Dr Anwar Khurshid, Dr Abdul Karim Khan & Ms Sara Alvi
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 the changes in the design or the implementation of the performance appraisal system which are required to rectify the process of performance appraisal at CAA.