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Performance Appraisal and Job Evaluation Process


A case study on “Dada Corporation”

Introduction Page#
a) History of the organization 2
b) Objective of the organization 3
c) Function of the organization 3
d) Role of the organization in the Economic
Development of Bangladesh 5
e) Organizational Structure 7
f) Mission of the organization 9
g) Vision of the organization 9
Research Methodology
a) Rationale of the study 10
b) Objectives of the study 10
Findings and Analysis
a) Brief Description of the organization 11
b) Present performance appraisal and Job
evaluation process of the organization 11
c) Benefit of present performance appraisal
and Job evaluation process 13
d) Resistance to Present performance appraisal
and Job evaluation process 13
e) How Present performance appraisal and Job
evaluation process should be effective? 14
Conclusion & Suggestion
a) Conclusion 15
b) Suggestion 15
* Bibliography/Reference 16
* Enclosures/Graphics/Charts 16
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Performance Appraisal and Job Evaluation Process


A case study on “Dada Corporation”

Introduction
a) History of the organization:

In 1974, current CEO, Boo YI Park starts a humble but bold headwear manufacturing
business with just 5 sewing machines.
1974 ~ 1988: Venturing into headwear business
Dada traces its root to Daedo trading, a company Dada’s current CEO B.Y. Park
established in 1974. Believing that importing raw materials and subsequently processing and
exporting them as a business with no basis, Park always wanted to start a manufacturing
business. While Park was traveling in the United States in the early 1970’s, he noticed many
young and old people wearing sports caps with affection. Park immediately decided to
venture into headwear business and set up a small business in the Southern part of Seoul in
1976 with just 5 sewing machines.
1989: Dada establishes its first overseas operations, P.T. Dada Indonesia at Purwakarta,
Indonesia.
1991: Dada establishes Dada Dhaka Ltd. at Dhaka, Bangladesh.
1993: Dada establishes Dada Savar Ltd. at Dhaka, Bangladesh.
1997: Dada launches Paxko Ltd. at Dhaka, Bangladesh.
2000: Dada establishes Pax(Suzhou) Textile Products Co., Ltd. China.
2002: Dada establishes Unipax Co., Ltd. Vietnam.
2007: Dada has completed a new building for knitwear production alone with 70 knitwear
production line at P.T. Dada Indonesia.
2010: Currently it is going to launch a new factory namely P&K Fashion at Gazipur,
Dhaka, Bangladesh.
Dada is on the way to be a global textile products company.
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b) Objective of the organization:

Based on our expertise gain form the headwear business we have successfully
expanded our business portfolio. We invested $30 millions alone to diversify our business
portfolio in 2007 which will be increasing 10% every year till 2015 to achieve our
objective “World class total textile Products Company”. Having started knitwear
production since 2007, Dada maintains successful partnerships with global market leaders
such as Adidas. Reebok, Gap, Wal-Mart, Sears, Kohl’s, and K-mark. Dada also is going
to build a new factory in Gazipur, Dhaka.

c) Function of the organization:

Headwear Business:

As the world’s largest and leading headwear manufacturer Dada boasts a


global market share of 45% in the sports cap market. Dada made sports hats are
supplied to all teams of the four most popular U.S. major professional sports
leagues Counting 80 or so major global retailers as its business partners for
Headwear products, from Adidas, Reebok, and Nike to specialized golf brands
such as Callaway and TaylorMade, Dada is successfully putting on the world
market various ODM (original design manufacturer) products of Sports cap.

Bag Business:

Dada built Moland Co. in Vietnam for bag production in 2007. Making
use of the ideal working environment and excellent production staff, the Moland
factory endeavors to manufacture products of the highest quality. Digitized
patterns using CAD and CAM, strict materials inspection, production
management according to Lean system, in-house embroidery & printing and
packaging, performance testing and more, all adds to Moland’s effort to
manufacture the best quality product. Dada supplies high quality products to
global brands including CamelBak, Haglofs, Jack wolfksin, Ortovax, Thorka Yak
Pak and more.
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Apparel Business:

Having started production in 2005, Dada maintains successful partnerships


with global market leaders such as Adida, Reebok, Gap, Sears, Walmart, Kohl’s
and K-Mart through its smart execution of production management by Lean
system and GSD program.

In July 2005, P.T. Dada Indonesia started knitwear production. As of


2009, P.T. Dada Indonesia operates 70 knitwear productions lines with 4,800
production staff, boasting a monthly capacity of 1.5 million units.

Established in 2007 with state of the art production facilities, the new
knitwear factory at P.T. Dada Indonesia serves as Dada’s production base for
knitwear. Equipped with in-house printing and embroidery, CAD/CAM, testing
laboratories and more, the operation is known for accurate on-time delivery and
delivering products of superior quality.

