PERFORMANCE MANAGEMENT EVALUATION
ARTISTIC MILLINERS
This assignment aims to make me learn about Performance Management and to understand and critically analyze its
evaluation procedure at Artistic Milliners Pvt. Ltd.
1. To know the prospect or procedure of Performance Management and its Evaluation.
2. To critically analyze the functioning of performance evaluation procedures.
3. To identify the probable area of improvement to make Performance evaluation procedures more effective.
Introduction:
Artistic Milliners was established in 1949. Operating on an area of more than 200,000 sq. m. Artistic Milliner
has the ability to cater to specific client needs with package deals such as product development at source,
design support, shorter lead times, on-time deliveries and warehousing facilities.
AM have 14 units and the units has approximately 15000 workers. The company is 100% export oriented.
The textile products have been exported to Europe, America, Australia, UK, and Dubai.
The company has latest equipment and machinery to serve globally. The company has modern computerized
networking system. All the Accounting and finance relating work is carried out through computer. The
company has capability in Textile (Spinning and weaving) and in Garments (Cutting, Stitching, Washing, and
Finishing etc.). The company implements the quality system and had awarded ISO 9002 certificate. The
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company maintains quality standard at all levels to establish consistency and efficiency. AM’s latest garment
factory, AMG-4, is a Green manufacturing facility certified by LEEDS (Leadership in Energy and Environmental
Design), with an Eco-friendly rating system.
Company’s mission statement is:
“To sustain our reputation as one of the top denim mills in the world by striving for excellence in each
function of our business”
Before discussing the performance criteria, it is important to take a look at the company’s organogram
(hypothetical) to understand how the structure looks like.
Human Resources Department in Artistic Milliners:
HR at AM supports and develops its people - by enabling them to deliver outstanding business performance.
The primary objective of the company's human resource department is to maximize the return on investment
from the organization's human capital and minimize financial risk and to do so in an effective, legal, fair and
consistent manner. The HR department offers support to the line management in different departments,
performs centralized service tasks, and ensures application of operational human resources activities. Main
areas of responsibility include manpower planning, organizational development, recruitment, job
classification, and salary administration , training and development, performance appraisal, advancement,
social services, social security, working conditions and settlements of disputes.
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Artistic Milliners has a bureaucratic organizational structure. Like any other bureaucratic organization and lack
of responsiveness are the key characteristics of its corporate culture. While traditional hierarchical structure
suits the nature of company’s business, the management needs to understand that in a highly competitive
business landscape, speed in taking decisions, efficient methods of functioning and operating are the traits
that can help the company take the leading spot in the textile sector.
The Performance management and evaluation process performed by this department at AM discussed
below.
PERFORMANCE MANAGEMENT SYSTEM AT ARTSITIC MILLINERS:
180° performance evaluation method is used to evaluate employee performance at Artistic Milliners. The
process involves the appraisee completing a self-evaluation form, which is then discussed and agreed with the
appraiser during the appraisal review meeting. Once the information is agreed upon by both the appraiser and
appraisee, the appraisal is signed off.
The company believes 180° feedback is a nice, friendly, two-way conversation between the employee and
their supervisors that not only help bring down the barriers between the two, making them more comfortable
with each other but also ensures a more rounded and objective performance appraisal.
At the moment, Artistic Milliners is using Excel-based performance management system, which is still a used
tool for undertaking employee performance review, performance evaluation & appraisal cycle in a number of
Pakistani organizations. Customized worksheets for performance appraisals based on the nature of job of each
employee, is used for performance appraisals.
Employees are rewarded according to their performance annually or on standard regular basis; performance
related to rewards positively shape their behavior and increases their productivity.
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MS Excel-based performance management systems are a thing of the past. Artistic Milliners is operating in a
highly competitive industry and it’s high time they abandoned their outdated systems in favor of automated
systems. The biggest factor that affects overall HR activities of the organization in a “not-so” positive manner
is the fact that most people working in the HR has been transferred from operations or production
department and have no practical knowledge of HR and latest HR trends.
It has been four years since the company’s HR came into existence. They have managed to get the hang of
basic hiring operations (because unfortunately they still have the impression that HR is only meant for hiring
and managing payroll) and that’s pretty much it. Another major weakness in their performance management
system is that they do not have clearly defined benchmarks for each job position let alone individual KPI’s. The
only day an employee receives feedback from their supervisor is the day of final appraisal.
