7.

INTRODUCTION

Performance management is a set of processes focused on maximizing an organization's performance by ensuring that
each employee performs his or her assigned role as well as possible. It attempts to both align an organization’s efforts
with its goals, and to assess to what extent each employee contributes to achieving these goals. For the employees that
need it, these systems often also offer development or remediation opportunities. Along with effective hiring and
compensation policies, good performance management is vital to the success of today’s organizations. The importance
of successful performance management is highlighted in a 2002 Corporate Executive Board study, which estimates that
various techniques can improve or degrade an organization’s performance by 40 percent. In recent years, performance
management has evolved even further, with many companies pulling down the traditional hierarchy in favor of more
equal working environments. This has led to an increase in performance management systems that seek multiple
feedback sources when assessing an employee’s performance – this is known as 360-degree feedback. With mobile
technology giving us more flexibility, and with more companies recognizing the value of a great company culture, we
believe that the definition of what good performance is will continue to shift, and that the people who drive an
organization will continue to have an even greater input into how their peers are assessed.

Ideal Performance management (PM) system

Performance management systems bring clarity and objectivity to the process of managing, training and rewarding
employees appropriately. Effective performance management systems begin with clearly defined job expectations
supported by active feedback. Employee performance is measured using both objective external criteria and a broad
assessment of the employee's overall contribution to the workplace. An effective performance management system
aligns individual performance with the organization’s mission, vision and objectives. An Ideal Performance system
consists of 15 characteristics.

1. Strategically congruent PRAN group want to create employment and earn dignity and self respect. Their vision and
mission is according to their strategy and goal.
2. Contextually congruent PRAN group also started to export in different countries

3. Thorough Job responsibilities and feedback and all others are evaluated timely

4. Practical Pran group strictly follows the practical characterstics

5. Meaningful Pran group maintain their standards meaningfully

6. Specific They are really very specific about their work.

7. Identifies effective and ineffective performance With the help of behaviors and results they identifies. 8. Reliable Pran
group of companies employees are reliable so as the company.

9. Valid Pran company is reliable,not deficient and not contaminated.

10. Acceptable and fair Evaluate distributive and procedural

11. Inclusive Employee should provide input on performance prior to evaluation meeting.

12. Open (No Secrets) They are open to their employees when they take decisions and other company related works. 13.
Correctable Pran company give chances to their employee if they do something wrong.

14. Standardized They give training according to the want of managers and employees.

15. Ethical Ethically pran group of companies have a good reputation.

Performance is the 'accomplishment, execution, carrying out, working out of anything ordered or undertaken'.
Performance is the way the organizations, teams and individuals get their work done. By analyzing PRAN
group’s performance system, we see that they are following Ideal Performance management system.

So the customer satisfied with the PRAN product.
Opportunities:
The main opportunities, facing by the PRAN Food
Company’s product line are as follows:
1. The agriculture sector is the largest contributor to
GDP. So PRAN produced canned fruit and
vegetables,
mushrooms etc and it is the part of agriculture. So it’s an
opportunity to contribute to GDP.
2. The crop production system is highly labor intensive
and there is an abundance of labor in the country.
3. Through the production of the PRAN product the
employment opportunity are increased in Bangladesh.
4. Through the production of the good product there is a
great opportunity to attract the foreign investors.
5. Company can develop the effective distribution
system.
SWOT Analysis of the Organization
Threats:
Every company faces threats when they newly enter
into market or for the existing company. Threats
facing the PRAN Food Company are as follows:
1. PRAN has many competitors which are
marketing dairy products. It has a strong competitor
(Arong) in producing Chocolate Milk.
2. Uprising commodity price is also a threat for the
product in newly introducing into the market.
3. Bangladesh government may establish a stringent
product safety law, which would entail product
redesign work.
4. PRAN mainly produced the agro- based product
and most of the products are perishable. So it has to
be preserved system.
5. And finally Current political unstable situation may
 affect the new product launching activities.
6. PRAN Company can make survey to make
effective product.

 INDUSTRY ANALYSIS:
Porter’s Five Competitive Force Model

1. Threats of new entrants: Threats of any new competitors are high in the business of PRAN-RFL group. Because any
type of companies can enter in the business, as it is possible to get trade licenses from Government.

2. Threats of substitutes: In the business of PRAN group, the treats of the substitutes are high. Because there is Akij
group, BD foods, Square etc. are producing same kind of product. So if the PRAN group is doing something unfair to
the consumers, the consumers can easily switch to the other companies.
3. Bargaining power of buyers: The bargaining powers of the consumers are very low. Because most of their products
prices are fixed.

