An Internship Report

On

“Evaluation of the Employee’s Performance Appraisal Process of Rajshahi

Krishi Unnayan Bank: A Study of ‘Khorkhori’ Branch, Rajshahi”

Supervised by:

Prof. Dr. Zeennat Ara Begum

Institute of Business Administration (IBA),
University of Rajshahi

Prepared by:
Md. Azizul Haque
ID: 1913285112
BBA 4th Batch
Major: Marketing
Session: 2018-19
Institute of Business Administration (IBA),
University of Rajshahi

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 Date of Submission: May 28, 2024
Letter of Transmittal
Date: 02.05.2024
To
Dr. Zeennat Ara Begum
Professor
Institute of Business Administration
University of Rajshahi
Subject: Submission of Internship Report on Evaluation of the
Employee’s Performance Appraisal Process of Rajshahi Krishi Unnayan
Bank.
Madam,
With due respect, I hereby submitting my internship report on “Evaluation of
the Employee’s Performance Appraisal Process of Rajshahi Krishi Unnayan
Bank (RAKUB)”. It is a requirement of the BBA Program which is a very great
opportunity for me.
To prepare this report, I have surveyed the employees of RAKUB and
analysed the collected data to evaluate the effectiveness of performance
appraisal process of RAKUB. I have tried to cover all important aspects of
Performance Appraisal with the most relevant information while doing my
internship at RAKUB.
I’m submitting this report to you for the evaluation of my internship report. I
would like to thank you for your guidance and support throughout the whole
internship program.
Sincerely Yours
Md. Azizul Haque
ID No: 1913285112
BBA 3rd Batch, IBA,
University of Rajshahi

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 LETTER of ACCEPTANCE

This is to certify that Md. Azizul Haque, a student of BBA 4th Batch, Institute
of Business Administration, University of Rajshahi, ID No: 1913285112, Major
in Marketing, has prepared the report on “Evaluation of the Employee’s
Performance Appraisal Process of Rajshahi Krishi Unnayan Bank: A
Study on Khorkhori Branch, Rajshahi” under my supervision.

I wish him every success in life.

Prof. Dr. Zeennat Ara Begum

Institute of Business Administration (IBA),

University of Rajshahi.

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 List of Acronyms

RAKUB…………………. Rajshahi Krishi Unnayan Bank

BKB………………………Bangladesh Krishi Bank

ADFC…………………… Agriculture Development Finance Corporation

NCDP…………………… North-West Corporation Diversification Project

NGO……………………. Non-Government Organization

SECP…………………… Small Enterprise Credit Program

PO………………………. Payment Order

STD……………………. Short Term Deposit

FD………………………. Fixed Deposit

RPS……………………. RAKUB Pension Scheme

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 Acknowledgement
For all the students of BBA program of Institute of Business Administration,
University of Rajshahi, internship program is very essential and mandatory to
achieve the degree. However, to complete the internship program
successfully, all students need help and guidelines from number of
experienced persons and sources.

In this regard, first of all, I would like to thank my Almighty for giving me the
strength to complete this Internship Report in time from a very reputed bank
Rajshahi Krishi Unnayan Bank of Bangladesh.

Then I would like to express my gratitude to my respectable supervisor Prof.

Dr. Zeennat Ara Begum, Institute of Business Administration (IBA),
University of Rajshahi for his cooperation, supervision and proper guidance to
complete this report.

However, I would like to thank Sarker Naimun Nahar (Manager, Paba

Branch, Rajshahi), all the officers, staffs and workers of Rajshahi Krishi
Unnayan Bank, Khorkhori Branch, Rajshahi.

Lastly, I would like to give special thanks to all of my classmates and friends
for their inspiration, valuable suggestion and cooperation.

Md. Azizul Haque

ID No: 1913285112

BBA 4th Batch

Institute of Business Administration

University of Rajshahi

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 Executive Summary

Performance Appraisal is a vital tool of HRM and for an organization there is

no other effective tool for measuring employees than performance appraisal.
It helps to give an overview of the employee’s performance and it also
provides results on the regular job performance of the employees. Through
providing regular feedback managers and employees understand how well
they are doing on the job. An effective performance appraisal finds the gap
and measures which training and developmental program the employee
needs. Moreover, it also helps with consistent promotions and salary
increases which motivates the employees. In this internship report, it has
been evaluated the effectiveness of performance appraisal of RAKUB
(Khorkhori Branch) based on the period of 3 months starting from 10
January,2024 to 10 April,2024. This internship report mainly focuses on the
evaluation of the effectiveness of performance appraisal of RAKUB. Firstly, an
overview of RAKUB has been discussed along with its products and services.
Then, after the Introduction to the Report, Objective, Methodology and then
the main part comes forward, the Data Analysis part. For the evaluation I have
collected data through Questionnaire. And then analysed data through using
Pie charts, Bar charts to show the Percentages. Employee’s satisfaction with
effective Performance Appraisal includes; Frequency of Feedback, Training
and Development based measurement, Fairness about the appraisal,
Rewards and Motivations etc. are the main features standby. Overall, the
evaluation given a positive result about the effectiveness of Performance
Appraisal. Finally, some Findings and Recommendations have been provided
which will help the organization to make their performance appraisal more
effective. The evaluation has given a positive result on the evaluation of
performance appraisal of RAKUB (Khorkhori branch) which means it is
effective.

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 Table Of Contents

Letter of Transmittal........................................................................................................................
LETTER of ACCEPTANCE.............................................................................3
List of Acronyms............................................................................................4
Executive Summary.......................................................................................6
List of Tables..................................................................................................1
List of Figure...................................................................................................2
1.2 Objectives of The Study..........................................................................................................
1.3 Methodology of the study........................................................................................................
1.4 Scope of The Study......................................................................................................................
1.5 Limitations of The Study..............................................................................................................
CHAPTER TWO...............................................................................................7
AN OVERVIEW OF RAJSHAHI KRISHI UNNAYAN BANK...........................7
2.1 About RAKUB...............................................................................................................................
2.2 Historical Background of RAKUB..................................................................................................
2.5 Objectives of RAKUB.............................................................................................................
2.6 Organizational Chart..................................................................................................................
2.7 Regulatory Body........................................................................................................................
2.8 Branches....................................................................................................................................
2.9 RAKUB at a Glance.....................................................................................................................
CHAPTER THREE.........................................................................................18
THEORETICAL BACKGROUND OF THIS STUDY......................................18
3.1 Concept of performance appraisal:...........................................................................................
3.2 Performance Appraisal process:................................................................................................
Step 1: Employee evaluation...................................................................................................
Step 2: Performance quality evaluation.................................................................................
Step 3: Actionable insight........................................................................................................
3.3 Objectives of Performance Appraisal..............................................................................

