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Performance Management System

Contents1.Introduction ............................................................................................................ 1

2.Overview of the Branch........................................................................................... 2

3.The Companys Performance Management System ...............................................8

4.Suggested solutions to improve the Performance Management System...............19

5. Conclusion............................................................................................................22

Topic:Analysis about Performance Management System in

Transport warehousing and Trade service Joint Stock Company,Haiphong Branch II

1. Introduction

Human Resource Management (HRM) has traditionally been considered as a necessary

expense rather than a source of value to their company. However, it is proved that HRM

practices might be valuable. Obviously, provided companies would like to improve its

competiveness, for instance by investing in new technology, they also need to invest their

training, staffing

For several days going and visiting for practice at Administrative Accounting

Department, THE TRANSPORT WAREHOUSING AND TRADE SERVICE JOINT STOCK

COMPANY HAI PHONG BRANCH II, I have concluded that Human Resource might be much

more valuable, if you know the way to utility this source. In order to use effectively HumanResource, managers should be aware of the position of Human Resource, and its pros and

cons. As a result, I decided to choose a topic called Analysis about Performance

Management System in Transport warehousing and Trade service

Joint Stock Company, Haiphong Branch II.

Nguyen Thi Minh Trang HQ FBA 1


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This dissertation aims to reveal the impact of current Performance Management System

(PMS) on the Branch. Subsequently, this also gives certain recommendation to improve the

system.

In the first part, I am going to have a consistent and comprehensive picture of theBranch with its Human Resource Management. Afterwards, I am giving a description of the

process of the Branchs PMS. In this part, I am also pointing out challenges managers might

deal with, the systems strength and weakness. Finally, certain solutions for managers to

improve PMS are being shown.

With these studies, my dissertation probably provides an insight in PMS to facilitate

managers monitor their employees better and use this source more effective.

2. Overview of the Branch

2.1 Features of the Branch

2.1.1 General information

COMPANYS OFFICIALNAME

Vietnamese name:

CHI NHNH CNG TY C PHN KHO VN V THNG MI DCH V HI PHNG II

English name:

THE TRANSPORT WAREHOUSING AND TRADE SERVICE JOINT STOCK COMPANY HAI

PHONG BRANCH II

Abbreviation:

VINATRANCOHP

CONTACTADDRESS

Head office of enterprise: 52 Tran Khanh Du. Str May To Ngo Quyen Hai Phong

Telephone: (84-31) 836625 Fax: (84-31) 836168



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Email:[email protected]

Registration number: 0213001689

VINATRANCOTOAIMATTHETARGETS:

The best quality

The most reliable services

The most competitive price

The fastest delivery

2.1.2 BRIEFABOUTTHEBRANCHSFOUNDATION & DEVELOPMENT

The Transport warehousing and Trade service Joint Stock

Company(VINATRACO) was The Vietnam National Trade Transport Warehousing

& Service Company formerly, which is a state owned company belonged to Ministry of

Trade since 1981. Company has branches and joint ventures with overseas partners

throughout Hanoi, Hai Phong, Ho Chi Minh City.

The Transport warehousing and Trade service Joint Stock

Company Hai Phong II Branch (VINATRANCOHP) was found by merging

Warehousing transport & delivery Company and Merchandise delivery & TransportCompany, which both used to be belonged to Transport warehousing Company. The

function was to receive and storage not only imports goods but also ones produced in

Haiphong.

In 1986, the Branch was transferred to Transport warehousing Company I, and

took responsibilities of warehousing trade, transport agent.

As Transport warehousing Company was re-organized in 1995, Transport

warehousing Company I was also changed to The Transport warehousing and trade

service Corporation Hai Phong II Branch.

mailto:[email protected]:[email protected]


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On 10thFeb, 2004, Minister of Trade enforced Decision No 013/Q BTM

allowing the Company to capitalize. Subsequently, the company has formally become

The Transport warehousing and Trade service Joint Stock Company

Hai Phong II Branch since August, 2005.

