TERM PERFORMANCE APPRAISAL SYSTEM OF

PAPER ON HEMAS CONSUMER BRANDS PVT LTD.

“The truth is, yes, the ones-a-year approach to performance

reviews isn’t fun” _ Elias Rassi
 UNITED INTERNATIONAL UNIVERSITY

Term Paper on

Performance Appraisal System of Hemas Consumer Brands Pvt Ltd.

Course Title: Performance Appraisal & Management Course Code: HRM 4358 Section: “A”

Submitted To

Dr. Mohd Hasanur Raihan Joarder

Associate Professor& Director, SOBE
Submitted By

Name: ID:

S.M. Nahiyan Uzzaman 111 131 396

Syed Saif Shahid 111 123 061

Md. Refayet Hasan 111 141 048

Al-Mamun Tusher 111 131 231

Ashiqur Rahman 111 131 058

Shahjadi Eva 111 121 107

Kazi Hasnahena Kabir 111 121 507

Date of Submission: 27th August, 2017

Letter of transmittal

27th August, 2017

Dr. Mohd Hasanur Raihan Joarder

Associate Professor& Director, BBA Program

United International University.

Subject: Submission of Term paper on performance appraisal System of Hemas Consumer

Brands Pvt Ltd.

Sir,

Here is the term paper on performance appraisal system of Hemas Consumer Brands Pvt Ltd.
which you have assigned us in order to get a clear understanding about the performance appraisal
process of Hemas Consumer Brands Pvt Ltd. We have tried our level best to gather all kinds of
relevant information, which could give us overall concept of this term paper. I hope that it will
meet our expected standard.

We enjoyed a lot while preparing the term paper. Especially, the given class lecture on this
course helped us a lot and made the hard work really very easier. I’m submitting this term paper
for your kind consideration and thanking you for your constant assistance and guidance.

Sincerely yours,

S. M. Nahiyan Uzzaman

ID- 111 131 396

(On behalf of the group)

--------------------------

ACKNOWLEDGEMENT
At first, we would like to express our thankfulness to the almighty for enabling us the strength
and opportunity to complete the report in the scheduled time successfully.

At the very beginning, we are very pleased to successfully complete our term paper on
performance appraisal system of organization (Hemas Consumer Brands Pvt Ltd.)

We took this opportunity to express our profound gratitude and deep regards to our honorable
course instructor Dr. Mohd Hasanur Raihan Joarder, Associate Professor& Director, BBA
Program, United International University, for his exemplary guidance, monitoring and constant
encouragement throughout the course of this term paper. The blessing, help and guidance given
by him time to time shall carry us to take a long way in the journey of life on which we are about
to embark.

We would like to thank the honorable authors of the book “Performance Management” written
by Herman Aguinis because we take a lot of knowledge and information from this book.

1 Table of Contents

2 Executive Summary:.............................................................................................................1
3 Introduction:.........................................................................................................................2

3.1 Background of the Report:................................................................................................2

13. Scope of the Study:....................................................................................................2

13.2 Objective of the Study:..............................................................................................2

a. Broad Objective:...................................................................................................................2

b. Specific Objectives:..............................................................................................................3

3.2 Methodology of the study:................................................................................................3

23.1 A. Research type:.......................................................................................................3

23. B. Sources of Data:....................................................................................................3

23. C. Data collection procedure:....................................................................................4

3.2.3.2 Secondary data.......................................................................................................4

3.3 Limitations of the Study:...................................................................................................4

4 Background of the Company:...............................................................................................5

4.1 Vision:...............................................................................................................................6

4.2 Mission:.............................................................................................................................7

4.3 Scope:................................................................................................................................7

4.4 Core Values:......................................................................................................................7

4.5 Company Products:...........................................................................................................8

4.6 Management Stucture of Hem Hemas Consumer Brands Pvt Ltd:................................12

4.7 HR Organizational Structure:..........................................................................................12

5 Human Resource Management of Hemas Consumer Brands Pvt Ltd................................13

5.1 Human Resource Planning..............................................................................................13

5.2 Human Resource Function..............................................................................................13

5.3 Performance Appraisal (PA) System:..............................................................................14

 35.1 Traditional and Modern Approaches of Performance Appraisal System:...............15

35.2 Benefits of Performance Appraisal..........................................................................16

35. The steps of performance appraisal process:...........................................................17

35.4 Performance Appraisal Objective:...........................................................................19

5.4 Career Development:......................................................................................................19