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 3.4 Advantages of Performance Appraisal............................................................................
3.5 Methods of Performance appraisal:.....................................................................................
 360 degree appraisal: 360-degree feedback, an employee is evaluated by
his/her supervisor/manager, peers, colleagues, subordinates, and even
management. Inputs from different sources are considered before talking to the
employee face-to-face. In this process, each employee’s performance is rated
according to the job done based on the job descriptions assigned to them.....................
3.6 Factors to consider for performance appraisal:..................................................................
1. Punctuality.............................................................................................................................
2. Accountability........................................................................................................................
3. Quality of work......................................................................................................................
4. Quantity of work....................................................................................................................
5. Time management................................................................................................................
6. Teamwork..............................................................................................................................
7. Reliability...............................................................................................................................
8. Communication abilities.......................................................................................................
9. Leadership capabilities........................................................................................................
10. Skills and job expertise......................................................................................................
CHAPTER FOUR...........................................................................................27
DATA ANALYSIS..........................................................................................27
CHAPTER FIVE.............................................................................................47
KEY FINDINGS, RECOMMENDATIONS AND..............................................47
CONCLUSION OF THE STUDY....................................................................47
5.2 Recommendations of the Study...........................................................................................
Bibliography................................................................................................. 52

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 List of Tables

SL Contents Page No

Table 4.1: Your manager evaluate your performance................Error! Bookmark not defined.
Table 4.2: Opinion Regarding Performance evaluation by manager........Error! Bookmark not
defined.
Table 4.3: Opinion Regarding required feedback on employee performance Error! Bookmark
not defined.
Table 4.4: Opinion Regarding whether the results and feedback are biasfree and fair……..…
Error! Bookmark not defined.

Table 4.5: Opinion Regarding discussion opportunity about PA with

supervisor………………….Error! Bookmark not defined.

Table 4.6: Opinion Regarding opportunity to deliver employee’s opinion to the management
about PA.....................................................................................Error! Bookmark not defined.
Table 4.7: Opinion Regarding opportunity for development if their performance is lower
....................................................................................................Error! Bookmark not defined.
Table 4.8: Opinion Regarding the Effectiveness of Training and Development Program. Error!
Bookmark not defined.
Table 4.9: Employee Opinion......................................................Error! Bookmark not defined.
Table 4.10: Opinion Regarding ...................................................Error! Bookmark not defined.
Table 4.11 Opinion Regarding ....................................................Error! Bookmark not defined.

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 List of Figure

SL Contents Page No

Figure 4.1: Improtance of Performance Appraisal......................Error! Bookmark not defined.

Figure 4.2: Opinion Regarding Performance evaluation by manager.......Error! Bookmark not
defined.
Figure 4.3: Opinion Regarding required feedback on employee performanceError! Bookmark
not defined.
Figure 4.4: Opinion Regarding whether the results and feedback are biasfree and fair…….…
Error! Bookmark not defined.

Figure 4.5: Opinion Regarding discussion opportunity about PA with

supervisor………………….Error! Bookmark not defined.

Figure 4.6: Opinion Regarding opportunity to deliver employee’s opinion to the management
about PA.....................................................................................Error! Bookmark not defined.
Figure 4.7: Opinion Regarding opportunity for development if their performance is lower
....................................................................................................Error! Bookmark not defined.
Figure 4.8: Opinion Regarding the Effectiveness of Training and Development Program Error!
Bookmark not defined.
Figure 4.9: Employee Opinion....................................................Error! Bookmark not defined.
Figure 4.10: Opinion Regarding .................................................Error! Bookmark not defined.
Figure 4.11 Opinion Regarding ..................................................Error! Bookmark not defined.

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 CHAPTER ONE

Introduction

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1.1 Introduction
The evolution of Bangladesh made through the “Great Liberation War” on 16
December in 1972. After independence of Bangladesh “Pakistan Krishi
Unnayan Bank” was renamed as “Bangladesh Krishi Unnayan Bank”. Control
of flood, rice of new quality and introduction of other high yielding crops and
the increasing demand of its, institutional loan demand of farmer increased.
Since Bangladesh is an Agro-based country; the demand for the loan of
Bangladesh Krishi Bank has been increased remarkably. It becomes very
difficult for a Dhaka based head office of Krishi Bank to manage Agro-loan in
the remote areas of the country. For this reason, government felt to
decentralize the Krishi Bank in North Bengle and Rajshahi division was first
choice and since then Bangladesh krishi bank started its program in the name
of Rajshahi Krishi Unnayan Bank (RAKUB) in Rajshahi division. RAKUB was
established by the president’s ordinance No. 58 of 1986 (later replaced by
‘Rajshahi Krishi Unnayan Bank Act, 2014’). The Northern areas of
Bangladesh were not developed in comparison with other areas of
Bangladesh; it is one of the main reasons of establishing RAKUB. Institutional
agriculture credit plays a crucial role in the modernization of agriculture.
Adequate flow of credit can remove the financial constraints of the farmers
and provide the incentive to adopt new technologies that would otherwise be
more slowly accepted. Credit facilities also help the process of
commercialization of subsistence agriculture. RAKUB realized this situation
and performed their job tremendously. Development of Agro-based industries,
self-employment, solving unemployment problems, providing money for
expansion of socio-economic activities and provide consultancy are the main
objective of establishing RAKUB. Now RAKUB not only continuing its program
in Rajshahi but also continuing its program in Rangpur city. This bank is
helping the farmers of these district very effectively. For this reason, I have
decided to evaluate the Employee’s performance appraisal of RAKUB which
will be conducted through a survey and practical knowledge gathered from
‘Khorkhori’ Branch of RAKUB in Rajshahi District.

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1.2 Objectives of The Study

The objective of this study is to evaluate the employee’s performance

appraisal process of Rajshahi Krishi Unnayan Bank.

1.3 Methodology of the study

Methodology is an essential part for any research study and it is the study of
research methods which is designed to achieve the objectives of the study. It
consists the sampling procedure, data collection and data analysis
procedures of the research study. For this report both primary and secondary
data have been used.

Sources of Data

There are mainly two sources of data for any study, one is primary source of
data and another is secondary source of data and for this report I have
collected data from both primary and secondary sources. The data of the
study mainly deals with qualitative in nature but for measuring the employee
performance appraisal that has been used to quantify the qualitative data. I
have used Five Points Likert Scale with chart and graph to quantify the
employee’s performance appraisal process of RAKUB.

Primary Sources of Data

The primary data for this report was collected from the manager, officers,
other employees and staffs of Rajshahi Krishi Unnayan Bank. For preparing
this report I have collected the primary data and information in following way:

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Questionnaire Method

While preparing this report, I used questionnaire method for collecting data.
After preparing the questionnaire, I collected the data and information from
the Manager, officers, other employees and staffs of the bank.

Secondary Sources of Data

The main source of secondary data for this report was the official records and
procedures of the bank. There are few other sources of secondary data and
those are mentioned below.

Internet and Official Website Of RAKUB:

This is an important secondary source of data which was used to collect

related information to prepare this report.

Printed Materials:

Another essential source of data which was followed to conduct this report
was the printed materials that includes the RAKUB’S Annual reports, related
books, Bangladesh Bank Publications and related case study on RAKUB.

Data Presentation

I have used graphs, tables and diagrams to analyse the data.

Population

Population means the people who are able to give information about the
study. For preparing this report the manager, officers and employees of the
bank was the population and the population size was 22 for this report.

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Sample Size

A sample is a subgroup of the population. To conduct this report the sample

size was 10 from the whole population of 22.

Sampling Technique

For this report, I have chosen to take interview and ask the ready-made
questions of the manager, officer and others employee under the convenience
methods of sampling. Under this method I have taken 10 as a sample size in
convenience way from the total population.

Convenience Sampling

Convenience sampling (also known as grab sampling, accidental sampling, or

opportunity sampling) is a type of non-probability sampling that involves
obtaining a sample of elements based on the convenience of the researcher.
It allows the researcher to obtain basic data and trends regarding his study
without the complications of using a randomized sample.