2.1.3 SPECIALFEATURESRELATINGTOEMPLOYEES PERFORMANCEMANAGEMENT

THEINFLUENCEOFPERFORMINGASA BRANCH

In terms of Performance Management, Vinatracohp has to, according to the

charter of the Company, follow certain below regulations and rules:

o The Branch have the right of setting up an own PMS, which is suitable for

the Branchs situation, on the agreement of the Company, particularly the

Chairman.

o Whenever having a decision relating to Performance Management, for

instance providing rewards to excellent performers, the Branch has to report

to the Company and wait for the approval.

o The function of the Branch includes in observing and identifying qualified

employees. These might be potential human resource of the Company in

the future, which partly play a vital role in its success.

SMALLNUMBEROFEMPLOYEES

In fact, there are only 18 permanent employees working for the Branch.

Thanks to a litter number, it is easier for raters to observe employees and give

appropriate feedback.

On the other hand, the workers in a Branch are a critical resource that can

make the difference between the success and failure of the business. Therefore,

just one person driving away customer can significantly affect on the operation of

Vinatracohp.



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Moreover, due to this small number, certain people have to perform

simultaneously two or even more tasks; this might be challenge for gaining an

accurate performance measuring.

Besides, a minor change in Human Resource can lead to a considerable

influence on all employees. As a result, establishing an effective PMS is more

important and necessary.

2.2 Scope of activities

Domestic and global freight forwarding by air, sea, road, rail and multi

modal transport together with related business such as: customs brokers,

warehousing, packing, marking, stevedore, cargo distribution and consolidation,stuffing and unstuffy at CFS CY, shipping and prompting agents, charterers, port

services

Trading and directly import export lubricants, grease, petroleum, rubber

processing oil, chemicals substances Vinatranco has been senior and prestigious

distributor of ExxonMobil Vietnam since 1995

Trading and import export steels and irons, natural and synthetic rubbers,

materials motor spare part & Tires; office equipments and consumers goods.

Doing Join venture, investment co-operation in manufacturing exporting

goods.

2.3 General Organizational Structure

Administrative organization is basically divided into 2 main levels

LEVEL 1: DIRECTOR, DEPUTING DIRECTOR

LEVEL 2: DEPARTMENTS, STORES

The following graph shows the Branchs Administrative System:



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Functions of each subject:

DIRECTOR:

He is the leader of the Branch, appointed under the approval of Board of

Management. He is also Vinatrancohps legal representative, and a person taking

responsibilities to the Company and Board of Management about all the Branchs

day-to-day operating activities

DEPUTING DIRECTOR

He is appointed by the Director through the approval of Chairman of the

Company. The Director assigns tasks and duties to the Deputing Director within

the Directors authority on an oriented basis. On the presence of the Director, the

Deputing Director is the person making decision, directly monitoring, examining

operating activities in his own responsibility.

MANAGER

He or she is appointed by the Director through the approval of Chairman of

the Company. They mainly support the Director certain task relating to tasks on

professional.



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SALES BUSINESS DEPARTMENT

Members belonging to this Department make a business strategy and

directly do transport warehousing and trade service.

ADMINISTRATIVE ACCOUNTING DEPARTMENT

Members belonging to Accounting Division perform financial tasks, and

give recommend about the Branchs economical situation.

Function of Administrative Division is going to be discussed deeply in the

next part.

2.4 Function of Administrative Division

Generally, Administrative Division has several obligations regarding to

Human Resource Management.

PERSONNEL

o To make workforce planning, recruitment and selection

o To manage employees performance and set up salary system

o To provide employees benefit and awards

o To perform others personnel activities

OFFICEADMINISTRATION STATIONERYSUPPLIES

o To buy and provide promptly stationery supplies to departments

REWARDING

o To think over and make a plan of rewarding to contributors in the Branch

o To identify people making mistake that affects seriously on the revenue of

the Branch and give them appropriate punishment



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TRAINING

o To establish a training session for new members

o

To identify unqualified employees and encourage them to enter a trainingcourse

o To facilitate good performers to study deeply

3. The Companys Performance Management System

3.1 The process of Employees Performance Management

Clearly, effective performance management can tell top employees that they are

valued, increase communication between managers and employees, set up a uniform

standards for evaluating employees.

