Report: Implementing Staff Performance Appraisal System at UFC (Oman)

This report presents a comprehensive project on implementing a Staff Performance Appraisal System for United Finance Company SAOG (Oman). It begins with an introduction to performance appraisal and its importance, followed by project objectives aimed at enhancing employee productivity, managing records, and ensuring efficient task allocation. The report details the roles and responsibilities of the project team, including the project manager, team members, project sponsor, and executive sponsor. It outlines project stages, key deliverables, and time management techniques, including work breakdown structure, activity list, Gantt chart, and network diagram. The report also covers budget allocation, quality plans, and a risk register to mitigate potential challenges. The analysis includes detailed charts, diagrams, and budget allocations for effective system implementation. Overall, the report provides a structured approach to developing and deploying a performance appraisal system, ensuring the effective evaluation and management of staff within the organization.

STAFF
PERFORMANCE
APPRAISAL
SYSTEM

Table of Contents
INTRODUCTION...........................................................................................................................1
PROJECT OBJECTIVES................................................................................................................1
PROJECT TEAM AND THEIR ROLES........................................................................................1
PROJECT STAGES AND KEY DELIVERABLES.......................................................................3
TIME MANAGEMENT..................................................................................................................4
WORK BREAKDOWN STRUCTURE.................................................................................4
ACTIVITY LIST....................................................................................................................4
GANTT CHART....................................................................................................................5
NETWORK DIAGRAM AND CRITICAL PATH:..............................................................6
BUDGET.........................................................................................................................................6
QUALITY PLAN............................................................................................................................6
RISK REGISTER............................................................................................................................7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10
APPENDIX....................................................................................................................................11

INTRODUCTION
Performance appraisal is a method of evaluating the performance of employees using
various methods of acquiring the review of their contribution of the company. It is imperative
that effective methods be chosen by the organisation to evaluate their workforce performance as
it sets a base towards enhancing their productivity (Turner, 2014).
The report below is based on United Finance Company SAOG (Oman), one of the most
successful financial organisations in Oman. Its agenda is to introduce a Staff Performance
Appraisal System in the company. To achieve this agenda, the report covers Project team and
their roles in implementing this system as well as project stages and key deliverables. To
effectively address the requirements, the report uses methods like Gantt Chart, Network
Diagram, Budget, Quality plan and Risk Log.
PROJECT OBJECTIVES
United Finance Company SAOG (Oman) is considered as one of the most profitable
organisations in Oman. It has more than 12,000 satisfied customers, 7 branches in the country
and about a 150 employees. The objectives which would be fulfilled by implementing a Staff
Performance Appraisal System is as follows:
 To effectively maintain and manage records to develop wage structure, compensation
packages, etc.
 To ensure that right tasks been given to right personnels to maintain sustainability in
operations (Too and Weaver, 2014).
 To enhance the productivity and efficiencies of employees working in the company.
 To provide timely feedback to the workforce regarding their performance.
PROJECT TEAM AND THEIR ROLES
POST ROLES RESPONSIBILITIES
PROJECT MANAGER The main element of Staff
Performance Appraisal System
is the Project Management. He
is responsible for supervising
the whole project. His role is
to provide adequate resources
 Effectively organising
the project using Gantt
Chart, Work
Breakdown Structure,
Budget, etc.
 Assessment of risk and
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to the team in effectively
carrying out a proper appraisal
for the staff at United Finance
Company SAOG (Oman).
its mitigation.
 Determining Project
milestones for the staff
members which would
set the basis for
appraisals (Todorović
and et. al., 2015).
PROJECT TEAM
MEMBERS (Top- Level
Managers, Leaders, HR)
The role of team members in
Staff Performance appraisals
would be to effectively carry
out the appraisals by setting
standards and using methods
provided by the project
manager.
 To effectively manage
and monitor the
process of appraisals.
 Supervise the
performance of each
employee by the given
standards.
 Introducing challenges
in order to make the
process more effective
and determine
employee efficiency.
PROJECT SPONSOR These are the personnels
within United Finance
Company SAOG (Oman) that
would be regularly associated
with the appraisal system.
These managers operate at
senior level that undertake
smooth running of the process
at each stage.
 Manage the risk and
eradicate obstacles.
 Ensure the overall
quality of appraisal
system process.
 Develop the reporting
structure of the
appraisal system
process.
 Approve the budget to
conduct the process
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effectively.
EXECUTIVE SPONSOR
The supreme leader of the
appraisal system, Executive
Sponsor undertakes the final
decisions to be taken. The
ultimate power to allocate
budget, deliverables and other
resources lies with Executive
Sponsor (Svejvig and
Andersen, 2015).
 Promotion of change
and support in
communication.
 Building alliances of
sponsorships to ensure
adequate financial
supply for appraisals.
 Control and modify the
system by
implementing changes
when necessary.
PROJECT STAGES AND KEY DELIVERABLES
Before executing the process, it is required that project stages be drafted well and key
deliverables are decided which helps in managing the process during actual execution. It is
imperative for United Finance Company SAOG (Oman) to develop these stages prior to actual
execution of the appraisal process.
