Case Report

Carter Cleaning Company: The Performance Appraisal

Bus601.2: Human Resource Management

Prepared By
A M Shahed Istiaque (141-1897-660)
Mohammad Sakibur Rahman (143-0862-660)
Md. Rafizul Haque (142-0900-060)

Submitted To
Dr. Md. Abbas Ali Khan
School of Business, NSU.
Date of Submission: 8th August, 2015.

Letter of Transmittal

8th August 2015

Dr. Md. Abbas Ali Khan
School Of Business,
North South University, Dhaka.
Subject: Submission of Case Report on Carter Cleaning Company: The
Performance Appraisal.
Dear Sir,
This is to notify you that this Case report is based on the learnings of initiating
the Performance Appraisal Method in a company that is correlated with the
course materials. The opportunity, infact, provided us a deep understanding
and practical knowledge of what we learned so far.
Thank You very much for your guidance.
We beg your kind excuse for the unintentional errors that may take place in
the report in spite of the best effort. We hope that you would be kind enough
to accept this report and evaluate with your wise judgment.
Sincerely yours

..........
.........
A

Shahed

Md. Rafizul Haque

...
Mohammad Sakibur Rahman

2|Carter Cleaning Company: The Performance Appraisal

Istiaque

Chapter

Case Report Description

One

Pag
e no

1.1 Origin of this Report

01

1.2 Purpose of the Report

01

1.3 Methodology of the Report

02

1.4 Limitations of the Report

02

1.5 Performance Appraisal Overview

02

Chapter

Case Scenario

Two

2.1 Criteria to be evaluated

03

2.2 Quality Standards

03

2.3 Accomplishments

04

2.4 Factors to be considered

4-5

Question-Answer
3.1 Question 1

5-6

3.2 Question 2

6-9

Bibliography

9-10

Chapter

Three

Table of Contents

Chapter one: Case Report Description

1.1 Origin of this Report

3|Carter Cleaning Company: The Performance Appraisal

In todays world, education is the tool to understand the real world and
apply knowledge for the betterment of the society as well as business.
From education, the theoretical knowledge is obtained from courses of
study, which is only the half way of the subject matter. Practical
knowledge has no alternative. The perfect coordination between theory
and practice is of supreme importance in the context of the modern
business world in order to resolve the contrast between these two areas.
Therefore, our course instructor Dr. Md. Abbas Ali Khan gave us an
opportunity of making a project report that we choose to prepare and
compile on FDI Climate in Bangladeshs perspective.

1.2 Purpose of the Report

Performance Appraisal is an important part of Human Resource activities
for a company. We analysed the case scenario for the carter cleaning
company and found out some criteria to recommend the best possible
method of performance appraisal for the carter cleaning company. The
specific objectives of this case report are as follows:

To identify an appropriate appraisal method for a small firm like Carter

cleaning company;

To observe if the appraisal helps the supervisor to assess the work

performance of its employees;

To observe if the appraisal helps to review the potentiality of

employees so that their future capability is anticipated;

To provide grounds for employees to correct their mistakes in this line

of business;

To recommend ways to improve employee engagement through proper

appraisal method;

4|Carter Cleaning Company: The Performance Appraisal

1.3 Methodology of the Report

The paper is fully based on case scenario presented by the author (Gary
Dessler) in the book Fundamentals of Human Resource management. The
relevant information needed to solve the case regarding the Performance
Appraisal are collected through the secondary data from the websites, some
articles and journals, some case study to know the actual scenario. Online
articles and journals helped us to gather information about the theoretical
concept along with the book.

1.4 Limitations of the Report

Limited Materials: The case scenario presented in the book is very short
one. We couldnt get that much of inside information about carter cleaning
company regarding the actual situation, employee turnover rate and
budgeting to elaborately analyse the actual situation.

1.5 Performance Appraisal Overview

Employee appraisals are important for improving communications between
the employee and reviewer. By speaking openly about the job performance
and issues that may be affecting it, the employee and reviewer can develop
a sense of trust that may have been lacking. Employees who previously did
not feel comfortable approaching the reviewer with a problem may become
more likely to voice her concerns, which can prevent a small issue from
escalating into a major problem over time. Besides, an effective employee
appraisal provides an opportunity to give feedback as well as receive it. The
employee receives important information as to what areas of the job he/she
is performing well and those that need improvement, so he knows exactly
where he stands. The reviewer can also receive feedback from an employee
that can help him make improvements in the work environment. The

5| Carter Cleaning Company: The Performance Appraisal

reviewer may also uncover issues that could be impeding employees from
performing their best, and can take corrective measures if necessary.

