Tools for Rating Employee

Graphic Rating Scale

Management By objective
Graphic Rating Scale: Graphic rating scale is the most popular method for appraising
performance. LG use graphic rating scale (GRS) to evaluate their employee. They use different
types of trait for different department of the organization. They have two different departments
one is manufacturing and the other is trading department. Key performance indicator for the two
departments for the two departments is not same, because the types of the task are different.
They evaluate the line manager based on quantitative analysis and worker based on qualitative
analysis. In manufacturing department quality, quantity of the product matters, In addition
relationship with colleague and cooperation is important. But in trading department KPI is
different because in that case manufacturing is not occurred. In the trading department they
import product from overseas manufacturing plant and sale it to the local market. In that case
analytical ability, decision making ability, interpersonal relationship is important. If any
employee in a finance department , his/her KPI will be different from other department like
Marketing, Human resource and Production and operations department. Here we can show a
demo of GRS method used for evaluating Chief financial officer. The finance department
requires task regarding revenue, expense, productivity, so the task of the CFO is categorized into
7 KPI. These are mentioned below:
Revenue (Total revenue per finance FTE)
Expense (Finance expense per finance FTE)
Organization (Finance organization structure)
Process (invoice processing productivity, Budget variance, Budget creation cycle time)
Quality (payment Error rate)
Productivity (Transaction per hour)
Service (Reimbursement cycle time)


Employee Basic Information
Name: Md. Zakir Ahmed
Position: Financial Manager
Department: Finance
Immediate supervisors name and Position: Md. Wahiduzzaman
Joining Date: 1
st
august 2012
Years of Experience: 5 years
Last promotion Date and reward: 1
st
august 2013

A demo of GRS Method used by LG for the post of financial Manager
NO. List of KPI
Poor Fair Average Good Excellent
20-30% 30-40% 40-60% 60-75% 75-100%
1 Revenue
2. Expense
3. Organization
4. Process
5. Quality
6. Productivity
7. Service

Score calculation
Comment: Comment based on score, and required area of improvement and suggestion.


Signature of supervisor Signature of Employee
..
Management by Objective: As we know management by objective (MBO) engage in setting
goals jointly and periodically giving feedback to the employee. LG use MBO to supplement
Graphic rating scale method. Employee participation is main factor here when company sets
their goal. As a result participative employee knows about their goal and level of feedback at the
eve of goal setting, so employee dissatisfaction is not occurred here. This method requires more
time because its a lengthy process but many organizations use it as a primary appraisal method.
LG use both the GRS method and the MBO method based on their need. MBO method is
basically use for the trading department, where a sales executive may get specific goal of selling
500 TV in a month, if he can do so the reward will be given. IN MBO method they also use KPI,
based on the KPI grade is given. The cumulative grades of all the KPI will not more than 1.

Employee Basic Information
Name: Md. Niaz Morshed
Position: Marketing Manager
Department: Marketing
Immediate supervisors name and Position: Md. Iqbal Hossain
Joining Date: 1
st
august 2012
Years of Experience: 5 years
Last promotion Date and reward: 1
st
august 2013





A demo of MBO method Used by LG for the post of marketing manager
NO. Key performance I ndicator Grade
1. Strong, effective Communication skill .10
2. Team work skill .30
3. Coordination skill .30
4. Ability to increase productivity .10
5. Effective conversation with customer .10
6. Ability to lead in environment with constant change .10
(Cumulative value will not more than 1) 1.00

Comment: Here we can see that this employee is good at team work and coordination skill and
not that good at other KPI. This employee must ensure effective communication with the
customer and other party outside the organization, because it is must for the success of marketing
manager.


Signature of supervisor Signature of employee
............