Performance Management Process Problem in
Bashundhara Group
Performance Management [MBA] [A]
Submitted To: DR. Rezbin Nahar
Submitted By:
Name ID
Priam, Nahid Fatema 21-91924-1
Prapti Roy 20-91515-1
Kazi Mahnaz 20-91529-1
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Background of Bashundhara Group
The Bashundhara Group has started operation as a real estate venture known as “Bashundhara”
under the aegis of the Group’s first concern – the East West Property Development (Pvt) Ltd in
1987. This project turned out to be a very successful one and had helped foster the growth of
trust and confidence of the urban people in “Bashundhara”. Dhaka’s burgeoning population,
coupled with a conspicuously slow growth of housing led to the landmark success of
Bashundhara. Driven by the ramifications of this success, Bashundhara geared up to invest in
new fields, including manufacturing and trading. More enterprises were established in the early
1990s, covering diverse activities involving the production of cement, paper and pulp, tissue
paper, steel, LP Gas bottling and distribution, and a trading company, among others. The group
experienced this tremendous growth in a span of less than 10 years. During this period,
additional schemes on land development and real estate were launched and those projects
focused more sharply on increasing responsiveness to client needs. The Group’s first publicly-
traded company, the Meghna Cement Mills Limited, is currently listed on the two Stock
Exchanges of Bangladesh. The Group now has over 20 major concerns located in different areas
of the country. The multi-faceted shopping mall and recreation center called the Bashundhara
City has added glamour to the growth of the group. The Bashundhara City Development Ltd is
one step ahead in the longstanding effort to strengthen links with the general people through the
unique offering of commercial operations and recreation facilities under single roof. East West
Media Group Ltd is the mass media enterprise of the Bashundhara Group that was established in
2009. It now owns Bangla dailies – “The Kaler Kantho” and “The Bangladesh Pratidin”,
English newspaper the “Daily Sun” and bilingual online portal “banglanews24.com.” and a
television channel named “NEWS 24”. The Group is also planning to launch a FM radio and a
chain restaurant .The Group has come a long way in reaching its goals by complimenting to
client needs, learning real-time lessons from past projects, innovating and partnering its project
implementation process. The Group now has 18 major concerns located in different areas
of the country. The most-recent addition to the Group is a multi-faceted shopping mall-cum-
recreation center called the Bashundhara City (BCDL). The BCDL is one further step in our
longstanding effort to strengthen our links with the public through the unique offering of
commercial operations and recreation facilities less than one roof. It houses theme parks, food
courts, multi-screen cinemas, fitness center, space for over 2800 shops, basement-level parking
for over a thousand vehicles, skating and bowling rinks, a supermarket, and office space spread
over several floors.
The Group has focus a long way in reaching these goals by listening to client needs, learning
real-ties lessons from past projects, innovating and collaborating. Through major
investment undertakings, Bashundhara has successfully contributed to the country’s stability in
financial and capital markets. Underlying all of the Group’s activities are the common threads of
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change, flexibility, and fostering closer ties with the Government, the City Corporation and our
clients. Most of its projects have been success stories – this fact alone is enough to justify a sense
of confidence in the Group’s future.
Through major investment undertakings in all key sectors, Bashundhara has meaningfully
contributed to the country’s economic stability in financial and capital markets. Underlying all of
the Group’s activities are the common threads of change, flexibility, and fostering closer ties
with the Government, the City Corporation and Bashundhara clients. Most of its projects have
been success stories – this fact alone is enough to justify a sense of confidence in the Group’s
future.
The BG works in close partnership with the City Corporations, the Government of Bangladesh,
other private sector companies, multilateral institutions, the environment department, and curried
financial institutions. The BG has its headquarters in Dhaka, Bangladesh. Its Chairman and a
Board of Directors forecast the Group’s policies. The Managing Director acts as the Chief
Executive Officer.
6 steps of performance management process
Prerequisite
Performance
renewal and Performance
recontracting planning
Performance Performance
review execution
Performance
assessment
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Prerequisite
There are two important prerequisites that are required before a performance management
system is implemented:
A. Knowledge of the organization’s mission and strategic goals and
B. knowledge of the job in question
A. Knowledge of the organization’s mission and strategic goals and
Strategic planning allows an organization to clearly define its purpose or reason for existing,
where it wants to be in the future, the goals it wants to achieve, and the strategies it will use to
attain these goals. Once the goals for the entire organization have been established, similar goals
cascade downward, with departments setting objectives to support the organization’s overall
mission and objectives. The cascading continues downward until each employee has a set of
goals compatible with those of the organization.
Bashundhara group have well defined strategic plan and clear mission, goals.
