A Research Report on the Performance Management System

Of
Daraz Bangladesh
Course: Performance Management (H406)

Submitted to

M. Nazmul Amin, PhD

Adjunct Faculty

Institute of Business Administration

University of Dhaka

Submitted by

Group 5

Sadat Mahbub Chowdhury (ZR-18)

Rahnuma Binte Rashed (RH-28)

Anika Tahsin Lisa (RH-30)

Riasat Hossain (ZR-60)

Nafisa Ismum (RH-74)

Section B, BBA 26th

Institute of Business Administration

University of Dhaka

Date of Submission: June 14, 2021

June 14, 2021

Dr. M. Nazmul Amin

Adjunct Faculty

Institute of Business Administration

University of Dhaka

Dear Sir:

Subject: Submission of Research Report on Daraz Bangladesh

We are glad to be submitting our Research Report on Daraz Bangladesh” as a mandatory

requirement for our course “Performance Management (H406)”

It is our honor to have worked under your supervision and guidance. We hope this report will
attest to the valuable learning that we have obtained so far in this course.

Sincerely,

Sadat Mahbub Chowdhury (BE-18)

Rahnuma Binte Rashed (RH-28)

Anika Tahsin Lisa (RH-30)

Riasat Hossain (ZR-60)

Nafisa Ismum (RH-74)

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TABLE OF CONTENTS

Executive Summary ...................................................................................................................................................... iii

1. Introduction ...........................................................................................................................................................1
1.1. History of E-Commerce Business in Bangladesh ........................................................................................1
1.2. Present position of E-Commerce Business in Bangladesh: ..........................................................................2
1.3. History of Daraz ...........................................................................................................................................3
1.4. Current Position of Daraz.............................................................................................................................3
1.5. Product & Services of Daraz ........................................................................................................................4
1.6. Key competitors ...........................................................................................................................................5
1.7. Market Share of Daraz: ................................................................................................................................6
1.8. Objective of research report ................................................................................................................................6
2. Objectives ..............................................................................................................................................................6
2.1. Identification of the problems and issues of PM and their likely causes ......................................................6
Literature Review ..................................................................................................................................................6
Findings .................................................................................................................................................................7
Summary of findings .............................................................................................................................................9
2.2. Analysis of PM approaches necessary for ongoing strategic competitive advantage of Daraz ....................9
Literature Review ..................................................................................................................................................9
Findings ...............................................................................................................................................................11
Summary of findings ...........................................................................................................................................12
2.3. Critical discussusion of the PM challenges Daraz Bangladesh will face in the 21st century .....................13
Literature Review ................................................................................................................................................13
Findings ...............................................................................................................................................................14
Summary of findings ...........................................................................................................................................15
3. Conclusion ...........................................................................................................................................................15
4. Recommendation .................................................................................................................................................16
5. Implementation of recommendations ..................................................................................................................16
Reference: ....................................................................................................................................................................17

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EXECUTIVE SUMMARY
Daraz Bangladesh is, one of the top e-commerce sites of Bangladesh, occupying more than 40%
share of the ecommerce market has a workforce of over 3,500 people. The recent surge in e-
commerce has created enormous growth prospects for the company. For utilizing these
opportunities and formulating effective strategy, Daraz should transform their human capital into
a source of competitive advantage. But challenges in their existing performance management
system come along the way. Some of the notable challenges in the existing PM system at Daraz
are traditional appraisal twice a year that lacks continuous feedback from multiple sources, rating
biases, less focus of the PM process on employee development and ineffective change
management procedures to facilitate technology and software adoption for employees. In the
coming days of the 21st century, Daraz will be exposed to more PM related challenges like data
privacy and cultural biases hindering the effectiveness of existing training, compensation and other
processes. In order to address these challenges and maintain market leadership, Daraz should adopt
Strategic Performance management approaches that focuses on a bias free 360-degree continuous
performance evaluation and feedback mechanism; a culture of deliberate practice, collaboration,
innovation; employee development initiatives; and skill-based compensation for core
competencies that are non-standardized. Careful planning and execution are needed along with
more investment in the HR department to efficiently manage employees.

