Section A:

General Profile of Respondents:

With respect to our project on Performance Management System (PMS), we had visited to Millat
Equipment Limited (MEL) on November 10, 2014 and meet with Assistant Manager & Senior
Manager HR department. There are 722 number of employees are working in the organization, in
which 134 are executive employees.
Section B:
Current Performance Management System:
A formal PMS is exist in MEL and this process is applicable on all executive employees, which
is assessing through the Observation and Check List method and this method is Forced
Distribution Method. There are multiple processes are the part of PMS i.e. Coaching, Training
Development and Career Management Development. The PMS goals are sets by the Appraiser
and Appraise together. Organization has the PMS for retention and reward allocation of their
employees, in which individual, team and organization goals are linked up by top to down
approach. The job performance is determinant by the competency of the employees.
GAP Analysis:
The current PMS of MEL is not being applicable on senior technical workers and they are they
are not assessing the behavior of employees. There is no succession planning is implemented in
the organization. The supervisor and subordinate are set the goals without the approval of Senior
Manager. The PMS has no focused on identification of training development and job
performance is not determinant the inherent abilities of the employees.
Recommendations:
In our opinion;
The PMS should be applicable on senior technical workers for their future growth and
development. They have need to assessing the behaviors of employees for the positive
environment of the organization. Succession planning should be implemented in the organization
for smooth running operations. The goals settings are should be review and finalized by HODs.

Section C:
Perception of HR Professionals about Performance Management System:

As per HR official of MEL, we have differentiated in our performance appraisal and

performance management system, our performance appraisal is related to employees rewards
and performance management is for development of employees. The most challenging aspect of
PMS is determining the evaluation criteria, as it has a wider scope. Succession of PMS depends
upon choosing the right method of appraisal, which is linked with the promotion and salary
increase of employees. Line Managers are directly responsible for PMS and it is requirement of
our organization. Our PMS focus upon past performance of the employees which is highly
relevant with the human judgment and said PMS does not distract to employees from important
activities.
Section D:
Process of Performance Management:
Overall performance management feedback is measured by numerically, alphabetically and
verbally (positive & negative). These feedbacks are documented and reviewed by HR
department. At that time of appraisal, separate team of HR evaluates the whole appraisal system.
The performance planning is carried out for hiring and transferring of employees. Training
performance management techniques are received by the HRofficiall and they give training to
other HODs. Annually two meetings are scheduled on discussion of employees performance.
There is no any labour union is exist.
Section E:
Analysis on Issues in Performance Management System:
The major failure of the performance appraisal system is biasness and off track directions by top
management. Organization annually reviews the performance of their employees. HR department
reduce the biasness and other noises in performance appraisal system through the critical
incidents as well as identify the poor performance of employees and improve their performance
through training and coaching. HR department plays a helping role for better performance of the
employees. The entire performance appraisal system is based upon KPIs objective and Soft
Skills rating system, which is 70% and 30% respectively. In the opinion of HR official the selfappraisal system is more beneficial for the employees and appraising of distant subordinate is the
uncomfortable task. The linking rewards of performance motivate to employees.
Section F:
Effectiveness of Performance System and Method used in Evaluation:
A formal system is existing in the organization for evaluation of employee performance and this
process is conducted through formal written feedback. The reward strategy is to make more
effective linked with the PMS. Attrition rate computed in the organization after performance
appraisal. In organization the performance management process moderately effect on overall

performance of employees. Participative approach can improve the efficiency of an organization.

PMS will be amended within the next 12 months and the major aspects of PMS are succession
planning, more trainings & developments and employees participation.