IT Business:

An affiliate company of Dada, Damonet provides information technology


services including ERP, EKP software and IT consulting. In the past decade of its
experience, Damonet has carved out a niche for itself in the “integrated proposal
system” are in S.Korea. Damonet is a gold certified partner of Microsoft. Its main
products includes PAX ERP, PAX KMS, eProcurement.

R&D and Design:

In stead of simply supply hat according to the buyer’s request, Dada


started increasing ODM (original design manufacturer) products, where Dada
selects fabrics and design and subsequently presents them to the buyers.
Approximately 50 personnel comprising a quarter of the entire staff at Dada’s
headquarter in Seoul, Korea are presently involved in R&D related operations.
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Lean System and GDS program Implementation:

Dada maintains successful partnerships with global market leader through


its smart execution of production management by Lean system and GSD program.
At Dada production is carried out only after complete process analysis through
RTF sample and GSD Program using the 3D graphic design program, Brozwear.
Implementing Toyota’s innovative production system, Lean System, Dada
improves productivity and quality, and achieves cost savings. Lean manufacturing
is centered around increasing efficiency, decreasing waste based on optimizing
flow. Dada adopts one-piece or three-piece flow production and performs 6S(5S +
Safety) activities on a daily basis.

d) Role of the organization in the Economic Development of Bangladesh:

Dada has three sports cap manufacturing and four embroidery factories in
Bangladesh since 1991 Dada had launched its first factory at Uttara, Dhaka. From that
time it is contributing to our economic development increasingly day by day. Following
demonstration ensures contribution to our economic development.

 Employment:

Around 4,500 workers and 200 office staffs are working in dada’s
three factories and four embroidery units in Bangladesh which is
increasing day by day. Dada provide handsome salary structure and others
compensation and benefits to its workers and office staffs. Workers get
extraordinary benefit as it maintains international compliance standard for
the buyer like Adidas, Reebok, Nike, HNM etc.

 Backward Linkage:

One of the Dada’s slogans is “100% localization”. It is on the way


to make this true. In 1991, when Dada started its operation in Bangladesh
it was fully dependent on imported raw materials which is only 25% now.
Dada’s dedicated materials management team is working on it to source
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100% raw materials from local market gradually. From 1991 to till now lot
of small company had been established who are fully depended on Dada,
which helps to boost our economy.

 Earning import duty and foreign currency:

Dada is a 100% export oriented sports cap manufacturing


company. Dada exports around 12, 00,000 pieces cap per month and
import 25% raw materials of its total requirement which helps our
government to earn import duty and foreign currency.

 CSR:

Dada has its own health care unit and child care unit on its every
factory in Bangladesh where worker and their children get free treatment
along with free medicine. Dada appoints qualified doctors and nurses to
ensure workers’ health. Day cares are open for all who are interested to
keep their children while they work. Days cares’ caretakers are very much
cordial to workers’ child like as own child and workers concentrate to their
work without anxiety.

 Technical Competence:

As 4,500 workers and 200 office staffs work in Dada, they


experiencing various technical knowledge regarding sports cap
manufacturing such as planning, materials sourcing, buyer handling, etc.
Lots of Dada employee established local sports cap manufacturing
company in Bangladesh based on this experience.

 Income Tax:

Around 50 South Korean people are working in Dada’s factory in


Bangladesh. They are paying income tax to our government and
government also getting tax on the profit of the company.
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 Uses of national resources:

As like others production unit Dada requires lot of power, gas,


water and other national resources to continue its production which helps
to use our national resources.

e) Organizational Structure:

Every company has its own organization hierarchy to establish chain of command and to
ensure smooth operation. As Dada is a large and complex multinational manufacturing
company, it organizational structure is highly complex and large. This is a standard
organizational hierarchy that Dada follows:

Standard Organizational Hierarchy

Chairman

President Planning

Sales

Support

Accounts

General Affairs
CEO China

Trade
CEO Bangladesh

R&D
CEO Vietnam

ERP Help Desk


CEO Indonesia
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Standard Organizational Hierarchy

Country CEO

Director

GM Factory1 GM Factory2 GM General

Local R&D Production Pre Production


Management Team

Administration

HRD

Accounts &
Finance

IT

Commercial

Materials
Management
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f) Mission of the organization:

Dada is the pioneer and leader in the sports cap manufacturing sector in the world.
Dada’s current mission is to be the leader in Bag manufacturing sector. Aiming this, in
2007, Dada already built Moland Co. in Vietnam for bag production. With more than 10
years of experience, Dada’s staffs are more than capable of dexterously handling orders
from leading brands such as Camelback, Jackwolfskin, Ortovox, Thorka. Moland’s staffs
strictly control for quality once again on products manufactured under Moland’s optimal
environments by conducting complete laboratory performance testing including wheel
mileage testing, handle twist and jerk testing and tumbling testing.

g) Vision of the organization:

Dada has demonstrated its commitment throughout the years to a set of core
values including integrity, innovation, and standardization. Dada has since expanded its
business portfolio to knitwear and bags, in turn transforming itself into a leading
diversified textile products company.

