INTRODUCTION
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
- Carrier in Vietnam but also had a significant number of loyal customers, always prioritizing the use of TLE products and services Besides, TLE has also cooperated with a number of foreign businesses, expanding the market of the company.
As one of the key industries associated with the construction industry, refrigeration and mechanics is considered to have a brighter prospect in the context of the construction industry and the real estate industry has a high growth rate The event "Gala vao he" gathered nearly 1,000 individuals, businesses and units in the field of refrigeration engineering attended At this event, many business representatives have confirmed the possibility that in the recent summer, the refrigeration market will compete more and more fiercely by global warming, the summer in Vietnam is getting stronger. getting hotter Refrigeration and electronics are currently very fierce competition In terms of air conditioners, there are more than 40 businesses operating and supplying in Vietnam and will tend to grow in the future, both in number and size.
Outdated is certainly inevitable for any business, although TLE has been operating in this market for a long time but not short, witnessingi a series of domestic and international companies have competitive advantages, the difference becomes lessi important, the organizational structurei is the priority Therefore, in order for the company to consolidate its position in the refrigeration mechanical market as well as develop positively in the future, TLE must try more and focus more on organizational management.
After some time of research and analysis, the author realized that the company had some big problems First, the performance evaluation system being used by the company is still very sketchy, not focusing on each department of the company Therefore, based solely on the performance evaluation system currently in use, management cannot accurately assess the characteristics and roles of each department as well as each employee in that department Secondly, also on this rating system, it only assesses from one side, from higher to lower levels, this causes bias or subjective evaluation, thus reducing the effectiveness of the assessment.
Being a part in the enormous family TLE, either the creator or each and every individual laborer and staff in this association has obligations and obligations to add to the advancement of the entire organization After finding all above problems that the organization is currently adapting to, the creator understood that the examination "Improving the Performance AppraisalSystem at Thang Long refrigeration electrical Engineering Joint StockCompany" is extremely earnest and need to make a move right away.
Research objectives
Through the research, those following objectives must be realized in this study:
Based on the theory about performance appraisal to choose some suitable
To analyze the characteristics of human resources of TLE to find out the appropriate combination among above method
To suggest the most suitable appraisal method that fiti with the abilityiofTLE as well as recommendations about using this method
Research questions
In order to achieve the above objectives, the research will focus on answering the following questions:
(1) What is general evaluation about strength and weakness of staff of TLE?
(2) What are main tasks of officers in each department of TLE?
(3) Which PA methods can be used to appraise employees in TLE?
(4) How to combine those above methods into a general PA system for TLE?
Research methodology
This study focuses on evaluating the performance of human resources at TLE The author uses both qualitative and quantitative methods to collect data, both primary and secondary data Regarding primary data, questionnaires and in-depth interviews for both the management team and the staff at TLE The secondary data will be collected through other academic research and related books and reports and policies at TLE.
The research process is described as the following figure:
Information Collection and Analysis Primary Data
Primary New PA Current PA System
Search configuration is viewed as an itemized outline of the investigation. The plan of an investigation used to decide the kind of concentrate, for example: description, testing, semi-testing, correlation, meta-analysis or evaluation, and sub-types (e.g case studies described by vertical), research questions, hypotheses, dependent and independent variables, experimental designs and, if available, data collection methods and statistical plans Itais a built up system to discover answers to investigate questions A b c
There are numerous approaches to arrange look into structures, yet now and again the distinctions are because of man-made and other time-bound plans The list below provides a number of different research designs that can be used during the study.
Research designs can be arranged in a few different ways Nonetheless, contrasts are now and then made by the creator or a blend of past plans There are 6 helpful various ways for inquire about structures that may have been given:
In this study, descriptive research is the most appropriate design because it is research designed to describe participants correctly.
Methods of analysis - synthesis: During the study, the author studied materials in textbooks, reference books on management, magazines and websites related to human resource management in general and effective performance evaluation methods, performance evaluation indicators such as KPIs in particular In addition, the author also referred to the available documents at Thang Long Refrigeration Electrical Engineering Joint Stock Company on personnel evaluation.
Experimental method: During the process of working at Thang Long
Refrigeration Electrical Engineering Joint Stock Company, the author found that the evaluation of work efficiency for employees at the company was still sketchy and did not suit the needs of the company Therefore, the author, together with the human resources department, have participated in building a basic performance evaluation system to meet the needs of the company From there find out the advantages and disadvantages of this system to build a complete system most effectively A b c
Methods of survey by questionnaire: The author conducted the survey by questionnaire on 60 employees at the company The purpose of this method is
Figure 1.1 Research process to understand the opinioniof allaemployees at TLE on the current performance evaluation method at TLE From there, the author can findaout theastrengths and weaknesses of the existing evaluation method at the company as well as the expectations of the staff about the appropriate performance evaluation system The author has handed out approximately
100 survey notes divided to 2 stages The first stage was on November 1 st –
2 nd and the second one was on November 30 th – December 1 st in order that employees might change their thinking and thus the author was able to have more valid survey notes As a result, the author had 60 useful notes and she was going to use them to complete this thesis
The arrangement of polls has two sections Demographic Information and Survey Questions The surveys additionally have two sorts of inquiry: Multiple-choice questions and texting questions The first comprises of 5 degrees of point from “Totally disagree”, “Disagree”, “Neutral”, “Agree” to
“Totally agree” which would be changed over to numerical units from 1 to 5 so as to be anything but difficult to figure With those degrees of point, it is conceivable to understand the present circumstance of Performance Appraisal of TLE.
