vietnam national university, HANOI hanoi school of business Le Xuan Hoang Improving the performance management in techcombank master of business administration thesis Hanoi - 2007 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com vietnam national university, HANOI hanoi school of business Le Xuan Hoang Improving the performance management in techcombank Major: Business Administration Code: 60 34 05 Master of business administration thesis Supervisors: 1. NGUYEN ngoc anh 2. Ha Nguyen, MBA Hanoi – 2007 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com TABBLE OF CONTENTS ACKNOWLEDGEMENTS. iv LIST OF FIGURES.
Objectives and aims. Scope of work. Data source and processing. Outline of thesis .2 CHAPTER 1: THEORETICAL FOUNDATION.
Benefits of performance appraisal. Benefits to the organization:. Benefits to supervisors. Benefits to employees.
Performance appraisal system:. Performance measures criteria. Errors should be avoided in performance evaluation:. Performance appraisal methods.
The behavioral approach. The results approach .24 i LUAN VAN CHAT LUONG download : add luanvanchat@agmail.25 Figure 2-1: Some Main Figures of Techcombank. The model of the survey. The survey’s content.
Bank's defined target of work performance appraising. Completion of job descriptions. Set up a performance appraisal criteria system:. Selection of appraisal methods.
Build-up of multi-way appraisal system. Complete the interview of performance appraisal. Training provided to those who take charge of performance appraisal. Strengthening use of performance appraisal results to operations of human resource work of the Bank.8 Researching and strengthening deployment of personnel rotation .9 Build-up of business' atmosphere and culture .84 APPENDIX B: Job description of an accountant and requirements .88 APPENDIX C: Method of giving mark to employees’ performance appraisal.93 ii LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com LIST OF FIGURES Figure 2 – 1: Some Main Figures of Techcombank.
26 Figure 2 – 2: Number of seniority in Techcombank. 34 Figure 2 – 3: Percent of seniority in Techcombank. 35 Figure 2 – 4: Number of current title. 35 Figure 2 – 7: Percent of education level.
37 Figure 2 – 8: Number and percent of Reasonableness of salary in TCB. 38 Figure 2 – 9: Number and percent of Fair in compensation policy. 39 Figure 2 – 10: Number and percent of reward based on results of performance. 39 Figure 2 – 11: Number and percent of timely praised when perform well.
39 Figure 2 – 12: Number of participate in short courses. 40 Figure 2 – 13: Percentage of participate in short courses. 41 Figure 2 – 14: Number of participate in long courses. 42 Figure 2 – 15: Percentage of participate in long courses.
42 Figure 2 – 16: Number of satisfaction level with compensation policy. 43 Figure 2 – 17: Percentage of satisfaction level with compensation policy. 43 Figure 2 – 18: Number and percentage of clearness for making plan and announcing to staffs. 44 Figure 2 – 19: Number and percentage of work suits with capacity.
45 Figure 2 – 20: Number and percentage of employees’ strengths are used and developed. 45 Figure 2 – 21: Number and percentage of encouraged and oriented to develop career. 45 Figure 2 – 22: Number and percentage of rotation through other positions. 46 Figure 2 – 23: Number and percentage of challenging with higher positions.
46 Figure 2 – 24: Number and percentage of sufficiently informed about human policies. 46 iii LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com Figure 2 – 25: Number of complain with colleagues. 47 Figure 2 – 26: Percentage of complain with colleagues. 48 Figure 2 – 27: Number of complain with managers.
48 Figure 2 – 28: Percentage of complain with managers. 49 Figure 2 – 29: Number of administration’s reaction. 50 Figure 2 – 30: Percentage of administration’s reactions. 50 Figure 2 – 31: Number and percentage of people like working atmosphere.
51 Figure 2 – 32: Number and percentage of employees’ ideas are listened. 52 Figure 2 – 33: Number and percentage of employees’ creativeness is encouraged. 52 Figure 2 – 34: Number and percentage of people feel their job is challenging, interesting. 52 Figure 2 – 35: Number of the relationship with Techcombank.
53 Figure 2 – 36: Percentage of the relationship with Techcombank. 54 Figure 2 – 37: Number of satisfaction with current job. 54 Figure 2 – 38: Percentage of satisfaction with current job. 55 Figure 2 – 39: Number of motivation to perform assignments.
55 Figure 2 – 40: Percentage of motivation to perform assignments. 56 Figure 2 – 41: Number of employees’ expectations. 57 Figure 2 – 42: Percentage of employees’ expectations. 57 Figure 2 – 43: Number of managers’ reactions.
58 Figure 2 – 44: Percentage of managers’ reactions. 59 Figure 2 – 45: Number of employees’ trend. 60 Figure 2 – 46: Percentage of employees’ trend. 60 iv LUAN VAN CHAT LUONG download : add luanvanchat@agmail.