RANKING SCALE IN ARTISTIC MILLINERS: (MANAGEMENT ZONE)
SKILL: COLLABORATION
DEFINITION
Respect: Treats all people with dignity, respect and fairness. Resolves interpersonal conflicts constructively.
Shares time, energy and knowledge with others to ensure they can succeed. Inclusiveness: Demonstrates
awareness and respect of cultural and individual values. Appreciates and leverages the strengths of others to
accomplish goals, regardless of background. Listens to ideas from others, even when different from own. Is
careful to ensure all sides are heard before reaching a conclusion.
Partially Performing: Performing: Outstanding:
Does not treat all people with Consistently, in all cases, treats Is a role model for consistently
dignity, respect, and fairness. everyone, with dignity, respect treating all people with dignity,
Avoids conflict, or engages in and fairness; is very easy to respect, and fairness; inspires and
conflict in a way that is approach and helpful ensures that others do so as well,
unproductive. Resolves interpersonal conflicts holding them accountable if they do
Misses opportunities to share constructively and professionally; not.
time, resources and knowledge seldom requires outside Consistently, in all cases, resolves
with others. assistance. interpersonal conflict constructively;
Seldom promotes awareness Enthusiastically spends time with utilizes conflict as an opportunity
and respect of cultural and others to help them and the team rather than a problem.
individual values and succeed. Anticipates and acts upon
differences; overlooks Promotes awareness and respect opportunities for helping others
opportunities to leverage the of cultural and individual values succeed; consistently and
strengths of others. and differences; leverages the enthusiastically shares time,
Does not show interest in strengths of others to accomplish resources and knowledge with
listening to ideas from others; goals, regardless of background. others.
has difficulty respecting ideas Listens to and carefully considers Consistently, in all cases, promotes
when different from own; tends ideas from others, even when awareness and respect of cultural
to reach conclusions before different from own; ensures all and individual values and
listening to all sides. sides are heard before reaching a differences; proactively seeks out
Does not value the importance conclusion. others from a variety of backgrounds
of teamwork; has difficulty Encourages teamwork among to assist in accomplishing goals.
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resolving team conflicts; direct reports; facilitates Actively solicits and encourages ideas
neglects the importance of resolution of team conflicts; from a wide variety of individuals; is
respect for all when interacting promotes respect among all team always careful to ensure every side is
with the team. members. heard and considered before
reaching a conclusion; lets others
know they’ve been heard and are
valued.
Visibly and proactively encourages
teamwork among direct reports;
consistently facilitates the resolution
of team conflicts in a way that is
mutually agreeable; promotes
respect and recognizes contributions
from all team members.
SKILL: Delivering Results
DEFINITION
PRODUCTIVITY: Strives to consistently
achieve excellence in all tasks and goals. Maintains focus and perseveres in the face of obstacles. Uses time
efficiently and responds quickly and constructively when confronted with challenges. Prioritizes tasks based
on importance. PERSONAL GROWTH: Ensures job
knowledge and skills are current and valuable. Receptive to feedback.
Partially Performing: Performing: Outstanding:
Is inconsistent in completing Achieves excellence in all tasks Coaches team on best practices in
tasks and goals; demonstrates and goals. achieving and maintaining excellence
little desire for excellence in Maintains focus and perseveres, in all tasks and goals.
work. even in the face of obstacles Consistently, in all cases, maintains
Struggles to maintain focus, Uses time efficiently; adapts plans focus and perseveres in the face of
perseverance, and resilience in when changes occur. Prioritizes obstacles; inspires others to do the
the face of obstacles - allows tasks based on importance. same.
roadblocks to cease progress. Delegates appropriately. Always uses time efficiently and
Struggles to use time efficiently; Actively pursues professional responds quickly and constructively
is often slow to respond; development and growth for self when confronted with challenges.
becomes distracted or and team. Adjusts
unable to complete tasks when Is receptive to and implements quickly to changing priorities.
confronted with challenges. Is suggestions for improvement. Carefully plans the delegation of
slow to adjust priorities. Solicits feedback. Actively assignments, based on skill,
Ineffective in delegating identifies ways to improve. developmental needs and urgency.
assignments. Holds direct reports accountable Inspires others to ensure job
Does not actively seek to for producing quality, timely knowledge and skills are current and
develop job knowledge and results; helps others maintain valuable; provides others with
skills; misses key opportunities focus and overcome obstacles. experiences and opportunities for
for personal development or Provides performance feedback development. Makes staff
developing others. that facilitates development development a priority.
