Improving the performance appraisal for emloyees at thang long refrigeration electical engineering joint stock company (tle ,jsc) 2020

NATIONAL ECONOMIC UNIVERSITY BUSINESS SCHOOL IMPROVING THE PERFORMANCE APPRAISAL FOR EMLOYEES AT THANG LONG REFRIGERATION ELECTICAL ENGINEERING JOINT STOCK COMPANY (TLE.,JSC) Bachelor of Business Administration in English (E-BBA) Thesis Supervisor: MSC Nguyen Tuan Minh Student name: Nguyen Thi Thu Hoa Student ID: 11161930 HANOI, 2020 ACKNOWLEDGEMENT During the process of completing this research paper, I have received a respectful help, guidance, and encouragement Firstly, I would like to send my most sincere thanks to the instructor Master Nguyen Tuan Minh, who gave me many suggestions in choosing the topic, how to shape my writing and always willing to give valuable advice in a timely manner as well as help me to edit and complete this report Secondly, I would like to thank all the teachers and teachers during the years of study at the NEU Business School for helping me with the knowledge and skills to complete this internship report Next, I would like to thank my colleagues in the internship unit for helping me to complete my internship, to begin to familiarize myself with the working life as well as to contribute a lot to help me complete this report Finally, I would like to thank my family and friends who are always with me, helping me to be motivated to complete this thesis in the best way Ha Noi, December 2019 Hoa Nguyen Thi Thu Hoa Table of Contents ACKNOWLEDGEMENT ABBREVIATIONS .4 LIST OF TABLES LIST OF FIGURES EXECUTIVE SUMMARY CHAPTER 1: INTRODUCTION 1.1 Rationale 1.2 Research objectives 10 1.3 Research questions 11 1.4 Research methodology 11 1.4.1 Research process 11 1.4.2 Research design 12 1.4.3 Data collection 13 1.4.4 Data analysis 14 1.5 Research scope 15 1.6 Research structure 15 CHAPTER 2: THEORETICAL BACKGROUND OF PERFORMANCE APPRAISAL .15 2.1 Overview of Performance Appraisal system 15 2.1.1 Performance appraisal definition .15 2.1.2 Performance appraisal system 17 2.1.3 The relationship of Performance Appraisal and other HR Sections 18 2.2 Performance appraisal process .19 2.2.1 Identification 19 2.2.2 Measurement .22 2.2.3 Management 28 2.3 Purpose of performance appraisal system 29 2.4 Performance appraisal system role .31 CHAPTER 3: ABOUT THANG LONG REFRIGERATION ELECTRONIC ENGINEERING JOINT STOCK COMPANY 32 3.1 Basic information 32 3.1.1 Introduction .32 3.1.2 History of formation and development of TLE 33 3.1.3 Organizational structure .35 3.1.4 Roles and responsibilities of the office 35 3.1.5 Principles of operation .36 3.1.6 Some main business results .37 3.2 Current Performance appraisal of TLE .38 3.2.1 Performance Appraisal Identification 38 3.2.2 Performance Appraisal Measurement 44 3.6.3 Performance Appraisal Management 50 CHAPTER IV: RECOMMENDATIONS TO IMPROVE PERFORMANCE APPRAISAL SYSTEM OF TLE .55 4.1 Orientation for TLE in the next Performance Appraisal 55 4.2 Recommendations to Performance Appraisal at TLE for improvement 55 4.2.1 Performance Appraisal Identification 56 4.2.2 Performance Appraisal Measurement 57 4.2.3 Performance Appraisal Management 58 CONCLUSION 59 APPENDICES 60 REFERENCES 69 ABBREVIATIONS TLE: Thang Long refrigeration electrical Engineering Joint Stock Company PA: Performance Appraisal KPIs: Key Performance Indicators MBO: Management by Objective HR: Human Resources HRM: Human Resources Management JD: Job Description LIST OF TABLES Table 1.1: Demographic Information of Respondents 13 Table 1.2: Source for In-dept Interview Data 14 Table 2.1: Example of Graphic Rating Scale .23 Table 2.2: A sample of BARS method 25 Table 3.1 Capital share and value of contributed capital 33 Table 3.2 Summary of debit and credit on the basis of financial statements for 2015, 2016, 2017 (Unit: VND) .37 Table 3.3 The current Job Description of TLE .39 Table 3.4 The Performance Appraisal Criteria .40 Table 3.5: The Performance Appraisal objectives of TLE .41 Table 3.6: The current Performance Appraisal form at TLE in short 44 Table 3.7: Current Performance Appraisal method of TLE 45 Table 3.8: The Current Performance Appraisal Interview/Feedback .50 Table 13: The current Performance Appraisal Improvement at TLE .53 LIST OF FIGURES Figure 1.1 Research process 12 Figure 3.1: The percentage of Respondents 33 Figure 3.2 Organizational structure .35 Figure 3.3 Revenue structure (on average) 37 Figure 3.4 Revenue growth over the years (Unit: VND) .37 Figure 3.5: Recommendations for current Performance Appraisal sources 47 Figure 3.6: Suggestions about the Performance Appraisal frequency 48 EXECUTIVE SUMMARY Seeing the solid improvement of the Vietnamese economy when all is said in done and the refrigeration building market specifically for over 10 years, the organization is continually attempting to create and grow In any case, while the market is great, contenders are always developing in numbers just as developing, upper hands or contrasts are never again the most significant, the human component of human culture is considered as an indispensable component of each association As a reputable companyi with a historyi of construction and development of more than a decade, it is time for TLE to make more efforts to gain a proud position in this industry The main purpose of this study is to researchi then analyzeathei current PA System for employees at TLE, thereby find out the strengths as well as the weaknesses in the current Performance Appraisal system, uncovering existing problemsi and thus bringing advice on how to solve and improve it in the future Although there have been many theories on the PA process in practice, the three-step PA Process which is developed by Gomez-Mejia and his partners