Objectives and aims There are three objectives of this thesis when mentioning to performance appraisal activities, include gathering theories related to appraising performance (both concepts and models). A case study of Techcombank will be examined in order to gain a Clear understanding about the process of appraising performance in Techcombank then find out the exist issues in the process of appraising performance in Techcombank Finding out all the problems in the process of performance appraisal in Techcombank, the student has some aims include: Suggest some solutions to improve the process of appraising performance, human resource policies. If these issues are improved, they will contribute to increase the effects of employees’ working and reinforce the loyalty of employees 2. Research questions Two research questions are applied when examining the Techcombank’s case study are: How does the process of appraising performance in Techcombank deploy? And Is the process of appraising performance in Techcombank effective? 3.
Scope of work Scope of work is from 2005 to 2006 and the conducted area is departments in head office of Techcombank. Data source and processing The data is collected from two sources: Primary (information is conducted directly from interview and survey to find out the employees’ opinion on the current performance appraisal of Techcombank) and Secondary (study documents related to appraising performance activities of banking sector; evaluation reports) 5. Methods The method will be based on researching real case study of Techcombank and use questionnaire (Questionnaire is built based on theory, From the result of questionnaire the student then turn back to the reality of appraising the employees’ 1 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com performance to improve the process of Techcombank). Interview or focus group will also be used when necessary.
Significance The student hopes that, the thesis will contribute significant meanings: (i) Study deeply about the process of appraising performance activities in Techcombank and improve the process; (ii) Assessing the employees’ performance activities at their true worth; (iii) Encourage and strengthen the loyalty and the relationship between the employees and Techcombank 7. Limitations Because the time limitation, the thesis can not avoid mistakes. Case study is only conducted in Head Office so it cannot reflect all the opinions of Techcombank’s employees. The survey’s results are provided by Human resource department, therefore some sensitive information are biased, so the accuracy of questionnaire is not absolutely accurate.
Expected results Firstly, the student hope to find out the existing issues in the process of appraising performance in Techcombank then apply the theory of human resource management to contribute useful solutions to improve the practices of performance management in Techcombank. Outline of thesis The thesis includes three chapters: Chapter 1 - Theoretical foundation: This section will summarize the theories of performance appraisal. It will give the readers an overview of performance activities from clearly definition to the benefits of using performance management, the criteria used in performance appraisal as well as the performance appraisal models and their advantages, disadvantages of using them Chapter 2 - Findings: After analyzing the current position of Techcombank (SWOT analysis), the survey’s results and the data collected form secondary 2 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com source, the thesis will point out the findings about the existing problems in Techcombank from policies to practice of deploying performance appraisal. All the problems of Techcombank will be analyzed in the aspect of performance management.
Chapter 3 - Recommendations: Continue to the analyzed findings from chapter 2, this section will suggest some solutions and how to apply the performance appraisal methods in Techcombank. The student hopes that, all the recommendations will be useful and effective for not only Techcombank but also for other commercial joint stock banks which have the same issues like Techcombank. 3 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com CHAPTER 1: THEORETICAL FOUNDATION Organizations that seek to gain competitive advantage through their workers must be able to manage the behavior and results of all employees. One of the most important challenges managers face is managing the performance of those over whom they have authority.
(1) Performance management is defined as the means through which mangers ensure that employees’ activities and outputs are congruent with the organization’s goals. Performance management is central to gaining competitive advantage. (2) Performance management system has three parts: defining performance, measuring performance, and feeding back performance information. A performance management system specifies which aspects of performance are relevant to the organization, primarily through job analysis.
It measures those aspects of performance through performance appraisal, which is only one method for managing employee performance. It provides feedback to employees through performance feedback sessions so that they can adjust their performance to the organization’s goals. Every employee works in an organization has different background, knowledge, attitude, motives, personal characteristics, skills, and so on which affect their performance at work. In order to facilitate excellence in the performance of the employees in the organization, organization is required to identify right person for right job and ensure their contribution to the organization’s objectives Giving performance feedback and providing remuneration and reward based on contribution are two methods for facilitating better performance of the employees.
Employee performance appraisal provides a basis for providing (1), (2) Noe Hollenbeck Gerhart Wright. “Human resource management”, Second edition 1996, p.196 4 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com feedback and for deciding remuneration and reward for contribution and performance 1. Definition of performance appraisal Performance appraisal is a process that involves communicating to an employee how well the employee is performing the job and involves establishing a plan for improvement. (1) Performance appraisals are used for many purposes are wage and salary administration, promotions or demotions, transfers, layoffs, discharges, counseling with employees, and human resources planning.
Performance appraisal systems have three principal purposes: To improve employee performance in the present job; to prepare employees for future opportunities that may arise in the organization and to provide a record of employee performance that can be used as a basis for future management decisions (2) Performance appraisals are handled in most organizations in one of two ways: Informal appraisal and formal appraisal. Informal appraisal occurs in all organizations. Under such a system no formal procedures, methods, or times are established for conducting performance appraisals. For example, when a supervisor conducts appraisals informally, the employee will be given a general impression of how the supervisor feels about their performance.
In many cases, when employee make a mistake, such appraisals are conducted. As a result, employee often develop negative feelings about this type of performance appraisal The other way of handling performance appraisals is to have a formal appraisal system. Under such a system, procedures, methods, and times are established for conducting appraisals. Rue and Lloyd L.Byars, “Supervision: key link to productivity”, Fifth edition 1996, p.
Rue and Lloyd L.