Table 1.1: Demographic Information of Respondents
In-depth interview method: The author conducted in-depth surveys on
Ms Phung Thi Viet Ha - Head of Administration – Human resources department and Ms Tran Thi Ngoc Anh - Chief Accountant to gain a better understanding of the performance evaluation system currently used at the company, expect a new method of performance evaluation as well as advice to improve the current rating system In addition, the creator likewise talked with some more workers from various divisions to find out about their sentiments, their suppositions as a subjected angle.
There are 5 subjects were involved in the interview The table below presents the details:
Table 1.2: Source for In-dept Interview Data
1 Head of Administration – Human resources department
To get the outline of the present PA arrangement of TLE
To get information for surveys plan
The data were coded and analyzed by using descriptive statistics such as percentages andameans to describe the current situation Microsoft Excel was likewise used to envision the outcomes into different bar outlines and pie diagrams to represent the information.
Other than the estimation of “Mean” and “Frequency” of the items in the questionnaires, the author likewise received the 5-point Likert scale above in the surveys study Along these lines, the normal score (mean worth) acquired of 3 or over 3 can as of now be thought about very great outcomes.
Research scope
Content: Performance appraisal system at TLE
Place: Thang Long refrigeration electrical Engineering Joint Stock Company (TLE.,JSC)
Primary data: from October to December, 2019
Research structure
The thesis has 4 main chapters as follows:
Chapter II: Theoretical background of performance appraisal system and relatives
Chapter III: About Thang Long refrigeration electronic Engineering Joint Stock Company
Chapter IV: Recommendations to improve Performance appraisal system of TLE
THEORETICAL BACKGROUND OF PERFORMANCE APPRAISAL
Overview of Performance Appraisal system
Performance: In the workplace, performance or job performance means good ranking with the hypothesized conception of requirements of a role. Contextual and task are two types of performance Task performance is related to the perceptive skills whilst contextual performance depends on personality Contextual performance is value-based and not recognized in job descriptions and covered by compensation, they are indirectly related to organizational performance Though, task execution is social jobs perceived in sets of expectations and by compensation frameworks, they are legitimately identified with authoritative execution However, they are both extra roles indirectly related to organizational performance.
Appraisal: It is the process of comparing reality with a set of standards in order to draw out the suitability of those standards against reality to make reasonable adjustments.
About performance appraisal, up to now, there have been many different studies on PA that come with different definitions
First, in 1982, Carol and his partner Schneir considered PA to be the processaof identifying,observing, measuring and developing human performance in organizations Over a decade later, in 1998, they went on to declare that PA was a process of continually evaluating and managing both human behavior and work performance This process plays a very important role for Human Resource Management because it gives companies and organizations a platform to evaluate performance according to their strategy, and when applied appropriately, it also gives and inspire self-assessment and professional development of these companies and organizations.
In the following years, while this conceptawas still appliedain manyacompanies, the attitude towards Performance Appraisal's role changed dramatically According to Fletcher (2001), PA is described as exercises through which associations look to assess workers and build up their competencies, improve performance and disseminate rewards a comparable definition that fundamentally, PA is an instrument to assist supervisors with seeing how workers perform, just as activities, eventually to improve the presentation of each representative and the whole association However, it must be a continuous procedure, so the assessment ought to be directed consistently and saw as a procedure, and it isn't just about making regular guidelines.
Moreover, Jackson and Schuler (2003) also pointed out that PA is a presentation assessment apparatus dependent on the assessment of subordinates, associates, chiefs, different administrators and even specialists themselves.
In addition, described by Abu-Doleh, J & Weir, D (2007), PA is a systematic, general,and routine process for evaluating the performance and work productivity of an associate regarding pre-establishedacriteria and organizational goals There are many similar terms commonly used to describeperformance evaluations such as performance reviews, staff assessments, employee performance reviews, employee reviews, personal measurements or performance assessments Other aspects ofaeach employee are also considered, such as organizedacitizen behavior, achievements, the potential for future improvement, strengths and weaknesses, etc.
Through numerous examinations that have been done previously, the creator understood that PA has been adjusted to be applied in each activity, each business field Along these lines, plainly there are numerous meanings of PA, which is the reason it isn't in every case simple to discover which is the most satisfactory, generally appropriate for inquire about At last, in this proposal, the creator has outlined into an idea as pursues:
Performance appraisal must be a systematic and formal activity, based on the previously set work standards to compare the performance situation of workers To ensure fairness and transparency, the results of these assessments will be communicated with workers and with their consent Systematic assessment manifests itself in a comprehensive assessment of many aspects of the job, such as the quantity and quality of the job, the working attitude, the professional competence and the quality of the employee The formal audit is shown in the public promulgation of documents, regulations and processes related to the audit in the organization In these legal documents, the objectives of evaluation, the evaluation system and policies related to the post-evaluation results, such as reward and discipline, are clearly stated. 2.1.2 Performance appraisal system
In order to evaluate job performance, an evaluation system with the following three basic elements should be developed:
This is a very important factor, a basic factor, a benchmark for conducting comparisons and assessing the level of work completion of employees.