Chapter two: Case Scenario

The case basically discusses about whether the cartel cleaning company
should take a formal appraisal approach to evaluate its employees. The fact
is that the company is solely owned and managed by Jack carter who has
been running the business on his own way. He didnt have any formal
methods to evaluate the performance of his employees and also didnt have
any records of employee turnover. Most of his employees worked there in
short term because when those employees got uncomfortable, they left. This
has been the scenario in the recent past. But now the company is expanded
to six different locations with six stores with a store manager in each to
manage it. The employee pools are larger than before. Since jacks daughter
Jennifer, a business graduate from state university joined in, she observed
these issues. She wanted to bring in some changes in the company. Now she
wants to turn her fathers informal way of doing business into more formal
one.

2.1 Criteria to be evaluated

Should be evaluated periodically:
Quality: Correctness, completeness, and accuracy of work duties performed.
Quantity: Amount of work done during workday.
Attendance: Regularity to work hours.
Punctuality: timely attendance at the workplace and meetings.

2.2 Quality Standards that store managers should have

6| Carter Cleaning Company: The Performance Appraisal

Store Cleanliness: basically the outlook of the stores.

Efficiency: The output rate of each employee
Safety: Good working condition
Adherence

to

budget:

Compliance

with

the

companys

monetary

condition.

2.3 Accomplishments
An appropriate performance appraisal of the employees will enable the
carter cleaning company to:
Lead from the front. The company might have a clear idea of where the
business is going and whether the employees understand the vision and tie it
in with their daily activities?
Listen to the employees real concerns and pick up on their ideas.
Employees will feel happier and perform better if they have a recognized
system for talking to their store manager, getting feedback and getting help
to improve and develop.
Understand what makes the employees tick and how they contribute to the
business success. This understanding can only really develop through the
kind of regular and open interaction provided by performance appraisal.
Achieve results. If the company buys a new piece of equipment or
machinery, it usually comes with a manual that explains how to get the best
out of it. It is not so simple with people. To work best, the employees need an
ongoing system of tweaking, adjusting and reviewing the way they work in
order to continually improve.
7| Carter Cleaning Company: The Performance Appraisal

2.4 Factors to be considered

What is the nature of the problem? If it is a very serious issue that is
potentially damaging to your business, it will need to be dealt with urgently.
In these cases you may instigate formal disciplinary action much sooner.
How long it has been going on? If you have already discussed the issue
at appraisal meetings and attempted to resolve the problem, you may decide
it is time to follow your disciplinary procedure.
What is causing the problem? If it is beyond the employees control, for
example, the lack of adequate training, this needs to be addressed before
you begin any formal action.
Is the employee capable of meeting their targets? If they are capable
of meeting their targets, then their failure to do so may be due to a lack of
motivation or hard work.
Is there a pattern of unsatisfactory performance? If you notice that an
employee has a pattern of only meeting their objectives as a last resort,
when all other options are exhausted, you may decide that an informal
approach is not working.

Chapter three: Question-Answer

Question 1
Is Jennifer right about the need to evaluate the workers formally?
The Managers? Why or why not?
8| Carter Cleaning Company: The Performance Appraisal

Jennifer is absolutely correct in having these employee evaluations done

formally. After spending several weeks on the job she was surprised to
discover that her father had not formal evaluated any employees
performance. He had focused on other things like boosting the sales,
lowering the production cost etc. He had a very informal praised system for
the manual workers. Informal evaluations can lead to unfair appraisals which
can open unexpected problems like discriminations, demotivation, biasness
etc.
So, Jennifer believes that a more formal appraisal approach is required. She
also believes that there are criteria such as Quality, Quantity, Attendance,
Punctuality, Sincerity, Behavior, Efficiency etc. that should evaluated
periodically even if a worker is paid on piece rate. Furthermore, she feels
quite strongly that the manager needs to have a list of quality standards for
matters such as store cleanliness, efficiency, safety, and adherence to
budget on which they know they are to be formally evaluated periodically.
Reason for is to protect Carter Cleaning Company and its business goals from
discrimination charges or violations of Title VII of the 1964 Civil rights Act. All
employees should receive formal evaluations via by paper or electronic
forms in order to have a documented history. Every individual company has
its own Standard operating procedure (SOP) to evaluate their employees.
There are some key things that the supervisors are observed and after a
certain period of time, they evaluate on that basis.

Keeping employee

evaluations on file makes it easier for employers to reference certain

information needed for promotions, increments or transfer etc.
There are three main reasons to appraise performance.
1. Firstly, appraisals provide important data the supervisor then use to
make promotion & salary raise decisions.
2. Secondly, the appraisal let the boss & subordinate develop a plan for
correcting any deficiencies the appraisals might have unearthed, and
to reinforce the things the subordinate does correctly.

