ASSINGEMENT

HUMAN RESOUCE
MANAGEMENT
RECOMMENDATION TO “ATTOCK REFINERY
LIMITED”

BY: HAMZA AHMED JALAL

9/11/2010

Presented To
Lecturer: HRM

SIR: OMER AZIZ BABAR

Recommendation to “ATTOCK REFINERY LIMITED”

Present age is termed as Knowledge Age in which true creators of value are the best performers
in the company. The companies to prove their competency in highly competitive market have to
come up with innovative ways of resource management. With employees being the strong
determinant of company’s performance appraisal systems are introduced into the system to
analyze individuals’ share to company’s objectives. There are various techniques that are
adopted by many organizations for performance appraisal systems.

As according to the case in early 1999, the management of attack refinery LTD. (ARL) was
evaluating its performance appraisal system which was criticized for its subjectivity, inadequacy
in differentiating between high performance appraisal and low performance and weak linkage to
organization’s compensation system and strategy. So I recommend (ARL) to use one of the best
techniques named bell curve system of appraisal. One of the techniques which are derived from
forced ranking system is the Bell Curve Appraisal System. Bell curve system of appraisal is a
forced ranking system imposed on the employees by the management. Forced ranking has been
defined as “a workforce management tool based on the premise that in order to develop and
succeed, a company must identify its best and worst performers, then nurture the former and
rehabilitate or discard the latter”

Working of bell curve system:

Bell curve system rates the entire workforce by comparing the performance of those engaged in
similar activity and ranking them on the basis of their performance. The entire workforce is
segregated as the top performers, medium performers and the poor performers. 1. The employees
belonging to the higher grade contribute significantly to the enterprise. They are showered with
rewards like restricted stock options, bonuses, etc so as to motivate them to continue their
excellent services to the business entity. 2. The medium performance employees are significant
in number and their presence ensures uninterrupted work flow within the organization. They
generally have some weakness which is removed by the training facilities offered by the
company. Similarly training is also provided to enrich their key skills to utilize in a way
profitable to the entity. 3. The bottom ranking consists of those whose performance needs
significant improvement and whose is unsatisfactory. The ranking acts as a warning system that
tells the employee where he stands in relation to his peers. The employees belonging to the lower
level are at times given the opportunity to improve their efforts or are renounced from the
system.

Solved problem by following way:

The bell curve system of appraisal provides the momentum to the employees to push them
forward, aiming higher. This system also states the criteria that are essential to drive the
organization forward. A single system of appraisal has high chances of giving out false reports
leading to dispirited workforce. However the bell curve system backed by other measures of
performance appraisal can be an added advantage.