Shahid Nazir, Chief Executive Officer of Masood Textile Mills in Faisalabad, Pakistan wanted to turn his company into one of the leading apparel companies in the world. To achieve this vision, Nazir wanted to transform his employees into what he called 'corporate athletes' through his vision and a more credible Performance Appraisal System. However, the results of an employee survey earlier in the year indicated that the company's performance appraisal was perceived by the employees to be subjective, inadequate and lacked credibility. This was of serious concern to Nazir. He therefore developed a new Performance Appraisal and Reward System. Implementation of the new system, however, was delayed temporarily due to the events of 9/11 and Nazir now aimed at its enforcement by mid 2002. He was of the opinion that the implementation of the new system would help in improving the motivation of his employees which, in turn, would lead to sustained high performance so essential to realize his vision. This case is useful in examining the design and implementation of an employee performance appraisal and reward system.
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