Assignment No: 4

Course Title:

Strategic Human Resource Management (MGT-687)

Topic:

Performance Appraisal System

Submitted To:

Ma’m Saima Ashiq

Submitted By:

Fraz Raza

Registration No:

17-ARID-5375

Semester:

BBA (hons) 8th

 PERFORMANCE APPRAISAL SYSTEM OF ASKARI BANK
The appraisal of employee performance is a key process for an organization trying to increase or
maintain its effectiveness because the actions of employees affect the optimal use of the
organization's capital, technological, and marketing resources.

Despite the obvious importance of making accurate appraisals of an employee's performance

consist of a list of key traits or cost-related variables. Both appraisal instruments are limited from
the stand point of counseling and developing an employee.

OBJECTIVES:
There are mainly two main objectives for performance appraisal, in organization

 Evaluative objectives
 Developmental objectives

As we know from our theoretical knowledge that evaluative objectives are those which are
mainly to make compensation or staffing decisions. It also includes the evaluation of the
selection process on the other hand the developmental objectives are mainly for the development
of the employees by providing them proper feedback and directing their future performance and
it also helps out to indicate the training and developmental needs.

In Askari Bank the main objective for performance appraisal is to motivate the employees to
increase their productivity and earning their loyalty to the organization. They do not have proper
developmental objectives which could be proved beneficial in the long run. But they believe in
giving proper feed back to their employees so that they should realize that what is expected of
them and what they have to achieve.

THE PERFORMANCE APPRAISAL PROCESS:

The process of performance appraisal is carried out in different step. These steps are
more or less the same in all organizations. The following model gives an out look to the
performance appraisal process followed by Askari Bank.

 Review Legal Requirements

 Conduct Job analysis
 Develop Appraisal Instrument
 Select Observers
 Train Observers
 Measure Performance
 Give Employee Results
 Establish Performance Goal
 Praise/Reward Performance
  Reviewing Legal Requirements

Before carrying out any performance appraisal system the first step is to take into
consideration that what are the legal requirements. First the organization see that what
performances have to be appraised and up to what extent and it is after reviewing the laws the
organization is ready to conduct job analysis.

APPRAISAL METHODS AND INSTRUMENTS:

The methods used for appraisal of the employees are categorized into two broad
categories.

 Comparative methods
o It includes. Ranking, forced distribution, paired distribution critical incident
method and essay approach.
 Absolute standard methods
o The absolute standard method includes rating scales which is further divided into
graphic and non-graphic scales, MBO (management by objective) and finally the
combination methods.

Appraisal Methods Followed By Askari Bank

Askari Bank is our local bank which is trying to improve its approval process and method
used by them, but at this point there are very few methods used for the appraisal of the
employees. Basically they use critical incident method for the appraisal of the middle level
managers.

METHODS / TECHNIQUES OF PERFORMANCE EVALUATION

There are four methods of performance evaluation.

 Rating Scale in this method you have to give the rate to individual performance on the
scale basis, this method is precise and simple as compared to other methods.
 Check List The rater has to select only that statement which best described the
performance and individual. In order to measure the performance, we can assign the
weight to it will become weighted check list, it will help to check the performance and
this practical is standard.
 Forced Choice it is a method of set choice. In this method you have to develop a set of
employees and give them the numbers on rater's own observation.
 Critical Incidence Technique In this method the rater has keep in account positive and
negative behaviors in sequence, these are called incident critical techniques. This report
helps to provide positive feedback to the employees. Askari Bank has to adopt the rating
scale method for given the rate to their employee performance.