“The practices of performance appraisal systems in NGOs”

CHAPTER 1: INTRODUCTION

1.1 Origin

This report is prepared as a prerequisite for the completion of the Human Resource Management.

This report will demonstrate how well the students have grasped elements of effective Human

Resource Management skill. We have chosen to examine the performance appraisal system of

BRAC Bangladesh, World Vision Bangladesh and Compassion International Bangladesh.

1.2 Objective

The main goal of this report is to give a summary of the performance appraisal system used by

BRAC Bangladesh, World Vision Bangladesh and Compassion International Bangladesh. The

specific objectives of the report are:

To give an overview of the Non Governmental Organizations of Bangladesh.

To find out the specific performance appraisal system used by the three NGO’s

mentioned above.

To analyze their appraisal system.

To make a comparative analysis of the appraisal systems followed by these organizations.

To make recommendations based on the findings from the comparative analysis.

1.3 Methodology

A mixture of primary and secondary sources of information was used for this report. The

Primary sources of data are the survey results. The survey was administered through a structured

questionnaire at World Vision Bangladesh, BRAC Bangladesh and Compassion International

Bangladesh. Internet and Company annual reports were consulted for Secondary data sources.

1.4 Limitations

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The limitations of the report are as follows:

The findings of the survey may not represent the whole industry as we have selected only

three organizations from the whole industry.

In depth analysis could not be done because of the lack of specialized skills on Human

Resource Management.

1.5 Literature Review

Performance appraisal: Evaluating an employee’s current and/or past performance relative to his or her performance standards.

Performance management: The process employers use to make sure employees are working toward organizational goals.

Graphic Rating scale: A scale that lists a number of traits and a range of performance for each that is used to identify the score that best describes an employee’s level of performance for each trait.

Alternation Ranking Method: Ranking employees from best to worst on a particular trait, choosing highest, then lowest, until all are ranked.

Paired Comparison Method: Ranking employees by making a chart of all possible pairs of the employees for each trait and indicating which is the better employee of the pair.

Forced Distribution Method: Similar to grading on a curve; predetermined percentages of ratees are placed in various performance categories.

Behaviorally Anchored Rating Scale (BARS): An appraisal method that uses quantified scale with specific narrative examples of good and poor performance.

Management by Objectives (MBO): Involves setting specific measurable goals with each employee and then periodically reviewing the progress made.

The Grote Approach: Grote ApproachSM is the online employee performance appraisal and management software created by Dick Grote.

CHAPTER 2: OVERVIEW OF NON-GOVERNMENTAL

ORGANIZATION (NGO) INDUSTRY

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2.1 What are Non-Governmental Organizations (NGOs)?

Non-governmental organizations (NGOs) are generally considered to be “non-state, non-profit orientated groups who pursue purposes of public interest”, excluding the private sector (Schmidt and Take 1997). One of the most widely used definitions is given by Operational Directive 14.70 of the World Bank: “private organizations that pursue activities to relieve suffering, promote the interests of the poor, protect the environment, provide basic social services, or undertake community development” (World Bank 2001). More broadly, the term is applicable to any non-profit organization (NPO) that is not affiliated with government. According to the World Bank, NGOs are “value-based organizations which depend, in whole or in part, on charitable donations and voluntary service,” and in which “principles of altruism and voluntarism remain key defining characteristics”.

2.2 Overview of the NGOs in Bangladesh

 The social development scene in Bangladesh is characterized by a strong presence of non-governmental organizations (NGOs). Bangladesh has relied on non-governmental organizations (NGOs) since its inception in 1971 as a means to elevate the welfare of its citizens. The NGO sector initially developed in response to much-needed relief and rehabilitation efforts after the nation’s War for Independence and natural disasters. Since then, the NGO sector has grown and become the “champions of ‘sustainable development’” (Davis 1). Afterwards, with assistance from foreign donor agencies, they expanded their activities to deliver a variety of services including microcredit, essential healthcare, informal education, women empowerment and rights advocacy.

As is well-known, the NGO sector in Bangladesh has been a very strong one in terms of the number and size of NGOs, the role it plays in the development of the country, especially in poverty alleviation, and its spectacular successes in the social and economic arena.

