitions and
not as per own perception of the employee. ✅
KPI is really essential for the betterment of the company.
✅
KPI is all about controlling and monitoring the people.
✅
KPIs act as a measure of progress towards the goals.
✅
KPI can be used for all types and in all areas of project management.
✅
The target for KPI should be specific so that every individual can
take action towards accomplishing it. ✅
KPI should be clear and specific as per the target given to the
Organization. ✅

71
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