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1.4 Scope of The Study

Rajshahi Krishi Unnayan Bank is a state-owned bank in Bangladesh which is

a specialized financial institution for financing the farmers of the 16 districts
of Rajshahi and Rangpur. This bank has a great impact on the farmers of
these regions and on the overall economy of the country. As I did my
internship in the Rajshahi Krishi Unnayan Bank, so I got the opportunity to
learn the different activities of this bank. In my report, I gave emphasis on
different general banking activities of RAKUB. On the other hand, I have also
discussed the background of the sector, market structure with risk
management factors and few other things. Before analysing the gathered
data, a brief overview of RAKUB is given to understand its operations and
activities. According to the study the scope would have been the overall
banking task including a specific emphasis on performance appraisal on
employees of RAKUB. For gathering information about the performance
appraisal on employees, I conducted questionnaire survey on the Manager,
officers, employees other of this organization especially the Khorkhori
branch, Rajshahi. I have tried to analyse and evaluate the performance
appraisal on the adequate information contained in documents and gathered
through the questionnaire survey method from the employees, manager and
other officers of RAKUB. It has to make clear at this point that the data on
which the study was based were limited to measure up the performance
appraisal related problems, employee and other staff’s reaction and overall
management technique of performance appraisal on employees of the bank.

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1.5 Limitations of The Study

Although the present study has supplied useful and productive information
about Employee’s Performance Appraisal Process of Rajshahi Krishi
Unnayan Bank (RAKUB), but it is not free from limitations. The study has
several limitations that must be acknowledged. The study has following
limitations-

 First of all, I would like to mention that it was a little hard to get all the
information needed because of the confidentiality of the organization.

 Another limitation was the short duration of the internship program in the
organization as it takes time to understand the workspace much more deeply.

 I have been able to take survey of 10 employees because of the busy

schedule and many of the employees were not willing to participate in this
survey but others.

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 CHAPTER TWO

AN OVERVIEW OF RAJSHAHI KRISHI

UNNAYAN BANK

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2.1 About RAKUB

Rajshahi Krishi Unnayan bank is a specialized bank and the largest sources
of agricultural credit in Rajshahi division. It was established by the president’s
order no. 58 of 1986.The main function of the bank was started on 15 th March
in 1987.At that time RAKUB took over the whole operations of Bangladesh
Krishi bank (BKB) within the administrative division of Rajshahi along with its
assets and liabilities. The north-west region of our country is the driest and
poorest area with a high population density and low rate of urbanization
(13%).The north west-region consists of 16 districts of entire Rajshahi &
Rangpur administrative division with an area of 34513 sq. km. The
populations of this area are to be suffered poverty from various degrees of
deprivation. To overcome those problems and improve the condition of the
poor, RAKUB supply agricultural credits, the bank extends its credit facilities
for employment issues and income generating Agro-based industrial and
commercial activities. RAKUB is playing a vital role both in agricultural and
industrial developments as well as eradication of poverty.

2.2Historical Background of RAKUB

i)Past History

Most of the people of Bangladesh are related with agriculture from the very
beginning. The farmers of our country were oppressed in various ways at the
time of British rule. We know that many farmers lost their properties because
they could not repay their debt. At that time, they took credit from the local
lenders and other landlords to produce crops and other purposes. On the
other hand, they took Dadan from the moneylender, but when they would
repay the money with interest, they would become landless day by day. Since
the small farmers become the marginal farmers, at first the Indian British
Govt. took a step to disburse the agriculture loan to the farmers of the Bengal
since1902, which continued from 1905.For the socio-economic development

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of the small and marginal farmers of Bengal, the Indian British Govt. took a
step for the second times to disburse agriculture credit in 1932, which
continued till 1935.Some rules and regulation of British and financing
condition of local landlord, moneylenders etc like “Dadan” business, farmers
become hopeless and helpless. Seeing the bad and helpless condition of the
Farmers, the bold voice of Sher-E-Bangla A.K. Fazlul Haque stood beside the
farmers and he tried to establish the “Rin Shalishi Board” for the greater
interest of the farmers, as a result many farmers who were engaged with the
oppression of the moneylenders and landlords, breathed with peace. That’s
why, the people at that time recollected Sher-E-Bangla as ‘Haque Shaheb’.

ii) Pakistan period:

In 1947, the Indian was separated from the British rule and in Indian sub-
continent two independent countries were originated namely India and
Pakistan. Our Bangladesh was indicated as East Pakistan’s a part of
Pakistan. After that time the Pakistan Govt. recognized a financial institution
by the name of Agricultural Development Finance Corporation (ADFC) to
disburse loan is agricultural sectors is 1952. In 1957 then the Pakistan Govt.
established another financial institution namely “Pakistan Krishi Bank” feeling
the Agro-production and the importance of Agro-loan. This institution started
its function from 1958.

iii) Bangladesh period:

Bangladesh freed through the “Great liberation war is 16 December 1971.

After liberation period the “Pakistan Krishi Unnayan Bank‟ was renamed as
“Bangladesh Krishi Unnayan Bank”. After this, the classification of this bank
was made as the “Bangladesh Krishi Bank” with the ordinance number 27 of
the president 1973.Various organizations are working independently after
achieving freedom. As a result, the consciousness of people is increasing
than before liberation period. The creation of Water Development Board,
Bangladesh Rice Research Institute, Rural Electrification Board and other
necessary institutions are made. Control of flood, rice of new quality and
introduction of other crops and the increment of its demand, the increment of
demand of people towards the institutional credit a specially SACP or as

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result of circulating a special credit program amounting to Tk. 1 correct have
influenced many farmers to be bank oriented.

It becomes very difficult for some limited bank to meet up the multiple demand
of loan specially Crop-loan. Since Bangladesh is an Agro-based country, the
demand for the loan of Krishi Bank has increased significantly. It becomes
very difficult for a Dhaka based head office of Krishi Bank to manage Agro-
loan in the remote areas of the country. Upholding this reason, the Govt. then
felt to decentralize the Krishi Bank in the divisional areas. The people of the
North-west areas of Bangladesh are lagging behind in all aspects than other
parts of the country. For this reason, Rajshahi Krishi Unnayan Bank was
established in 1986, with the ordinance number 58 of the president. RAKUB
started its functioning from 15 March, 1987.

2.3 Vision & Mission of RAKUB

Vision

Developing efficient, inclusive, powerful financial and service-oriented system.

Mission

Strengthen the financial investment system and developing the quality of

services through strengthening institutional structure.

2.4 Products and Services of RAKUB

Credit Programs

 Small & medium enterprises (SME)

 BB refinance scheme 10tk account holder (short term)
 Revolving crops credit (RCC)
 Farmer’s credit limit (FCL)
 Special motivational Refinancing Scheme for agricultural sector
 Agricultural loan at 4% concession rate

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  Special credit program for Cottage, Micro, Small and Medium
Enterprise (CMSME) sector
 Agriculture loans medium term (general)
 Agriculture loans medium term (green banking)
 BB refinance scheme 10tk account holder (medium term)
 Agricultural loans (medium term) for freedom fighter.

Demand Deposit

 School banking account

 RAKUB daily profit account (RDP)
 Savings account

Time Deposit

 RAKUB double money scheme (RDMS)

 RAKUB monthly profit scheme (RMPS)

Scheme Deposit

 RAKUB Bangabandhu special monthly savings scheme (RBSMS)

 RAKUB deposit scheme

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2.5 Objectives of RAKUB

The main objectives of RAKUB are to be given loan to the basic sector/sub
sector and supplementary sector of the agriculture such as crops production,
animal husbandry, poultry, farming, fishery, livestock dairy, horticulture,
forestry, purchasing machinery for irrigation and agriculture goods and inputs
trade, storage of agriculture goods, establishment of processing and
marketing-oriented industry and Agro based industry. Some objectives of
RAKUB are as follows:

1. To provide credit facilities for agricultural development of poor farmers in

Rajshahi division.

