Abstract
In early 1999, the management of Attock Refinery Ltd. (ARL) was evaluating its performance appraisal system which was criticized for its subjectivity, inadequacy in differentiating between high performances and low performances, and weak linkage to organization's compensation system and strategy. Mr. Adil Khattak, Assistant General Manager Human Resources and his team in this HR department must take steps to address these concerns and at the same time consider the implications of a changing business environment. The first case examines and identifies the issues related to performance appraisal systems in the face of changes in the environment and corporate strategies. The second case presents a new appraisal system and allows case analysts to assess the improvements and fit of the new system with current situations.
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