45.1 Difference between Performance Appraisal and Performance Management:.........20

45.2 Overview Performance Appraisal System of Hemas Consumer Brands Pvt Ltd:...21

45.3 Whether Management believes in Assessment of PA system:.................................22

45. PA process times in a year:......................................................................................22

45. PA System and All employees’ relationship:...........................................................23

45.6 Self-Appraisal in Hemas Consumer Brands Pvt Ltd.:.............................................23

45.7 Documentation of performance reviews:.................................................................23

45.8 Separate appraisal system from HR or not:.............................................................23

45.9 Undertaking performance planning:........................................................................23

45.10 Number of meeting in a year for PA system:...........................................................23

45.1 Why doing Performance Appraisal in Hemas Consumer Brands Pvt Ltd.?............24

45.12 Future changes of PA system in Hemas Consumer Brands Pvt Ltd:.......................24

45.13 Methods of Performance Appraisal in Hemas:........................................................24

6 Picture of Hemas Consumer Brands Pvt Ltd......................................................................25

7 Evaluation of PA Process in Hemas Consumer Brands Pvt Ltd.........................................26

7.1 Reasons for Evaluating Performance Appraisal:............................................................27

17. Why Should a performance appraisal Program Be Evaluated?...............................27

7.2 Hemas Ltd. – How they evaluate performance appraisal process:.................................29

8 Pros & Cons of Performance Appraisal System:................................................................30

 Performance appraisals are very time consuming and can be overwhelming to managers
with many employees....................................................................................................................31

 They are based on human assessment and are subject to rater errors and biases...............31

 Can be a waste of time if not done appropriately...............................................................31

 They can create a very stressful environment for everyone involved................................31

9 Feedback by employees in PA system in Hemas................................................................31

10 Any Biasness in PA System in Hemas ?.............................................................................31

11 Other HR Functions of Hemas Consumer Brands Pvt Ltd.................................................32

12 Findings:.............................................................................................................................33

13 Recommendation:...............................................................................................................33

14 Conclusion:.........................................................................................................................34

15 Reference:...........................................................................................................................35

16 Appendix.............................................................................................................................35
2 Executive Summary:

Hemas Holdings has a solid reputation as one of Sri Lanka's foremost business houses, built
around traditional values, a dynamic management team with futuristic vision, a highly
competitive family of employees, and a steadfast commitment to quality and service to the
community.

Hemas Holdings Limited is the holding company of a Group comprising twenty active
subsidiaries and three active associate companies. The Group is engaged in a diverse set of
business activities, focused on,

 Healthcare

 Personal Care

 Leisure

 Transportation

 Strategic Investments

Hemas started their business activities in Bangladesh in 2011, They have launched five products
so far as Hemas Consumer Brands Pvt Ltd in the market of Bangladesh. Their latest product in
consumer goods sector is “Kumarika Herbal Beauty Soap”, which was in July, 2017.

We are acquired more experience to research and analysis this report, that help us future job
performance. We also learn various things. We collected data and some valuable information by
internet from Hemas Consumer Brands Pvt Ltd, and that is www.hemas.com .

1
3 Introduction:

3.1 Background of
the Report:

An annual review of an employee’s overall contributions to the company by his/her

manager. Performance appraisals, also called annual reviews, evaluate an employee’s
skills, achievements and growth, or lack thereof. Companies use performance appraisals
to give employees big-picture feedback on their work and to justify pay increases and
bonuses, as well as termination decisions.

Performance appraisals also help employees and their managers create a plan for
employee development through additional training and increased responsibilities, as well
as to identify shortcomings the employee could work to resolve.

Ideally, the performance appraisal is not the only time during the year that managers and
employees communicate about the employee’s contributions. More frequent
conversations help keep everyone on the same page, develop a stronger relationship
between employees and managers, and make annual reviews less stressful.

3.1.1 Scope of the Study:

This report has been prepared through extensive discussion with the Assistant HR manager
Tanvir khan. At the time of preparing the report, we had a great opportunity to have an in depth
knowledge of all the performance appraisal activities practiced by the Hemas Consumer Brands
Pvt Ltd.

2
3.1.2 Objective of the Study:

a. Broad Objective:

 To know about the performance appraisal process of the Hemas Consumer Brands
Pvt Ltd.

b. Specific Objectives:

Furthermore, the specific objectives of this report are

 To know the objective of the performance appraisal of Hemas Consumer Brands Pvt
Ltd.

 To identify the performance appraisal method of Hemas Consumer Brands Pvt Ltd.

 To know the opinion of the employee regarding performance appraisal program of

Hemas Consumer Brands Pvt Ltd.

 To identify the problems of performance appraisal of Hemas Consumer Brands Pvt

Ltd.

 To suggest some possible recommendations to overcome the problem relating to

performance appraisal of Hemas Consumer Brands Pvt Ltd.

3.2 Methodology of
the study:

3.2.1 A. Research type:

It is a descriptive research, which briefly explains of the performance appraisal activities of

Hemas Consumer Brands Pvt Ltd.

3
3.2.2 B. Sources of Data:

All the relevant data regarding this study are collected from two sources.

3.2.2.1 1. Primary Sources:

 Interviewing with the Assistant Manager of Hemas Consumer Brands Pvt Ltd in
corporate office located in Gulsan 1, Dhaka.

 Face to face conversation with the officer

 Direct observations

3.2.2.2 2. Secondary Sources:

 Published Booklet of company

 Website of Hemas Consumer Brands Pvt Ltd.

 Various published documents.

3.2.3 C. Data collection procedure:

3.2.3.1 Primary data:

We have collected raw data through informal face to face conversation with the manager and
employees.