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1. INTRODUCTION

1.1. HISTORY OF E-COMMERCE BUSINESS IN BANGLADESH

Buying and selling of products/services by businesses and consumers via electronic medium is
known as e-commerce. The history of e-commerce in Bangladesh can be traced back to the late
90s when the idea was only to serve the Non-Residential Bangladeshis (NRBs), looking for ways
to send gifts to their beloved ones. 2000 to 2008 was the nearly dormant period. Payment gateway,
delivery system and customer education were obstacles to the rapid growth. A gradual change was
observed after the first payment aggregator SSL COMMERZ launched their business in 2010. The
inclusion of WiMax internet in 2010 played significant role behind the speed-jump. Some major
investments were observed when companies like Ajkerdeal, Rokomari, etc., initiated their
operations. In 2013, Bangladesh Bank approved online payment via debit and credit cards boosting
online platforms. Later in 2016, $50 million was invested in e-commerce by the government. A
brief timeline is shown below:

Figure 1: E-commerce evolution in Bangladesh

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1.2. PRESENT POSITION OF E-COMMERCE BUSINESS IN BANGLADESH:
Currently myriads of businesses work under the e-commerce criteria, since buyers and sellers have
gained much power due to massive utilization of revolutionary technologies. The e-commerce
market in Bangladesh during 2016 to 2017 had an incredible development of 70%. According to
the e-Commerce Association of Bangladesh (e-CAB), e-commerce market in Bangladesh
surpassed the Tk. 17 billion-stamp in 2017, and is expected to reach around Tk. 70 billion by 2021
("E-commerce of Bangladesh: Shaping the future of shopping", 2021). Today, we have around
50+ well-known e-commerce websites. Sales of goods through these sites grew 70% in 2020, due
to increased amount of online shopping in the pandemic. In the last 8 months of 2020, customers
have brought products worth Tk. 3000 crore via e-commerce platforms. Currently, around 160,000
deliveries are made daily. More than 50,000 people are employed in the e-commerce services of
Bangladesh. Evaly, Daraz, Chaldal, Bikroy.com, Rokomari.com, Clickbd.com, Priyoshop.com,
Ajkerdeal, etc., are some major market players in the e-commerce market of Bangladesh.

Figure 2: E-commerce market players in Bangladesh

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1.3. HISTORY OF DARAZ

Daraz was founded in the year 2012 as an online fashion retailer in Pakistan, and now operates in
South and Southeast Asia as an online market place and logistics company. The initial funding
came from Rocket Internet. In 2015, Daraz changed the business model to launch operations in
Bangladesh and Myanmar. In 2017, Daraz received 50 million euros to expand operations in
Bangladesh, Myanmar and Pakistan. In 2018, Daraz was acquired by Chinese e-commerce giant,
Alibaba group.

Figure 3: History of Daraz

1.4. CURRENT POSITION OF DARAZ

Daraz is one of the leading e-commerce sites in Bangladesh. After its launch in 2015, it gained
popularity through excellent service and wide product variety on its website. Daraz partnered with
some leading brands of the country like Yellow, Apex, Noir etc., and customizes the website as
per necessity. Daraz receives 50,000+ orders daily. Daraz has secured the second position among
the top e-commerce sites of Bangladesh in terms of total online traffic and 4th position in terms of
user behavior.

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 Figure 4: Top E-commerce sites by April 2021's Google Search Traffic

1.5. PRODUCT & SERVICES OF DARAZ

Daraz offers hundreds and thousands of products under the following categories on its website
along with excellent services:

Table 1: Products and services of Daraz.

Products Services

Available Product Categories Service Name Function

Electronic Devices 1. Save more on App Offers many discounts on

downloading, using,
Electronic Accessories
purchasing and referring the
TV & Home Appliances app to others.
Health & Beauty One can start earning by
2. Sell on Daraz
Babies & Toys selling their products on
Daraz.

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 Groceries & Pets
Home & Lifestyle
Women's Fashion
Men's Fashion
3. Customer Care A Help Center regarding
customer queries and issues
on Order, Shipping &
Delivery, Payment options,
Returns & Refunds.

Watches & Accessories 4. Track my order Customers can track their

order details here.
Sports & Outdoor
5. Daraz affiliate One can earn though
Automotive & Motorbike
Program reviewing products/services
to followers, readers, family
and friends

1.6. KEY COMPETITORS

The top 11 competitors of Daraz according to the SEO audit 2021 are:

1. Evaly
2. Chaldal.com
3. Bikroy.com
4. Rokomari.com
5. Foodpanda.com.bd
6. Clickbd.com
7. Priyoshop.com
8. Bagdoom.com
9. Ajkerdeal.com
10. Othoba.com

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1.7. MARKET SHARE OF DARAZ:

Daraz has grown full 100% over the last four years in terms of number of orders and customers
(Hasan, 2020). The app size of Daraz BD is around 49.5M and market share of Daraz in
Bangladesh is around 40%. ("E-commerce Business Scenario in Bangladesh from 2006 to 2018",
2021)

1.8. OBJECTIVE OF RESEARCH REPORT

A. To identify the problems and issues of PM in Daraz and find out their likely causes

B. To analyze PM approaches necessary to ensure ongoing strategic competitive advantage

C. To critically analyze the challenges Daraz might face in the 21st century

2. OBJECTIVES

2.1. IDENTIFICATION OF THE PROBLEMS AND ISSUES OF PM AND THEIR

LIKELY CAUSES

LITERATURE REVIEW

Performance management or PM is a way to develop employees (Aguinis, 2013; Cascio, 2014).

In broader terms, it is defined as “identifying, measuring, and developing the performance of
individuals and teams and aligning performance with the strategic goals of the organization”
(Aguinis, 2013). In the book ‘Managing Performance,’ Armstrong and Baron stated that
organizations emphasize on PM of employees because better organizational performance follows
raised performance level of employees. However, the research in performance management (PM)
carried out by the Institute of Personnel Management concluded that although PM aims to develop
and improve the performance effectiveness of employees, organizations may face problems when
putting the principles into effect (Armstrong & Baron, 2003).

While discussing about some PM issues, an article stated that poorly defined goals, lack of training
and effective recognition affects an employee’s work performance. This decline in work
performance requires corrective actions like training, coaching and employee counselling instead

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of terminating (Buon, 2005). The manager should try to find and solve the underlying cause of the
problem.

Research article by G. Gliddon identified the absence of behavioral competencies in performance

evaluation as a problem of traditional approach (Gliddon, 2007). The author urged on the use of a
specified set of standards related to the job specifications for correct evaluation. Rater bias is
another serious drawback to performance ratings (Holzbach, 1978) Raters, in general, appear to
be incapable of accurately evaluating performance on various distinct dimensions independently
of their overall impressions.

When organizations increase in size and expands its operations, their HR department also faces
challenges and undergo strategic changes to implement more formal business practices (like more
formal job description and specifications, established pay scales and more standardized
performance reviews). As the staff size grows and organizations become more complex, the PM
also becomes more sophisticated. In addition to staff size, even the type of industry can change
PM metrics. For example, in high tech firms (like ecommerce firms) higher cost has to be allocated
to train and develop employees as demand for technical skills is high. (Dooney, 2015)

FINDINGS

LACK OF MANPOWER IN HR DEPARTMENT

In 2020, Daraz recruited around 1500 employees as a part of its rigorous expansion strategy to
provide a greater customer service experience. Although Daraz recruited a lot of people (around
300 in its marketing and operations department), the number was comparatively low for the HR
department. Daraz already has a small HR department and it is becoming increasingly difficult for
the department’s employees to manage a huge workforce.

INCREASED DIFFICULTY IN MANAGING DIVERSIFIED SOFTWARE

Daraz initially used HR software ‘Zoho’ but it was quite inefficient for performance appraisal.
Often employee forms got lost and employee information couldn’t be retrieved. Sometimes the
manager couldn’t elaborately give written feedback as the software, at times, didn’t accept words
above a certain limit. Daraz is adopting various new software to conduct business smoothly. For
managing Payroll in ERP, Microsoft Dynamics 365 is used. Other softwares are Seller Center,
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XCally, SMART HCM for Performance Management System, Flow HCM system for managing
leave and attendance, communication and collaboration platforms like Alilang, DingTalk. Though
use of a multitude of global mobile and cloud technologies is very commendable, employees are
facing complexities to get comfortable with the use of so many new technologies within a short-
time.

APPRAISAL HAPPENS ONLY TWICE A YEAR

Employees at Daraz face issue because they do not know how their manager is perceiving their
performance all the time. They only get to know at the end of June and December. The company
lacks a system that highly encourages continuous informal and regular feedback from supervisors.

Instead of 360-degree evaluation, 180-degree appraisal is used. The employees evaluate their
performance by assigning themselves marks in a form, and then their supervisor appraises them.
This process is quite ineffective since the manager cannot directly observe the performance and
the behavior of the employees. For example- in case of customer service agents, where customers
can give a better feedback (than the manager) about the employees’ behavior.

OCCURRENCE OF RATING BIAS

As clear standards are not set about the overall roles and activities employees have to fulfill, in the
changing ecommerce business, managers of different teams have different expectations from their
subordinates. So, often rewards and promotions are highly tied to the subjective performance, and
the basis of comparison is unclear, resulting in employee dissatisfaction.