9| Carter Cleaning Company: The Performance Appraisal

3. Finally, appraisals can serve a useful career-plan purpose, by providing

the opportunity to review the employees career plans in light of his or
her appetent strengths and weaknesses.
Jennifer should get with Jack to discuss what performance dimensions should
be measured and how to measure them. Once theyve come to a decision,
Jennifer should look in to developing a sort of graphic rating scale.

Question 2
Develop a Performance appraisal method for the workers and the
managers in each store.

Performance

appraisal

method

for

Carter

Cleaning

Company
If you are finding a better method of evaluating, in full aspects, the company
culture, the accuracy of the job descriptions, employee performance and the
effectiveness of practices and business operations, you may consider
applying 360 Appraisal Method.
This is an Appraisal Method based on the feedback from many points of view
such as of employees under other managers, direct managers, subordinates,
Director Board members or of customers and suppliers, etc.

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This method requires no computer software to have an accurate appraisal

result. Many small enterprises have developed themselves "low-tech"
programs that mainly use paper, but still, have many advantages in
appraisal process. According to Rim Yurkus and Diane Irvin - directors of
LISTEN Co. (a company with headquarter in Denver, the US, which
specializes in helping corporations to develop their human resource and
apply appraisal methods), when developing 360 Appraisal Method, a
company need to focus on the following:
1. Making agreement with the employees
It shall be necessary to hold a meeting in which the purpose, procedures to
apply 360 Appraisal Method and people who will receive the appraisal results
will be clearly explained. If the purpose is to develop professionalism, the
results should be shared among the evaluated employee and his manager or
instructor at work.
If the purpose is to consider the performance for bonus, it shall be necessary
to explain clearly the role (by percent) of the Appraisal Method of 360. For
example, an employee will get a bonus on considering his general
performance (50%), fulfillment level of the business goals (25%) and the
result of 3600 Appraisal Method (25%).
It shall be crucial for the company to clearly explain to their employees about
How the appraisal process will be supervised, How the results will be
collected, what the next step is, when the next appraisal will be and about
any training or instruction course after evaluating.
2. Building up a Common Job Description
You should begin by establishing a professional board which consists of
representatives of different departments, to work out a description with
skills, knowledge and experience required for each job.
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The description should consider the core value and strategy of the company
as a Lodestar and consider high performance employees as typical when
establishing a job description. When skills and professional qualifications for
each job are unified, they shall be divided into smaller, more specific and
easier to observe behaviors.
3. Convert the behaviors above into appraisal questions
To have an accurate appraisal result, based on small behaviors as mentioned
above, appraisal questions must be extracted from so as to any evaluator
can understand and give the similar feedback when being asked with such
question no matter when he is asked (6 weeks, 6 months or 6 years
periodically)
The important point is that these questions must be unified and suitable to
the company condition. Finally, the list of appraisal questions on the
employee behaviors will be revised by summarizing and adding more or less
question (if necessary), then submit to the Director Board for approval.
4. Holding Training Course for responsible People for evaluating
The evaluators shall be instructed about how to give a valuable and objective
feedback. They should as well be reminded of the importance of the
accuracy and of following the Information Privacy Principle. They will be preinformed of the employees, behaviors and score scale to be evaluated.
It will be appropriate to apply 1 - 7 appraisal score scale, in which 1 is
"unacceptable" and 7 is "excellent". A section of "Not Applied (or N/A)" will
be applied as for the appraisal not relating to the job or employee to be
evaluated. In addition, there should be some questions requiring feedback in
writing, for example: "What do you think are the benefits that Mrs. A has
brought us?"; "What do you think Mr. B should do first to improve his
performance in the future?"
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5. Action after Evaluating

The evaluated people may hold a meeting to give thank to all the evaluators
for their feedbacks, make future engagement to improve and do better with
their help and timely advices. Based on the appraisal result, the company
may consider the employees with high and outstanding performance at work
and skills and the opposites, for whom appropriate training shall be decided
if necessary.
6. Calculating the score and Announcing the result
The score should be calculated for different jobs, departments and
managers. These results may be used in the interview for recruitment or for
leaving off work. The scores will be classified according to the relationship
between

the

employee

and

the

evaluators

(co-worker,

subordinate,

customer...)

Bibliography
Book
Dessler,

Gary

&

Varkkey,

Biju.

Fundamentals

of

Human

resource

management-Content, competencies and application. Subcontinent Ed.

India/Boston: Prentice Hall, 2011.
Online Research Paper
ACAS (2014), Managing Performance for Small Firms. Retrieved from
www.acas.org.uk/.../Managing-performance-for-small-firms-accessibleversion.pdf
The University of Texas of the Permian Besin (2013), Performance
Appraisal. Retrieved from
https://www.utpb.edu/docs/default.../pe3_performance_appraisal.pdf
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Website

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