World’s No.1 headwear manufacturer As the world’s leading headwear


manufacturer Dada already captures a global market share of 45% in the sports cap
market. Dada made sports hats are supplied to all teams of the four most popular U.S.
major professional sports leagues, Namely NFl, MLB, NBA, and NHL. Counting 80 or so
major global retailers as its business partners, from Adidas, Reebok, and Nike to
specialized golf brands such as Callaway and TaylorMade, Dada is successfully putting
on the world market various ODM (original design manufacturer) products.

Company that leads change Dada has a proven track record of aggressively
investing in R&D and design in order to develop innovative new products that change the
game for its industry, and ultimately contributes to improving the lives of our customers.
Dada has cumulatively filed 72 U.S. patents related to headwear.

World class total textile Products Company Based on our expertise gain form
the headwear business we have successfully expanded our business portfolio. We
invested $30 millions alone to diversify our business portfolio in 2007. Having started
knitwear production since 2007, Dada maintains successful partnerships with global
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market leaders such as Adidas. Reebok, Gap, Wal-Mart, Sears, Kohl’s, and K-mark. Dada
also built a new factory in Vietnam for bags production.

Consumer driven company Dada’s service not only focuses on delivering to


customers their primary needs, such as product quality and 100% on-time delivery. Dada
is comprehensive manufacturing and service solution providing company that proactively
seeks the wants and unarticulated needs of customers, with the goal of achieving
customer satisfaction, and customer success.

Research Methodology

a) Rationale of the study:

Performance appraisal and job evaluation is the integral part of an organization.


Human are the main asset of an organization only when it is directed and utilized
properly. If organization can develop and implement proper job performance and job
evaluation method, this can help an organization to achieve its goal by developing
productive employees. There are many types of job evaluation system followed by the
various organizations. Each of them has its own advantage and disadvantage. Without job
evaluation an organization cannot assess their employees’ performance and cannot pay
appropriate pay, benefit and reward. As a result the organization might lose productive
employee which will interrupt to attain it objectives.

b) Objectives of the study:

I. To know about “Dada Corporation”.


II. Performance appraisal and job evaluation method followed by “Dada Corporation”.
III. Benefit of the present performance appraisal and job evaluation process followed by
“Dada Corporation”.
IV. Resistance to the present performance appraisal and job evaluation process followed
by “Dada Corporation”.
V. Present performance appraisal and Job evaluation process should be more effective
which is followed by “Dada Corporation”?
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Findings and Analysis

a) Brief Description of the organization:

Since its establishment in 1974 as a headwear manufacturer, Dada has


demonstrated its commitment throughout the years to a set of core values including
integrity, innovation, and standardization. Dada has since expanded its business portfolio
to knitwear and bags, in turn transforming itself into a leading diversified textile products
company. Dada maintains successful partnerships with global market leaders such as
Adidas. Reebok, Gap, Wal-Mart, Sears, Kohl’s, and K-mark.

b) Present performance appraisal and Job evaluation process of the organization:

Dada believes on equal opportunity and Behaviorally Anchored Rating Scale.


Thus it distributed 60% (30% + 30%) of the total points for Attitude and Performance.

Evaluation points distribution:

Attendance points (25 %)


Evaluation 3-month basis

A. Lateness / early left (15%): for personal reasons only

Frequency -3 = 15 points
Frequency -6 = 10 point
Frequency -9 = 5 points
Frequency over 9 = 0 points

B. Absent / leaves (10%)

1. Present all work-days = 10 points

2. Unauthorized absent
Day 1 or more = 0 point

3. Leave enjoyed AFTER approval:

Casual leave = 8 points


Sick leave = 8 points

4. Leave enjoyed WITHOUT information but approved later on:

Casual leave
Day 1 = 8 points
Day 2 = 6 points
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Day 3 = 4 points
Over 3 days = 0 points

Sick leave = 4 points

Suggestion points (5%)


Evaluation 3-months basis

NO suggestion = 0 point
1 suggestion = 3 points
2 suggestions = 4 points
3 suggestions = 5 points

New initiatives/Loss hunting (10%)

Based on implemented ideas/ cost savings/ new income through sales etc points
will be considered as 2 or 4 or 6 or 8 or 10.

And as usual Attitude (30%) and Performance (30%) points will be considered to
evaluate a staff out of total 100%.