Strategic Plan of Bashundhara Group
Strategic Planning is the main driving system of a company, so it is very important to develop
the strategic in perfectly. The Bashundhara Group of Companies started off as a real-estate
venture known as “Bashundhara" under the aegis of the Group's first concern - the East-West
Property Development (Pvt.) Ltd. This project turned out to be very successful and had helped
foster the growth of trust and confidence of the urban people in "Bashundhara". Dhaka's
burgeoning population, combined with a conspicuously slow growth of housing - led to the
landmark success of.
Mission
Bashundhara Group (BG) is a leading private-sector industrial conglomerate in Bangladesh. It
currently has 18 on-going concerns, ranging from real estate developing and management to
manufacturing and services. The BG strives to work in partnership with the Government
for promoting sustainable development, environment preservation, and employment-generation
and poverty reduction. The BG has a particular focus on developing of life style of people and
country’s economy. Thus the motto of the Group is “For the People, for the Country”. At the
crux of all industrial processes deployed at the Group’s enterprises stands the need to ensure
environmental stability. As a result, conscious efforts are made to use re-cycled material as
industrial input.
Goals
1. Continually set the latest standards of modern technology in our industry to satisfy the needs of
customers through innovative products and services.
2. Contribute to the national economy and the infrastructure development of the country.
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3. Secure the strongest competitive position in our relevant market places through making quality
product and operational excellence.
4. Be partner with the best suppliers, delivering increased value for both the company and our
customers.
5. Be recognized as a respected & attractive company & an employer of first choice.
6. Provide extensive career opportunities through competitive pay & benefits, training &
development & a congenial working environment.
7. Empower our employees at every level, and integrate them fully into our network.
8. Continually demonstrate our commitment to sustainable environmental performance, and play a
pro-active role in Corporate Social Responsibility (CSR) within our sphere of influence.
9. Achieve long-term financial performance
10. Create secured investment opportunity within the country.
11. Enhance versatility, & diversification through the penetration of new market segments.
12. Improve administrative & organization structures to review all business lines regularly & develop
the best practice in the industry. Earn foreign currency through export.
B. Knowledge of the job in question
The second important prerequisite before a performance management system is implemented is
to understand the job in question. A job analysis is a fundamental prerequisite of any
performance management system. If we have good information regarding a job, then it is easier
to establish criteria for job success.
This is done through job analysis. Job analysis is a process of determining the key components of
a particular job, including activities, tasks, products, services, and processes. Without a job
analysis, it is difficult to understand what constitutes the required duties for a particular job. If
it’s not clear about what an employee is supposed to do on the job, it become difficult to
determine what needs to be evaluated and how to do so. As a result of a job analysis, employees
obtain information regarding the tasks carried out and the knowledge, skills, and abilities (KSAs)
required of a particular job. The tasks and KSAs needed for the various jobs are typically
presented in the form of a job description, which summarizes the job duties, needed KSAs, and
working conditions for a particular job.
When Bashundhara group provide a job circular for non-managerial employee they didn’t
put the job description properly. So in the initial level they didn’t get the proper
knowledge about their job. When job description is not given properly, job analyst
watching incumbents do the job, or even trying to do the work themselves, and then
producing a description of what they have observed. This method can be subject to biases
because job analysts may not be able to distinguish important from unimportant tasks.
When an job analyst Interviews employee , he asks the interviewee to describe what he or
she does during a typical day at the job from start to finish The job analyst ask the
interviewee to describe the major duties involved in the job and then ask him or her to
break down these duties into specific tasks. It may cause a problem because some
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employee may provide wrong information or just report that their own behaviors and
personality traits are more needed for successful job performance compared to behaviors
and personality traits of others. As they don’t have a proper knowledge about their job
it’s also harmful for the organization because organization didn’t get the proper outcome
and also it become difficult for the analyst to review their work. Taken together, self-
serving, social projection, and false consensus biases affect job analysis ratings because
they lead people to believe that their own KSAs are those driving success on their jobs.
On the other hand when they put a for management level employees they put the job
description very clearly. Job descriptions are a key prerequisite for any performance
management system because they provide the criteria that will be used in measuring
performance. Such criteria may concern behaviors or results. This job description
includes information about what tasks are performed. It also includes information about
the needed knowledge , skill and the abilities. So the managerial level employees have
the clear knowledge about their job and it became easy for the analyst to measure the
performance.
Performance Planning
Employees should have a thorough knowledge of the performance management system. In fact,
at the beginning of each performance cycle, the supervisor and the employee meet to discuss and
agree upon what needs to be done and how it should be done. This performance planning
discussion includes a consideration of both results and behaviors as well as a development plan.