4. Bargaining power of suppliers: Bargaining powers of the suppliers are very low. As Bangladesh is agricultural
country, so there are many sellers of the raw materials of foods. Therefore, there is less chance of the bargaining powers
of the sellers.

5. Current Rivalry: Current rivalry is very much high of the PRAN group. As there are some huge groups Like Akij
group and others, so it is seen that the rivalry amongst the current companies are very high.

• Power Energy Drink

• Pran UP
• Pran Lacchi
• Pran Mango Juice • Milk Man
• Pran Frooto • Pran Lichi
• Pran Mango Juice Pack Vision LED TV,Vision Fridge
• Pran Mango Chutni
BCG Matrix of Pran Group
 Pran Spice Powder
Pran Gems
Pran Sauce Pran Choco Choco
Pran Drinking Water Pran Bubble Gum
Pran Fruit Jelly RFL – italiano Ceramics
Pran Potato Crackers RFL – Regal Furniture
RFL Plastic Product Click fan,RFL Pump

What strategies PRAN-RFL following to market their product?

Strategies that PRAN-RFL following to market their product are:-

Growth- It is a corporate strategy that’s used when an organization wants to expand the
number of market served or products offered, through either its current business or new
business. Expansion into new products and markets.
Because of growth strategy, an
organization may increase revenue,
number of employees, or market share.
PRAN, a leading food processor, has
tripled its export earnings in the last four
years to more than $144 million (Tk
1,126 core) now. To that end, the
company has been exploring new export
markets – from America to Africa and Asia. The group exported goods worth
$50.93 million in fiscal 2014-2015 – an impressive 183.44 percent growth. Now, the group
exports to 114 countries – from India to Middle East and Africa, Europe to North. The company
is now producing 200 products under 10 different categories.

Stability: - Maintenance of the status quo. A stability strategy is a corporate strategy in

which an organization continues to do what it is currently doing. PRAN-RFL is offering
same quality service to their clients, maintaining market share.

Cost leadership strategy: - When an organization competes based on having the lowest cost in
its industry, it is following a cost leadership strategy. Seeking to attain lowest total overall cost
relative to other industry competitors. A lowest cost leader is highly efficient. PRAN-RFL has
been successfully using its strategy of everyday comparatively low price to attract customers.
They are competing on the low price with other industries and earning higher units of profits.
They are selling products at reasonable price. RFL is the market leader in plastic industries.
Unrelated diversification: - When a company combines with firms in different
and unrelated industries. Growing by combining firms in unrelated industries
where higher financial returns are possible. At first PRAN was only producer of
food product such as juices, drinks, mineral water, bakery, carbonated
beverages, snacks, culinary, confectionary, biscuits and dairy. But now they are
combined with RFL as well. PRAN-RFL is also producing electronics and home
appliance such as plastic products, wooden furniture, LB furniture, cast iron,
PVC, lift, elevator, generator and kitchen items.

What kind of organization structure PRAN-RFL has?

PRAN-RFL has Mechanistic structure. It is a larger organization. Company’s environment is

stable. It has clear, well-defined, centralized, vertical hierarchies of command, authority, and
control. Specialization carries throughout the organization. They have specialized function
departments such as production, marketing, or finance. Each unit has clear and specific
responsibilities and objects. It is more centralized. As the distance between the top and the
bottom of the organization expanded, top management would increasingly impose rules and
regulations. Because top management cannot control lower-level activities through direct
observation. Also lower-level managers are not capable enough making decisions.