There are 2 ways to set a standard for a job The first is that the leader directly sets these standards The second way is that managers will work with their employees to set these standards This approach for targeted management (MBO) is more complex than the first but can attract employees to contribute to the completion of this set of standards so it makes sense to support and voluntarily implement it follow those standards of the staff.
This is the central element of the performance appraisal system It is about making managerial assessments of how well or poorly people perform their jobs To measure job performance, organizations or businesses must come up with scientific methods that conform to the above work standards In an organization, managers need to develop a good and consistent measurement tool so that staff can easily perform, and management can easily conduct the appraisal.
The first is information for workers through an informal interview. From there, managers can make comments to employees, showing directions for employees to improve theiri performance in the future.
Feedback gives workers the opportunity to express their views about the applied evaluation system They then feedback the evaluation results to the HR management department and then give it to the higher management.
* Requirements for a performance appraisal system
For the evaluation to be effective, the performance appraisal system must meet the following requirements:
Relevance: This requirement requires a clear correlation between work performance standards, appraisal criteria, and the organization's objectives In other words, the appraisal system must be consistent with the management objectives and serving the management objectives At the same time, there must be a clear link between the key elements of the job identified through job analysis with the appraisal criteria designed in the appraisal sheet.
Sensitivity: This requirement requires the appraisal system to have measurement tools capable of distinguishing those who do well from work and those who do not perform well.
Reliability: This requirement represents the consistency of the appraisal This means that the rating system must ensure that, for any individual employee, the independent evaluation results of different appraisees about them must be substantially agreed upon.
Acceptance: This requirement requires the appraisal system to be accepted and supported by workers, or appraisees.
Objective: To be able to perform in practice, the means of appraisal must be simple, easy to understand and easy to use for employees as well as managers.
2.1.3 The relationship of Performance Appraisal and other HR Sections
Human Resource Management is rational allocation of personnel in a planned manner based on the requirements of the organization's development strategy, ensuring the company's strategic goals In spite of the fact thatPerformance Appraisal is one of the most significant capacities in the HRM framework, a portion of the significance of PA exhibited in the past area likewise mirrors the connection between the PA and HRM areas This section confirms such importance and clarifies the relationship between Performance Appraisal and other main Human Resource Management functions.
2.1.3.1 Performance Appraisal and Recruitment & Selection
Execution Appraisal affirms the decision, explicitly; It assists bosses with understanding the legitimacy and significance of the choice procedure. Bosses know the legitimacy and in this manner the qualities and shortcomings of the choice procedure (MSG Expert) Just when assessing the exhibition of recently enrolled people can the organization know whether they employ the ideal individuals Further changes in the strategy for determination might be made in such manner As such, the productivity of the enlistment and enrollment framework can be surveyed when looking at a worker's Performance Appraisal and his/her outcomes during the contracting procedure.
2.1.3.2 Performance Appraisal and Training & Development
Training and development departments provide employees with the skills and knowledge to effectively carry out their work, while Performance Appraisal helps identify employee performance weaknesses, from which there are can indicate training needs or areas that require additional training.
As indicated by BPIF, an appropriately led audit is an amazing asset to improve worker execution brought up that representative preparing and advancement likewise shapes their investment and promise to hierarchical improvement What's more, preparing and advancement programs are actualized to enable representatives to play out their doled out undertakings adequately and successfully and consequently, they are progressively keen on their work Beyond question, Performance Appraisal is a kind of hardware to distinguish the essential preparing and improvement that a worker needs to close the hole between current execution and wanted execution. Notwithstanding giving a premise to pay, advancements and disciplinary activity, Performance Appraisal data is fundamental for worker improvement since information on results, or criticism, is vital to advance and guide execution improvement.
Performance appraisal process
Based on research by Gomez-Mejia, Balkin, and Cardy (2001), the Performance Appraisal processaainvolves identifying, measuring, and managing personnel performance in organizations.
This is the initial phase in the Performance Appraisal process At this stage, based on the specific positions and types of jobs, the association will determine the areas of work that managers should consider when applying comparisons to the actual performance of employees Those issues must be clear, comprehensive, easy to understand and comparable by converting into metrics (such as quality, quantity, cost, results or timeliness) Besides, the examination framework should concentrate on perspectives that influence an association's prosperity as opposed to other disconnected qualities, for example, age, sexual orientation or race.