Results
Results refer to what needs to be done or the outcomes an employee must produce. A
consideration of results needs to include the key accountabilities, or broad areas of a job for
which the employee is responsible for producing results. This information is typically obtained
from the job description. . A discussion of results also includes specific objectives that the
employee will achieve as a part of each accountability. Objectives are statements of important
and measurable outcomes.
As it already discussed that, non-managerial didn’t have a proper job description. So it
become hard for the analyst to measure their work .If employees are not actually very my
knowledge about their job it become unimportant to create a specific objective. And
when there are no key objective or purpose of the job it not provide measurable outcome.
If we take a look in their recent circular for junior operator we can see that they only
mention about the educational requirement not about the required skill about the job. So
it clear that in the initial stage employees are not much clear about their job. It make the
work difficult for the analyst to measure their work because they don’t have a clear
knowledge about the skilled required to do job so no specific objective also set. Thus, the
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objective is the desired level of performance, whereas the standard is usually a minimum
acceptable level of performance.
Behaviors
For some jobs it may be difficult to establish precise objectives and standards. For other jobs,
employees may have control over how they do their jobs but not over the results of their
behaviors. Consideration of behaviors includes discussing competencies, which are measurable
clusters of KSAs that are critical in determining how results will be achieved.
Person in the position of executive (Sales & Marketing) could be affected more by the
assigned sales territory than by the salesperson’s ability and performance. He would like
to be appraised on such behavioral criteria as communications skills, product knowledge,
customer handling. In this situation, the evaluation could include competencies such as
online communication skills. It sometimes become difficult for the analyst to evaluate
behavioral things.
Development Plan
Once the prerequisites are met and the planning phase has been completed, organization become
ready to begin the implementation of the performance management system. This includes
performance execution, assessment, review, and renewal and re-contracting. An important step
before the review cycle begins is for the supervisor and employee to agree on a development
plan. Problem need to solve in this step:
A discussion of results needs to include key accountabilities.
Specific objectives for each key accountability may not define clearly.
A discussion of behaviors sometimes didn’t consider competencies.
Performance Execution
Once the review cycle begins, the employee strives to produce the results and display the
behaviors agreed upon earlier as well as to work on developmental needs. The employee has
primary responsibility and ownership of this process. Employee participation does not begin at
the performance execution stage, however. As noted earlier, employees need to have active input
in the development of job descriptions, performance standards, and the creation of the rating
form.
At the performance execution stage, problems are found in the following factors:
1. Commitment to goal achievement: Sometimes Bashundhara group didn’t allow the
employee to be an active participant in the process of setting the goals.
2. Ongoing performance feedback and coaching: The employees wait until the review cycle
is over to solicit performance feedback.
3. Communication with supervisor: The non-managerial employees didn’t provide regular
updates on progress toward goal achievement, in terms of both behaviors and results.
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Performance Assessment
Performance appraisal is a function within the performance management system that is carried
out by human resource managers to review an employee’s performance within an organization.
Employees are the key stakeholders in an organization. The success of their individual goals is
paramount to the development of any business.
• Manager assessment
• Self-assessment
• Other sources
The necessary assessments are -
➢Increase employee ownership
➢Increase commitment
➢Provide information
➢Ensure mutual understanding
In the assessment phase, both the employee and the manager are responsible for evaluating the
extent to which the desired behaviors have been displayed, and whether the desired results have
been achieved. Although many sources can be used to collect performance information in most
cases the direct supervisor provides the information. This also includes an evaluation of the
extent to which the goals stated in the development plan have been achieved.
It is important that both the employee and the manager take ownership of the assessment process.
The manager fills out her appraisal form, and the employee should also fill out his form. The fact
that both parties are involved in the assessment provides good information to be used in the
review phase. When both the employee and the supervisor are active participants in the
evaluation process, there is a greater likelihood that the information will be used productively in
the future. Specifically, the inclusion of self-ratings helps emphasize possible discrepancies
between self-views and the views that important others have of our behavior. It is the
discrepancy between these two views that is most likely to trigger development efforts,
particularly when feedback from the supervisor is more negative than are employee self-
evaluations.
The inclusion of self-appraisals is also beneficial regarding important additional factors. Self-
appraisals can reduce an employee’s defensiveness during an appraisal meeting and increase the
employee’s satisfaction with the performance management system as well as enhance
perceptions of accuracy. In sum, both the employee and the supervisor must evaluate employee
performance. Employee involvement in the process increases employee ownership and
commitment to the system. Problems involved in performance assessment –
Bashundhara group pays a little attention to the knowledge of managers on the
assumption that since they are the bosses, they have adequate awareness of the
organizations’ expectancy in conducting employee evaluation.