2. To develop the Agro-based industries.

3. To alleviate poverty.

4. To modernize the agriculture.

5. To develop the social state of the villagers.

6. To inspire the farmers for taking loans as micro credit.

7. To increase self-dependence of land less marginal and small farmer.

8. To develop socio-economic condition of the farmers of the North-West

region of the country.

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9. To play a vital role to increase agricultural production, create income
generating activities.

Functions

As the largest development partner in the northwest region RAKUB aims at

overall development of farmers and all the sectors and sub-sectors of
agriculture in this region. The bank also performs functions like financing agri-
business and Agro-based industries and poverty alleviation programs.

1. Foreign aided credit projects

North-west Crop Diversification Project (NCDP)

The ADB financed project finances for high-value crop production. Four NGOs
namely BRAC, Proshika, RDRS and GSK draws loan from RAKUB and
relends among farmers.

2. Small Enterprise Credit Program (SECP)

The project is jointly funded by the Royal Norwegian government and RAKUB.
It aims at promotion of entrepreneurship in Agro-based small enterprises and
non-farm activities. The main objective of the project is to create employment
through development of small enterprises. It gives priority to financing the
women entrepreneurs. Maximum credit limit for a single enterprise is Taka
0.50 million. The project provides training to the entrepreneurs. A process is
undergoing for converting the project into a subsidiary company of RAKUB.

3.Capital

Authorized capital of the bank as determined by the government amounts to

Tk. 10000 million and paid-up capital Tk. 8250 million

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Establishment

Rajshahi Krishi Unnayan Bank (RAKUB) was established by the President's

Ordinance No. 58 of 1986 (later replaced by 'Rajshahi Krishi Unnayan Bank
Act, 2014'). It took over the operations of 253 branches of Bangladesh Krishi
Bank of the Rajshahi administrative division (presently Rajshahi and Rangpur
divisions) and then started functioning on March 15, 1987. There are 383
branches of the bank including LPO and Dhaka branch among which 194 are
in Rajshahi and 187 in Rangpur division. Number of rural branches are 333
while urban 50. RAKUB is the only specialized nationalized bank having its
head office outside Dhaka, i.e., at Rajshahi.

Management

The Board is vested with the responsibility of formulation of policy in line with
attainment of growth in agriculture and economic development of the region
through agricultural credit support. The Board of Directors is constituted by
seven members, all appointed by the government. Besides, for emergency
decisions there is an executive committee constituted of the Chairman of the
Board and two other members: the Managing Director and one of the
Directors elected by the Board. The Managing Director is the chief executive
of the bank.

2.6 Organizational Chart

The head office is stationed at divisional headquarters city of Rajshahi. The

branches network of the bank comprises 383 branches including one in
Dhaka city. Eighteen zonal offices stationed in district headquarters control
branches under them. The General Manager's office at Rangpur oversees
activities of 9 zones of greater Rangpur, Dinajpur districts. There are 18
independent regional audit offices for conducting regular audit in branches
and zonal offices. The training institute of the bank is situated at Rajshahi.
There are 4,102 employees (as on 30.01.2024) of the bank of which 2,579 are
officers and 1,523 other staffs.

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2.7 Regulatory Body

The board is vested with the responsibility of formulation of policy in line with
attainment of growth in agriculture and economic development of the region
through agricultural credit support. The board of directors is constituted by
seven members, all appointed by the government. Besides, for emergency
decisions there is an executive committee constituted of the chairman of the
board and two other members: the managing director and one of the directors
elected by the board. The managing director is the chief executive of the
bank.

Chairman Mr. Md. Raisul Alam Mondal

Managing Director Mr. Md. Abdul Mannan

Director Mr. GSM Jafarullah

Director Mr. Md. Abdul Wahhab Bhuiyan

Director Mr. Md. Tofazuddin Ahamed

Director Mr. Md. Waliur Rahman Akand

Director Md. Obaydur Rahman Pramanik

Secretary Mr. Md. Sana Ullah

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2.8 Branches
Region wise branches of RAKUB are given below.

Table: Region wise total branches (Up to 31 May, 2024)

SL. No. Zone/Region No. of Branches

01. Rajshahi 26

02. Naogaon 30

03. Natore 22

04. Chapai Nawabganj 18

05. Bogra (North) 18

06. Bogra (South) 18

07. Pabna 27

08. Jaipurhat 15

09. Rangpur 27

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 10. Gaibandha 25

11. Nilphamari 22

12. Kurigram 20

13. Lalmonirhat 17

14. Dinajpur (North) 17

15. Dinajpur (South) 20

17. Thakurgoan 20

18. Panchagarh 19

19 Sirajganj 22

Total 383

Source: www.rakub.org.bd

2.9 RAKUB at a Glance

Establishment : 15 March 1987

Authorized Capital : Tk. 1000 Crore

Paid up Capital : Tk. 825 Crore

Total No. of Branches : 383

Region : Rajshahi & Rangpur Divisions

Area : 34,513 Square KM

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 District : 16

Upazila (administrative tier in : 125

between district & union)

Municipality : 87

Union (lowest administrative tier) : 1100

Total Population : 3.40 Crore+

Source: www.rakub.org.bd

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 CHAPTER THREE

THEORETICAL BACKGROUND OF THIS STUDY

3.1 Concept of performance appraisal:

Performance Appraisal is the systematic evaluation of the performance of

employees and to understand the abilities of a person for further growth and
development. Performance appraisal is generally done in systematic ways
which are as follows:

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 1. The supervisors measure the pay of employees and compare it with
targets and plans.
2. The supervisor analyses the factors behind work performances of
employees.
3. The employers are in position to guide the employees for a better
performance.

According to DeNisi and Murphy (2017), – “Performance appraisal is a

formal and systematic process by means of which the relevant strengths
and weaknesses of the employees are identified, measured, recorded and
developed.”

In the words of Daniel (2019), “Performance appraisal is the systematic,

periodic and an impartial rating of an employee’s excellence in matters
pertaining to his present job and his potential for a better job.”

According to Islami et al., (2018), performance appraisal is a, “process of

evaluating the performance and qualifications of the employees in terms of
the requirements of job for which he is employed, for the purposes of
administration including placement, selection for promotion, providing
financial rewards and other actions which require differential treatment
among the members of a group as distinguished from actions affecting all
members equally.”

3.2 Performance Appraisal process:

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The performance appraisal process is a key part of how an organization
manages the performance and growth of its employees. It entails assessing
an employee’s job performance and providing feedback on their strengths and
weaknesses in order to improve performance and achieve organizational
goals. Here, we will learn the key steps of the performance appraisal process:

Step 1: Employee evaluation

In most organizations, the employee performance appraisal process means

evaluating an employee every 6 months or one year for the period an
employee has continually worked with the organization. In modern times, the
Human Resources department sends out an employee survey for them to fill
out to collect data related to their engagement and satisfaction levels.

Step 2: Performance quality evaluation

The employee’s immediate manager or supervisor will then evaluate the

quality of the employee’s performance based on the work done in the
previous year and then meet face-to-face to discuss the facts and figures.