This first step is only completed when the organization (or managers) has completed the following elements:
- Job Description (JD): After occupation investigation, a composed report that recognizes characterizes, and portrays the created errands, obligations, working conditions and particulars of the activity is known as the Job Description (Gomez-Mejia, et al 2001) Likewise, JD here and there incorporates necessities for up-and-comers, for example, the degree of training, or abilities required for that position, and potentially hierarchical approaches or guidelines just as advantages representative advantages In this manner, to make a valuable JD, the association (or administrator) ought to commit endeavors to portray that work as explicitly as could be allowed. When all is said in done, sets of responsibilities should be possible in numerous structures however the accompanying three areas are unaltered:
Job overview: This job overview assists directors with understanding the qualities of the activity and along these lines set objectives to live up to their desires.
Tasks and responsibilities: This is a point by point rundown and portrayal of what the laborer is responsible for, what to do, how and why.
Other required components: Education, qualifications, certificates, work experience and qualifications or aptitudes required for the activity.
- Effective goal setting: This is viewed as a significant procedure in
Performance Appraisal This procedure precisely explains administrative desires for their workers Besides, it additionally gives chances to the two administrators and representatives to help each other to accomplish objectives.
A viable and complete goal must follow the rules of S.M.A.R.T:
“S” stands for “Specific”: The goal must beaclear and easy toaunderstand.
“M” stands for “Measurable”: The goal must be achieved based on the quantity and quality that show the success of that goal.
“A” stands for “Achievable”: The goal must beachallenging but also realistic.
“R” stands for “Relevant”: Employee goals must contribute to the organization's ultimate goals.
“T” stands for “Time-bound”: The objective must incorporate the date that workers need to arrive at it on schedule.
In addition, Gomez-Mejia and his accomplices brought up that any estimation of execution, each foundation ought to be legitimately attached to the last objectives that the whole association or business is anticipating It prompts the outcome that today, numerous organizations and associations are utilizing guidelines, criteria characterized dependent on key objectives to assess the presentation Besides, according to Fletcher (2008), Performance Appraisal goals should be presented based on the organization's terms, including promotion, compensation, staff training, and development.
Execution Appraisal criteria are rules, qualities, or measurements for which execution is evaluated During this recognizable proof procedure, criteria and principles for each position or kind of occupation should be built up to evaluate representative execution They are rundowns of how well work is finished In this way, those models or criteria are desires for work from the two representatives and the association, they impart worker execution to the association's definitive vital objectives
Each measurement centers around the capabilities or attributes on which laborers can depend on to effectively and adequately complete their employments (Gomez-Mejia et al., 2001) Be that as it may, as indicated by Armstrong (2009), those measurements to consider execution must be adjusted in the center or at the end of the day, every standard must relate to other criteria Something else, the staff will never arrive at the best of each and every measurement
In 1997, Mathis and Jackson grouped execution assessment criteria into three explicit classifications: traits-based, behavior-based, and results- based criteria:
Personal characteristics (Traits): A traits-based approach that focuses on individual implementers and overlooks specific situations, behaviors, and results If the employee takes a characterization approach, the evaluation will evaluate the characteristics relatively reliably They may incorporate various capacities, for example, psychological capacities or character For instance, execution evaluations may incorporate an evaluation of representative insight and reliability toward the finish of every examination period A quality methodology depends on the constructive relationship found between capacities, (for example, insight) and character attributes, (for example, good faith) and wanted business related practices.
Behavior: Worker assessment depends on work practices which incorporate a presumption of existing compelling just as ineffectual practices and these practices have been recognized for each activity specifically or sort of employment as a rule Worker conduct is appraised as viable or ineffectual as far as the result of the social item For instance, a client assistance delegate might be made a decision on the degree of persistence appeared to furious clients.
Job result: On the off chance that a worker's activity has quantifiable outcomes, the exhibition markers are frequently utilized for assessment purposes Instances of occupation execution markers are all out deals, the quantity of products, and the amount or nature of work created On the off chance that such quantitative outcomes are not accessible, ten assessors use types of assessment dependent on worker conduct as well as close to home attributes. Now and again, assessment is centered around results as opposed to conduct This is particularly obvious when the activity content is variable, for example, the board positions Accordingly, it is hard to recognize proper practices for assessment purposes Result pointers, for example, deals, unlucky deficiencies, discontent, benefits and generation rates can be utilized to assess the exhibition of authoritative units.
The measurement or the central phase of the Performance Appraisal system, undoubtedly, requires management and evaluation of the development of good or bad games in terms of employee performance Along these lines, Performance Appraisal estimation is viewed as powerful as long as it stays steady all through the association For that reason, allamanagers andasupervisors are responsible for maintaining the same appraisal criteria or evaluation criteria.
In this secondastep, there are three important issues that need to be clarified: "Who measures?", "How to measure?" and "When to measure?”
- There are various different classifications of all measurement methods by different authors In the beginning, Carrell et al (1988) divided all assessments into six approaches: MBO, critical incident, comparative method, rating scale, and combination method After 10 years, in view of the attributes and motivations behind every strategy, Decenzo and Robbins (1998) ordered those PA techniques into three primary classes including total, relative and target strategies In 2013, Aswathappa had various sorts of strategies by isolating them dependent on utilization style or period: customary and present day approach.