Performance Appraisal Form:

Dada Corporation
Performance Appraisal Form

Employee ID#: Date of Appraisal:


Employee Name: Date of joining:
Designation: Total year in service:
Department: Quarter:

Total points earned:


Attendance (out of 25):
Suggestion (out of 5):
New initiatives/Loss hunting (out of 10):
Attitude (out of 30):
Performance (out of 30):
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c) Benefit of present performance appraisal and Job evaluation process:

Dada constantly takes stock of its workforce and assesses its performance in
existing jobs to get following major benefit:

 To improve organizational performance via improving the performance of


individual contributors (should be an automatic process in the case of good
managers, but (about annually) two key questions should be posed:
What has been done to improve the performance of a person last year?
and what can be done to improve his or her performance in the year to come?).

 To identify potential, i.e. to recognize existing talent and to use that to fill
vacancies higher in the organization or to transfer individuals into jobs where
better use can be made of their abilities or developing skills.

 To provide an equitable method of linking payment to performance where there


are no numerical criteria (often this salary performance review takes place about
three months later and is kept quite separate from 1. and 2. but is based on the
same assessment).

d) Resistance to Present performance appraisal and Job evaluation process:

It is very tough to develop and implement a proper Performance appraisal and Job
evaluation system. There are lots of resistances that Dada face to implement its
Performance appraisal and Job evaluation system which are as follows-

 Identification of the appraisal criteria is one of the biggest problems faced


by top level management. The performance data to be considered for
evaluation should be carefully selected. For the purpose of evaluation, the
criteria selected should be in quantifiable or measurable terms. Thus Dada
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very frequently checks validity of its Performance appraisal and Job


evaluation system.
 Top management of Dada should choose the raters carefully. They should
have the required expertise and the knowledge to decide the criteria
accurately. They should have the experience and the necessary training to
carry out the appraisal process objectively.
 Many errors based on the personal bias like stereotyping, halo effect (i.e.
one trait influencing the evaluator’s rating for all other traits) etc. may
creep in the appraisal process. Therefore the rater should exercise
objectivity and fairness in evaluating and rating the performance of the
employees.
 The appraisal process of Dada faces others resistance from the employees,
the trade unions, politician and local people for the fear of negative ratings.
Therefore, the employees should be communicated and clearly explained
the purpose as well the process of appraisal. Dada maintains good
relationship with all related parties like trade unions, politician and local
people to make appraisal process fair and effective.

e) How Present performance appraisal and Job evaluation process should be effective?

Performance Appraisal and Job evaluation process could be more effective by


taking following initiatives against the Resistance of the Appraisal and evaluation
process.

 Performance appraisal should not be a one-way communication event. Employees


should have opportunity to discuss their performance raise questions about the
facts raise and to add their own data about their work that will reduce their
Emotion.
 Should be careful to avoid the unjustified evaluation Criteria used and the
objective should be clear and in all respect.
 Appraisers must be trained about the Appraisal and Job evaluation process for
better Judgment.
 Appraisal must be error free for correct Judgment we have to remember that at the
time of Appraisal and Job evaluation every person who is engaged for preparing
the appraisal they must be aware of the legal implications that arise.
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Conclusion & Suggestion

a) Conclusion:

Performance appraisal means evaluating an employee’s current and/or past


performance relative to his or her performance standards. On the other hand Job
evaluation is the formal process by which the relative worth of various jobs in the
organization is determined for pay purpose. The main objective of the Performance
appraisal and job evaluation is to measure the current level of the employee and to
attempt to relate the amount of the employee’s pay to the extent that her or his job
contributes to organizational effectiveness. In this case study I tried to know the
performance appraisal system, resistance, benefit and to know how it could be more
effective on the practical ground of an 100% export oriented sports cap manufacturing
company namely “Dada Corporation”.

b) Suggestion:

Organization achievement is largely depends on the utilization of human


resources. Organization should foster productive employee to attain its goal successfully
and effectively which is totally depended on the appropriate Performance Appraisal and
Job Evaluation system. Thus, I think Performance Appraisal and Job Evaluation system
should be-
 First company should develop and implement a standard Performance Appraisal
and Job Evaluation system according to its ability.
 Performance Appraisal and Job Evaluation system should be clearly stated to the
employee and supported by the employee and management to maintain possible
expenses.
 Standard Appraisal form should be developed and published publicly.
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 Performance Appraisal should be done periodically.


 Validity of Performance Appraisal and Job Evaluation system should be done
periodically.

Over all, Performance Appraisal and Job Evaluation should be done without any
bias, nepotism and favoritism; it should be based on the employees’ quality and quantity
of work, productivity, attitude, educational qualification, attendance, dedication, skill,
efficiency, ability, concentration, etc.

* Bibliography/Reference:

 Test book “Human Resource Management”

– Decenzo/Robbins – 6th Edition

 Dada Corporation’s web site: www.dada.co.kr

 Class lecture.

 Dada Corporation’s Administration and HRD department.

• Enclosures/Graphics/Charts

No graphics, charts are enclosed.