Step 3: Actionable insight

The feedback received from the survey can be kept anonymous. This
feedback can be analyzed in real-time by using Question
Pro’s Workforce platform, that measures, analyzes and activates data to get
actionable insights.

For probationary employees, the probation period usually lasts between three
to six months. Their evaluation is based on whether they have come at pace
with the work and culture of the organization and if they are ready to take up
more responsibilities.

3.3 Objectives of Performance Appraisal

Performance Appraisal can be done with following objectives in mind:

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 1. To maintain records in order to determine compensation packages, wage
structure, salaries raise, etc.
2. To identify the strengths and weaknesses of employees to place right
men on right job.
3. To maintain and assess the potential in a person for growth and
development.
4. To provide feedback to employees regarding their performance and
related status.
5. It serves as a basis for influencing working habits of the employees.
6. To review and retain the promotional and other training programmes.

3.4 Advantages of Performance Appraisal

It is said that performance appraisal is an investment for the company which

can be justified by following advantages:

1. Promotion: Performance Appraisal helps the supervisors to chalk out the

promotion programmes for efficient employees. In this regards, inefficient
workers can be dismissed or demoted in case.
2. Compensation: Performance Appraisal helps in chalking out
compensation packages for employees. Merit rating is possible through
performance appraisal. Performance Appraisal tries to give worth to a
performance.

Compensation packages which include bonus, high salary rates, extra

benefits, allowances and pre-requisites are dependent on performance
appraisal. The criteria should be merit rather than seniority.

3. Employees Development: The systematic procedure of performance

appraisal helps the supervisors to frame training policies and
programmes.

It helps to analyses strengths and weaknesses of employees so that new

jobs can be designed for efficient employees. It also helps in framing
future development programs.

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 4. Selection Validation: Performance Appraisal helps the supervisors to
understand the validity and importance of the selection procedure. The
supervisors come to know the validity and thereby the strengths and
weaknesses of selection procedure. Future changes in selection methods
can be made in this regard.
5. Communication: For an organization, effective communication between
employees and employers is very important. Through performance
appraisal, communication can be sought for in the following ways:

a. Through performance appraisal, the employers can understand and

accept skills of subordinates.
b. The subordinates can also understand and create a trust and
confidence in superiors.
c. It also helps in maintaining cordial and congenial labour management
relationship.
d. It develops the spirit of work and boosts the morale of employees.

All the above factors ensure effective communication.

6. Motivation: Performance appraisal serves as a motivation tool.

Through evaluating performance of employees, a person’s efficiency can

be determined if the targets are achieved. This very well motivates a
person for better job and helps him to improve his performance in the
future.

3.5 Methods of Performance appraisal:

There are different methods for evaluating performance appraisal of

employees. One single method is not used by all organizations. Because
every method has some advantages and disadvantages. So, a particular
method that is suitable for one organization may not be suitable for another
organization.

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The methods of evaluating performance have been classified into two
categories. One is traditional method and another one is modern method.
However, this categorization has been done by Strauss and Sayles.

Traditional Methods are given below:

 Ranking: It is one of the simplest methods. Ranking means ranking

the employees from best performer to worst performer base on the
performance and result. After getting the results of rating the managers
rank their employees from the best to worst performer.
 Paired Comparison: This method involves comparing employees
against each other, meaning one-on-one. This method traditionally
selects a particular trait on which to focus. The process is quite simple.
The designated 'rater' selects slips with two names on them, then
proceeds to mark the one they believe is the better one. The number of
times the employee's name gets marked for specific traits decides how
high up on the list they will be.
 Essay Evaluation: This is also known as the “free-form method.” As
the name suggests, it is a descriptive method that elaborates on
performance criteria. A major drawback of this method is to keep
biases away.

 Critical Incident Technique: Under this method, the manager

prepares lists of statements of very effective and ineffective behavior of
an employee. These critical incidents or events represent the
outstanding or poor behavior of employees or the job.
The manager maintains logs of each employee, whereby he
periodically records critical incidents of the workers behavior. At the
end of the rating period, these recorded critical incidents are used in
the evaluation of the worker’s performance.

 Graphic Rating Scale: This is one of the most commonly used

methods by managers and supervisors. Numeric or text values

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 corresponding to values from excellent to poor can be used on this
scale. Members of the same team who have similar job descriptions
can be parallelly evaluated using this method. This scale should ideally
be the same for each employee’s performance.

 Checklist: In this system, a large number of statements that describe a

specific job are given. Each statement has a weight or scale value
attached to it. While rating an employee the supervisor checks all those
statements that most closely describe the behavior of the individual
under assessment. The rating sheet is then scored by averaging the
weights of all the statements checked by the rater.

A checklist is constructed for each job by having persons who are quite
familiar with the jobs. These statements are then categorized by the
judges and weights are assigned to the statements in accordance with
the value attached by the judges.

Modern Methods are given below:

 Management by Objectives (MBO): This process involves the

employee and manager working as a team to identify goals for the
former to work on. Once the goals are established, both parties discuss
the progress the employee is making to meet those goals. This process
concludes with the manager evaluating whether the employee
achieved the goal.
 Behaviourally Anchored Rating Scale (BARS): This appraisal
measures the employee’s performance by comparing it with specific
established behaviour examples. Each example has a rating to help
collect the data.

 360 degree appraisal: 360-degree feedback, is a method in which an

employee is evaluated by his/her supervisor/manager, peers,
colleagues, subordinates, and even management. Inputs from different
sources are considered before talking to the employee face-to-face. In

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 this process, each employee’s performance is rated according to the
job done based on the job descriptions assigned to them.

 Cost Accounting Method: This method looks at the monetary value the
employee brings to the company. It also includes the company’s cost to
retain the employee.

3.6 Factors to consider for performance appraisal:

The factors use to evaluate employees can vary depending on the role they
have within the organization, but there are some common factors that apply to
all roles. According to http://www.whatishumanresource.com/, here are
some factors to consider for performance appraisals:

1. Punctuality
Punctuality refers to the degree to which an employee is on-time for work. We
may choose to include attendance in this performance factor.

2. Accountability
Accountability refers to the process by which employees take responsibility for
their actions if an error occurs and understand how their job affects the
productivity of the rest of the office.

3. Quality of work
Quality of work is a factor that allows you to assess the overall quality of the
work they contribute to your organization.

4. Quantity of work
Quantity of work is a way of measuring productivity within the workplace.
Measure the quantity of work by comparing the number of tasks they
complete in a given time frame to the needs of the company.

26 | P a g e
5. Time management
Time-management is the process by which employees meet deadlines and
allot specific amounts of time to certain tasks.

6. Teamwork
Teamwork refers to the degree to which an employee works well with their co-
workers.

7. Reliability
Reliability can encapsulate factors such as punctuality, productivity and work
quality to assess how dependable your employees are.

8. Communication abilities
The degree to which an employee is able to communicate with their
coworkers, superiors or subordinates may be an important performance
appraisal factor. This includes verbal communication, written communication
and interpersonal communication.

9. Leadership capabilities
Especially for those seeking management positions, leadership capabilities
show how well a person can lead a team and model exemplary behavior on
the job.

10. Skills and job expertise

Another potential factor is the amount of industry knowledge and skills that an
employee demonstrates in their daily job duties.

