Submitted By: Vishwanath Jha Aman Bhartiya Ankur Agarrwal Amit Kumar

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

Submitted By: Vishwanath Jha Aman Bhartiya Ankur Agarrwal Amit Kumar

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Submitted By: Vishwanath Jha Aman Bhartiya Ankur Agarrwal Amit Kumar

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ARL:

The organization- eight department with 155

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

Before 1999 performance appraisal was

Change Impact Analysis

Key Performance indicatorsTurnover

Role of performance appraisal in their career

Implementation issues (purpose, composition &

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

uggested New Weightag

rement System Using Bell Cur

3 consecutive excellent or very good

Final Rating = Aggregate Rating Points/100

100 and above

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