9. Literature Review
 Concep
t of
HRM
and
SHRM
Human Resource Management (HRM): Human resource management was previously
known as personnel management which was concerned with the activities of a single
department. It was typically concerned with the administration of human. The
functions carried out by the department were recruitment and selection, reward,
appraisal, development, grievance handling, retirement, registration and so forth. It
was introduced and developed in the bureaucratic set up in which importance was
given on organization and administration of manpower. Now, human resource
management may be defined as a process in which human resources are recruited and
mobilized in such a way that it helps in achieving the objective of the organization.
HRM is concerned with the people dimension in management under which the
consideration is given towards recruitment and selection, development, motivation
and maintenance of human resources in an organization. It is one of the main
functions of management, which is related with the management of human energies
and competencies. Human resource management helps to ensure the right man,for the
right position and at the right time in a changing environment. The organizational
performance depends on the efficiency of human resource working in the
organization. Hence, a proper set up should be taken for manpower planning,
recruitment, motivation, training and development, performance evaluation,
remuneration management and industrial relation. Moreover, human resource
management is concerned with the development of human skill, knowledge and
ability to perform the organizational tasks effectively and efficiently. It is a field of
study consisting of four functions- acquisition, development, motivation and
maintenance of human resources. The acquisition is related with getting people,
development is with preparing them for work, motivation refers to activating them
and finally maintenance refers to keeping them retained in the organization.
Therefore, human resource management is an art of managing and mobilizing people
in the organization. It is done through the application of different practices and
policies which ultimately values human resources as major asset of an organization. It
integrates personnel function into strategic management.
Strategic Human Resource Management (SHRM): Strategic Human Resource
Management (SHRM) is defined as alignment of strategic business goals of the organization
with human resources, so as to foster innovation and improve motivation, satisfaction,
productivity, and eventually overall performance. Strategic HRM is a relatively new term,
which differentiates itself from traditional HRM which was just merely an organizational
function. Since the last twenty years or so, there was an increasing fear of HR being secluded
from business goals and as a separate part of the organizations. There was an increasing need
felt across sectors of HR playing a vital role in improving productivity in organizations to
achieve a competitive edge. So, strategic HRM came into existence. The primary goal of
strategic human resource management is to solve business objectives or obstacles that may
not occur within the direct purview of HRM. This has to be done through effective HRM
itself. So it is basically tuning of human resource management (HRM) to suit business
objectives. The other types of HRM are Hard HRM and Soft HRM.
The main aim of strategic HRM is to address issues related to organizational culture,
structure, effectiveness, resource matching, and performance. It involves developing the
process capabilities as well as managing the human capital effectively. The approaches used
in strategic HRM can be categorized into 5 categories mainly:
1. Resource based Strategy: Addresses issues wherein the strategic capabilities of the firm
can be increased.
2. High Commitment Management: By enhancing the mutual commitment between the
managers and their employees.
3. High Involvement Management: Treating employees as their partners in the business.
4. High Performance Management: Improves the performance of the firm by focusing on
improving the productivity, growth and profitability rate of its people.
5. Achieving Strategic Fit: Integration of human capital and resources is necessary for smooth
and profitable operation of business.

Performance Management System:

Definition of PM: Performance management is the process of creating a work environment
or setting in which people are enabled to perform to the best of their abilities.

Importance of PM:
 Working towards common goals

We often get so caught up in our daily work routine that we forget about our purpose in an
organization. Individual performance drives organizational performance. It is important to
ensure everyone understands this agency’s vision and goals, how their work fits in to the
organization, and how they contribute to our mission accomplishment. Doing this
increases engagement and improves our program delivery.
  A clear understanding of job expectations

When employees and supervisors have a clear understanding of their specific job duties, any
ambiguities in the workplace are eliminated. Each individual is held accountable for their
own duties and responsibilities. Performance Management empowers you to think about and
clarify your role in the organization. Setting clear goals and expectations helps with this.
Employee performance plans must provide for balanced, credible measures.
Balance, so that in addition to measuring expected results, the performance plans
include appropriate measures, such as quality, quantity, timeliness, and/or cost- effectiveness.
To be credible, performance expectations must be: based on job analysis;
clear, specific, and understandable; reasonable and attainable; measurable, observable or
verifiable, and results oriented; communicated in a timely fashion; and foster continual
improvement in productivity.

 Regular feedback about performance

Regular feedback facilitates better communication in the workplace. Performance

Management helps you to identify your strengths and weaknesses. It also allows for
opportunities to hear and exchange views and opinions away from the normal pressures of
work. Most importantly it gives you a better understanding of how your performance is
being assessed and monitored. This builds employee confidence and adds to your
contribution in the workplace.

Performance management can be a motivational tool, fostering you to not only feel more
satisfied, but to go beyond the expected. If supervisors and employees aren’t talking
throughout the year, the system won’t work, so we must ensure we have a performance
feedback process that facilitates a dialogue between supervisors, managers, and employees
throughout the year. Performance management is not something that’s looked at only at the
beginning and end of the rating cycle, with just one mid-cycle review – it’s a continuous, ever
changing process, reflecting and measuring the work employees are performing for the
agency.

 Advice and steps for improving performance

Performance Management can help you to identify ways in which to improve your
performance and provides the opportunity to discuss career direction and prospects. It
presents the opportunity to plan for and set objectives to further develop your career.
Performance Management will help you to gain any additional training or mentoring which
can act as a basis for developing future succession plans.

 Rewards for good performance

Outstanding efforts do not go unnoticed. Performance Management offers a variety of awards

that show gratitude for a job well done, such as time off and bonuses. The prospect of a better
than Fully Successful Performance Appraisal gives you the incentive to perform well and
may open the door to career advancements in the future.