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 CHAPTER FOUR

DATA ANALYSIS

28 | P a g e
Analysis

The corporate world is becoming competitive and to be in a strong position in

this competitive environment, it is necessary for every organization to make
sure that the employees perform to their highest level and maximum profit is
made. So, Performance Appraisal is a must for every organization for the
growth of the employees and also for making maximum profit. I have done a
survey on the employees of Rajshahi Krishi Unnayan Bank (RAKUB) to
understand their perspective towards their Performance Appraisal (PA)
process. There are many purposes of PA process such as motivating the
employees, measuring the weakness & strengths, measuring the training &
development needs etc. Through the survey I have also tried to understand
how much the organization is becoming successful in terms of achieving the
purposes of PA process. I have taken a survey of 10 employees of the
organization. The survey questions include some demographic questions at
the beginning and some are Likert scale questions at the end of the survey.
Now, I am going to show the analysis of the survey through graphs and also
going to interpret all of them.

The below bar chart shows the age distribution of respondents:

45%
40%
40%

35%

30%

25%
20% 20%
20%

15%
10% 10%
10%

5%

0%
25-30 years 30-35 years 35-40 years 40-45 years More than 45 years

29 | P a g e
 Figure: Age distribution

Interpretation: The above bar chart shows 10% employees were of 25-
30years, 20% respondents were of 30-35 years, 40% respondents were 35-
40 years and 20% were of 40-45years of age.

Below chart shows the salary range:

45%
40%
40%

35%
30%
30%

25%
20%
20%

15%
10%
10%

5%
0%
0%
20k-30k 30k-40k 40k-50k 50k-60k More than 60k

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 Figure: Salary range

Interpretation: This chart shows that 40% employee’s salary was from 20k-
30k, then the second highest response is in 30k-40k with a percentage of
30% and third highest response is in 40k-50k with 20%. Only a few
respondents had salary more than 50k and the percentage is 10%.

1.Your manager evaluate your performance

Opinion Number of respondents Percentage

Strongly Agree 5 50%

Agree 3 30%

Neutral 0 0%

Disagree 1 10%

Strongly Disagree 1 10%

Total 10 100%

Table 4.1: Opinion regarding Performance evaluation by manager

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 10%

10%

Strongly Agree
Agree
50% Neutral
Disagree
Strongly Disagree

30%

Figure 4.1: Opinion regarding Performance evaluation by manager

Interpretation: Every manager in every organization should evaluate their

employee’s performance. In this question,50% respondents are strongly
agreed as well as 30% respondents are agreed. That means most of the
respondents are evaluated by their manager. Only 20% respondents in total
are disagreed that they are not evaluated by their manager effectively.

2.You are getting required feedback on your performance to develop yourself

Opinion Number of respondents Percentage

Strongly Agreed 1 10%

Agreed 5 50%

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 Neutral 1 10%

Disagreed 2 20%

Strongly Disagreed 1 10%

Total 10 100%

Table 4.2: Opinion regarding required feedback on employee performance

50%

20%

10% 10% 10%

Strongly Agreed Agreed Neutral Disagreed Strongly Disagreed

Figure 4.2: Opinion regarding required feedback on employee performance

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Interpretation: 10% strongly agreed and 50% agreed that they are getting
required feedback on their performance to develop themselves. Total 30%
employees disagreed with this statement and rest 10% are neutral. When a
supervisor gives feedback, they get to know in which area they need
improvement. The employers of RAKUB gives feedback for individual
employee whenever it is needed through meeting.

3.The results and feedbacks are biasfree and fair

Opinion Number of respondents Percentage

Strongly Agreed 2 20%

Agreed 4 40%

Neutral 3 30%

Disagreed 0 0%

Strongly Disagreed 1 10%

Total 10 100%

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 Table 4.3: Opinion regarding whether the results and feedback are biasfree
and fair

45%
40%
40%

35%
30%
30%

25%
20%
20%

15%
10%
10%

5%
0%
0%
Strongly Agree Agree Neutral Disagree Strongly Disagree

Figure 4.3: Opinion regarding whether the results and feedback are biasfree
and fair

Interpretation: More than half of the respondents think that the PA process of
RAKUB is biasfree and fair. That means PA process has a positive impact on

35 | P a g e
the mind of employees which is very important for an organization. This is
taking place because in terms of promotion, RAKUB evaluates an employee's
performance not only from one supervisor view, but also from several. They
said that 50% marks are on the hand of employees own supervisors and other
50% marks are on the other supervisors. So, there is less scope for biasness.

4.The 360-degree performance appraisal method that RAKUB uses is a

good method

Opinion Number of respondents Percentage

Strongly Agreed 2 20%

Agreed 5 50%

Neutral 2 20%

Disagreed 1 10%

Strongly Disagreed 0 0%

Total 10 100%

Table 4.4: Opinion regarding 360-degree performance appraisal method

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 10%
20%

20%

50%

Strongly agree Agree Neutral Disagree Strongly disagree

Figure 4.4: Opinion regarding 360-degree performance appraisal method

Interpretation: Here,20% respondents strongly agreed and 50% employees

are agreed with this statement. That means they think that the 360-degree
performance appraisal method that uses RAKUB is very good method in
evaluating employee’s performance. And 20% respondents were neutral and
other 10% respondents were simply disagreed with this statement.

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 5.You have the opportunity to discuss about performance appraisal with your
supervisor

Opinion Number of respondents Percentage

Strongly Agreed 1 10%

Agreed 5 50%

Neutral 2 20%

Disagreed 1 10%

Strongly Disagreed 1 10%

Total 10 100%

Table 4.5: Opinion regarding discussion opportunity about Performance

Appraisal (PA) with supervisor.

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 Strongly Agree Agree Neutral Disagree Strongly Disagree

10% 10%

10%

20%

50%

Figure 4.5: Opinion regarding discussion opportunity about PA with

supervisor.

Interpretation: 60% that means majority of the employees indicates that they
have the opportunity to discuss about PA with their supervisor. 20%
employees are neutral and rest 20% are disagreed that they did not have any
opportunity to discuss about PA with their supervisor.

39 | P a g e
6. Performance Appraisal (PA) result greatly impact on the adoption of
new working methods

Opinion Number of respondents Percentage

Strongly Agree 3 30%

Agree 4 40%

Neutral 1 10%

Disagree 2 20%

Strongly Disagree 0 0%

Total 10 100%

Table 4.6: Opinion regarding Adoption of new working methods

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 Disagree
20% Strongly
agree
30%

Neutral
10%

Agree
40%

Strongly agree Agree Neutral Disagree Strongly Disagree

Figure 4.6: Opinion regarding Adoption of new working methods

Interpretation: In simple terms, the results of a performance appraisal have a

significant influence on whether employees are willing to adopt new working
methods. Here, 70% employees in total agreed with this statement. But 20%
employees simply disagreed and other 10% were indifferent. So according to
the opinion of employees, it can be said that PA result significantly enhance
the willingness of employees to adopt new working methods.

41 | P a g e
7.You have the opportunity to deliver your opinion to the management
regarding your appraisal results

Opinion Number of respondents Percentage

Strongly Agreed 2 20%

Agreed 5 50%

Neutral 2 20%

Disagreed 1 10%

Strongly Disagreed 0 0%

Total 10 100%

Table 4.7: Opinion regarding opportunity to deliver employee’s opinion to the

management about Performance Appraisal (PA)

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 Disagree Strongly
10% Agree
20%

Neutral
20%

Agree
50%

Strongly Agree Agree Neutral Disagree Strongly Disagree

Figure 4.7: Opinion regarding opportunity to deliver employee’s opinion to the

management about PA

Interpretation: About 65% respondents agreed that they have the opportunity
to deliver their opinion to the management regarding their performance
appraisal result. This positive result came out because each and every
employee had the rights to express their opinion to the management
regarding their performance appraisal, if they feel like the result is not
acceptable. Then the management of the bank looks into the issue
immediately and gives an explanation to them.