Related to the studies of Gomez-Mejia et al (2001), there are two principle approaches to quantify representative execution: (I) by kind of judgment (relative and outright decisions) and (ii) by the focal point of measures (counting qualities, conduct or result information) All things considered, alongside the advancement of Human Resource when all is said in done just as execution assessment specifically, just one of the three methodologies introduced underneath is basically applied to manage execution assessment:
This approachaemphasizes individual performance and ignores the existence of specific behaviors, situations, and results Ifasomeone takes a traits-based approach, the appraiser evaluates the characteristics relatively reliably They may incorporate capacities, for example, psychological capacities or character For instance, execution estimation may incorporate representative knowledge and reliability assessment toward the finish of every evaluation period This methodology is advocated dependent on the constructive relationship found between the capacity and character characteristics and wanted employment related practices In spite of the fact that this instrument is generally utilized, it is frequently evaluated by specialists as the weakest because of its ambiguous development It contains another strategy while applying.
A graphical rating scale is an example that best describes this method for evaluating the attributes of employees employed This is the oldest and most popular method for evaluating employee performance today However, all scores or raters give subjective assessments of the employee's ability to work and his characteristics on a scale Factors commonly used toaevaluate on the scale include attendance, loyalty, number of jobs, qualityaof work, job knowledge, initiative, and reliability. The tableabelow is a typical graphical rating scale:
Table 2.1: Example of Graphic Rating Scale
Department: _ Date Joined: _ Time to Present Job: _
Work arrival and departure in accordance with company’s regulation
Manner in which the employee completes job assignments
Employee’s success in producing the required amount of work
Characteristic s that employee demonstrates while performing job assignments
Master essential knowledge to complete job assignments
Employee’s ability to corporate with others in internal and external group
(Source: http://www.openlearningworld.com)
There is an advantage to utilizing a graphical rating scale: justifiable and appropriate to arranging all representative insights Be that as it may, this methodology may endure a long haul disadvantage because of its individual or over-security attributes contrasted with authoritative organizations, which appear to be ineffectual and helpful for execution improvement.
Different from the traits-based approach, the behavior-based one put together one concentration with respect to what laborers do at work while dismissing their characters or the outcomes brought about by their exhibitions It is viewed as an essential procedure approach, accentuating the manner in which a representative takes the necessary steps.
Purpose of performance appraisal system
Performance Appraisal has been assuming a critical job in Human Resource Management all in all just as execution the board specifically As a significant capacity of HRM, by assessing representative commitments to satisfying the organization's objectives, PA is frequently applied inside an organization to effectively improve current execution at the organization just as increment inspiration and give input In addition, those goals also help organizations or businesses determine the needs and training potential of their employees, thereby informing employees of what the organization anticipates from them (Torrington, Hall and Taylor, 2002) However, all of the above goals are based on administrative decisions such as employee promotions, employee retention, salary adjustments, or employee development such as identifying training needs and performance feedback (Gomez) -Mejia et al.,
2001) To make them increasingly far reaching and progressively suitable for investigation, Aswathappa (Human Resource Management, Text and Case,
2008, p 240) has partitioned these objectives into two separate gatherings, administration, and improvement.
For regulatory purposes, data is gathered through conventional execution assessments so that managers make personnel decisions related to determining poor or good performance, identifying candidates for promotions or decisions of the plan to maintain or terminate and dismiss, evaluate training, meet legal requirements, confirm selection criteria, plan personnel, and award and punish decisions One downside of using Performance Appraisal for governance purposes is that companies focus primarily on the performance that employees have achieved in the past instead of looking to the future and setting goals that are associated with the strategy of the organization Besides, another issue is that wages are closely related to employee evaluation, leading to employees focusing on monetary outcomes that prevent creative significance or a comprehensive review of brand goals. productivity.
Regarding theaiuse ofaiPerformance Appraisal for development purposes, performance assessments should beaiused to identify employeeaistrengths and weaknesses From there, managers can identify to take advantage of future employees Simultaneously, an advancement plan ought to be created to attempt to address representatives' shortcomings through preparing, work understanding or instructing Workers cannot improve work efficiency if they do not know how they are supposed to be done Therefore, good Performance Appraisal points out work-related issues that company individuals need to improve their presentation.
Besides, Performance Appraisal should also be used for development purposes, where personal development is tied to the organization's strategic goals Although companies often tryato do this, the period of performance evaluation provides a good opportunity for managers toadiscuss the relationship betweenaemployee performance andaithe organization's strategy. Subsequently, supervisors can survey how representatives add to the general accomplishment of their area of expertise and association Likewise, representatives can perceive how their commitment influences the association and their exhibition influences the association's methodology to accomplish objectives, the two of which are significant in the Performance Appraisal objective.
Execution Appraisal can assist associations with guaranteeing that the most significant positions are held for the most skilled and applicable people.Likewise, Performance Appraisal is the most amazing asset to enable the organization to accomplish its vital objectives, center the vitality of hierarchical individuals on accomplishment as a crucial fortify the significance of individuals living as indicated by look just as organization esteems Those two thoughts show that most organizations should utilize execution assessment frameworks for both authoritative and improvement purposes.
