Performance Management in Practice

A Study on ACI Limited

 Group 07

Kaniz Fatama Mim 4007

Soyeda Munmun Mehrin Chaity 4024
Husne Ara Tamanna 4030
Samima Parvin Sweety 4031
Jowash Owi Sawn Chiran 4034
Soyeda Munmun Mehrin Chaity
ID: 4024
 PERFORMANCE MANAGEMENT

Performance management is critical to organizational success,

influencing employee productivity, engagement, and overall business
performance. This study examines performance management at ACI
Company, a leading organization known for innovative human resource
management. It provides insights into effective practices, challenges, and
successes, aiming to enhance organizations' performance management
systems and drive organizational success by identifying best practices and
areas for improvement.
 SIGNIFICANCE OF OBJECTIVE LIMITATIONS
THE STUDY
Explores ACI Limited's performance
management process, strategic alignment,
measurement, implementation, evaluation, and The objective of this paper is to learn Information was too confidential.
feedback system considering culture, structure, about the overall performance Time Limitations, Resource
and legal and ethical issues. management practice of ACI Limited. Constraints, and most important
knowledge limitation.
It also aids society in quickly learning about
paper-using technologies, enabling them to
understand overall performance systems and
the challenges they face in the process.
METHODOLOGY
Types of Data
To complete this report, we have collected both primary and secondary data.

Sources of Data Collection

a. Primary Sources
Collected data from interviewing employees and they are Md Riyaz
Training Executive, Learning & Development Department, and Saad Bin Aslam,
Senior Executive, HR Department of ACI Limited.

b. Secondary Sources
❖ Website of ACI Limited
❖ Articles, journals, and various books.
❖ Reports related to the research topic.

Sample: Collected information from two employees of ACI Limited.

 ABOUT ACI LIMITED

• One of the leading conglomerates in Bangladesh.

• Founded in 1973.
• Four major sectors: ACI Pharmaceuticals, Consumer Brands,
Agribusinesses, and Logistics Limited.
• Total Number of employees: 11,077.
• Mission: Achieve business excellence through quality by
understanding, accepting, meeting, and exceeding customer
expectations.
• Vision: Provide products and services of high and consistent quality,
ensuring value for money to our customers.
Kaniz Fatama Mim
ID: 4007
FINDINGS & ANALYSIS
System Implementation

PERFORMANCE DETERMINANTS OF ACI LIMITED

Performance = Declarative Knowledge ×

Procedural Knowledge × Motivation.
 Performance Determinants of ACI Limited(Cont`d)

DECLARATIVE PROCEDURAL MOTIVATION

KNOWLEDGE KNOWLEDGE

To know how to do something, ACI Company's employees can

Refers to factual information or
such as following a series of steps vary depending on individual
knowledge about something.
or processes to accomplish a task. preferences, company culture, and
job roles.
An employee of ACI Company
have declarative knowledge A customer service representative
at ACI Company have procedural An employee at ACI Company
about the features and
knowledge of how to handle motivated by the opportunity to
specifications of the company's
customer inquiries, including how work on innovative projects that
latest product line, including the
to access the company's customer have a positive impact on society,
benefits it offers to customers
database, respond to common aligning with the company's
and how it compares to
questions, and escalate issues commitment to sustainability and
competitors' offerings.
when necessary. social responsibility.
Performance Management Process

An ongoing series of meetings and check-ins

between a manager and employee that plans,
monitors, and reviews the employee's objectives,
long-term goals, and overall impact on the company.
 Prerequisites
Set specific goals and objectives
Clarifying job roles and responsibilities.

Performance Management
Performance Planning
Process(Cont`d)
Employees and managers collaboratively
set SMART goals.
Establish(KPI).

Performance Execution
Provide support, resources, as well as
guidance to ensure employees success.
 Performance Assessment
Track progress, and gather feedback from colleagues and
stakeholders.
Assess performance against predetermined criteria.

Performance Management
Performance Review
Process(Cont`d)
Review performance data, and provide feedback.
Identify opportunities for growth and development.

Performance Renewal &Reconstructing

Formalize agreements for the upcoming
performance period.
Clarify expectations, set goals, and outline
development plans.
Jowash Owi Sawn Chiran
ID: 4034
 Linking Performance Management to Strategic
Plan

Gather Information:
1. R&D Team : Develop new products, improving existing ones, or exploring new technologies.
2. Internal Audit: Ensures that employees are working towards goals that contribute to the company's
success.
3. Market Audit: Analyze to identify market trends, customer needs, and competitor activity.

Objective Setting:
New Product Development: Develop products that enter new markets, increase market share in existing
categories, or improve brand image.
Market Share Goal: Market share targets compels ACI to assess their current market position, competitor
landscape, and identify opportunities for growth.
Financial Target: Profit Maximization, reducing cost.
 Linking Performance Management to Strategic Plan(Cont`d)

Resource allocation:
1. Recruit Manpower: Onboard manpower with related skill and experience to support the
strategy.
2. Adopt Technology: The organization is about to adopt Virtual Reality technology.
3. Fund allocation: Allocate funds while considering risk tolerance and ensures that funds are
directed towards initiatives that support these goals.