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Poor assessment of individual performance results in discontented employees within an
organization. This situation further leads to misunderstanding amongst the supervisors and
employees. Consequently, such circumstances adversely affect the achievement of the
performance goals of an organization like Bashundhara group. It is always worthwhile to have
knowledgeable supervisors carry out evaluation procedures.
A big company like Bashundhara often forget about employees. Sometimes a manager or
supervisor may give credit to an employee based on some previous good performance
without giving attention to the current performance trends. But they didn’t do that more
often.
Political mask in Bashundhara group in a performance assessment also affects its
effectiveness.
Performance Management Review
Past
In the past time Bashundhara Group had some major causes of miscommunication in the farm.
That’s why their organization reviews were not so good. These are the reasons why Bashundhara
Group's review was not so impactful. Those are-
1. Power distance: It could be a reason a big corporation like Bashundhara group. They
strictly follow the hierarchical order. So employees can't really communicate with the
management on a regular basis.
2. Distance between different departments: In the initial period the distance between
different departments can be another reason of communication gap in Bashundhara
group. What we felt that each department have their separate manager, office unit
everything so it's not possible for each of them to communicate.
3. Employees are not well informed: Employees was not aware of the goals or future
decisions taken by the management because they felt it was not needed to tell them.
4. Management and employees not in good terms: If employees and management
relationship is bad the communication will be bad too.
5. Favoritism towards employee causes harm to overall productivity: Isn't it obvious
that favoritism towards employees will harm productivity? When you are praising one
employee in front of other. Easy going for one employee and tough for others it will
create chaos and dissatisfaction among them and effect productivity.
Present
Now Bashundhara Group always focuses on the performance of their employees. They use 3
methods to evaluate the performance of their employees in the organization. The methods are:
I. Behaviorally Anchored Rating Scale: This method has been added recently in this
organization. In this method the employee’s behavior and performance are analyzed and
used for evaluating overall performance of an employee. HR department is involved in
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this process. Based on the performance and behavior of an employee, they are faithful as
good, average, or poor.
II. Critical Incident Method: They are also using critical incident method. In this method
the employer or manager evaluates an employee on the basis of “certain events” known
as critical incidents where the employee did something really great or something not so
great things. This s method is extremely useful for the growth of an employee since it
gives detailed information unlike other performance appraisal methods.
III. Graphic Rating: This method is most often used by HR managers. The graphic rating
scales require an evaluator to indicate an employee’s overall aptitude and attitude towards
a particular job trait, behaviors at work, skills and performance output.
Future
In the future Bashundhara Group is going to transform all the human resources activities into an
automated platform through installing the EMPRESS Software in a bid to improve the human
resources management.
In this way Bashundhara Group helps workers by giving openings and support for proceeding
preparing and improvement.
Performance Renewal and Re-contracting
Another meeting is held with each employee after the performance review meeting in order to set
new goals. Which is Performance Renewal and Re-contracting. The performance management
process is an ongoing continuous process. Once the performance has been reviewed and end,
then the cycle starts for the next performance appraisal. Bashundhara Group managers and
employees are scheduled to hold a formal meeting to review performance. Where there is a
written goal and standardized assessment form. In these meetings, their goal setting is re-
evaluated, performance is improved and such ideas are thought out, examine and confirmed. As
if their needs are met and then the process is started again. This is necessitate because the
external environment of company like market, customers, competitors, suppliers etc. also
revolved and all subsequent changes has to prerequisites for performance planning and setting
strategic objectives of the organization.
There all activity is good in present, but there has some problem in some department planning,
working process. If the corporation can remove those problems, then the Bashundhara Group
will be role model of business sector in the world. And also they could create more popularity
then previous.
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Conclusion
The globalization of business is forcing managers to struggle with complex issues as they seek
to gain or sustain a competitive advantage. Bashundhara Group is one of the largest Group of
Companies in Bangladesh. They enjoy outstanding performance management process for each
successful employee. They also share values, traits and behaviors that are highly regarded for
success in the organization. Employers have focused on assessment methods that are highly
correlated to the content of the job, hence most able to predict ability to perform the required
duties and tasks. However, organizations have come to realize that success of the candidate
hinges on more than just the ability to carry out tasks and duties well. The foundation of superior
performance lies in the synergy created by a close fit with the work group and with the
organization’s culture. No process is complete without an evaluation of its success. So to crown
all, it can be said that successful performance management system helped Bahundhara group to
achieve one of the leading places in the business area of Bangladesh Significantly.
Finally, better recruitment and selection strategies result in improved organizational outcomes.
Bashundhara Group effectively recruits and select candidates, the more likely they are to hire
and retain satisfied employees. In addition, the effectiveness of The Bashundhara Group’s
selection system can influence bottom-line business outcomes, such as productivity and financial
performance. Hence, investing in the development of a comprehensive and valid selection
system is money well spent.
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