There are many benefits of a viable PA system For example, businesses can control minimal execution, lessen detachment from incapable execution, and improve employee performance Furthermore, workers can get prizes for compelling execution, from which they have a reasonable comprehension of their vocation way The changing environment of competition has enabled organizations to use PA for development purposes in association with strategic development goals.
To sum up, Performance Appraisal System is used for many different purposes:
Define clear work goals: let employees know what they need to do and how to achieve the desired results.
Give managers feedback to employees on the level of their performance compared to standards and other employees.
Stimulating and motivating employees to have creative ideas, develop an awareness of responsibility and motivate employees to make better efforts through terms of evaluation, recognition, and support.
Human resource planning: Giving data as a premise to human resource planning such as training, salaries, bonuses, organizational structure improvement, etc.
Developing staff through helping the organization identify who needs training and training in which areas to maximize the individual's potential and contribute as much as possible to the organization.
Communication: As a basis for discussions between superiors and subordinates on work-related issues Through effective interaction and feedback process, the two sides will understand each other better and have a better relationship.
Compliance with the law: this is an objective and fair basis for promotions and rewards.
Completing the system for assessing Human Resource Management of enterprises: information on assessing the competency and performance of employees will help enterprises to check various Human ResourceManagement activities such as recruitment, recruitment orientation, job orientation, training, and compensation.
Performance appraisal system role
Performance appraisal is very important but also quite difficult Workers, especially those who tend to underestimate themselves or those who perform in reality are not good, do not want others to judge themselves or even not believe rely on other people's judgment However, besides that, employees who perform well, or even excellent, are ambitious, desire to get better and better results, will consider the evaluation of their performance are opportunities for them to affirm their position in the organization or the business and expand their promotion opportunities.
For organizations or businesses, the employee performance appraisal information will help the organization or business retest the quality of other Human Resource Management activities such as recruitment, orientation and job instruction, training, compensation, etc.
Here are some of the roles that performance appraisal does:
- Provide input to representatives about how their work is done against the standard and contrasted with different workers.
- Help representatives modify and address botches during the time spent working.
- Stimulate and spur representatives through the terms of assessment, acknowledgment and backing.
- Provide data as a reason for preparing, pay, reward, staff move, hierarchical structure improvement, and so on.
- Develop worker comprehension of the organization through discussions about circumstances and profession arranging.
- Strengthen good relationships between employees and management levels.
For these reasons, performance evaluation is of utmost importance to both organizations and workers It helps the two sides improve and consolidate in their work.
ABOUT THANG LONG REFRIGERATION
Basic information
Name: THANG LONG REFRIGERATION ELECTICAL ENGINEERING JOINT STOCK COMPANY
Website: www.thanglongtoshiba.com.vn
Established: 12/7/2007 in Ha Noi, Vietnam
Headquarter: 130, cell 14, K2 street, ward Cau Dien, Nam Tu Liem district, Ha Noi
Office Ha Noi: 21 Pham Ngoc Thach, ward Phuong Mai, Dong Da district, Ha Noi
Office Da Nang: 508 Dien Bien Phu street, Thanh Khe, Da Nang
Spinning & store house: Industry zone Thanh Oai B – Bich Hoa commune – Thanh Oai – Ha Noi
Representative: Mr Hoang Van Thai
Figure 3.1: The percentage of Respondents
Sales Department Technical Department Logistic Department
3.1.2 History of formation and development of TLE
Table 3.1 Capital share and value of contributed capital
No Name Value (VND) Proportion (%)
2007 - The company was established with the criteria of becoming a comprehensive solution provider of central air conditioning, ventilation systems for constructions.
2010 - The company was honored to become the Official Distributor of
Toshiba - Carrier Air Conditioner in Vietnam.
2014 - After 7 years of active operation in this field, the company has expanded its warehouse and workshop at Thanh Oai B Industrial Cluster, Bich Hoa Commune, Thanh Oai District, Hanoi, to meet the needs of storing goods for large constructions, projects and invested new equipment and machinery to serve the needs of producing materials and accessories which are more and more increasing nowadays With the scale of mechanical production workshop, windpipe, outlet, cable trays, electrical cabinets for air conditioners and equipment for production, the Company can ensure the criterion of "proactive progress, quality control, cost reduction for investors" and provided to the same industry enterprises.
2017 - The company expanded its production and business activities with a new transaction office at 21 Pham Ngoc Thach, Dong Da district, Hanoi and Da Nang branch at 508 Dien Bien Phu street, Thanh Khe, Thanh Khe District, Da Nang.
Feb 2018 - Thang Long Refrigeration Electrical Engineering Joint Stock
Company established a new legal entity "Thang Long Refrigeration Electrical Mechanical Trading and Production Co., Ltd" was still under the leadership and guidance of Director Hoang Van Thai in order to separate specialization of the supply of air-conditioning equipment and related services, and accordingly, the legal entity of “Ltd” was in charge of equipment supply with many significant achievements in 2018.
Having the skilled manpower staff, warranty, widespread distribution systems of mechanical products, central air conditioning of Thang Long has been present nationwide through many large and small projects.