To meet these goals, there are several activities, which are separating into 3 main

stages as the below chart.

3.1.1 Identification

The first step in the process is identification. In general, managers or member

of Human Resource Department, in almost companies, determine what areas of work



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should be examined when measuring performance. Ideally, an effective PMS is surely

tied to the organizations strategy, goals and culture.

Because of getting this point, the Director decided to take into account

identification stage. Hed like to set up a measurement system facilitating him

accurately allocate raises based on performance. In his view, provided this system works,

all employees will be motivated and go the best to gain higher salaries.

In a meeting, he and certain members from Administrative Department started

generating dimensions of performance. After a careful discuss, some following

suggestions was listed and ready for setting up a PMS.

QUALITYOFWORKDONE

All members realized that the first and most important variable is the

quality of work. The question to be answered is: "Did the employee meet the job

performance requirements set out for them over the appraisal period?" This is not

question about how, or when they did what was required but what they did.

Clearly, one employee gaining a high-value contract is deserved to being

more appreciated rather than others.

QUANTITYOFWORKDONE

The second variable is the quantity of work produced. This variable

discriminates between two employees who do equally good quality work,

achieving their job performance requirements, but have different levels of output.

According to several managers observations, it was proved that a numberof employees had had too much day-offs, compared to others. Transparently, it is

in need for having an active motivation encouraging employees to work harder. As

a result, measuring employees performance has been based on the quantity of

work performed.



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COMPLEXITYOFWORKDONE

An issue related to how tough to solve a work was also concerned.

Unsurprisingly, different job roles require people to operate at different levels of

complexity in order to achieve results. The complexity in any task lies not in the

goal but in what you have to do to get there.

3.1.2 Measuring Performance

Although the performance dimensions had been listed, it was still important to

qualify them. This stage clarifies the way to measure employees performance. In the

past, the Branch used to some methods, kind of making comparison, but they did not

work. As a result, new approach would be applied to replace ineffective ones.

In the end, the Director decided to assess the results achieved by total sales.

Obviously, provided the company get more done with a smaller amount of resources,

either money or people, its revenue will increase. An experienced member from

Administrative Department set up a system for tracking these measures and enhancing for

feedbacks.

There are certain features describing the system:

Firstly, employees are divided into 3 main groups based on their task, exactly the

complexity of their work performed.

GROUP1: People directly trading lubricants, grease, petroleum, rubber

processing oil, chemicals substances

GROUP 2: People related to freight forwarding

GROUP 3: People doing management

Besides, depending on job analysis of each group, standards suiting to them were

listed. This method helps managers avoid considering a qualified employee lower



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his actual ability due to the difference of the hard to making money between

dissimilar jobs.

Remarkably, in a formal document called Quy ch tr lng v phn phi

thu nhp, a basic description about assessing employees performance is clearly

given. According to this document, the performance of staff is coded into specific

letters.

In particular, people belonging to the two first groups might be ranked one of 11

levels; whereas, assessment for the last group is only divided into 4 levels, namely A,

B, C, D (See Appendix A). The document also clarifies description about ranking

appropriate levels. The below table is quoted from the document, specifically itdescribe how to rank members belonging to Group 3.

+ i tng: Cn b qun l, nhn vin chuyn mn nghip v phc v

Loi A (K = 1,0): m bo ngy cng, hon thnh tt chc trch nhim v, chp hnh

tt ni quy, quy ch ca n v, c thc trnh nhim, on kt tt

Loi B (K = 0,9): Hon thnh chc trch nhim v, chp hnh ni quy, quy ch ca n

v, ngh vic ring n 03 ngy hoc i mun v sm n 30 pht (khng l do) t 3-5 ln

/thng hoc trong cng vic c nhm ln sai st nh song cha xy ra tn tht vt cht tin

vn.