3.2.3.2 Secondary data:

In order to collect the secondary data different related printed materials like report; its website
etc. has been used. Moreover, Library sources also have been used as secondary source of
collecting early mentioned data and information.

4
 3.3 Limitations of the
Study:

The following limitations are apparent in the report:

 Time is the first limitation as the duration of the program is very few only.

 Another worthy limitation of the report was company policy is not disclosing some data
and information for obvious reason, which could be very much useful; such as, their
performance appraisal policy, compensation information, salary scale.

 It requires lot of assistance from all level officers and staff but as a bank the officer was
busy in doing their works.

 It was very difficult to collect data, which is very essential.

 Every organization has their own secrecy that is not revealed to others.

4 Background of the Company:

Hemas was born in 1948 when Sheikh Hasannally

Esufally formed a company named Hemas (Drugs) Limited to trade in pharmaceuticals and
chemicals in the newly independent Sri Lanka. The company began diversifying its operations as
opportunities emerged in the 1960s, first in the manufacture of toiletries in collaboration with a
French company. With the liberalization of commerce in Sri Lanka in the late 1970s, the Group
ventured into travel & tourism, commodity exports, apparel, power, and transportation. Hemas
Holdings, the parent company of the Group went public in Today, Hemas Holdings has a solid
reputation as one of Sri Lanka's foremost business houses, built around traditional values, a
dynamic management team with futuristic vision, a highly competitive family of employees, and

5
a steadfast commitment to quality and service to the community. Hemas Holdings Limited.
Hemas consumer brands pvt ltd started in Bangladesh in 2011 and now they are number two
value added hair oil brand with “Kumarika”.

Global Presence:

Company’s export quality FMCG products now reach thousands of consumers around the
world. Brand names are well recognized across the continents and distribution networks
continues to grow. Company is involved in the following operations in international
business:

Direct Exports

Hemas exports its products directly to distributors in 12 selected countrie

 The Maldives

 Lebanon

 Bangladesh

 Belize

 New Zealand

6
 Zambia

 Malaysia

 Pakistan

 Australia

 The Middle East

The FMCG brands we export are: Kumarika, Baby Cheramy, Clogard, Nimex, Goya and
Pro Sport.

 Indirect Exports

We export our products through Sri Lankan Export Development Board (SLEDB)
approved exporters.

4.1 Vision:

 Delighting South Asian consumers with our high quality innovative personal care
solutions

 Providing excellent healthcare outcomes

 Outstanding leisure experiences

 Driving exceptional mobility solutions for the needs of the nation

 While at all times operating true to Hemas Values and our ethos of Abhimana

4.2 Mission:

 To Passionately deliver Outstanding Products and Services Thus Enriching the Lives of
our Customers and creating Superior Value to our Shareholders.

7
 Company will do this by:
• Being a National leader in Personal Care and Healthcare solutions
• Investing in Growth industries with Potential for Superior Value Creation
• Establishing a Regional footprint Through a Team of Passionate, Capable and
Empowered People.

4.3 Scope:

 Hemas Consumer Brands Pvt Ltd.is exporting its high quality products to a number of
countries all around and continuously exploring newer markets round the globe. Hemas
Consumer Brands Pvt Ltd. is a new comer company for Bangladesh, their first product
was “Kumarika hair oil” in 2011, which is now number two brand oil in Bangladesh.

4.4 Core Values:

 Passion for customer

 Obsession for performance
 Driven by innovation
 Concern for people

4.5 Company
Products:
Products in Bangladesh:

8
 1. Kumarika oil: Formulated with the goodness of natural ingredients and indigenous

herbs.
2. Kumarika shampoo: Formulated with goodness of natural Sri Lankan herbs.
Kumarika Herbal Shampoo with conditioner.

3. Kumarika facewash: Kumarika Oil Control Face Wash. Glow Every day. Naturally
combines the goodness of Lemon and Cucumber.

4. Sunny Day Sanitary Napkin (New Product)

9
 5. Kumarika Herbal Beauty Soap (New Product)

Other Company Products Internationally:

1. Baby Cheramy: Baby Cheramy with a rich heritage of over 50 years in serving the nation
has been able to build trust & confidence by enriching the lives of mothers and babies.

2. Clogard: Clogard which is making Sri Lankan smile brighter since 1992 is a total oral
care solution which protects your entire family against cavities.

3. Dandex: The Dandex range of shampoos has been specially developed to help keep yours
and your family’s hair and scalp healthy.

10
4. Pro Sport: You cannot win if you don’t play…unleash the player within with Pro Sport
range of male fragrances and hair gels.

5. Gold: A hero who saves the day…makes the day… and gets the girl? He’s a Gold man!
There’s no mistaking the strong, masculine sensuality exuded by the man who chooses to
wear Gold.

6. Goya: If it’s about a girl, it’s about love… about romance… and perhaps, a bit of
mischief… all captured in a titillating bunch of florals presented by Goya.

11
7. Paris: Exotic & heady florals for the movie star in you. An affordably presented range of
colognes & talc’s from Paris.

8. Fems: With the promise of superior comfort and protection, the new Fems range of Slim
napkins is scientifically designed especially for the Sri Lankan woman.