Criticizes or ignores feedback Actively solicits feedback from others
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from others; struggles with and works to implement suggestions.
accepting developmental Utilizes feedback to improve
feedback. leadership effectiveness.
Does not hold others Leads a high performing team that
accountable for providing timely far exceeds expectations. Shares best
and quality results; provides practices for maintaining focus and
inadequate or little guidance to overcoming obstacles.
others on how to maintain focus Consistently, in all cases, provides
and overcome obstacles. and instructs others on how to give
Struggles to provide constructive constructive performance feedback
performance feedback. that facilitates professional
development
SKILL: Communication and Interpersonal skills
DEFINITION
Effectively transfers thoughts and expresses ideas orally or verbally in individual or group situations.
Partially performing: Performing: Outstanding:
At times does not provide Provides regular, consistent, and Proactively gives regular, consistent,
regular, consistent, or meaningful information to others; and meaningful communication
meaningful information to ensures appropriate individuals throughout organization; ensures
others; requires frequent are informed. important matters are shared with all
prompting and follow-up. Listens carefully to others, asks appropriate individuals.
Does not listen carefully; seldom questions for clarification, and Consistently listens to others with
ensures message is understood. ensures message is understood. care and interest; asks questions for
Does not consistently Communicates in a clear and clarification and ensures the
communicate in a clear and concise manner using appropriate message is understood.
concise manner; does not use grammar, pronunciation and tone; Consistently communicates in a clear
proper grammar, pronunciation, conveys message using and concise manner; utilizes proper
or tone; is difficult to appropriate method of grammar, pronunciation, and tone to
understand. communication (email, phone, in enhance understanding; consistently
Struggles with demonstrating person). conveys message using appropriate
professionalism through body Demonstrates an ability to method of communication (email,
language, including poor eye- influence others by modeling phone, in person).
contact and improper posture. appropriate body language and Takes special care to always
Does not tailor communication nonverbal communication. demonstrate professionalism by
style to the needs of the Tailors communication style to the modeling appropriate body language
audience; shows little needs of each situation and and nonverbal communication.
appreciation for importance. audience. Consistently, in all cases, tailors
Seldom encourages direct Encourages direct reports to communication style to the needs of
reports to communicate communicate consistently, clearly the audience; often follows up to
consistently, clearly or and professionally. ensure message is understood.
professionally. Teaches direct reports best practices
in delivering consistent, clear and
professional communication;
provides coaching and guidance as
needed.
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SKILL: Initiative/Perseverance
DEFINITION
Taking prompt action to accomplish objectives; taking action to achieve goals beyond what is required; being
proactive.
Partially Performing: Performing: Outstanding:
Infrequently seeks ways to Actively seeks out ways on own to Consistently, in all cases, seeks out
improve outcomes. improve outcomes, processes or ways on own to make improvements
Seldom takes responsibility for measurements. to outcomes, processes and/or
or provides leadership in Takes responsibility and provides measurements. Collaborates with
projects/initiatives. leadership on projects or external units to create and develop
Often waits for direction to initiatives. opportunities for improvement
initiate action on projects. Takes action on projects without Consistently, in all cases, takes
Shows little enthusiasm for being directed responsibility and provides
seeking or accepting additional to do so, and looks for leadership
responsibilities, inside or outside opportunities to move projects on projects or initiatives and brings
the context of one’s job along. projects to a successful conclusion.
description. Enthusiastically seeks and accepts Always advances projects by
Rarely encourages or identifies additional responsibilities, both in identifying and recommending
staff development opportunities. the context of the job and outside internal /external resources when
immediate job responsibilities. available resources are insufficient.
Encourages Recognizes external/internal risks
staff to identify and address and develops projects to address
process improvements, issues. Advocates for change when
participate in projects and on needed.
committees when appropriate. Is a role model for seeking and
accepting additional responsibilities.
Inspires others to contribute above
and beyond the context of the job,
for the good of the organization.
Identifies and/or provides
opportunities for staff to assume
leadership roles on projects and/or
committees.
SKILL: Problem Solving Skills
DEFINITION
Considers multiple sides of an issue. Weighs consequences before making final decision. Makes informed
decisions based on available information. Recognizes issues, and determines actions needed to advance the
decision making process. Follows up as necessary.