3.1.4 Roles and responsibilities of the office
Processing and manufacturing materials and accessories of the ventilation system such as: windpipe, wind valve, muffler, electrical cabinet, other accessories (taper, quail, numb, turn foot, ) primarily from corrugated iron rolls of Ton Phuong Nam and Ton Hoa Sen according to
TCVN 5687: 2010 Ventilation - Air conditioning, Design standards and
TCVN 232: 1999 Fabrication, installation and acceptance of ventilation systems, air-conditioning and refrigeration.
- Supply - installation - repair - maintenance of central air conditioning and ventilation systems for large and small projects, local air conditioners from 2007 to the present.
- Supply - installation of other equipment for air conditioning such as control equipment, fans, pumps,
- Agents of buying, selling, repairing wall conditioners, central system accessories,
- Consulting - designing - supplying materials and labor for installing air-conditioning systems, ventilation systems, electrical and water systems, fire protection buildings,
Thang Long Refrigeration Electrical Mechanical Joint Stock Company (TLE) has been developing continuously in terms of material facilities, financial capacity and capacity of officials, engineers and technical workers, to ensure the supply of high-quality products, construction of large national projects the achievements of TLE today are thanks to the trust of customers and the development efforts of the company itself with the quality of products and the quality of services attached Thanks to that, in recent years, TLE's revenue and profit have continuously increased, contributing a significant part to the State budget, ensuring the lives of officials and employees in the company.
With the goal of unity as strength, TLE today is a collective of people who are capable and dedicated to their careers, self-working with the most professional style Each member of TLE is a capable master, proactive in capturing new technology These are the factors that determine the increasingly solid development of TLE.
The advantages of TLE and the trust of customers are necessary and sufficient for them to be able to carry out large projects With this achievement, they strongly believe that the TLE brand will affirm its position, contributing to the economy and industrialization of the country.
- Prestige: The principle of their highest activity is to always fulfill their commitments to their customers Survey and quotation quickly, close cooperation with customers and contract performance on schedule is what customers see when working with them Customers always receive clear, accurate information, which helps to make quick decisions.
- Quality: Every effort to build trust will be meaningless if the works made do not meet the quality requirements as in the agreement To ensure the quality of the construction, they apply a rigorous control process from the beginning to the end of the construction process.
- Efficiency: They are constantly researching and offering the most optimal, appropriate and economical technology solutions to customers The solutions they apply will always bring high economic efficiency to their customers and the professional staff and the method of supplying scientific equipment and materials always ensure the fastest progress for the Investor to put the project into use.
- Professionalism: This is a motto in the thoughts and actions of all employees in Thang Long Refrigeration Electrical Engineering Corporation. With the confidential of skilled engineers, the ability of the leadership team, the dedication of the staff, they are completely confident, fully committed to providing the best quality, the most perfect service to please the most demanding investors.
3.1.6.1 Summary of debit and credit on the basis of financial statements Table 3.2 Summary of debit and credit on the basis of financial statements for
Figure 3.3 Revenue structure (on average)
3.1.6.3 Revenue growth over the years
Figure 3.4 Revenue growth over the years (Unit: VND)
Current Performance appraisal of TLE
In the wake of depicting the comprehensive view of the organization, the creator went to the principle part of his examination that was to break down the current PA System of TLE This examination was led utilizing both essential and optional information gathered from top to bottom meetings, overviews with surveys, inside archives and other significant TLE records. (also known as TLE's competency profile).
Recently, TLE has been running a fairly stable Performance Appraisal system since the beginning, based on its peers There is no doubt about the level of detail and completeness of the system Be that as it may, alongside the blasting improvement of the Vietnamese economy, the framework immediately got out of date, no longer powerful as in the past Along these lines, the accompanying examination depends on the PA procedure of Gomez-Mejia, et al (2001) is to discover the qualities and shortcomings of that framework.
As referenced in Chapter II, the ID part is by a long shot the most significant piece of the whole three-advance Performance Appraisal process. This phaseaaims to set up a job description andathereby identify the Performance Appraisal criteriaafor employeesaas well as theaorganization's Performance Appraisal goals.
In every company, job descriptions or job analyzes are being used as the basis for setting Performance Appraisal standards As per Gomez-Mejia, et al.
(2010) and Wheaton and Whetzel (1997), sets of expectations are characterized as a composed archive that delineates worker obligations, prerequisites, particulars and working conditions Hence, this record might be the most valuable hotspot for worker execution assessment
At TLE, the expected set of responsibilities for each position is structured dependent on the info and assessments of both HR staff and the immediate supervisor of that office In this way, the present place of employment Description for laborers at TLE is sufficiently clear, exhaustive and pertinent.