9. Capri: Capri, a sophisticated fragrance for the fashion conscious woman.

12
10. Diva: Dirty laundry is tedious, if you still use just soap. Diva detergent powder is the
more economical and certainly more efficient means to clean, crispy fresh and
delightfully fragrant clothes.

11. Velvet Body Lotion: Velvet Body Lotions were created to satisfy a need that has never
been addressed before – a skincare product designed especially for Sri Lankan skin.

4.6 Management
Stucture of Hem
Hemas
Consumer
Brands Pvt Ltd:

 Director & CEO & MD

 MD (Strategic Management)

 Group Management Committee

 Directors &

 Non-Executive Directors
13
 4.7 HR
Organizational
Structure:

The HR Management and the HR Model define the basic prerequisites for the HR
Organizational Structure. There are 1 HR head and 2 assistants in HR department of Hemas.

5 Human Resource Management of Hemas Consumer Brands Pvt Ltd.

Human Resource Management (HRM) is the function within an organization that focuses on
recruitment of, management of, and providing direction for the people who work in the
organization. It is the process of procuring, developing, maintaining and compensating a given
workforce.

HRM is the set of organizational activities directed at attracting, developing, maintaining an

effective workforce to achieve the organizational objective effectively and efficiently.

5.1 Human Resource

Planning

Human resource planning has traditionally been used by organizations to ensure that the right
person is in the right job at the right time. Under past conditions of relative environmental
certainty and stability, human resource planning focused on the short term and was dictated
largely by line management concerns. As human resource planners involve themselves in more
programs to serve the needs of the business, and even influence the direction of the business,
they face new and increased responsibilities and challenges.

14
 5.2 Human Resource
Function

The role of human resource management is to plan, develop, and administer policies and
programs designed to make expeditious use of an organization’s human resources. It is that part
of management which is concerned with the people at work and with their relationship within an
enterprise. Its objectives are:

 The effective utilization of human resources.

 desirable working relationships among all members of the organization and

 Maximum individual development.

15
 5.3 Performan
ce
Appraisal
(PA)
System:
Performance appraisal is a subsystem of an organization and core function of human resource
management. Performance management systems are employed "to manage and align" all of an
organization's resources in order to achieve highest possible performance. "How performance is
managed in an organization determines to a large extent the success or failure of the
organization. Therefore, improving PA for everyone should be among the highest priorities of
contemporary organizations".

A central reason for the utilization of performance appraisals (PAs) is performance improvement
("initially at the level of the individual employee, and ultimately at the level of the
organization"). Other fundamental reasons include "as a basis for employment decisions (e.g.
promotions, terminations, transfers), as criteria in research (e.g. test validation), to aid with
communication (e.g. allowing employees to know how they are doing and organizational
expectations), to establish personal objectives for training" programs, for transmission of
objective feedback for personal development, "as a means of documentation to aid in keeping
track of decisions and legal requirements” and in wage and salary administration. Additionally,
PAs can aid in the formulation of job criteria and selection of individuals "who are best suited to
perform the required organizational tasks". A PA can be part of guiding and monitoring employee
career development. PAs can also be used to aid in work motivation through the use of reward
systems.

16
5.3.1 Traditional and Modern Approaches of Performance Appraisal System:

Each method of performance appraisal has its strengths and weaknesses may be suitable for one
organization and non-suitable for another one. As such, there is no single appraisal method
accepted and used by all organizations to measure their employees’ performance.

A more widely used classification of appraisal methods into two categories, viz., traditional
methods and modem methods, is given by Strauss and Sayles”. While traditional methods lay
emphasis on the rating of the individual’s personality traits, such as initiative, dependability,
drive creativity, integrity, intelligence, leadership potential, etc.; the modem methods, on the
other hand, place more emphasis on the evaluation of work results, i.e., job achievements than
the personal traits! Modem methods tend to be more objective and worthwhile. The various
methods included in each of the two categories are listed in Table

17
5.3.2 Benefits of Performance Appraisal

Where performance appraisal allows the employees to get the monetary and non-monetary
rewards from the management, here it also give the most significant benefit for employees that it
gives the chance to get reasonable time for one to one discussion on the performance over the
period of time. This discussion between employee and supervisor allows discussing the main
issues that are hurdle in the performance and work concerns addressed. It can observe from all
over the world organizations, the feedback of performance appraisal says that it creates a strong
bond between subordinate and supervisor only if the appraisal is conducted properly and fairly.
This process also gives the opportunity to employees to review their performances and discuss
the issues and difficulties they are facing in the work and also it gives the path to gain the aims
and objectives in the future time. This interaction of subordinates and supervisors give the
opportunity to help the future goals. Therefore, it enhances the productivity. So, this process
gives the best time to employees to have chat with the supervisors without any hindrance and
instruction. The importance of this process should not be underestimated as this is the integral
part of performance appraisal system. Moreover, this process allows the supervisors and
employees to discuss the future targets and, training and rotation need orientation and
development, if needed. In this discussion, the supervisors and the subordinates discuss the
various problems about the present as well as the absent working skills, career development and
what is to be done in the future (DYCK, 1997). Here, supervisor highlights the key skills of the
subordinate and makes or arranges for the future career inspirations. This discussion can be
useful to measure the productivity of the organization, for the recruitment and orientation
process. For example, the feedback can identify how employees are performing those who hired
in the past two years and so. Appraisal data can also tell how well the recruiting strategies are
working, what developmental process are good enough and what the effectiveness of employees
is. Performance appraisal process could be a data sheet highlighting the overall performance of
all employees; telling has productivity improved, remains same or fall. Evaluation is the ongoing
process and its run throughout the year but some clash can be noted in the evaluations and
developmental process but in a nutshell it's a process of evaluating, analyzing and giving
feedback of that process.