EMPLOYEES FEEL PERFORMANCE EVALUATION IS USED FOR PROMOTION

DECISIONS, NOT FOR THEIR DEVELOPMENT AND GROWTH

This happens due to inadequate learning and training initiatives taken by Daraz. The company
mainly focuses on ‘on the job’ training whereas other large organizations are partnering up with
Coursera, Udemy etc. to up-skill their employees. Employee feel that the result of performance
appraisal is strongly tied to the rewards and for the incremental part of the compensation.
Employees having 80-100% score in a department is promoted and ones with 20% or lower score
are terminated quickly (after previous performance is reviewed), instead of introducing some
learning options for the lower performers to improve over time.

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SUMMARY OF FINDINGS

The performance system at Daraz makes uses of various traditional approaches unfit for modern
business operational requirements. And the adoption of newer approach is not supported by
adequate training and learning, leading to increased resistance from employees and job
dissatisfaction.

2.2. ANALYSIS OF PM APPROACHES NECESSARY FOR ONGOING

STRATEGIC COMPETITIVE ADVANTAGE OF DARAZ

LITERATURE REVIEW

Competitive advantage is the strategic advantage a business entity gains over its rival in the same
industry. (Porter, 1985) And strategy is a company’s unique approach to competing and achieving
its goals. Mintzberg’s five Ps of strategy: plan, ploy, pattern, position, and perspective - provide
guideline to organizations for effective strategy formulation that takes full advantage of its
strengths and capabilities. (Mintzberg, 1987)

Unlike traditional industries engaged more in reactive strategy and investment in tangible assets,
sustainable e-commerce firms require proactiveness and human abilities to innovate effectively.
Thus, they require concentration on employee commitment, engagement and willingness to learn
and innovate. (Zakrzewska-Bielawska, 2015) A study on high-tech firms in Canada revealed use
of PM for competitive advantages. Though these firms view superior technology and customer
service as their common differentiating qualities, they emphasize on integration of PM with
business strategy. (Price, 2006)

Successful organization implement well-designed system that considers performance at individual

and team level and aligns individual, team, and organizational goals. (Aguinis et al., 2013) To
account for organizational interconnectedness and facilitate creative team-building approaches,
companies are transforming their traditional performance appraisal into a full-service human
performance improvement (HPI) system. This data driven HPI focuses on outcomes and
accomplishments, with secondary emphasis on behaviors and efforts. (Rothwell el al., 2018)

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Firms across Europe employs new visual performance management (VPM) approaches to facilitate
strategy development, performance measurement, employee engagement, collaboration and
innovation. (Bititci el al., 2015) In VPM, visual techniques are used to communicate timely
information to employees about the performance of processes, increasing transparency and
removing distance with management.

Compensation scheme is a critical factor behind employee retention and reinforcement of business
strategy. While pay-for-performance is effective for rewards explicitly linked to performance, SBP
or skill-based-pay is more effective for difficult to observe and not standardized behaviors and
tasks. (Kang & Lee, 2021) Though, Comparative or absolute systems can be used to measure
performance, Critical Incidents Method and Behaviorally anchored rating scale (BARS) under the
absolute system are more popular these days.

There are three approaches of performance measurement- trait, behavioral and results method.
Organizations may adopt one or a combination of these methods specific to the industry and job
in question (Human Resource Management, 2016) An important PM system facilitator in high-
performance firms is formal training of performance raters for reducing bias and integrally embed
strategic and tactical objectives in the PM objectives. (Biron et al., 2011)

PM today is not limited to performance appraisal. It includes learning and developmental aspects.
(Mangipudi et al., 2020) Instead of annual reviews where only supervisor provides comments on
employee’s performance, leading Indian companies are adopting progressive 360-degree feedback
and management by objectives (MBO). (Daoanis, 2012) Emphasis has shifted to employee
feedback from full circle of sources (Human Technology, Inc, 1997) Traditional annual appraisals
are being replaced with frequent, informal check-ins between managers and employees. (Cappelli
& Tavis, 2016)

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FINDINGS

Daraz currently uses result-based approach companywide to measure employee performance and
evaluation takes place twice a year. In the rapidly evolving digital landscape, a more continuous
proactive monitoring mindset is needed.

Skills necessary to lead in the volatile ecommerce market are not standardized for all roles.
Competencies for customer and sales orientation are easier to observe and easily matched with
pay-for-performance compensation system. But to encourage employees acquire new knowledge,
skills and foster proactive behaviors supportive of innovation, adaptability, and technical
competencies, skill-based reward and trait-based approach to measurement can be more effective.