The presence of non-governmental organizations (NGOs) in developing countries is often assumed to indicate a vibrant civil society that can help promote good governance and effective policy implementation where state infrastructure is weak. In case of Bangladesh, NGO sector as a whole has shifted away from its initial focus on promoting political mobilization and accountable government, to the apolitical delivery of basic services. The result of this ‘depoliticization’ of NGOs is an accelerated erosion of democratic institutions in Bangladesh.

While current studies of NGOs are correct to stress the influence of western donors in driving this depoliticization, the process in Bangladesh results from the combination of international donor pressure with a domestic environment inimical to political activism. The study suggests that in many developing country contexts, NGOs and civil society actors need to pay more attention to

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mobilization efforts that can promote both the short-term empowerment of the poor and the long-term consolidation of democratic institutions.

CHAPTER 3: World Vision, Bangladesh

3.1 Company Overview

3.1.1 History of World Vision

World Vision is a Christian humanitarian charity organization dedicated to working with children, families, and their communities worldwide to reach their full potential by tackling the causes of poverty and injustice. Dr. Bob Pierce began World Vision to help children orphaned in the Korean War. To provide long-term, ongoing care for children in crisis, World Vision developed its first child sponsorship program in Korea in 1953. As children began to flourish through sponsorship in Korea, the program expanded into other Asian countries and eventually into Latin America, Africa, Eastern Europe and the Middle East. Today, monthly contributions from sponsors enable World Vision to provide impoverished children and their communities with access to clean water, nutritious food, education, health care and economic opportunities.

3.1.2 What They Do

Transforming Communities

Because poverty has both local and global causes, World Vision works within communities and across geographical areas to help individuals and groups improve the well-being of children and overcome poverty.

Responding to Disasters

When disasters strike, World Vision is globally positioned to help with immediate needs like food, water and shelter. World Vision also works with communities to recover from disasters and prevent future catastrophes.

Seeking Global Change

World Vision engages institutions, donors and the general public to address the global problems that perpetuate poverty. Advocacy staff empower communities to speak up for their rights, both locally and globally.

3.1.3 Where They Work

World Vision is both local and global, working at the grassroots in countries all around the world. World Vision is dedicated to working with children, families and communities, regardless

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of religion, race, ethnicity or gender, to overcome poverty and injustice. World Vision provides its services in the following countries:

Africa

Angola, Burundi, Chad, Congo (DRC), Ethiopia, Ghana, Kenya, Lesotho, Malawi, Mali, Mauritania, Mozambique, Niger, Rwanda, Senegal, Sierra Leone, Somalia, South Africa, Sudan (north | south), Swaziland, Tanzania, Uganda, Zambia and Zimbabwe.

Asia

Afghanistan, Bangladesh, Cambodia, China (PRC, includes Hong Kong), India, Indonesia, Japan, Laos, Malaysia, Mongolia, Myanmar, Nepal, North Korea, Pakistan, Philippines, Singapore, South Korea, Sri Lanka, Taiwan (RoC), Thailand, Timor-Leste, Uzbekistan and Vietnam.

Europe

Albania, Armenia, Austria, Azerbaijan, Belgium, Bosnia and Herzegovina, Finland, France, Georgia, Germany, Ireland, Italy, Kosovo, Montenegro, Netherlands, Romania, Russian Federation, Serbia, Spain, Switzerland and United Kingdom.

Latin America

Bolivia, Brazil, Chile, Colombia, Costa Rica, Dominican Republic, Ecuador, El Salvador, Guatemala, Haiti, Honduras, Mexico, Nicaragua and Peru.

Middle East

Cyprus, Jerusalem/West Bank/Gaza, Jordan, Lebanon, Syria and United Arab Emirates.

North America

Canada and United States.

Oceania

Australia, New Zealand, Papua New Guinea, Solomon Islands and Vanuatu.