18
5.3.3 The steps of performance appraisal process:

1. Setting the Performance Standards:

The first step in the performance appraisal process is the setting of standards of performance
expected from the employees. The standards set should be the line with the objectives and the
mission of the organization.

Further the standard set must be realistic and attainable. If unrealistic and unattainable standards
are set, it will demotivate and demoralize the employee. Hence care should be taken while
setting the standards.

2. Communicating the Performance Standard to the Employees:

It is not enough if just the standards are fixed. The expected level of performance should be
communicated to the employees so that they are all well aware of what is expected of them.

3. Measuring the Actual Performance:

This is a crucial step in the performance appraisal process. Here the actual performances are
measured. There are various methods of measuring the performance.

4. Comparing the Actual with the Standard Performance:

Once the standard levels of performance are set and the actual performances are measured, the
next step will be the comparison of the actual with the standard performance. This comparison
will enable the determination of the gap between the actual and the expected performance; such
gaps can be bridged through training and development.

5. Providing Feedback:

19
The performance appraisal process does not end with mere evaluation of the performance. It is
essential to provide feedback to the employees on their performance. This will help the
employees to identify the weak areas and initiate actions to overcome them. Such feedback
motivates them to perform better in future by avoiding the repetition of the same mistakes.

6. Initiating Corrective Actions:

When a gap is found between the actual and the expected level of performance, corrective
actions should be undertaken. By analyzing the reason for a gap, proper action should be taken
so that the gap is bridged. When the actual and the standard performance match there is no need
for any corrective action.

5.3.4 Performance Appraisal Objective:

Followings are the main objectives of performance appraisal.

 To review the performance of employees over the period of time.

 This review of performance, evaluator judges the actual performance with the targeted
performance standards and benchmarks.

 It also helps the management to control the organization targets depending upon the
performance of employees.

 It also creates healthy environment between employees and supervisors.

 It identifies the strengths and weaknesses of employees and also suggests the various
improvement plans by the management after performance appraisal process.

 This process also allows the employees to get the proper training and orientation of skills
where they are lacking.

20
  To communicate the feedback with the employees.

 Give all information regarding the tasks and job responsibilities and also clarifies all the
tasks which are required from the employees.

 One of the objectives of performance appraisal is to judge the HR function within the
organization for smooth running of business.

 It also tries to removes the complaints of employees about the function of organization, if
have any.

5.4 Career
Development:

Career development involves managing career either within or between organizations. It also
includes learning new skills, and making improvements to help in career. Career development is
an ongoing, lifelong process to learn and achieve more in career. Whether anyone looking at
making a career change, or moving up within a company, planning his/her career development
will succeed. By creating a personal career development plan; one can set goals and objectives
for personal career growth.

5.4.1 Difference between Performance Appraisal and Performance Management:

Performance Appraisal implies a rational assessment of the performance of an individual,

based on pre-determined standards. On the other hand, performance management alludes to the
management of performance of the manpower working in an organization.
While Performance Appraisal is a yearly system while if we talk about Performance
Management, it is a continuous process that does not occur eventually.

Performance appraisal is but only one part of the bigger process of performance management.
So, the short answer is that performance appraisal (annual review, employee review) fits under
performance management.

21
Here’s a table that gets at some of the more interesting and important differences between
performance management and performance appraisal:
Performance appraisal Performance management
Operational Strategic
Top-down assessment More likely to involve dialog
Retrospective for corrections Future-oriented for growth
Ongoing or continuous review, interspersed with
Typically once or twice per year
formal reviews
Often uses ratings or rankings Less likely to involve ratings
Rigid structure/system Flexible process
Not linked to business needs Linked to business needs
Usually takes a quantitative approach Combines quantitative and qualitative approaches
Individual Collective
Often linked to compensation Not usually linked to compensation
Often very bureaucratic with a focus on
Less concerned with documentation
paperwork/documents
Usually housed in HR department Conducted by managers and supervisors

5.4.2 Overview Performance Appraisal System of Hemas Consumer Brands Pvt

Ltd:

The performance appraisal process of all employees is critical to the Company’s success. It
improves the performance of the company, teams and individuals and makes an important
contribution to the retention of staff and the development of the performance and motivation of
the employees.