in 2001 is the most suitable to apply The author collected data for this study from multiple sources such as internal company documents or surveys and interviews The author has found some strengths in TLE's current PA system through analysis and research Firstly, the company has built a fairly complete and comprehensive job description Next, PA criteria are easy to understand and suitable for all employees Moreover, the company also has a very clear and complete PA form and PA method - a graphical rating scale (the simplest approach to employee evaluation) iFinally, the supervisorsi at TLE are iprofessional, skilled and impartial appraisersi who treat equally in the course of the interview or feedback However, the author also realized that the current PA system has disadvantages that need to be addressed if the company wants to grow steadily in the future To begin with, the expected set of responsibilities is as yet across the board in the Engineering division, making a few representatives be confounded about the work theyi areadoing Next, the evaluation criteria are too general and not reflect well fori allaemployees in different departments In addition, performance goals have not been fully communicated to all employees because there is very little connection between PA and other personnel departments (i.e training and development, promotion and retention) maintenance, staff relations, etc.) In addition, the current formaiand method of appraisal are too comprehensive, so the results are therefore less efficient and reflect with performance What's more, the weighting framework isn't reasonable for all workers in various positions At last, there is an absence of explicit criticism and activity plans, particularly for senior specialists Based on the strengths as well as weaknesses found by the author in the analysis, thei authori wants to proposei some recommendationsi to strengthen PA at TLE The first proposal is to provide an employee-oriented course to guide employees to contribute toithe organization's ultimate objectives In addition, the organization should interface the Performance Appraisal framework with otheri Human Resource areas to cause workers to see progressively about what they are doing, along these lines expanding their inspiration and promise to the organization Next, giving an unmistakable and relevant strategy and criteria is fundamental for PA to get precise and reasonable outcomes Finally, TLE needs to provide feedback as well as specific plans for all employees in order to improve their presentation and exhibit their incentive to the commitment of the whole association CHAPTER 1: INTRODUCTION 1.1 Rationale Along with the continuous development trend in all aspects, our country's economy has also constantly risen to affirm its position in the international arena Starting from the difficult and challenging steps, our economy has grown strongly It is the result of the collective solidarity of each company in particular as well as all domestic and foreign enterprises in general However, in order for a company or a business to grow steadily and stably in such a competitive environment, managers need to have an appropriate business strategy in all aspects Especially when the "human" factor has a direct impact on the performance or development of the company For service businesses, people are an integral part of every step of the operation process Even for manufacturing businesses, which apply high-tech machinery or even artificial intelligence, the use of human labor to control machines as well as to detect mistakes and Timely repairs are still not replaceable And with the importance of the human element to an organization, human resource management is also an integral part, playing a vital role in creating an organization that succeeds or fails We can understand simply, "human resource management" is the management of people, here we refer to both the staff as well as the management team of organizations and businesses Therefore, it relates to various issues related to "people" such as employee relations with employees, employees with management, salaries & benefits, recruitment and selection, performance evaluation power (PA), etc By evaluating employee performance, both managers and employees will understand the workflow, identify the difficulties faced by employees during the process, and compare the actual results With the initial goal to identify each employee's strengths and weaknesses as well as the employee's performance evaluation method From there, it provides an opportunityi for bothi to debate the nexti goals for employees as well as managers to somehow achieve the ultimate goals of the organization in the future It helps employees prioritize their responsibilitiesi and clarify managerial expectationsi for their employees In addition, managers can adjust the performance evaluation method of employees more appropriately, so that they can feel more confident in their results Ideally, performance evaluation provides an opportunity for communication between managers and employees as well as between employees By workingatogether, theyi can understand eachaother deeply and therebyaenhance feelings of empathy, loyalty, and trust In addition, performance evaluations support employeesato seeahow their role in the organization canacontribute to the overalli success of the company, thus encouraging their morale All of these benefits lead to the productivity of each employee, which determines the productivity of the entire company Thang Long Refrigeration Electrical Engineering Joint Stock Company (TLE) was established in 2007 For more than 10 years of active operation and development, TLE has not only become the official distributor of Toshiba