DarazAdsteam incorporates performance monitoring tools that uses visual analytics like VPM
system, but currently is applicable for affiliate marketers of Daraz only. This system can be
extended to internal employees to make accurate key performance metric of individuals and teams
within the workplace available at all times to facilitate continuous improvement.

Figure 5: Performance Management Report for March, 2021 in Daraz Adstream

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A culture of deliberate practice must be created within Daraz to motivate employees for
demonstrating their declarative and procedural knowledge and come up with market-leading
practices. Instead of semiannual appraisal, 360-degree assessment with frequent feedbacks will
manage employee expectations and promote engagement. PM should not be about a lucrative
compensation program, and appraisal process should not be about facilitating promotion, transfer
and termination decisions only. It should include learning, development and training requirements,
to enhance communication for organizational development.

Besides local and international training for employees, supervisors should participate in Rater
Training Programs, to reduce cognitive biases in the PM. A culture of equality and non-
discrimination prioritizing career development will attract and retain top talents in the industry.
Daraz’s recent recruitment of 3 skilled and qualified candidates with physical disabilities after a
rigorous recruitment process as "Quality Control Officers” reflects their inclusive culture and equal
employment opportunities.

Millennials’, a major portion of Daraz’s employees have a more social mindset and prefers
teamwork. Perks and benefit must be adjusted to their needs to boost job satisfaction and
performance. And most importantly, individuals and teams at Daraz must be aligned with the
company vision, goals and missions so that they can deliver the expected target.

SUMMARY OF FINDINGS

Strategically integrated PM practices are essential to improving employee engagement and

organizational performance. Starting from aligning employees’ goals to company goals,
continuous bias free evaluation by different sources, training, development and lucrative
compensation programs –all are essential to transform Daraz’s human capital into a competitive
advantage.

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2.3. CRITICAL DISCUSSUSION OF THE PM CHALLENGES DARAZ
BANGLADESH WILL FACE IN THE 21ST CENTURY

LITERATURE REVIEW

For organizations, PM and its related performance appraisal systems are viral. Despite the potential
of PM systems to positively support organization and enhance employee and organization
performance, the reality of the challenges faced by the practitioners may be very different (Aguinis
et al., 2011).

The pace of technological change in the 21st century is decreasing organizational life cycles by
affecting demands for innovation, and making it hard for organizations to continuously re-adjust
and re-align their operations. Such challenges are driving the subject of performance measurement
high up the management agenda. (Jarrar, 2004) A challenge managers’ face is in recognizing new
technologies most pertinent to be incorporated into company’s operations and making employees
capable of those effectively. (Ployhart, 2006) Management of a multi-generational workforce is
another challenge as adoption of new work techniques meets resistance from the older generations.
High attrition rate of core employees is another challenge. New paradigm companies consistently
face challenges in retaining employees capable of surviving organizational restructuring,
downsizing, consolidation and re-engineering activities. (Chew & Entrekin, 2004)

In the 21st century, trade in the economy has been so diversified that when a company wishes to
conduct business, it should eventually diversify through the internet. That is where the E-
Commerce comes in. E-commerce is a revolution & turning point in online business practices and
it can make a huge contribution to the economy (Ohidujjaman et.al, 2013). E-commerce based
organizations have increasingly become a fundamental component of business strategy and a
strong catalyst for economic development (Hasan et.al, 2010). Considerable amount of research
has been done on E-commerce, and found its numerous challenges. But with the developing
infrastructure of the ICT sector in Bangladesh, and increasing intention of online shopping among
the population, the possibilities for ecommerce is increasing rapidly. (Howladar et.al, 2012)

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FINDINGS

In the 21st century where E-commerce companies are seeing exponential growth, Daraz may face
some challenges in the future as a side effect of such growth.

CULTURAL BIAS

After Alibaba group acquired Daraz, it is safe to assume that Alibaba will conduct training
programs for Daraz. As Daraz employees go for training abroad in Alibaba’s training programs,
the problem of employee shortage can be dealt by making effective rotation of employees. But in
the process of gaining experience, they are also susceptible to cultural bias. By definition, cultural
bias is the tendency to interpret and judging instances based on own culture. Alibaba, being a
company originating in China, has significant difference in organizational and overall culture with
Daraz, a company that operates in South and Southeast Asia. This cultural difference can be an
unwanted barrier between the employees in the two organizations.