Hemas Consumer Brands Pvt Ltd. is committed to providing an environment which enables
continuous learning, growth and personal achievement of all employees. The achievement of this
commitment by the Company is also reliant on employee commitment and their willingness to
learn, develop, take on new roles and responsibilities and seek opportunities for self-
development in the process of performance appraisal process.

Performance appraisal plans are based on the business strategy and through the output of regular
individual performance of the employees. These plans identify where individual performance

22
may be enhanced through development initiatives including training courses, job experience, job
rotation, etc.

In this step of Performance appraisal, HR Managers and line supervisors have essential and
inexcusable role playing. Hemas Consumer Brands Pvt Ltd. recognizes that employee’s
performance should be monitored and evaluated on a regular basis to maintain the standard
performance from them. On the contrary, it is one of the key responsibilities of the supervisors to
keep their subordinate’s performance on constant check. This is done in discussion with the
employees. The performance appraisal report goes to Department head even headquarter in
Srilanka. Employees are treated and continued their Job process and job activities according to
the result of employee’s appraisal system.

If the result is better the employees receive bonus from the company, annually top rated
employees get prizes from an arranged function. If the appraisal result is moderate than
employees needed motivation and training according to HR manager. And, last of all if the result
is poor, the employee gets notice from company, if the poor result continues repeatedly then the
employee gets fired from the company.

The organization follows the selective evaluation to reduce biasness in the performance appraisal
system. Every employee thinks that he is better as a performer, so the HR manager shows the
results of each employee comparatively (like what amount of sales has made by whom?) who so
that they can understand/measure who has performed better.

The Company is committed to the effective induction of all employees and in supporting all
employees to realize their full potential. Performance appraisal are conducted on a fair basis to
all employees. The Company ensures that no employee receives less favorable treatment or
consideration.

23
5.4.3 Whether Management believes in Assessment of PA system:

The management believes in assessment of employees to understand the strengths, weakness and
potential of the workers because without doing performance appraisal the organization will not
be able to know the progress of their employees in doing the activities of the organization.

There has the performance rating system in the organization. Performance rating is the step in the
work measurement in which the analyst observes the worker's performance and records a value
representing that performance relative to the analyst's concept of standard performance and
though the performance rating system can identify the better performers and they are paid by
incentives and other rewards as well as can identify the poor performers and developmental
training is provided for them.

5.4.4 PA process times in a year:

Organizations can do performance appraisal many times (like annually, semi-annually, or

quarterly) in a year by depending on their demand and capabilities because it’s expensive. Hemas
does performance appraisal two times in a year to appraise the performance of employees.

5.4.5 PA System and All employees’ relationship:

The same system of performance appraisal management is applicable in the organization for all
categories of employees to measure the performance of employees because the organization has
limited employees and the activities of maximum employees are sales related.

5.4.6 Self-Appraisal in Hemas Consumer Brands Pvt Ltd.:

Yes, Self-Appraisal is partially done by the employees, giving their job feedback and opinions
about their job performance in the performance appraisal system.

5.4.7 Documentation of performance reviews:

In the world of Human Resources, documentation about an employee's performance will make or
break your ability to discipline, terminate, or fairly promote, reward and recognize employees.

24
Documentation is essential for managers and HR staff for these reasons. Line manager of Hemas
is the function of this process.

5.4.8 Separate appraisal system from HR or not:

The Performance Evaluation System is a tool used to measure individual performance and to
develop employees into high-performing individuals. Hemas don’t have any separate system for
this. HR department of Hemas doing the process of performance appraisal system in
organization.

5.4.9 Undertaking performance planning:

Performance planning is a systematic and structured approach to successfully achieve the desired
goals of an individual or team throughout the assessment year. Yes, Hemas undertake
performance planning while they do performance appraisal process.

5.4.10 Number of meeting in a year for PA system:

Employee Performance Management is about aligning the organizational objectives with the
employees' agreed measures, skills, competency requirements, development plans and the
delivery of results. Hemas conduct 3 or more meetings in a year.

5.4.11 Why doing Performance Appraisal in Hemas Consumer Brands Pvt Ltd.?

Hemas Consumer Brands Pvt Ltd. include performance appraisal system of following aspects:

 Retention strategy
 Reword allocation
 Facilities promotion & transfer & termination decisions

5.4.12 Future changes of PA system in Hemas Consumer Brands Pvt Ltd:

 Performance Appraisal software will be used,

 Net based internal information system,
 Some training for HR manager about PA system.

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5.4.13 Methods of Performance Appraisal in Hemas:
Quotes for Performance Appraisal system -

“For employees to perform at high level, it only makes sense to include

performance management in onboarding process” – Sharlyn Lauby.

The following Methods are used by Hemas Consumer Brands Pvt Ltd in their PA system:

1. Graphic Rating Scales: In this method traits or behaviors that are important for
effective performance are listed out and each employee is rated against these traits
of the employees of Hemas Consumer Brands Pvt. This rating helps to quantify
the behaviors displayed by its employees.
2. Self-Appraisal: In this method employees evaluate their own performance in the
process of PA system.
3. 360-degree Appraisal: Hemas Consumer Brands Pvt. Ltd. recently introduced
this method. In this method information about performance appraisal collected
from all possible sources of the organization.
4. Critical Incident Method: Critical incident, such like, natural disaster or
accidents ate viewed or measured during PA process.
5. Behavioral Assessment: Based on this method performance is measured by HR
in PA process.
6. Ranking Method: In this method employee’s performance ranked and company
take necessary steps (according to policy) regarding the ranking information.

