Evaluating the Performance Management System at Attock Refinery Ltd

This case study examines Attock Refinery Limited's (ARL) performance management system, which has evolved from a behavioral-based approach to an objective, target-driven model. The analysis identifies challenges related to the performance appraisal committee's role, training deficiencies, and limited growth opportunities. It proposes alternative methods such as 360-degree feedback, assessment center methods, and psychological appraisals to enhance employee evaluation and satisfaction. The study emphasizes the importance of clear communication between managers and employees, targeted training programs, and gathering employee feedback to improve the existing performance appraisal system and foster a more engaged and productive workforce. ARL can improve learning by arranging training sessions in the home country rather than foreign countries to save costs and time. Also, the organization can easily get favorable results by maintaining proper communication at the workplace.

Staff &
Performance
Management

Table of Contents
Analysis of the scenario and develop the alternatives..............................................................................3
Best alternatives available to the organization:........................................................................................3
Course of Action.....................................................................................................................................4
How organization can implement the suggestions...................................................................................5
References...................................................................................................................................................6

Analysis of the scenario and develop the alternatives
The given scenario is based on Attock refinery limited which started operations in 1922.
It produces 43,000 barrels of oil per day. The company is constantly upgrading which will help
them in sustaining in the competitive environment for longer duration. The existing scenario is
based on assessment of performance appraisal method that is being adopted by the company.
During the decade of 1990s, the company was based on behavioral based appraisal method
which was a mix of targets as well as competencies. Later the company shifted from paternalistic
culture to the performance driven culture. Due to the subjective nature of the existing PMS, the
company shifted towards another approach that was objective. In this, the performance reviewed
on the basis of assigned targets. However, the organization faced several challenges in respect of
the role of PAC, lack of training, growth opportunities and more. On the basis of the given
scenario, the company can adopt below mentioned alternative methods to make further
improvements:
360-Degree Feedback: It is a multidimensional performance method wherein the
performance of employees is reviewed by different people such as peers, customers, managers
and more. Through this, employees will get honest review regarding the performance.
Additionally, it will eliminate the biasness in the performance appraisal approach (Manjula,
2018).
Assessment center method: This method makes employees able to get clarity how their
behavior is being observed by others and its impact on their performance (Kiradoo and et. al.,
2021). In context of ARL, employees can consider the opinion of managers and peers to assess
their existing performance.
Psychological Appraisal: In context of the given scenario, ARL can also adopt
psychological appraisal to determine the hidden potential of the employees. Under this method,
future performance is analyzed rather than the past performance of the workforce (Alsuwaidi and
et. al., 2020).
Best alternatives available to the organization:
ARL has changes its performance management approach over the period of time.
Previously, it was subjective which modified by the company in terms of making necessary

changes. They incorporated objective aspects such as target, deadlines and more to evaluate the
performance. However, the company can adopt various alternatives to get the benefit of
performance appraisal. In this context, they need to use such approaches where employees can
also get true and fair feedback. For this purpose, they are required to use alternatives such as 360
degree approach where they will receive feedback from different stakeholders such as customers,
managers, peers and more. Through the given scenario, it is found that employees are facing the
issue of biasness and fair assessment. This approach will make them enable to get fair reviews
from relevant people. These reviews will help them to improve the performance in an efficient
manner. Additionally, psychological appraisal is also important in context of the given scenario.
However, the company is measuring the performance of the employees using various methods.
Still, the employees are not satisfied with the methods of the company of performance appraisal
which directly impact their performance. In this context, performance appraisal committee of the
respective organization is required to give psychological appraisal to the workforce so that they
feel happy and satisfied with the appraisal. It will also affect the performance of the employees
positively by making them enable to contribute in the future growth and success of the entity.
Course of Action
In the given context, the organization is adopting suitable methods to evaluate and
enhance the performance level of the employees. However, they are not getting appropriate
outcomes that will directly affect the organizational success. In this context, the suitable course
of action needs to taken by the company is given below:
 Managers are required to maintain proper communication with the employees. It is
identified that the employees are not receiving appropriate feedbacks hence they are not
familiar with their existing level of performance. Performance assessment is not enough,
the company need to provide suitable review and feedbacks to the workforce. It can be
done by maintaining appropriate communication. Through this, the employees will get to
know how they are performing, where they need to improve and more. In addition to this,
communication will minimize the ambiguity between employees and managers that is
important to get true and fair results.
 It is analyzed that ARL is also lacking in terms of training and development of
employees. However, they arrange training programs in foreign countries but these

programs are not feasible for all the employees. The company analyze cost and benefits
aspect before sending employees to abroad. Also, the duration of course is likely two
and three days. Therefore, the managers are required to arrange necessary training
program based on the performance evaluation so that the employees can gather necessary
skill set in an efficient manner.
How organization can implement the suggestions
Bases on the analysis of given scenario, the ARL is required to make several
improvements in their existing performance appraisal method. For this purpose, the company is
required to gather the opinion of the employees in order to make necessary improvements in
future period of time. Here, the suggestion is about improving training and development
programs so that the workers get opportunity to learn new and advance concepts. To enhance the
learning, company can arrange training session in the home country rather foreign countries. It
will save the cost as well as time as the employees can learn while they are working. Also, the
organization does not required to spend huge amount for making training arrangements in
foreign. In addition, ARL can easily get favorable results by maintaining proper communication
at workplace.

References
Books and journals
Alsuwaidi and et. al., 2020, October. Performance appraisal on employees’ motivation: a
comprehensive analysis. In International Conference on Advanced Intelligent Systems
and Informatics (pp. 681-693). Springer, Cham.
Kiradoo and et. al., 2021. A Comprehensive Study of Performance Appraisal of the Business
Entity. Journal of Management Information and Decision Sciences, 24, pp.1-10.
Manjula, R., 2018. An Insight into the Practical Performance Appraisal Methods for the
Contemporary Employees. The International Journal of Multidisciplinary, 3, pp.1317-
1318.
Yi and et. al., 2021, January. Ethical Review of Performance Appraisal. In International
Conference on Decision Science & Management (pp. 269-277). Springer, Singapore.