PERFORMANCE APPRAISAL CHALLENGE AT PAKISTAN CIVIL AVIATION AUTHORITY (CAA)
PERFORMANCE APPRAISAL CHALLENGE AT PAKISTAN CIVIL AVIATION AUTHORITY (CAA)
Performance Appraisal Challenge at Pakistan Civil Aviation Authority (CAA)
THE CONTEXT
The case discusses the multitude of challenges that CAA faces with respect to its performance appraisal system. Sumair Saeed, Chief Human Resource CAA, feels that problems lie in the implementation of the current appraisal system. Firstly, the system of targets and objectives between the appraiser and the appraisee at the start of the year is not being followed. This leads employees to feel unfairly treated because no criteria for performance appraisal for their evaluation have been agreed upon. Secondly, Sumair feels there is no buy-in for the performance appraisal system since supervisors regard appraisal as extra workload and an uneasy time of the year. Supervisors consider it to be a confrontational rather than developmental/feedback exercise with the subordinate. Moreover, supervisors lack training in providing feedback on appraisals. It is felt that the culture of the organisation develops hostility and distrust when the appraisals are being conducted. The appraisal system doesn’t differentiate between performers or non-performers; thus decisions on promotions or career progressions can’t be based on appraisals. The problem of demotivation among employees is also a result of an ineffective performance appraisal system, as no differentiation exists between star performers and non-performers. Sumair is now contemplating changes in the design or the implementation of the performance appraisal system which are required to rectify the process of performance appraisal at CAA.
THE DECISION
On 2 August 2014, Sumair Saeed, Chief of Human Resources at the Civil Aviation Authority (CAA), sat in his office, puzzled by the feedback that he had received regarding the performance appraisal process at CAA. In a recent senior level management committee meeting, the performance appraisal system had been hotly discussed and criticised for its ineffectiveness in the organisation. Sumair knew that performance appraisal had become a contentious topic of discussion at all levels of the organisation as employees’ promotions and trainings were linked to it. The problem arose when CAA wanted to give promotions to employees. The selection committees gathered to decide on the promotions, but it became evident that there was no basis of differentiation among individuals. All employees’ appraisals showed no marked difference in the past years, as appraisals were either filled half-heartedly or subjectively. Moreover, the collaborative process of setting targets and objectives at the start of the year for appraisal by the supervisor and subordinate was not being properly implemented. As the targets were not set, it further undermined the process as appraisers avoided appraising and ranking subordinates for promotions.
Sumair faced the challenge of developing a buy-in among employees to increase the effectiveness of the appraisal system. A fair performance appraisal system was required so that identification of performers and non-performers could be made for rightful promotions of hardworking employees. Sumair felt that by conducting proper appraisals, the CAA would have a motivated human resource pool as employees would feel that they were treated fairly. He also wanted the CAA to become an organisation of choice for employment so that it could attract a competent pool of human resource. Motivated employees ultimately would help CAA achieve its mission of becoming an efficient and leading aviation authority and lead to improvement in its service quality.
Reference
Khurshid, K., Khan, A.K., & Alvi, S. (2017). Performance Appraisal Challenge at Pakistan Civil Aviation Authority (CAA). Asian Journal of Management Cases, 14(2), 198-225.
About the Author
Anwar Khurshid is professor at the SDSB, LUMS. He teaches courses in organisational behaviour, leadership and team building, leading organisations, and leading and managing change. His research interests include organisation design and development, change management, leadership and team building, management of technology and innovation, and quality management. He is the program director for the executive program on Leading and Managing Change at the Rausing Executive Development Centre. His research has been published in Applied Psychology: An International Review, Case Research Journal, and Asian Journal of Management Cases.