6 Picture of Hemas Consumer Brands Pvt Ltd.

Total Hemas Team in Bangladesh with Chairman & Directors:

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7 Evaluation of PA Process in Hemas Consumer Brands Pvt Ltd.

Assessing the value and effectiveness of an appraisal program is necessary for determining

how to improve it. In the world of Human Resources, documentation about an employee's
performance will make or break your ability to discipline, terminate, or fairly promote, reward
and recognize employees. Documentation is essential for managers and HR staff for these
reasons. Line manager of Hemas Consumer Brands Pvt Ltd. do this function of this process.

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After review session when they identify the poor performers then the organization provides the
improvement coaching/ training for those employees who are weak performers so that they can
improve themselves for better performance. If they cannot improve by this process, they are fired
from the company.

Good performers get many incentives, such like, cash giveaway, bonus, air ticket to vacations,
annual reward, etc.

Training and development, Career Management and development plans, succession planning are
based on performance appraisal evaluation result. Succession planning is easier in Hemas
Consumer Brands Pvt Ltd. as their employees are comparatively lower.

For evaluating appraising performance HR department of Hemas Consumer Brands Pvt Ltd. use
following techniques:

 Management group appraisal: HR managers evaluate the overall appraising

performance information, do as they needed to do to improve performance of the
employees as well as organization.
 Committee Appraisal: A committee helps in the process of evaluating the appraisal
performance information, coordinated with HR department (as well as head office in
Srilanka if necessary).

7.1 Reasons for

Evaluating
Performance
Appraisal:

Companies are investing millions of dollars in HR related programs to help gain a competitive
advantage.

Performance appraisal system is increasing because learning creates knowledge which

differentiates between those companies and employees who are successful and those who are
not.

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Because companies have made large dollar investments in employees and view PA system as a
strategy to be successful, they expect the outcomes or benefits related to PA system to be
measurable.

Quote for Evaluating PA system:

“There are only three measurements that tell you nearly everything you need to know about your
organization’s overall performance: employee engagement, customer satisfaction, and cash flow.
It goes without saying that no company, small or large, can win over the long run without
energized employees who believe in the mission and understand how to achieve it.”
– Jack Welch

7.1.1 Why Should a performance appraisal Program Be Evaluated?

1. Make your people feel valued

To be fully satisfied and competent employees need to feel that they’re valued and are
producing good work. The formal appraisal is a great opportunity to give your employees
sincere feedback, spurring them on to work smarter and better.
Employees really value frequent praise and recognition, so letting them know you are
aware of the good work that they’re doing will help you to retain hard-working staff.
Your team will also value your expert advice on their personal brand, and what key areas
they should be focusing on strengthening.

2. Set new goals

The most productive employees are those that are constantly driven, and unrelenting in
their pursuit of goals. Setting achievable targets during the appraisal helps to motivate
employees, and empowers them to feel more confident when they hit them.
The appraisal is also a useful occasion to realign business objectives with changing
market conditions; making targets relevant and accurate. For instance, during a
particularly stagnant period of nationwide growth you may wish to reign in your forecasts
to avoid disappointment.

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3. Resolve grievances

Often managers are too engrossed in the day-to-day to get an insight into an employee’s
frame of mind. The appraisal is a great time to address any concerns you or they may
have.

4. Strengthen bonds

It’s important for team cohesion and overall productivity that managers have good
relationships with their team. Use this occasion to align priorities and discuss various
matters of interest to the business with your team members; almost like a brainstorming
session.

5. Refocusing your team

Appraisals can be used to help communicate your vision to team members. This is your
chance to clarify and articulate your vision, ensuring that everyone is singing from the
same hymn sheet.
It’s also an opportunity to manage employees’ promotion expectations. Those with an
inflated idea of their own abilities and role within the business will benefit from a
realistic assessment of their current worth.

6. Oversight on current projects

As a busy manager, it can be hard sometimes to adopt a helicopter view of on-going

projects. Formal appraisals are a good opportunity to step away from the hustle and
bustle of everyday work and reflect upon the overarching direction your team is heading
in.

7. Assess the training needs of your team

Different people within your team will have different strengths. Use the appraisal to
assess your employees’ weaknesses, identifying areas which may require additional
training and support.

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 Letting your team know that you’re thinking about their development will help instill in
them an ethos of ambition, in turn driving the business on to be more productive and
aspirational.

7.2 Hemas Ltd. –

How they
evaluate
performance
appraisal
process:

 Two times a year

 Information form fill-up by employees about their goal attainment
 Received the form by Supervisory officer.
 Supervisor send processed data to HR department
 HR department collect those midyear and end year processed information and send the
specific result to head office if needed.