Partially Performing: Performing: Outstanding:
Seldom breaks down problems Breaks down problems into Generates innovative, elegant
into their parts, or examines fundamental parts. Identifies root solutions that are aligned with the
root causes. Seldom considers causes and addresses problems in company’s mission and vision. Sees
consequences before making ways that lead to innovative beyond the immediate solution to
final decision. solutions. potential process improvements.
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At times makes decisions that Consistently, in all cases, makes Consistently, in all cases, makes
overlook important available informed decisions based on informed and well thought out
information. available and hard to find decisions, based on all available and
Fails at times to recognize issues information. Utilizes information obscure information. Always utilizes
that require a solution; that is relevant, current and clear. information that is relevant, current
overlooks actions needed to Recognizes typical as well as and clear – and which leads to
advance the decision making complex and unusual issues, and creative solutions.
process. actions needed to advance the Even in the most difficult situations,
Becomes discouraged by decision making process. recognizes issues and determines
ambiguous situations. Does not Recommends possible solutions. whether action is needed; takes
always adjust approach to Follows up to ensure resolution. charge of a group when necessary
achieve results. Creates new ideas and processes and makes decisions in a timely
Overlooks opportunities to assist despite initial ambiguity of the manner.
employees with solving situation; modifies approach to Consistently, in all cases, creates new
problems. Does not recognize achieve results in changing ideas and processes despite initial
others for successful problem situations. ambiguity of the situation.
solving. Assists employees in diagnosing Empowers and inspires others to find
problems and recognizing issues. solutions in a timely manner
Takes time to help employees Often gives staff opportunities to
identify critical connections, apply and strengthen problem
consequences and alternatives. solving skills. Challenges staff with
Recognizes opportunities.
successful adaptations
Artistic Milliners can follow to improve their performance evaluation system include:
Developmental Feedback - In this type of feedback, line managers keep a check on employee’s performance,
scrutinize their work, provide necessary response on specific actions and also keep a check on their yearly
goals and identify training and development needs to help them achieve their targets.
Documental Feedback - Unlike developmental feedback, the documental feedback is given after fixed time
interval. The main purpose in documental feedback is to provide promotion and succession to employees as
per their performance. The time interval followed is standardized at Artistic Milliners and the rewards and
ratings are also formally standardized and uniform. This feedback helps employees improve their work
patterns and perform better.
Individual Performance Factor IPF - The yearly bonuses & rewards are awarded to employees based on
performance. Individual performance factor plays a crucial role in instilling motivation in employees and
driving them to perform their best.
Professional Development Planning - Performance and Development Planning (PDP) is an integral part of
employee development. The process supports employees in identifying weaknesses, developing areas of
weakness and delivering results. It also helps groom employees for future roles.
Ongoing Commitment - PDP provides a continual process that allows for a thorough evaluation of
performance of each individual working for the company. It's an approach designed to encourage clarity and
transparency throughout the year. This is an on-going dialogue between an employee and their manager,
which is all about listening, sharing & accepting feedback and taking responsibility for the next step in their
career.
The main objectives that lay the foundation of a strong performance management system include:
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1 Setting employees’ goals
2 Aligning goals with business objectives
3 Identifying Training & Development needs
4 Determining merit pay for performance
5 Fair evaluation of employee performance
The company should realize that people are its important asset and that they are likely to sustain their
performance if they are satisfied with their jobs and company’s environment and so the management should
lays great focus on fitness of heart, mind and spirit of employees by creating a vitalizing work experience and
environment for its people. The primary aim is to energize them and motivate them to put their best foot
forward – a Win-Win situation for everyone.
ROOT CAUSE ANALYSIS:
To identify the root cause of the problems in Artistic Milliners PMS, I have used fish bone.
Improper Job Lack of Structure
Evaluation
No formal performance
management philosophy
Ineffective Performance
Appraisal System
Poor
Recruitment
Process
Internal Disparity Documentation
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RECOMENDATIONS:
Adopt a Performance Management Philosophy
One of the first things to be done is to establish a Performance Management philosophy that would provide
the appropriate framework and guidelines for evaluating performance.
It is important for the philosophy to be reviewed periodically and modified based on how well it is working
and current factors affecting the business. Furthermore, it should be able to:
• Identify the company’s performance related remuneration strategies.