43 | P a g e
8. Performance Appraisal (PA) is helpful for achieving your promotion

Opinion Number of respondents Percentage

Strongly Agree 2 20%

Agree 4 40%

Neutral 2 20%

Disagree 1 10%

Strongly Disagree 1 10%

Total 10 100%

Table 4.8: Opinion regarding helpfulness of PA for achieving promotion

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45%
40%
40%

35%

30%

25%
20% 20%
20%

15%
10% 10%
10%

5%

0%
Strongly Agree Agree Neutral Disagree Strongly Disagree

Figure 4.8: opinion regarding helpfulness of PA for achieving promotion

Interpretation: 20% of the employees strongly agreed and 40% of the

employees agreed that performance appraisal is helpful for achieving their
promotion. And 20% employees were neutral. On the other hand, 10%
employees and rest of 10% employees were simply disagreed and strongly
disagreed with this opinion respectively. So according to their opinion, most of
the employees confessed that PA is helpful for achieving their promotion.

45 | P a g e
9.You are getting enough reward or recognition for higher performance

Opinion Number of respondents Percentage

Strongly Agreed 2 20%

Agreed 5 50%

Neutral 1 10%

Disagreed 2 20%

Strongly Disagreed 0 0%

Total 10 100%

Table 4.9: Opinion regarding reward for higher performance

20% 20%

Strongly Agree
Agree
10% Neutral
Disagree
Strongly Disagree

50%

Figure 4.9: Opinion regarding reward for higher performance

46 | P a g e
Interpretation: 20% strongly agreed and 50% agreed with the statement and
they acknowledged that they are rewarded if they perform well. Only 10% of
employees were neutral with the statement. Because a sufficient amount of
reward and recognition is important to motivate the employees so that they try
to do with their best. But 20% respondents were not agreed with this and said
that in spite of higher performance they did not get enough reward.

10.You are motivated with the rewards (salary, promotion, bonus etc.)
given by the organization to work more efficiently and effectively

Opinion Number of respondents Percentage

Strongly Agreed 0 0%

Agreed 2 20%

Neutral 2 20%

Disagreed 4 40%

Strongly Disagreed 2 20%

Total 10 100%

Table 4.10: Opinion regarding motivation with rewards

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 40%

20% 20% 20%

Strongly
0%Agree Agree Neutral Disagree Strongly
Disagree

Figure 4.10: Opinion regarding motivation with rewards

Interpretation: 40% of the respondents disagreed and 20% strongly

disagreed that the rewards like salary, promotion and bonus given by RAKUB
does not motivate them. This is an alarming issue that might have been
happened because the entry level employees might have a dissatisfaction
with their salary because it does not increase significantly when a general
officer is promoted to senior officer. Moreover, comparing to other
organization their benefits are not good enough to motivate them.

48 | P a g e
11. Performance Appraisal’s result help you to eliminate your weak
areas and improve your performance level

Opinion Number of respondents Percentage

Strongly Agreed 3 30%

Agreed 5 50%

Neutral 1 10%

Disagreed 1 10%

Strongly Disagreed 0 0%

Total 10 100%

Table 4.11: Opinion Regarding Performance Appraisal results

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 Strongly Agree Agree Neutral Disagree Strongly Disagree

10%

10% 30%

50%

Figure 4.11: Opinion Regarding Performance Appraisal results

Interpretation: One of the main purposes of performance appraisal is to

eliminate the weak areas of employees along with improve their performance.
And 80% of the respondents in total agreed and strongly agreed that
performance appraisal is meeting the organizational goal. They confessed
that RAKUB offers consultation and training program to the employees when
their performance is poor.

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12. Overall Performance Appraisal (PA) process of your organization
(RAKUB) is satisfactory

Opinion Number of respondents Percentage

Strongly Agree 1 10%

Agree 6 60%

Neutral 2 20%

Disagree 1 10%

Strongly Disagree 0 0%

Total 10 100%

Table 4.12: Opinion Regarding the Satisfaction Level with performance

appraisal process

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 10%
20%

10%

60%

Strongly agree Agree Neutral Disagree Strongly disagree

Figure 4.12: Opinion Regarding the Satisfaction Level with performance

appraisal process.

Interpretation: From the above table it can be seen that out of 10 employees,
maximum employees are agreed with this statement. That means 60% of the
employees are satisfied and 10% of them are strongly agreed and very
satisfied with the organization’s PA process. On the other hand, 20%
employees are neutral so they did not make any comment on this topic.
However, remaining 10% employees are disagreed and that indicates they
are not fully satisfied with their PA process of RAKUB. The result of this
analysis indicates that overall employees are satisfied with their performance
appraisal system.

52 | P a g e
 CHAPTER FIVE

KEY FINDINGS, RECOMMENDATIONS AND

CONCLUSION OF THE STUDY

53 | P a g e
5.1 Key Findings of the Study
1. First of all, every manager in every organization should evaluate their
employee’s performance and RAKUB also wants to maintain these trends.
Here, 50% respondents are strongly agreed and 30% respondents are agreed
that they are evaluated by their manager. But 10% respondents are slightly
disagreed and another 10% are strongly disagreed.

2. Then, 80% employees in total number, got required feedback to develop

themselves. However, 10% employees are neutral on the other hand, 10%
employees confessed that they did not get any required feedback to develop
themselves.

3. The next finding shows that 30% employees are neutral about whether the
result and feedback are biasfree and fair or not. 20% employees are strongly
agreed and 40% employees are simply agreed with the statement. That
means they believe that their result and feedback are biasfree and fair. But
10% employees strongly disagreed.

4. 360-degree performance appraisal method is that an employee is

evaluated not only by his/her supervisor/manager but also evaluated by
peers, colleagues, subordinates, and even management. 20% respondents
strongly agreed and 50% employees are agreed with this statement. That
means they think that the 360-degree performance appraisal method that
uses RAKUB is very good method in evaluating employee’s performance.

5. 60% employees that means majority of the employees indicates that they
have the opportunity to discuss about PA with their supervisor. They said that
employee and supervisor engage a face-to-face conversation about the
employee's strengths, areas for weakness and areas for progress. At that time
supervisor helps the employees by giving direction about how they can
improve their performance. The employees have the chance to ask the
supervisor for clarification if they have any questions about the evaluation.

54 | P a g e
6. Here, 70% employees in total agreed that PA result greatly impact on the
adoption of new working methods. They also said that if employee receives a
favourable performance appraisal it can boost their confidence, motivation
and willingness to embrace new working method. But 20% employees simply
disagreed and other 10% were indifferent.

7. This finding illuminates that 20% employees strongly agreed and 50% are
agreed that they have opportunity to deliver their opinion to the management
about their performance results. 20% respondents are neutral and 10%
respondents are disagreed.

8. Here, 20% of the employees strongly agreed and 40% of the employees
agreed that performance appraisal is helpful for achieving their promotion.
They believe that performance appraisal (PA) can indeed be a valuable tool in
achieving promotion within an organization. PA provides a structured and
systematic evaluation of an employee’s performance, allowing manager to
identify their strengths and areas for improvement. So, if they know their
performance in advance, they try to do better for promoting their position.