Loi C (K = 0,8): Hon thnh chc trch nhim v mc thp hoc vi phm ni quy,

quy ch hoc ngh vic ring n 04 ngy hoc ngh m 5- 6 ngy hoc i mun v sm n

30 pht (khng l do) t 6 7 ln/thng

Loi D (K = 0,7): thc trch nhim yu, vi phm ni quy, quy ch hoc ngh t do 01

ngy hoc ngh vic ring trn 04 ngy hoc ngh m trn 6 ngy hoc i mun v sm n

30 pht (khng l do) t 8 ln tr ln/thng hoc sai st, nhm ln, tn tht trong khi

thc hin cng vic

According to the table, when assessing an employee belonging to Group 3, the

most vital dimension is how effective he works done. In other words, managers think

over whether there are mistakes or not. Subsequently, the quantity of actual working

day is considered.



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For members being in the two others, due to the link with doing business, the

quality of work done is measured first by the revenue he gained to the Branch. In

addition, figures for each employees actual working day are mentioned as well.

In normal, on 30th day each month, a fixed member from Administrative Division

collects the figure for employees revenue from Accounting Division and managers

observation about the behavior of employees. He scores the others based on Quy

ch tr lng v phn phi thu nhp.

For instance, during June, 2012, an employee working fortransport agent department achieved 77.000.000 VND of revenueand did not violate any rules and regulations of the company.

On 30thJune, a rater realizes that the employee belongs to Group2. After that, he uses standards in this area to score hisperformance. According to the defined requirement, managersmight rank him A2 (See Appendix A).

There are also, in each group, a few exceptions concerning about the first time

performing task or doing a special situation. This may encourage staff to try their best

to gain more revenue for the Branch.

3.1.3 Managing performance

The primary goal of any appraisal system is performance management. To manage

and improve their employees performance, managers must explore the causes of

performance problems and give feedback to the employees. It helps them to know that

whether they are doing the right thing or doing the thing right. After receiving a useful

feedback, the employees might get round to planning how to correct these shortcoming.

Apart from regular meetings called Giao ban in every Monday morning, there

are always 2 formal appraisal interviews per year, where managers play

simultaneously coach and judge role. In these meeting, the performance feedback as well

as some helpful advices about how to improve their performance is clearly given and

analyzed. Afterwards, their salaries are also informed. Moreover, the leader also



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announces their ranking, salaries and rewards to improve employees perceive about their

direct benefits relating to the productivity. Any disagreement between employees and

managers is discussed, during this session.

Furthermore, plenty ofinformal day-to-day interactions between managers

and workers are popular. Consequently, when making a mistake, the staff might

immediately be reminded and adjust their work.

In addition, the company has relatively concerned about rewards for people have

significant contributions to the companys mission. The regulations also cover a variety

of contributions that can be rewarded, from suggestions to group accomplishments. At

the end of each year, Board of Management takes place a meeting and informs a list ofgood performers coming from different Branches. Afterwards, their salaries also go up,

based on the list. This regulation, surely, becomes a vital motivation of employees and

partly, increases the companys revenue. There are, but once in a while, time off, and

many nonmonetary items.

3.2 Source of information

Regardless of which method managers use to manage performance, issue

involving in who will collect and analyze the performance information. A qualified

person is required to have a deep understanding of the job requirements and/or the

opportunity to see the employees doing the job.

In the Branch, the most popular source of performance information is the

employees managers as they possess the basic qualification for this responsibility. It

is assumed that managers is likely people have not only an extensive knowledge of the

job requirements but also chance of observing their employees.

Apart from internal source, customers assessment is one main source of

information, too. They are often the only people who directly observe the service

performance, so using customers feedback probably supports the organizations



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performance management. The Director, managers regularly invites customers to have a

meal; besides, customer satisfaction card or mail surveys are also used.

