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ARL:

PERFORMANCE
MANAGEMENT

Submitted by:
Vishwanath Jha
Aman Bhartiya
Ankur Agarrwal
Amit kumar

INTRODUCTION: Case
Facts
ARL is a leading company of Attock group in Pakistan.
The ARL was set in 1922 with an initial capacity of 2500
barrels per day

The organization- eight department with 155


employees as the management.

Until early 1990s, ARL was a market leader in its


region.
Strategic objectives of ARL are expansion of refining
capacity, upgrading of technology and optimization of

Evolution of PMS
Forthcoming refinery
expansion project.
Challenges due to
Deregulation policy of
Govt..

Performance Appraisal

Before 1999 performance appraisal was


based upon:
What the employee acomplishes
How the employee works
what the employee knows
What the employee feels
Five-point rating scale(Appraisal code)
was used
Competency indicators were introduced

Shortcomings of the
performance appraisal
system
The parameters of performance measurement were
qualitative and subjective, as it measured employees
on behavioral dimensions and attributes.
Past indicators is not the best indicator of the future
potential.
Absence of adequate feedback.
Employees feel that there was no proper system of
career progression.
Concerns related to link between the promotion and
the appraisal system.
No information was passed to employees about their

Modified PMS
ARL introduced Management by Objective approach
into the PMS.
Development of framework & Prioritising the change
initiatives such as
Coordination/interopersonal Framework
Policy framework
Monetary Framework
Working conditions
Formulation of working groups

Change Impact Analysis


o

o
o

Key Performance indicatorsTurnover


Behavioral safety Audit
Training Hours
Maximum safe hours
Employee Grievances received
Recruitment lead team
Informal surveys
Exit interviews

Challenges of the
Modified PMS
Employees concern or dissatisfaction(employees
concern over PAC was not clear).
No distinction between average and above
average employees
No change or lack of rotation in PAC

Role of performance appraisal in their career


progress & in their development.

Implementation issues (purpose, composition &


mechanics adopted by PAC).

in the PMS

A 360-degree feedback can be made for the employees which


would avoid biasing.
Promotions to be based on the potential rather than the past
performance of the employees.
Setting work standards
Assessing the employees actual performance relative to the
SMART goals.
Providing feedback to the employees
Including basic building blocks such as
direction sharing
goal alignment
ongoing performance monitoring with organizations goals.
Focus on aligning and monitoring the link between the
companys overall strategic goals and employee and teams
targets.
Use of IT to support PM, for instance, using dash boards to

Target(40%)

Previous Weightage

LH

HH

LL

HL
Competency(60%)

Target(60-70%)

uggested New Weightag

LH

HH

LL

HL

Competency(30-40%)

Bell Curve
Hike
(%age)

Ratings

10

Excellent

40

Very Good

30

Good

10

Average

10

Below
Average

rement System Using Bell Cur


Hike (%age)

Ratings

20

Excellent

15

Very Good

12

Good

7.5

Average

----

Below Average

3 consecutive excellent or very good


will get promoted

1.Business Plan
Objectives(60%)

Sr
No.

Area Of
Yearly
performan Targets
ce

Weig
htag
e

Apprai
se
Rating

Target
Apprais
Achieved(T er
A)
Rating

Remark
s

Production 100

20

20

Yes

15

TA-95%

Safety

To ensure 20
zero
accident

20

No
20
accident in
our
departmen
t this year

Target
Achieve
d

3
4
5

2. Performance Dimension(40%)
Sr
No.

Area Of
Yearly
performan Targets
ce

Weig
htag
e

Apprais Target
e
Achieved(
Rating
TA)

Apprais
er
Rating

Remark
s

Job
Knowledg
e

No. of
emergen
cies
handled

10

4 no's out
of 6

Ok

Decision
Making

Making
rational,
sound
and
timely
decision

Yes

Proficie
nt in
decisio
n
making

Final Rating

Final Rating = Aggregate Rating Points/100


Target

Rating

100 and above

Excellent

90-99

Very Good

70-89

Good

60-69

Average

<60

Below Average

Suggestion

U
O OU
Y
K
Y
N
K
A
THTHAN