Performance management is about increasing performance. As you know, we have been

steadily improving our performance management system for several years now, but there is
more to be done. Successful use of our performance management system will enable us
to improve our program delivery, increase our employee engagement and productivity, and
make us better stewards of the taxpayer’s dollars - things that should be important to all of us.

 Perfor
mance
Manage
ment
System
strategi
cally
link
with
SHRM
and
Organi
zational
Strateg
y:

If you work at a company that has hundreds or even thousands of employees, organized into
many diverse departments, you know how difficult it is to keep everyone on the same page.
While you want employees to develop and hone their individual and team goals, you also
must ensure that they don't lose sight of the organization's overall mission and objectives.The
challenge is to align performance management with organizational strategy so that everyone
coordinates their individual goals with those of the organization. In a time when technology
is advancing quickly and the workplace is constantly evolving, however, many companies
find that achieving true business alignment can be elusive

Strategic HR decisions establish standards for each job role to define its competencies. Then,
performance management systems measure employee achievement relative those
competencies. Managers use performance management systems to assess and reward the
behavior of their employees. Additionally, a strategic human resource management function
handles the recruiting, interviewing, hiring and development of all personnel required to
ensure your company can achieve its goals. The relationship between performance
management and strategic planning links day-to-day operations with your company’s vision.

Setting Organizational Goals: As part of the strategic planning process, an organization

defines its goals and objectives. For example, a company may decide to focus on specific IT
trends such as cloud computing, data security and global markets. As a result, strategic
direction may dictate whether a company maintains research and development spending. This
impacts the HR department's ability to attract and retain top talent.

Defining Personal Development Goals: An individual establishes her personal goals by

aligning her development activities to the organization’s needs. For example, a strategic HR
department can publish self-assessment tools that allow an employee to determine how she
rates in terms of attributes. These attributes might include accountability, reliability, integrity
and customer-centric behavior. Performance gaps may reveal a need to improve in one or
more areas. Establishing a specific, measurable and attainable goal makes it easier for an
employee to achieve her objective. Goals should also be realistic and time constrained. To
complete the process, managers usually require employees to submit a development plan.
Only after approval can the employee begin completion of her defined activities.

Managing Change: Ensuring an organization’s capability to provide critical services usually

requires assessing the entire workforce against a defined competency model for each role.
Work usually involves a combination of technical and professional skills. For example, if a
business needs to make a shift from doing business one way to transforming to using new
processes and technology, skill in change management becomes a priority. Managers need to
recognize, through performance management processes, individuals who can act as leaders
and help others achieve strategic goals.

Providing Training: Strategic HR management allows you to recognize the need to offer
training and development opportunities that ensure personnel can respond to challenges both
now and in the future. Workshops, seminars and self-paced podcasts, videos and job aids can
help prepare employees to address problems in the workplace. By analyzing performance
review results, HR administrators identify problem areas, such as communication,
collaboration and business acumen. Then, they can offer learning and development options.
Or, if all employees appear to lack technical knowledge about a new infrastructure, the
success of the entire company may depend on addressing performance gaps. The HR
department needs to rise to the challenge of developing, delivering and evaluating training
that meets this learning need.

The Difficulty of Business Alignment: What obstacles do companies face in achieving and
sustaining organizational alignment? In Harvard Business Review, Jonathan Trevor and
Barry Varcoe write, “Complexity usually arises as the result of four primary factors: number
of employees, variety of business lines, variety and expectations of differing customer groups
and geographical dispersal."

How a Performance Management System Promotes Alignment?

A performance management system is not only crucial for employee training and
development, but for organizational alignment as well. It offers:
Performance Reviews and Goal-Setting: On the platform, employees can set goals that are
tied to organizational objectives and review those goals at any time. Managers and executives
can easily track the progress of these goals and ensure they are being met.

Competencies and Skills Matrix: Managers can use the system to gain insight into workers'
skills and close any skill gaps that may exist. They can also match the right employees to
certain tasks and align talent to the organization.

Continuous Feedback: Through the platform, organizations can promote an environment of

continuous feedback and coaching of employees by their manager. Managers can
communicate with employees about their performance and goals and offer real-time
feedback, forging stronger relationships.

Observation Checklist.: With this tool, employees' skills are automatically recorded in real
time and their competency is assessed. This process eliminates the need for paper-based
evaluations, which only add to the complexity within an organization.

Getting Started with a Performance Management System

As the modern workplace evolves, with new technology emerging rapidly and complexity
increasing daily, organizations need to work harder than ever to achieve alignment. A
performance management system is a powerful tool to ensure that employees' goals align
with your organization's vision—and that everyone is working toward fulfilling the same
business mission.