STAGES DELIVERABLES
DEFINE
This stage requires the management of United Finance Company SAOG
(Oman) to effectively understand the need of Staff Performance Appraisal
System. The objectives must be clearly crafted and communicated to the senior
management for approval. Moreover, the baseline and risks involved in the
project must also be clearly articulated in the plan of implementing Appraisal
System (Mir and Pinnington, 2014). In addition, a timeline for successful
implementation and execution of the appraisal system must be clearly stated
while defining the plan for the system.
DESIGN The second stage of establishing the Appraisal System would be to design the
project. This requires the project members and manager to develop a detailed
project plan which would serve as a base for the operations to fulfil the
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objectives. The time schedule of the project is decided and other relevant
documentation is gathered which would be beneficial while execution of the
project.
DEVELOP
After designing the project of Appraisal System, the next step calls for
developing the project. The team members start developing workflow
documentation, process maps and a proper timeline for the project is set by
determining the milestones. This stage is also subjected to development of
financial plans and budgets, by estimating the cost for the Staff Performance
Appraisal Systems. In this stage, risks are anticipated and on the basis of those,
counter strategies are developed so that the process be completed successfully
and within the scheduled time frame.
DEPLOY
This stage undertakes the execution of the project. This means that at this stage
UFC would finally implement Staff Performance Appraisal System. At this
stage, tasks are divided for the team members and and a close monitoring
regarding the effectiveness of each task. The budget would be managed by the
managers and resources and assets would be tracked consistently to ensure their
optimum utilisation.
TIME MANAGEMENT
After determination of project stages, it is imperative for UFC to apply various time
management techniques that are required for measuring the time required for Staff Performance
Appraisal Systems (Kerzner and Kerzner, 2017). These techniques are as follows:
WORK BREAKDOWN STRUCTURE
This is one of the most important deliverables for UFC to establish Staff Performance
Appraisal System. This would help to breakdown the given tasks into smaller sections that could
be effectively managed. It is very important to examine the structure before actual implementatin
as it is important that team members clearly understand their activities and perform their task
effectively.
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ACTIVITY LIST
This is an effective measure that UFC could use to list out all the necessary activities that
are required to be achieved in order to establish the appraisal systems. It also includes the time
frame under which each activity is expected to finish off. The list of activity got Appraisal
System is as below:
S.
No.
ACTIVITIES DESCRIPTION RESPONSIBILITY TIME
(DAYS)
1 BUDGET
ALLOCATIO
N
This refers to the allocation of a
specific budget for
establishment of the Staff
Performance Appraisal System
in UFC.
PROJECT SPONSOR 10 DAYS
2 INFRASTRUC
TURE
MODIFICATI
ON
This activity is the purchasing
and fulfilling necessary
infrastructure required for the
project.
EXECUTIVE
SPONSOR
15 DAYS
3 TECHNOLOG
ICAL
RESOURCES
One of the most important
activities, this undertakes the
employment of necessary
technological equipments and
resources for the project.
TEAM MEMBERS
(R&D, IT, HR,
Managers)
10 DAYS
4 FINAL
REPORTS
During the last stage, this
activity would be performed to
produce final results of the
project along with its
effectiveness.
PROJECT MANAGER 30 DAYS
GANTT CHART
To determine the overall timespan of implementation of appraisal systems, UFC could
use GANTT chart which is a horizontal display of the timeframe which is dispersed into various
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increments, like months, weeks or days. The Gantt Chart of Performance Appraisal System is
mentioned below:
(Refer to Appendix)
NETWORK DIAGRAM AND CRITICAL PATH:
Network Diagram in this case scenario would be the network presentation of Staff
Performance Appraisal System (Hornstein, 2015). It is extremely helpful for the firm as it
represents network extension for the constructed Gantt Chart. UFC could use the network
diagram to effectively monitor all the stages of the performance appraisal system. The critical
path in this diagram is represented by the longest path within the network diagram. This
represents the delay in implementing the Appraisal Systems in the firm. The timely execution of
the project depend upon this diagram. (Refer to Appendix)
BUDGET
Budget represents the cost estimates required by UFC to establish performance appraisal
system in their organisation (Fleming and Koppelman, 2016). Budget is very necessary for the
firm to control and optimally utilise the financial resources required throught the lifecycle of this
project.
S. No. TASK PERCENTAGE BUDGET ($)
1 PROJECT DESIGN 10.00% 5000
2 DEVELOPMENT OF FUNCTIONAL
SPECIFICATION
12.50% 6250
3 DEVELOPMENT OF
INFRASTRUCTURE
20.00% 10000
4 SOFTWARE PROCUREMENT 20.00% 10000
5 SYSTEM INSTALLATION 5.00% 2500
6 TRAINING 7.50% 3750
7 SYSTEM TESTING 10.00% 5000
8 QUALITY ASSURANCE 15.00% 7500
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TOTAL 100.00% US$50000
QUALITY PLAN
For Performance Appraisal System, UFC could use quality plan to define and develop
foundations and standards that are responsible for the successful exection of the project. This
represents the quality required for effective establishment of the appraisal system.