3.3 Challenges

It is tough for managers to ensure accurate measurement of worker performance,since there are various barriers that they have to face. Learning about these challenges

might help them avoid making mistakes and give not only an accurate measurement but

also appropriate feedback.

3.3.1 Rater errors and bias

Rater errors are errors in judgment that occur in a systematic manner when an

individual observes and evaluates another.

Personal perceptions and biases may influence how we evaluate an individuals

performance. What makes these errors so difficult to correct is that the observer is usually

unaware that she or he is making them. For instance, halo effect the tendency to make

inappropriate generalizations from one aspect of a persons job performance. This is due

to being influenced by one or more outstanding characteristics, either positive or

negative.

Besides, there are several types, namely leniency, central, contrast effect, firstimpression error, similar-to-me effect.

3.3.2 The influence of liking

Liking can cause errors in performance appraisals when raters allow their like or

dislike of an individual to influence their assessment of that persons performance.

The fundamental question, of course, is whether the relationship between liking

and performance ratings is appropriate or biased. It is appropriate if supervisors prefergood performers to poor ones. However, it is biased if supervisors allow their liking, for

other reasons than performance, influence on the measurement.



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3.3.3 Organizational politics

Organization politics is usually described as a self-serving behavior which

seeks to achieve self-interests, advantages and benefits at the expense of others.

The main characteristics of organization politics are the readiness of people to usepower in their efforts to influence others and secure their own interests or, alternatively,

avoid negative outcomes within the organization.

Although accuracy may not be the main goal in organizations, it is the theoretical

ideal behind appraisal. Careers have been ruined, self-esteem lost, and productivity

degraded because of the political use of appraisal. Apart from these negative effects,

politically driven appraisal also leads to employees willingness to quit their jobs.

3.3.4 Whether to focus on the individual or the group

In general, managers should think over performance appraisal at two levels:

o Individual contribution to team performance

o The performance of the team as a unit

The problem is how to balanced two levels. Moreover, outcome measures may

need to be complemented with measures of process. For instance, achieving a result may

be important but so, too, is an interpersonal relation.

3.3.5 Legal issues

Due to the close link between performance measures and decisions about pay,

promotions and discipline, employment-related lawsuits often challenge the companys

PMS.

There are sometimes discrimination claims, which allege that the PMSdiscriminated against employees on the basis of their sex.

Besides, certain following factors may be influence legal decisions:

o Use of job analysis



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o Providing written instructions

o Allowing employees to review appraisal results

o Agreement among multiple raters

o The presence of rater training

3.4 Evaluation

Being aware of the position of the current PMS is a critical knowledge for

managers. As a result, in this part, I am going to point out the main strength and

weakness of the system. Therefore, the Branch can know which features should be

conducted continuously, and which ones should be eliminated.

3.4.1 Strength

SPENDINGPLENTYOFTIMEON SETTINGUPTHEPERFORMANCEMEASUREMENT

STANDARDS

Understanding the importance of an effective PMS, the Director with the members

from Administrative Department invested various time in identifying relevant aspects,

giving clear and easy-understand requirements for each tasks, and also has been taking

into account providing appropriate feedbacks.

From Shipping and Forwarders perspective, the Company knows that it is

possessing a reliable image over the world; whereas, in terms of others, specially steels

and irons, it still need an explore to expand its position and attract more customers. As a

result, in order to fit with present companys strategy, there are rewards for employees

significantly contributing to an increase in the companys market share, such as signing

high-value contracts with new customers.

Moreover, the well-planned document called Quy che tra tien luong va phan phoi

thu nhap is adjusted on a regular basis and based on figures for previous years.

Employees also take some chance of discussing about this issues; this makes the system



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become more a valid and acceptable one. In other words, this outcome approach provides

clear and unambiguous criteria by which worker performance can be judged;

consequently, when believing that they can reach the standards despite hard-working

behavior, employees might have more motivation.