8 Pros & Cons of Performance Appraisal System:

Pros:
 For Employees

Advantages of training for an employee is which is as follows:

 Increased job satisfaction and morale among employees

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  Increased employee motivation
 Increased efficiencies in processes, resulting in financial gain
 Increased innovation in strategies and products
 Reduced employee turnover
 They provide an opportunity for a manager to meet and discuss performance
with an employee.
 Provide an opportunity for an employee to discuss issues and to clarify
expectations with their manager.
 Can be motivational with the support of a good reward and compensation
system.

 For Organization

 They provide a record of performance over a period of time,

 They provide an opportunity for a manager to meet and discuss performance with an
employee.
 Provide an opportunity for an employee to discuss issues and to clarify expectations with
their manager.
 Judge overall and all of the employee’s performance at a single process,
 Help for promotion, transfer, job rotation, fire out, etc. decision.

Cons:
 Both for employee and organization
 If not done right, they can create a negative experience.

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  Performance appraisals are very time consuming and can be overwhelming to managers
with many employees.

 They are based on human assessment and are subject to rater errors and biases.

 Can be a waste of time if not done appropriately.

 They can create a very stressful environment for everyone involved.

9 Feedback by employees in PA system in Hemas

The employee can both of the following feedback to the company:

 Judgmental (Validity of evaluation)

 Administrative (Whether policies and procedures were followed)

10 Any Biasness in PA System in Hemas ?

As the HR managers done the PA evaluating decisions by seeing overall sales information in a
discussion with each other in a meeting, they are not affected by any kind of biasness (intentional
or unintentional) during the performance appraisal system or process.

11 Other HR Functions of Hemas Consumer Brands Pvt Ltd.

1. Reward system of the organization (policy and practice):
Rewards are aligned with organizational goals. When an employee helps an organization in the
achievement of one of its goals, a reward often follows. Hemas basically provide incentives. For
example: cash, vacancy, best performance award etc.

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 2. Components of compensation benefits.

Compensation is the total cash and non-cash payments that you give to an employee in exchange
for the work they do for your business. It is typically one of the biggest expenses for businesses
with employees. Compensation is more than an employee’s regular paid wages. It also includes
many other types of wages and benefits. Hemas Consumer Brands Pvt Ltd. use incentives like
base pay, commission, bonuses, travel allowance etc.

3. Practices of compensation and employee benefits in the organization:

Compensation Practices Becoming More Formal, Rigorous. Pay programs and practices at many
organizations are evolving. More organizations are adopting a formal, written compensation
philosophy that ensures a compensation program supports the organization's culture. Depending
on the sales Hemas give incentives to their employees. Hemas Consumer Brands Pvt Ltd.
provide different compensation like base pay, commission, bonuses, travel allowance etc.

4. Different leave system of Hemas:

For any organization, especially for startups and small businesses, employee leave management
is a crucial aspect. Such records of employees help you keep track of their diligence. Converting
to Bangladesh labor law Hemas Consumer Brands Pvt Ltd. has two types of leave system. One
is Annual leave and second one is Casual leave.

5. Salary scale of Hemas:

A pay scale (also known as a salary structure) is a system that determines how much an
employee is to be paid as a wage or salary, based on one or more factors such as the employee's
level, rank or status within the employer's organization, the length of time that the employee has
been employed, and the difficulty of the specific work performed. Salary scale of Hemas
Consumer Brands Pvt Ltd. employees are confidential but above average. Employees are getting
handsome salary and they are happy with that.

12 Findings:

Hemas Consumer Brands Pvt Ltd. is a fast growing company relatively comparing with other
consumer goods companies. By only few yeas their most concentrated brand “Kumarika” is well
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known, rapid profit earning and established brand already. They currently have around 500 to
600 employees in Bangladesh, all are concentrated to make the company no.1 consumer goods
company and to make customer happy by manufacturing and inventing quality based products.

13 Recommendation:

 As their HR department member are only three, we recommended that they should recruit
for the department,
 Separate HR managers for separate HR functions, such as, Performance Appraisal,
Training and Development, etc.
 Employees should have training on different job task based criteria.

14 Conclusion:

Finally, we say that consumer goods markets are more competitive. Every day they use new
method to beat the other company. Other company employees what they do they observe it. They
predict what will be the employee’s behavior in future.

Hemas Ltd. company they use the custodial model but it is not computed. They have opportunity
to work as a team. They offer different types of rule to motivate the employees to give reward
such as salary increase, bonus, promotion, vacation etc.

As a sales based company job works are hardworking. Here most of the employees are work
under pressure. They have a target; every month they fulfill the target. If they did not reach the

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target they lose job. They offer many facilities car, salary advancement and other benefits. I think
all employees are not agreeing with common bonus. Managers and employees’ relation are good.

15 Reference:

1. “Performance Management” written by Herman Aguinis.

2. www.hemas.com
3. www.wikipedia.com

16 Appendix

1. Hand note

2. Visiting Card
3. Picture of visiting the Bank

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Hand note of information while visiting the company:

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Visiting Card:

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Tanvir Khan (Assistant HR Manager)

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Snap while visiting Company:
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