3.2 Findings and Analysis

3.2.1 Method Followed by World Vision Bangladesh

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World Vision does follow a formal appraisal system in their organization for appraising the employees’ performance. The method followed by them is Graphic Rating Scale. The HRD Director sets a list of traits and a range of performance values as standards for the evaluation. World Vision uses a five scale graphic rating system. The super visor then rates each subordinates by checking the score that best describes his or her performance for each traits. The assigned values for the traits are then totaled. After the evaluation done by the supervisor, it is checked by the HRD Director himself for confirmation. The appraisal is done for employees of all the levels, and it is done uniformly at the total organization for every employee. World Vision appraises the employees yearly. They usually do it in August or September. The appraisal forms are sent out to the employees by July.

3.2.2. Objectives of appraisal

The major objectives for performing the appraisal are,

To find out who gets a reward, which in this case is increment, and To select who gets sent for training and development.

3.2.3 Who performs the appraisal

The performance appraisal of individual employee is conducted by the immediate supervisors of each employee. And all the supervisory level employees are trained for performing the appraisal. The training for performing appraisal is a part of their orientation program.

3.2.4 Appraisal Interview

They communicate the appraisal to the employee with a formal appraisal interview every year after the evaluation process is completed. This interview is performed to make them learnt about their own states so that they can improve their deficiencies and maintain their good performances. In the interview the employees discuss about the goals from the previous year, how much of it is completed and how much is not. The employees also discuss what their goals will be for the next year.

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CHAPTER 4: BRAC, Bangladesh

4.1 Company Overview

4.1.1 History of BRAC

Through its years of struggle against chronic deprivation, hunger and injustice, Bangladesh has been home to many innovations in tackling poverty. BRAC, a development organization founded by Fazle Hasan Abed in February 1972, soon after the liberation of Bangladesh, has acted as both the initiator and catalyst for many such innovations and change. Our initial focus was on assisting the refugees returning from India to their newly independent country. In 1973, we broadened our focus to long term sustainable poverty reduction. Over the course of our evolution, BRAC has established itself as a pioneer in recognizing and tackling the different dimensions of poverty. Our unique, holistic approach to poverty alleviation and empowerment of the poor encompasses a range of core programs in economic and social development, health, education, and human rights and legal services. Today, BRAC is the largest southern NGO and employs more than 100,000 people, the majority of which are women, and reaches more than 110 million people with our development interventions in Asia and Africa.

4.1.2 What They Do

The activities that BRAC does in Bangladesh are Economic development, education, health,

human rights and legal services, social development, agriculture, environment, knowledge and

capacity building, human resource department, governance and financials, social enterprises,

4.1.3 Where They Work

Over the past 35 years, BRAC has developed, tested, and implemented development programs that have propelled it to become the largest development organization in the world as measured by number of employees, scale, and diversity of its interventions. Throughout this time, BRAC has not only witnessed but been a key agent of change in Bangladesh's transformation. The country has made significant improvements in health, education, and income, making it a unique success story in the field of development.

As an organization committed to fighting poverty, we are taking the knowledge and experience we have acquired over three decades through our work in poverty alleviation in Bangladesh to the aid of other similarly developing countries ravaged by war, natural disaster and poverty. By sending small teams of BRAC experts - who have direct experience of developing and managing simple scaled up solutions for the poor in similarly difficult circumstances - we are able to quickly recruit and train local staff to implement our holistic approach to poverty reduction. For these reasons BRAC expanding its activities internationally. Currently it is providing services in

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Bangladesh, Afghanistan, Sri Lanka, Pakistan, Uganda, Tanzania, Southern Sudan, Liberia, Sierra Leone, BRAC UK and BRAC USA.

4.2 Findings and Analysis

4.2.1 Method Followed by BRAC Bangladesh

BRAC follows a formal appraisal system in their organization for appraising the employees’ performance. The method followed by them is a combination of Graphic Rating Scale and Behavioral Anchor Rating Scale. Basically Behavioral Anchor Rating Scale is a graphic rating scale, with descriptive phrases included to define each trait. The AGM - HRD sets a list of traits and a range of performance values as standards for the evaluation. BRAC uses a five scale graphic rating system. The super visor then rates each subordinates by checking the score that best describes his or her performance for each traits. The assigned values for the traits are then totaled. In the Behavioral Anchor Rating Scale part of the appraisal form, the supervisor, discussing with the employee, puts down ten most important responsibility of the employee chronologically. Then the supervisor evaluates him or her in total of fifty marks. If the mark obtained by the employee is equal to or more than 70%, then the employee is recommended for promotion. The appraisal is done for employees of all the levels, but it is done differently for different level of employees. It is to be mentioned that there are twenty levels of employees in the organization. They basically use the same method but only the format is different. BRAC appraises the employees yearly. The employees of level one to seven are apprised in October, and the employees of level eight to twenty are apprised in March.