In addition, employees are also told what is expected of them and how they can

meet those expectations. To be more specific, even employees who are meeting

expectation can become more valuable when they hear and discuss performance

feedback. Effective feedback makes employees aware of their strength and of the areas

in which they can improve. Because of more concentrating on this step rather than in the

past, employees performance problems has been often promptly pointed out; which

plays a significant role in the company development recently.

CHOOSINGANEFFECTIVEMEASUREMENTMETHODS, WHICHDEPENDSONTHE

EMPLOYEES RESULTS

It is undeniable that productivity is an important measure of success, since getting

more done with a smaller amount of resources leads to a rise in the companys revenue.

Although this type of performance measurement takes obviously a great deal of time and

effort, it can improve productivity due to its link between employees performance with

the organization overall goals.

Furthermore, one other advantage of this measurement method is avoiding several

common rating errors. Ranking the employees performance based on their productivity

reduces rater errors and bias, the influence of liking, organizational politics, whether to

focus on individual or group, and legal issues. However, these still are 5 worrying

challenges in performance management process. We will discuss deeply about them later.

USINGBOTHINTERNALANDEXTERNALSOURCEOFINFORMATION



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Unsurprisingly, having just one person as a source of information poses certain

problems. People, in an organization, tend to like some people more than others, and

those feelings can bias how an employees efforts are perceived.

Indeed, customers are often in a better position to evaluate the quality of a

companys products or services than supervisors are. Supervisors nay have limited

information or limited perspective; while, customers often have a wider focus. Besides, it

is also appropriate where the company interests in gathering information to determine

what products and services the customer wants. As a consequence, customer evaluations

are useful both for evaluating an employees performance and for helping to determine

whether the organization can improve customer service by making changes in HRM

activities such as training or compensation.

ANAPPARENTLINKBETWEENEMPLOYEES PERFORMANCEANDTHEIRSALARIES.

This approach provides employees an easy-to-see direct advantage. They might have an

encourage to work harder or find out more incentive improving their productivity.

Moreover, broader goals such as employee development, improving performance, team

building, or providing effective feedback to employees are probably more valuable in an

effective performance management system than just determining salary increases.

Interestingly, the System will be based on merit and avoid personal bias and

discrimination.

3.4.2 Weakness

ONLYONEPERSONMEASURESOTHERSPERFORMANCE

Although the system is conducted mainly based on their productivity - a

quantitative figure, there is also a necessary behavioral dimension. As a result, provided

the person scoring employees does not work with him, the results might be influenced by

the relationship between raters and employees. A rater often tends to omit certain

mistakes of people close to him, and strictly treat to others.



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THEPERSONDOINGMEASURINGMANAGEMENTISFROM ADMINISTRATIVE

DEPARTMENT.

Consequently, he might not have an incentive to provide accurate and helpful

feedback, since employees performance is not his business and do not affect directly on

his income. Moreover, he does not have enough opportunity to observe the employee

performing job duties, which can make his decision not really accurate.

CERTAINSOURCESOFINFORMATIONHAVENOTRELATIVELYCONCERNED.

Peers are a wonderful source of information about performance, as they can

directly observe other employees. Supervisor does not often do this, and sometimes can

provide extremely valid assessments of performance.

For evaluating the performance of managers, subordinates are a valuable source of

information. Nonetheless, in the company, this subject is not really concerned. It should

be recognized that subordinates often take chances to see how well a managers treats

employees. There is only one way they can do, which is reporting to Labor Union;

however, this is a time-consuming method.

Surprisingly, self-rating is one way bringing benefits to valuable information. A

well-used approach is to have employees evaluate their performance before the feedback

session. This activity gets employees thinking about their performance. Dissimilar points

between the self-appraisal and others might be thought over during the feedback session.

4. Suggested solutions to improve the Performance

Management System

EXPANDINGSOURCESOFINFORMATION

Using a few subjects as a source of information poses certain problems. Undeniably,

people tend to prefer some people to others, which feeling can bias how an employees

efforts are perceived.