Departmental Alignment:
1. Board of Director: Minimize training expenses.
2. Human Resource Division: Adopt Virtual Reality.
3. Training and Development Department: Souring Virtual Technology and plan to proper
implementation.
 Performance Measurement Approach

Individual Level:

Approach: Simple Rank Order

Application: Employees are evaluated based on their Key Performance Indicator (KPI) Achievement every quarter

That let ACI:

1. To focuses on individual achievement and contribution
2. To provides frequent feedback for continuous improvement
3. It helps identify top performers and those needing support
 Performance Measurement Approach(Cont`d)

Department Level:

Approach: Graphic Raring Scale

Application: Departments are assessed based on achieving objectives set by supervisors.

That let ACI:

1. Standardized rating system for department performance comparison.
2. Bar charts provide clear visualization of department performance.
3. Identifies areas for improvement within departments.
 Performance Measurement Approach(Cont`d)

Organizational Level:
Approach: Customer Feedback, Market Review, Sales Data

Application:
1. Customer feedback provides insights into product acceptance and needed changes.
2. Market review assesses overall performance in the industry.
3. Sales data compared to targets determines overall market success.

That let ACI:

1. Aligns organizational goals with customer satisfaction and market trends.
2. Identifies areas for product improvement and market expansion.
3. Tracks progress towards achieving overall organizational objectives.
Samima Parvin Sweety
ID: 4031
 WAYS OF GATHERING PERFORMANCE
INFORMATION

ACI Company, individual Key Performance Indicators (KPIs) specific to each employee are tracked. The HR
department of ACI Company utilizes various methods to collect performance data, including:

Graphical Rating Scale Interviews

Observation Surveys
 Software Used at ACI Company

"Management Development Plan and Action Plan Web

Portal"

o Access the portal to review & analyze individual performance data.

o Track progress, and identify areas for improvement.
o Allows for real-time monitoring of employee performance.
o Timely feedback & intervention when necessary.
 IMPLEMENTING A PERFORMANCE
MANAGEMENT SYSTEM BY ACI COMPANY

• The annual performance management system encompasses self-appraisals and merit reviews.
• Complete self-assessments, reflecting on their achievements, strengths, & areas for growth.
• Evaluating employees' contributions against established goals & competencies.
• Compensation adjustments are made based on annual merit review performance.
 Part B: Employee Developmental Plan

ACI Ltd. offers a range of training and development opportunities to help sales and both
non sales employees improve their skills and knowledge. Here are some examples:

Sales employees, they have orientation program on overall organization and talked about
foundation courses on:
• Sales career
• Communication
• Product knowledge
• Relationship with customer and Adaptability in new environment
 Employee Developmental Plan(Cont`d)

HR and training department organized various learning program and also employees
can willingly choose various courses like:

• Negotiation and conflict

• Mini selling skill
• Emotional Intelligence
• Territory Management
• Critical Thinking
Non sales person gets Mandatory course for non sales employees- 1. Functional, 2. soft skill, 3. IT Skill.

Functional Skill
● Vat tax management - Finance Department
● Bangladesh HR and Labor Law Practices– HR Department
● Strategic sourcing – Commercial Department

Soft skill
● Effective communication and MS Outlook
● Time and Priority Management
● Problem solving and Decision Making Skill
● Growth mindset : The Psychology of Success
● Living with values, transformation to professional

IT Skill
● Mastering v-lookup
● Adobe photoshop basic level
● Canva basic level
● MS Excel
Husne Ara Tamanna
ID: 4030
Part C : Legal Issues/Ethical Challenges faced by ACI Limited in Performance
Management Process

NEGLIGENCE AND BIASNESS

UNFAIR LABOR PRACTICES

 01 Subjectivity

Evaluations based solely on manager opinion can be

biased. ACI should use a combination of objective
metrics and subjective assessments to provide a well
rounded picture.

02 Feedback

Ethical Challenges Employees need clear and regular feedback throughout

the year, not just during evaluations. A lack of feedback
can leave employees confused and frustrated.

03 Calibration

Sometimes, managers use different evaluation styles, it

can lead to inconsistencies across the company. ACI
should have clear evaluation criteria and training for
managers to ensure consistency.
RECOMMENDATION

 Should invest in training programs, training sessions, mentorship programs, and

opportunities for skill development.

 Establish clear performance criteria for each role, considering both quantitative and
qualitative factors.

 Encouraging open communication between managers and employees at every stages.

 Develop clear and documented performance management policies that comply with local
laws.

 Train managers on conducting fair and unbiased evaluations and Calibrate managers'
evaluations to ensure consistency.

 Develop a structured performance management process encompassing goal setting,

continuous feedback, performance appraisal, and development planning.
THANK
YOU