4.2.2. Objectives of appraisal

The major objectives for performing the appraisal are,

To find out who gets a reward for their outstanding performance. To determine whether the employee gets a better compensation package or not. To select who gets sent for training and development. To decide when to recommend an employee for promotion.

4.2.3 Who performs the appraisal

Each employee of the organization is apprised by their immediate supervisor. BRAC conducts a special training program for the supervisors who perform the appraisal. The training for performing appraisal is a part of their orientation program.

4.2.4 Appraisal Interview

BRAC conducts a formal appraisal interview to review the appraisal with the employees after the evaluation process is completed. This interview is performed to make them learnt about their own states so that they can improve their deficiencies and maintain their good performances.

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CHAPTER 5: Compassion International Bangladesh

5.1 Company Overview

5.1.1 History of Compassion

Compassion International exists as a Christian child advocacy ministry that releases children from spiritual, economic, social and physical poverty and enables them to become responsible, fulfilled Christian adults. Founded by the Rev. Everett Swanson in 1952, Compassion began providing Korean War orphans with food, shelter, education and health care, as well as Christian training. Compassion's work spans 57 years, from modest beginnings in 1952 when one man felt compelled to help 35 orphaned children in South Korea, to today, where more than 1 million children in 25 countries benefit from that original vision.

5.1.2 What They Do

Compassion focuses on spiritual, physical, economic and social needs of children.

Child Sponsorship :  Sponsoring children in need is the core of how Compassion works. By sponsoring a child, you can change the life of a child forever. 

Child Participation :  Participation in a Compassion child sponsorship program is a long term, holistic process rooted in learning.

Church Partnership :  Compassion forms partnerships in places where local churches are active and focused on caring for children who are ensnared in poverty. We love this shared faith and sense of purpose: it's a partnership that works.

Church's Role :  Compassion may know children, but we don't necessarily know your children  yet. That's why the role of the local church and community is so vital.

Project Overview :  Although many factors go into launching a new Compassion project, it all starts with a few people who are interested in helping poor children and determine to do something about it.

Child's Family :  Just like a good church partnership, Compassion's child sponsorship program success is vitally linked to a child's family.

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5.1.3 Where They Work

Today, Compassion provides child development aid to more than 1 million children in 25 countries. Each country office is staffed by country natives. Its child development program reaches four main regions of the world:

Africa: Compassion's Africa child development centers, started in 1980, now serve more than 317,400 children in eight countries: Burkina Faso, Ethiopia, Ghana, Kenya, Rwanda, Tanzania, Togo and Uganda.

South America: Compassion began working in Brazil and Ecuador in 1974 and we now serve more than 235,000 children in the five South American countries of: Bolivia, Brazil, Colombia, Ecuador and Peru.

Central America and the Caribbean: Compassion first opened Central American and Caribbean child development centers in 1968 in Haiti. Since then, six more countries have been added to the effort. More than 250,000 children are being served in more than 1,365 child development centers. We're now working in: Dominican Republic, El Salvador, Guatemala, Haiti, Honduras, Mexico and Nicaragua.

Asia: Compassion serves more than 250,000 poor children in five countries in the south and southeast regions of Asia: Bangladesh, India, Indonesia, Philippines and Thailand.

5.2 Findings and Analysis

5.2.1 Method Followed by Compassion International Bangladesh

Compassion International Bangladesh follows a formal appraisal system in their organization for appraising the employees’ performance. The method followed by them is a combination of Graphic Rating Scale and Grote Approach. The HR Specialist sets a list of traits and a range of performance values as standards for the evaluation. The supervisor then rates each subordinates by checking the score that best describes his or her performance for each traits. The assigned

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values for the traits are then totaled. The appraisal is done for employees of all the levels, but it is done differently for different level of employees. They use different methods for different levels of employees. Compassion International appraises the employees once a year.