And 20% employees were neutral. On the other hand, 10% employees and
rest of 10% employees were simply disagreed and strongly disagreed with
this opinion respectively.

9. 50% of the employees are agreed as well as 30% are strongly agreed with
this comment and they are satisfied with their rewards or recognitions given
by RAKUB if their performance is higher. But 20% employees did not
response.

10. Around 40% employees are dissatisfied and 30% are very dissatisfied
with their rewards like salary, bonus and promotion provided by RAKUB that
does not stimulate them to work more efficiently and effectively. Only 20%
respondents simply agreed with the statement and 10% are hesitated.

11. This finding shows that total 80% employees acknowledged that
performance appraisal helps them to eliminate their weak areas and improve
their performance. Only 10% employees simply disagreed and rest of the 10%
employees are neutral.

55 | P a g e
12. Finally, 60% of the employees are satisfied and 20% of them are strongly
agreed and very satisfied with their organization’s performance appraisal
process. This finding says that though there are few shortcomings of this
organization but overall employees are satisfied with employee’s performance
appraisal process of their organization.

5.2 Recommendations of the Study

 The supervisor who is evaluating performance appraisal should write

down the performance information of every employee in a diary on a
weekly basis. It will help the supervisor to remember important
incidents when employee performed good or bad. Because the
supervisor may forget important information about their performance
while rating if he does not write them as the performance evaluation
held in 6 months or 1year basis.

 Weekly feedback should be given to the employees so that they can

keep tracking of their performance and they get an opportunity for
improvement as soon as possible. Performance Appraisal will be much
more effective if the supervisor gives feedback whenever it is required.

 Training on performance evaluation should be provided to the

supervisors who rate the employee. It will help the supervisors to
reduce the errors. They should be given clear idea about the
Performance Appraisal.

 The organization needs to improve the reward package for their

employees and they should also try to provide adequate incentives to
retain them in the organization so that they do not think of going to any
other organization. Improving reward package and increasing the
salary in the entry level positions will bring motivation within the
employees. So, they need to provide good amount of salary in the
entry level according to their job positions.
56 | P a g e
  Peer review system needs to be implemented in all the departments or
divisions. In this system, one colleague will rate another colleague.
Usually, reviews done by only managers is not effective as it is done on
one point of view, whereas in peer review the evaluation is done from
multiple views. And as their colleagues always works with in front of
them, they know more about their colleague’s strength and weakness
than managers. As a result, the employees will be much more effective
and cooperative to evaluate each other.

5.3 Conclusion of the Study

The importance of Performance Appraisal for any organization is undeniable.
Performance Appraisal has many variables on which the effectiveness of PA
depends on. Improving employee’s performance through finding out the gap
and providing training, motivating the employees through rewards and
recognition, giving frequent feedback are the main objectives on which the
effectiveness of PA process depends. An effective performance appraisal not
only helps in terms of achieving organizational goals but it also keeps the
employees happy by their performance evaluation. Employees treasure such
performance appraisal tries to give their best for the organization.

Rajshahi Krishi Unnayan Bank (RAKUB) is a state-owned bank in Bangladesh

and also a specialized financial institution for financing the farmers of the 16
districts of Rajshahi and Rangpur in which performance appraisal is much
more important for them. The study based on the evaluation of performance
appraisal of RAKUB is research to find out whether the organization’s
performance appraisal process is effective enough. Through analysis, we can
conclude that overall, the performance is effective but there is need to change
in the rewards system as it is not effective enough to motivate the employees.
Motivating employees is one of the main features of effective performance
appraisal. The study also reveals that the performance appraisal is effective
because most of the employees are getting required feedback, there seems
no biasness.

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Moreover, the study showed that employees taking the performance appraisal
seriously, they have the opportunity to discuss about their performance
evaluation as well. The study has low generalizability because of small
sample size. So, for much better result the future researchers should do their
study on more diverse and larger sample taking much enough time.

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 Bibliography

About RAKUB and its activities: www.rakub.org.bd

About RAKUB: https://en.wikipedia.org/wiki/Rajshahi_Krishi_Unnayan_Bank

Daniel, C.O., 2019. Analysing the Concept of Performance Appraisal System

on Employees Development. American Journal of Humanities and Social
Sciences Research (AJHSSR), 3(2), pp.61-68.

DeNisi, A.S. and Murphy, K.R., 2017. Performance appraisal and

performance management: 100 years of progress? Journal of applied
psychology, 102(3), p.421.
https://www.cbs.dk/files/cbs.dk/denisietal_jap2017.pdf

Islami, X., Mulolli, E. and Mustafa, N., 2018. Using Management by

Objectives as a performance appraisal tool for employee satisfaction. Future
Business Journal, 4(1), pp.94-108.
https://www.sciencedirect.com/science/article/pii/S2314721016300275

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 APPENDIX (QUESTONNAIRE)

I am Md. Azizul Haque, BBA student of Institute of Business Administration

(IBA), University of Rajshahi. I am conducting a project work on Evaluation of
employee’s performance appraisal process of Rajshahi Krishi Unnayan
Bank and would like to request you to help me in answering some questions
about your experience and opinions.

This note is to inform you that your information will be kept confidential and
will be used for this research project only. Your opinion will be highly
appreciated.

1.What is your age?

a) 25-30 years

b) 30-35 years

c) 35-40 Years

d) more than 40 years

2) What is your salary amount?

a) 20k-30k

b) 30k-40k

c) 40k- 50k

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d) 50k-60k

e) more than 60k

Instruction: [Please read carefully and Tick (󠆷√) at the appropriate box according to your
level of agreement

1. Your manager evaluate your performance

Strongly Agree Agree Neutral Disagree Strongly disagree

5 4 3 2 1

2.You are getting required feedback on your performance to develop yourself

Strongly Agree Agree Neutral Disagree Strongly disagree

5 4 3 2 1

3.The results and feedbacks are biasfree and fair

Strongly Agree Agree Neutral Disagree Strongly disagree

5 4 3 2 1

4.The 360-degree performance appraisal method that RAKUB uses is a good

method

Strongly Agree Agree Neutral Disagree Strongly disagree

5 4 3 2 1

5.You have the opportunity to discuss about performance appraisal with your
supervisor

Strongly Agree Agree Neutral Disagree Strongly disagree

5 4 3 2 1

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6.Performance appraisal results greatly impact on the adoption of new
working methods

Strongly Agree Agree Neutral Disagree Strongly disagree

5 4 3 2 1

7.You have the opportunity to deliver your opinion to the management

regarding your appraisal results

Strongly Agree Agree Neutral Disagree Strongly disagree

5 4 3 2 1

8.Performance Appraisal is helpful for achieving your promotion

Strongly Agree Agree Neutral Disagree Strongly disagree

5 4 3 2 1

9.You are getting enough reward or recognition for higher performance

Strongly Agree Agree Neutral Disagree Strongly disagree

5 4 3 2 1

10.You are motivated with the rewards (salary, promotion, bonus etc.) given
by the organization to work more efficiently and effectively

Strongly Agree Agree Neutral Disagree Strongly disagree

5 4 3 2 1

11.Performance Appraisal’s result help you to eliminate your weak areas and
improve your performance

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Strongly Agree Agree Neutral Disagree Strongly disagree

5 4 3 2 1

12.Overall performance appraisal process of your organization is satisfactory

Strongly Agree Agree Neutral Disagree Strongly disagree

5 4 3 2 1

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