Table 3.3 The current Job Description of TLE
Disagre e Neutral Agree Totally agree Mea n f % f % f % f % f %
The current JD communicates your organizational goals and strategies
The JD is clearly understood by workers
The JD is sufficiently comprehensive to show the requirements and duties ai work
In the organizationalastructure of TLE, in spite of the fact that there are various divisions with unmistakable jobs and capacities: Accounting and Finance, Human Resources, Engineering, Sales, Logistic Where Engineering and Sales are two departments with a large number of employees, manual work, requiring few skilled oraiprofessional workers Therefore, it isn't troublesome or entangled to comprehend Job Description Obviously, the current Job Description at TLE is highly accepted by the respondent The figures show that workers of 38.34% and 23.33% agree and fully agree that they can clearly understand Job Description Moreover, there is more than 70% positive feedback that can fully reflect employee requirements and responsibilities Similarly, 56.67% of employees believe that Job Description currently contributes to the entire organization's goals and strategies.
In any case, a few laborers right now going to the preparation still don't completely comprehend the necessities of Job Description, representing8.33% They all originate from the Engineering office, which requires broad information on designing, power and other development issues An interviewee shared that Job Description for my situation (as a specialist) is very clear however my obligations and obligations for this activity are excessively broad, I need to get familiar with a great deal of things to be progressively advantageous at work.
Asamentioned in theachapter of Theoretical Framework, performance criteriaaor factorsaare the key to evaluate efficiency and success A fairly common and common method to identify performance factors is to focus on the competencies or areas where employeesaneed toaperform their jobs effectivelya(Gomez-Mejia et al., 2001) In the current TLE, there are 3 simple criteria: Criteria based on characteristics, behavior and results (detailed evaluation forms of TLE are shown in the Appendix of this thesis).
The table beneath abridges the assessment of Performance Appraisal criteria for workers at TLE By and large, the normal score of every announcement is very low with a most noteworthy score of 3 and the least score is down to 2.77 These figures show that there are not kidding issues in the present assessment criteria for laborers' exhibition A particular investigation will come in the following areas.
Table 3.4 The Performance Appraisal Criteria
Totally disagree Disagree Neutral Agree Totally agree Mean
The current PA criteria well reflect organizational objectives
The current PA criteria are designed on basis of the JD
The current PA criteria fully cover main aspects of my JD
The current PA criteria are sufficient and suitable for all staffs
The assessment ofaithe relationship between theaicurrent PerformanceAppraisal criteriaaand theaorganization's goals is not entirely positive, this is clearlyashown by the fact that 38.33% (account for 23 respondents) Agree and strongly disagree and 20%, account for 12 workers, confusion whether the current evaluation standardsacan reflect the company's businessastrategies oragoals, leading to The average score is reduced to 2.9 The figure implies that representatives don't believe that presentation norms truly fit the organization's objectives, which is contrary to Cania's (2014) confirmation that the team performance dimensions should be assessed Pricing is based on the strategic goals of the organization and the strategy This problem can be caused by lack of awareness and shortcomings in the company's PA goals.
The facts confirm that relatively few workers comprehend the connection between PA norms and friends objectives, just seniors do The reason being sadly said by the Administrative and HR Manager is that because their job is specifically a salesman or engineer, there is noatime toaembed the entire strategy andagoals of the organization They should locate that out the entire time they work for this association Subsequently, new individuals are not all around prepared, so they may not see plainly or precisely about the objectives of the association However, the ambiguous connection between PA criteria andaorganizational goals can be consideredaa disadvantage for the company in a long-term strategy.
Besides, there is another association issue among PA and JD criteria. Despite a fairly complete Job Description, TLE doesn't appear to set up a solid connection between the JD and PA criteria The normal of the connections between the examination principles, establishments and key parts of JD is moderately low (2.87 and 2.77) Asaa result, only the survey respondents of 36.67% (22 on 60) and 31.67% (19 on 60) believed that the Performance Appraisal standards were created from JD and included all both aspects of it Without a doubt, when the Performance Appraisal criteria didn't create dependent on the attributes of the work, the connection between the two criteria never again existed.
In any case, the greater part of the respondents (43.33%) think the current execution criteria are as yet reasonable for them This is clearly obvious on the grounds that those criteria are set for the whole TLE division, not for a particular criteria to set aside time and cash Therefore, the current Performance Appraisal standards are still in compliance, although it is not the most effective.
In the Theoretical Framework, the creator referenced the significance of the PA Goals: "This part of the discussion clarifies to employees exactly what is expected of them" In TLE, expectations can be retention and promotion, rewards & compensation or training & development The table exhibited beneath is the aftereffect of the study led:
Table 3.5: The Performance Appraisal objectives of TLE
Totally disagree Disagree Neutral Agree Totally agree Mea f % f % f % f % f % n
The real objective of the current PA is to serve as a basis for retention and promotion
The real objective 0 0 5 8.33 1 30 2 38.3 14 23.3 3.77 of the current PA is to serve as a basis for rewards and compensations
The real objective of the current PA is to serve as a basis for training and developing
Overall, the awareness of the Performance Appraisal goal is still low when the average score is 2.97 (below level 3) We can see that the evaluation of laborers studied on the current Performance Appraisal focuses at TLE has the most elevated normal score as the reason for remunerations and pay (represent 3.77), while , the least normal score is 2.4, which has a place with one as a reason for upkeep and advancement The information demonstrate that the laborers at TLE have no reasonable view of the genuine motivation behind execution assessment.