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The Branch used to just concern 2 main sources of information; while other sources

can provide unique and valuable perspectives to the performance appraisal process.

o Peers

Supervisors are sometimes unable to observe directly employees; whereas, peers

may have the most opportunity to observe the employee in daily activities.

The Branch may collect information from this source by surveys asking about

peers performance. Especially, in case of projects requiring a group of employees, this

method is really necessary. Employees might be questioned about the contribution of

their colleges to the team work, and this information is really helpful for raters to score

accurately the performance.

Despite its value, this source also offers several risks relating to friendships or

others, it is still an excellent source for raters.

o Subordinates

Actually, in regard with the performance of managers, subordinates are an

extremely appropriate source of information. They are people taking chances of reportingdirectly to the manager, so they can see exactly how well the managers treat their

employees.

Nonetheless, this is not really a reliable source, due to their scare of telling

negative about the managers. Moreover, in some cases, managers, who admire to have

higher rating, tend to emphasize employees satisfactory, even at the expense of

productivity.

Anyway, it still benefits for the managers performance measurement process. At

the moment, staff can report to Labor Union; however, it is quite time-consuming and

complicated. There should be some meeting between employees and top managers to

discuss about this issue.



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o Self

No one has a greater chance to observe the employees behavior on the job than

does the employee himself or herself. Consequently, self-ratings are valuable and it can

contribute partly to the effectiveness of performance management.

In my view, the Branch should perform self-appraisal process before the feedback

session. This activity gets employees think about their performance, and perhaps, by

themselves, they realize their strength and the weakness.

ITAPPLICATIONS

Despite the rapid growth of technology, the Branch seems not to concern aboutthese applications. The Company had a website; however, each Branch, particularly

VINATRANCOHP, still not have its own website.

Besides, the content of the Company website is a bit poor; there are just some

contacts and a brief of the products. In the future, an effective website should be created;

it is not only a page introducing products, but where for receiving claims or exchanging

experience.

IMPROVINGQUALITYOFSUPERVISION

High-quality supervision has a crucial role to play in the development, retention

and motivation of the workforce. This should be trained in supervision skills and have an

up-to-date knowledge of the legislation, policy and research relevant to practice in

import-export trade. Moreover, an effective supervision makes the employees feel

equally as well; which means that it does not allow personal bias appear, even rarely.

o The number of member measuring employees performance should be

added. Currently, there is only one person scoring performance of employees; this easily

lead to common raters errors or influence of liking. In next period, one another should be

assigned to support or co-operate for the old-rater. They might independently rank, and



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subsequently, compare their result. Whatever significant differences between 2 results are

discussed carefully or reported to the Director.

o In addition to increasing the authority, a training season for them is also

necessary. This training has consistently been found to increase the accuracy of

performance ratings. It is undeniable that suffering from this training provides raters

ability of omitting personal influence. Perhaps even more important, it develops common

evaluation standards among supervisors. However, due to the small scale of the Branch,

these two staff might be supported to join in an outside course of performance

management or study a hired lecture.

HAVINGMOREAPPROPRIATEMOTIVATION

There should be, in the company, a broad range of forms that rewards good

performance, such as cash, time off, and many nonmonetary items.

Moreover, some ways motivating employees should be used. Perhaps, one day per

month the staff watch films together, or the Branch takes the employees on a surprise

holiday.

5. Conclusion

Nowadays, Human Resource is more and more concerned and considered as be

critical to the success of companies. From business perspective, the organizations will

gain success, if it has its own sustainable competitive advantage. Therefore, managing

employees performance is one vital process and partly gives companies more

competitive advantages.

Although the Branchs PMS has changed and been adjusting to adopt the situation,

there are still various challenges, such as bias, liking, organizational politics, individual

or group focus, legal issues. Consequently, The Transport warehousing and



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Trade service Joint Stock Company Hai Phong II Branch still need to take

into account upgrading its own PMS.

I hope that the Branch can take advantage of certain suggested solutions. To be

more specific, it could partly contribute to their success of the Branch in the future.


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