5.2.2. Objectives of appraisal

The major objectives for performing the appraisal are,

To determine whether the employee gets a better compensation package or not. To make inter-department transfer decision. To select which employee needs more training and development. To promote an employee based on outstanding performance.

5.2.3 Who performs the appraisal

Each employee of the organization is apprised by their immediate supervisor and also by themselves. Compassion International trains the department supervisors for performing the appraisal more effectively and efficiently. The training for performing appraisal is a part of their orientation program.

5.2.4 Appraisal Interview

Compassion International conducts a formal appraisal interview to review the appraisal with the employees after the evaluation process is completed. This interview is performed to make them learnt about their own states so that they can improve their deficiencies and maintain their good performances. Compassion International also wants to make the employees feel that they have the right to know how the organization treats and think about them.

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CHAPTER 6: COMPARATIVE ANALYSIS

All three organizations follow a formal practice of appraising the employees’ performance.

All the organizations use Graphic Rating Scale to evaluate the performance of the employees. In addition, BRAC uses Behavioral Anchor Rating Scale and Compassion International uses Grote Approach.

All three of the organizations conduct the performance appraisal mainly for training and development. In addition, BRAC and Compassion International conduct the appraisal for promoting and compensating the employees, while World Vision conducts it for rewarding.

The appraising is done for each and every employee of all three of the organizations. World Vision and BRAC follows a uniform appraisal method for the whole organization.

On the contrary, Compassion International follows different methods for different levels. In all three organizations performance appraisal is conducted by the immediate

supervisor of each employee. In addition, it is also conducted by self-rating in Compassion International.

All three organizations arrange special training program for the supervisors who perform the appraisal. Basically, it is a part of their orientation program.

All the organizations conduct their performance appraisal yearly. The only difference is that they do it at different times.

All the organizations arrange an appraisal interview to review the appraisal.

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CHAPTER 7: RECOMMENDATION

Since, in all the organizations, the supervisors conduct the appraisal, there is always a chance for biasness in the complete system. The supervisor might favor an employee and give him or her good ratings, and dislike another one and give him or her lower rating. The HR Officer responsible for the appraisal process must recheck the forms properly to make sure no employees are treated unfairly. We have found that World Vision is the only organization of the three where this practice is employed. The other organizations can also follow this to build a better performance appraisal system. This biasness can also be treated by using Behavioral Anchor Rating System (BARS).

Some supervisors tend to stick to the middle point of the rating scale. For example, it a rating scale ranges from one to five, they tend to rate most of the employees at. This is a problem of using a graphical rating scale. This may make the evaluation less useful for promotion, salary or other purposes. Ranking employees’ instead of using graphic scales can reduce this problem.

We have also found out that Compassion International is the only organization where different level employees are apprised differently. This is a good practice, as the tasks at different level are different from each other. So they should also be apprised differently. Other organizations can also adapt to it.

CHAPTER 8: CONCLUSION

The findings of this report clearly indicate that different NGO’s in Bangladesh follow different systems to evaluate and apprise their employees. Some of them use the standard systems that are mentioned in the text. But some of them modify it in their own way to fit the criteria of their organization. All of them have a well defined appraisal system, about how they do it, who does it, which particular method is followed, when it is done and many other details. We have found that all the employees are appraised strictly. Though there is a chance for biasness, but most HR officers try to overcome it.

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References:

1. Ravi KamalrajHRD Director,World Vision BangladeshAwal Tower, Banani, Dhaka.

2. Srabani SahaSenior HR Officer 1BRAC Bangladesh75, Mohakhali, Dhaka.

3. Peter PramanikHR SpecialistCompassion International BangladeshHouse: 53, Road: 10, Block E, Banani, Dhaka.

4. www.compassion.com

5. www.brac.net

6. www.worldvision.com

7. www.grotapproach.com

8. Human Resource Management, Gary Dessler, 10th edition

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