The training programs conducted by Alibaba may have a cultural aspect in their routine which can
have one meaning for the Chinese market while not having much significance in Bangladesh. As
Daraz became part of an international company like Alibaba, these cultural barriers and biases will
be prevalent initially. These need to be dealt promptly with proper cultural training and integrating
of the employees from different cultural backgrounds.

COMPENSATION DIFFERENCES

Every country’s compensation and pay package are different based on that country’s cost of living.
The cost of living is usually low around South and Southeast Asia. As Daraz is based in South
East Asian countries like Bangladesh and Pakistan, the compensation package for employees in
here are comparatively lower than Alibaba’s international counterparts.

The difference in pay packages may cause challenges for Daraz, where Daraz’s employees demand
higher compensation packages, similar to international ones. Dealing with this swiftly will be
tricky, as changing compensation packages is a long process and takes a lot of time and budgeting
to put into place. Upgrading pay packages instantly is financially unreasonable for Daraz.

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FOCUSING ON EFFECTIVE USE OF DATA

Data analytics is a must to keep Daraz agile in the competitive market. Being able to predict surge
in demands and make relevant changes in supply chain is vital for Daraz to meet customer
demands. Instead of just having and storing a bunch of data, Daraz should have a system in place
to analyze and properly disseminate data throughout the organization for the best result.

In the 21st century, focusing and capitalizing on data is important. But mismanagement of data
can also be a huge letdown for Daraz. Daraz should be vigilant regarding instances where customer
data leaks and breaches company code. This is also a challenge for Daraz, how they ensure proper
management of data.

SUMMARY OF FINDINGS

As the E-commerce trend is growing and will keep on growing indefinitely, Daraz is sure to face
challenges as they go global with Alibaba. These challenges can be cultural, financial and even
technical. Knowing how to deal with such problems are vital to Daraz’s future success.

3. CONCLUSION

Daraz has quickly become the leading e-commerce platform in Bangladesh since its inception in
2015. The company employs around 3500 employees making performance management of
employees a crucial factor behind company success. While Daraz has performed well, it still
maintains some traditional approaches of performance management which they need to reevaluate.
Strategically integrated PM techniques are critical for increasing employee engagement and
boosting organizational performance. Aligning employee goals and organizational goals, adopting
continuous appraisal methods, modern training and development practices, etc. are all necessary
for Daraz to turn their human capital into a competitive edge and use it for future growth.

The future of ever-growing E-commerce industry looks bright. There are also many challenges
that will come along the way of growth. The question remains that to what extent Daraz is ready
to face these challenges and materialize the changes required to keep up with the latest
performance management practices.

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4. RECOMMENDATION

From research it’s observed that Daraz currently has a small HR department which is making
management of growing workforce difficult. Careful planning and execution are needed along
with more investment in the HR department to efficiently manage employees. Another problem
faced by Daraz is using a plethora of latest software to manage their operations, which is making
it difficult for employees to keep up with. Firstly, Daraz should focus on training their employees
on using the software and keep them up to date to facilitate efficient use of these software. In the
longer run, the company might find it easier to use a single integrated software and database
management system to handle all their operational activities.
While it is important for them to keep up
with the latest global practices of performance management, companies in Bangladesh still lags
Daraz should also adopt abehind in adoptingperformance
continuous them. It is likelyappraisal
that there will be resistance
method ratherfrom management
than and employees
appraisals
as they have been so accustomed with the traditional approaches. Thus, it may lead to inefficiency
in the check-ins
occurring twice a year. Frequent short run. and feedback from managers should also be encouraged

under this system to promote development of employees. This will also help to reduce the current
employee perception of rating bias and belief that evaluation is more closely tied to rewards rather
than their development and growth.

5. IMPLEMENTATION OF RECOMMENDATIONS

Daraz still has a long way to go before they can successfully implement the recommendations
provided to improve their organizational performance. While it is important for them to keep up
with the latest global practices of performance management, companies in Bangladesh still lags
behind in adopting them. It is likely that there will be resistance from management and employees
as they have been so accustomed with the traditional approaches. Thus, it may lead to inefficiency
in the short run. Another risk, associated with adopting an integrated software is the huge cost of
investment behind it. The company must maintain a highly trained IT team if it wants to maintain
a software of such scale. It also begets the question if it is sustainable to invest in such either. New
performance management approaches should be driven by business needs. Thus, it is important to
understand the business needs as well which revolve around the new possible practices as
mentioned in the recommendations.

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REFERENCE:

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