PERFORMANCE APPRAISAL SYSTEM

Performance appraisal system

Performance appraisal system

PERFORMANCE APPRAISAL SYSTEM

Performance Appraisal System

Performance Appraisal System

Introduction

In this working paper, the author will carry out a critical analysis of the Performance Management & Appraisal system being used by the National Bank of Bahrain (NBB), which is a Bahrain based National Bank. Different models and frameworks will be used throughout the analysis to measure the effectiveness of the HRM practices within NBB, which in total have a direct influence in the overall performance of employees and management. Critically, the writer will recommend and justify some measures in the HRM practices that will lead to an improvement in the overall performance (Armstrong, 2000).

Performance Appraisal System of National Bank of Bahrain (NBB)

NBB was founded in 1957, as the first local owned bank in Bahrain. The bank is owned 49% by the Government of Bahrain, and the other 51% by private shareholders mainly Bahraini Nationals and firms. NBB is a provider of commercial and retail banking services in Bahrain through a nationwide network of 25 branches and 35 automatic teller machines (ATMs) (Armstrong, 2000).

Market-driven and customer-led, the bank harnesses the latest technology to people skills, enabling its more than 500 employees, which make it, the largest bank in terms of employees and branch network in the country to deliver highly professional services for retail and corporate customers, financial institutions and government organizations (Beer, 1985).

Before 1987, the bank did not have any formal strategic plans. After this date however, the bank depended on a consultant to enable it to formulate the strategic plans. Currently, the bank is undergoing a business process of reengineering. To effectively evaluate the NBB's Performance Appraisal system, a definition of the 'Performance Management System' would be essential. Armstrong argues that "the performance management can be described as a continuous self-renewing cycle". Armstrong goes that the main activities of that cycle are: (Beer, 1985).

- Role definition: The result areas and the competence requirements are agreed.

- The Performance agreement or contract: Individual objectives and expectations that could be described as the performance planning stage.

- The personal development plan: The actions that individuals intend to take to develop themselves in order to extend their knowledge.

- Managing performance: The stage in which action is taken to implement the performance agreement and personal development plan.

- Performance review: Formal evaluation stage when a review of performance based on the above performance agreement and personal development plans.

To understand the importance of the Performance Appraisal System, as a function, to the top management of NBB and their perception to the importance and effects of the practices being adopted, a framework of strategic management will be used, to explain the effect and the position of the HRM function within NBB (Fombrun, 1984).

The model shows performance as a central function of all the human resource components. In addition, it shows that it is always the outcome of the appraisal of performance that decides what development different employees require and how much reward each employee will ...