ACTIVITY IMPLEMEN
TED BY
REVISED
BY
APPROVED
BY
YES/NO RESULT
PLAN
FINALISATI
ON
Risk
Management
Department
Risk Manager Risk Audit YES PASS
CUSTOMISA
TION
Information
Technology
Department
IT Head Infrastructure
Senior
Manager
YES PASS
MODULE
INTEGRATI
ON
Risk
Management
Deoartment
Risk Manager Senior Risk
Manager
YES PASS
TESTING HR
DEPARTME
NT
HR
MANAGER
HR HEAD YES PASS
RISK REGISTER
This refers to a register or log that would help UFC in determining the factors of risk.
This also underpins the state of its occurance and its seriousness. For Staff Appraisal System, the
firm could use this easure to minimise the potential risks and maximise the return from the
project.
RISK CONSEQUENCE INTENSITY MITIGATION ACTION BY
INADEQUA
TE
This would result in
lack of effectiveness
HIGH To remove this risk, the
project team along with
EXECUTIVE
SPONSOR/
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BUDGET in the Staff
Performance
Appraisal System.
Moreover, it might
result it its
incomplete
accomplishment.
the manager must
effectively develop the
budget and must
comminicate with them
effectively for any
additional requirement
beforehand.
FINANCIAL
DEPARTMENT
IMPROPER
DESIGN
Ineffective design
would result in
improper calculation
and determination of
the performances of
the employees
working at UFC. This
would hinder the
agenda of
implementing an
appraisal system in
the organisation.
MEDIUM
To mititage this risk, it
must be imperative for
the project management
team to effectively test
the effectiveness of Staff
Performance Appraisal
System at each stage. In
addition, best methods
must be implemented
since from the inception
of the project.
IT
DEPARTMENT
FRAUD
OCCUREN
CE
In case of any fraud
in the system in terms
of ranking the
employees, it would
facilitate
incompetence as well
as dissatisfaction
among the
employees. It might
also result in loss of
trust of employees
MEDIUM This risk could be
effectively controlled by
the management by
closely monitoring the
usage of the system.
Another way this could
be controlled is by
weekly inspection and
limited access authority
given to access the
system.
Audit, Risk
Management, IT
DEPARTMENT
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from the management
SOFTWAR
E FAILURE
This would hamper
the process of
performance
appraisal in UFC.
Moreover, it would
add to loss of time
and the budget that
was estimated for the
required project. It
would also add to the
cost of repair as well
as additional efforts
to purchase a new
one.
LOW
However, the risk of
software failure is low,
seeing the level of tests
expected to be
performed by the
company, yet to mitigate
the risk, the suppliers
must be chosen after
thorough study of the
methods and technology
used to develop the
software.
IT
DEPARTMENT
CONCLUSION
Thus, it is concluded by the report that effective project management is necessary to
implement staff performance appraisal systems. It is necessary to derive the project objectives of
the new project companies want to apply. This is because it gives a firm a proper framework to
the companies upon which effective project could be developed. It is also imperative for the
firms to determine the project team and roles of each individuals working within them. Clarity in
roles would ensure a smooth running of operations. During identification of different project
stages, it is of vital importance that key deliverables of each stage be determined prehand. This
would allow firms to set standards upon which the project could be developed. Time
management techniques like Gantt Charts, network diagrams and WBS are very crucial for a
project to be accomplished in the set time schedule. Lastly, it is important for the companies to
use methods like budget, quality plan and risk register to manage the project effectively.
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REFERENCES
Books and journals
Fleming, Q.W. and Koppelman, J.M., 2016, December. Earned value project management.
Project Management Institute.
Hornstein, H.A., 2015. The integration of project management and organizational change
management is now a necessity. International Journal of Project Management. 33(2).
pp.291-298.
Kerzner, H. and Kerzner, H.R., 2017. Project management: a systems approach to planning,
scheduling, and controlling. John Wiley & Sons.
Mir, F.A. and Pinnington, A.H., 2014. Exploring the value of project management: linking
project management performance and project success. International journal of project
management. 32(2). pp.202-217.
Svejvig, P. and Andersen, P., 2015. Rethinking project management: A structured literature
review with a critical look at the brave new world. International Journal of Project
Management. 33(2). pp.278-290.
Todorović, M.L., and et. al., 2015. Project success analysis framework: A knowledge-based
approach in project management. International Journal of Project Management. 33(4).
pp.772-783.
Too, E.G. and Weaver, P., 2014. The management of project management: A conceptual
framework for project governance. International Journal of Project Management. 32(8).
pp.1382-1394.
Turner, J.R., 2014. Handbook of project-based management(Vol. 92). New York, NY: McGraw-
hill.
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APPENDIX
Illustration 1: GANTT CHART
Illustration 2: GANTT CHART
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Illustration 3: NETWORK DIAGRAM
12