• Identify how the strategy supports the organization’s business strategy, competitive outlook, operating
objectives and human capital needs.
• Motivate employees to perform at the best of their competencies, abilities and skill sets.
• Retain key talent and reward high-performing employees.
Endorse modifications to current performance management process
and resulting pay raises to address performance management issues consistent with the compensation
philosophy, by adopting “pay for performance” approach going forward.
Performance management at Artistic Milliners should be a continuous process that begins with the setting of
challenging/SMART objectives at the start of each review period supported by open, direct and constructive
performance management dialogue throughout the review period -till the year end. By encouraging
appropriate challenge and developmental support, Artistic Milliners will be able to maximize the potential and
performance of its people and the organization as a whole.
The main objectives that should lay the foundation of Artistic Milliners performance management process are
summarized below:
Setting SMART Goals
Provide On-going Feedback & Support
Reward Great Performance/ Determining Increments and Promotions as per Performance
Unbiased Evaluation of Employee Performance
Ditch Outdated Excel Based Performance Management Systems and Go for Automation.
Artistic Milliners still follows excel based performance management system that needs to be replaced. There
are tremendous benefits of automation such as cost savings, increased efficiency, and enhanced productivity
(of HR people).
To keep pace with today’s swift and fast-paced business environment, the performance management
department of an organization needs to be flexible and responsive enough to be able to constantly update its
knowledge and skill base in order to play an active role in the growth and development of the organization as
a whole.
Promote a performance driven culture. It goes without saying that successful performance management is
not just about changing the way performance review is done; rather, performance management is about
creating and promoting a culture where performance reigns supreme. Additionally, performance management
process should be aimed at improving the overall organizational performance by managing the performances
of teams and individuals.
ACTION PLAN:
[Link] Recommendation Explanation Schedule Stakeholders Course of Action to
. (estimated Follow
10
duration)
1 Promote a Performance When On-Going HR Align processes and systems
Driven organizations Process with strategic vision and
Culture make it a point mission of the company
to focus on
employee
performance,
there is an air
of motivation
in the office
environment
that usually
results in
great
numbers.
2 Endorse modifications In addition to Undergoing HR 1. Address challenges to job
to current being fair – satisfaction and
performance and November engagement
management process transparent, 2019 caused by performance
the management issues.
performance 2. Designing of fair,
management competitive, transparent
structure performance management
should structure that is in line with
promote a the compensation structure
performance
based
culture at
Artistic
Milliners
3 Adopt a Performance Our Ongoing HR 1. Identify the company’s
Management compensation from 2018 department, performance management
Philosophy philosophy –still representative strategies.
seeks to working till sample of 2. Identify how the
ensure our October employees performance management
performance 2019 and strategy support the
management department organization’s business
structure heads strategy, competitive
is: (1) fair and outlook,
transparent, operating objectives and
(2) aligned human capital needs.
with best 3. Define how the
practices, and organization plans to pay
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(3) rewards and
Performance reward competitively, based
on business conditions,
competition and ability to
pay.
CONCLUSION:
Artistic Milliners has a progressive outlook and the good news is the company is beginning to
realize that they need to have a progressive outlook if they want to sustain their edge in the
market. Once all the factors are aligned, they will contribute significantly toward enhanced
performance.
The company lacks in several areas of HRM including performance management, which is one
of the most important HR functions. Right from using obsolete system to not having a concrete
performance management guideline, the function seems to be one of the most overlooked HR
functions.
Artistic Milliners is looking to automate its performance management function by 2018 by
deploying a performance management module, which is expected to improve the efficiency and
effectiveness of their performance evaluation system, which is a positive sign.
To conclude, top performers gravitate to employers that reward performance in a transparent
way. They want to be rewarded for their higher skill, extra efforts and out-sized results. They
will not accept job offer if they think the organization’s philosophy is full of vague platitudes.
While on one hand, poor performers love environments where everyone is left in the dark and
treated the same - they don’t want their performance measured and evaluated too closely, star
performers always want their efforts to be seen and recognized and expect to be rewarded
accordingly.
Management at Artistic Milliners realizes that in today’s competitive environment, only those
organizations will succeed that are able to efficiently balance the goal of ensuring sustainability
of business environment with the traditional goal of maximizing the profitability of the
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shareholders and they are taking all measures to ensure the company sustains its leading position
in the Textile sector.
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