WESTERN UNION

What we do?

They are a leader in global payment services. From small businesses and global corporations, to
families near and far away, to NGOs in the most remote communities on Earth, Western Union
helps people and businesses move money - to help grow economies and realize a better world. In
2015, they moved over $150 billion dollars for our consumer and business clients. We continue
to innovate, developing new ways to send money through digital, mobile, and retail channels,
with an array of convenient pay-out options to meet business and consumer needs.

They are a business centered on the needs of our customers, and over the years, we’ve invested
and innovated to provide consumers and businesses with even more choices – in products, in
services, and in how and where they can access Western Union when moving money across
borders.

We connect
people

We move money for better, enabling individuals, families and friends to securely and seamlessly
transfer money in the ways that are most convenient for them, whether that is walking into a
retail location or using our Western Union website or app to move money in minutes.

Our customers use our services to send money to family members in nearly every part of the
world, to provide support, recognize a special occasion, and enable entrepreneurship or
education.

We connect
businesses

As businesses have a growing need to move money around the globe and transact in different
currencies, we’ve answered these needs with Western Union Business Solutions to help navigate
the global economy, including solutions for International Payments, Risk Management, and Cash
Management Solutions. We offer a wide range of industry-specific solutions that today help over
100,000 clients including financial institutions, educational institutions, NGOs, and
small/medium sized businesses needing to make cross-border payments.

We enable
partnerships

WU Connect is a global cross-border, peer-to-peer payment solution that enables partners to

allow their users to send money overseas to more than 200 countries and territories. We enable
partners to offer their users the ability to send money to a qualifying bank account, select mobile
wallet, or Western Union® agent location for cash pickup.
By using Western Union’s APIs your platform can leverage our robust compliance, settlement,
and risk infrastructure to give your customers more value.

Our Purposes

We believe that when money moves, better things can happen. A business expands. A child goes
to college. Emergency aid arrives when it’s needed. An economy prospers, an opportunity opens,
a community heals and relationships endure.

Moving money for better means moving money for a better world –creating value for
individuals, businesses and for society.

Our Vision

Western Union’s vision is to be a global leader in cross-currency, cross-border money movement

& payment services, continuing to meet consumer and business needs as they develop.

We're realizing this vision through our global cross-border platform supported by an multi-
channel network that spans over 200 countries and territories, built on ever-evolving technology,
trusted relationships with Agents and partners, and global compliance capabilities.

Our Leadership

Our leadership team remains true to our vision and values, putting customers’ evolving needs at
the center of our innovation and holding up trust and convenience as the hallmarks of our
business.

Consumer Services

Send and receive money

We make sending and receiving money convenient and simple. At Western Union you can send
money in a variety of ways:

Send money

Online

Move money through our website.

Via WU App
Use our app on Android, iPhone and iPad to send money and keep track of your transfers on the
go 24/7.
In person
Visit one of our 500,000 Agent locations worldwide and we will help you transfer money in
person.

By phone
In the US, call 1-800-CALL-CASH from a landline and one of our team will assist you.

Receive money

In cash
Visit any one of our 500,000 Agent locations near you with your government-issue ID and
MTCN tracking number (your sender will share this with you).

Bank
account
Have money sent directly to your bank account for ease of use

Mobile
wallet
In select markets you can have your money sent directly to your mobile wallet while you are on
the go.

Pre-paid
card
In select markets you can have your money transfer loaded onto your Western Union
branded pre-paid card by logging into your card account or calling the number on the
back of the card.

About Us
Western Union pioneered the idea of moving money around the world and has been
connecting people globally for over 164 years. As one of the world’s leading providers of
cross-border business payments, Western Union Business Solutions is transforming how
businesses can expand globally through one of the largest and most diverse payment
networks in the world.
 Your global business partner
Companies around the world count on us as their global payments partner. With fast, cost-
effective payment solutions and customized cash management strategies, we help
organizations of any size and in any industry achieve solid results.

 Small-to-medium sized businesses

 Fortune 500 enterprises
 Financial institutions
 Educational institutions
 Non-profit organizations (NGOs)

International payments and cash management specialists

We work around the clock in all time zones to help organizations send and receive payments in
over 130 currencies through a global network that spans 200 countries and territories*. Through
our powerful online platforms, we offer an efficient way to manage international payments and
cash flow on a global scale. Along with a skilled team of financial specialists, we also provide
the support, market insight, and risk management consultation your business needs to grow
profits today.

Invester Relations
Worldwide, many people have unmet financial service needs. At Western Union, it’s our
goal to meet those needs—through providing new, innovative solutions. Our vision is to
be a recognized leader in providing innovative solutions, high service levels, and omni-
channel integration for cross-border, cross-currency money transfer.

We have a strong foundation to deliver such services to customers and businesses

around the globe. We have an extensive network, including more than 550,000 agent
locations in more than 200 countries and territories and over 100,000 ATMs and kiosks,
and the capability to send money to billions of accounts. We have a strong global brand,
tailored solutions for businesses, and compliance and regulatory capabilities that allow
us to operate in a complex environment.

Financial Investment

We remain focused on executing our strategic priorities to drive long-term shareholder

value. These priorities include strengthening our consumer money transfer business,
with an emphasis on digital expansion, driving growth in Business Solutions, and
generating and deploying strong cash flow for our shareholders.
In 2016, Western Union generated revenue of $5.4 billion and cash flow from operations
of approximately $1.0 billion. We returned $794 million to shareholders through a
combination of dividends and share repurchases.
CHAPTER II: PROJECT PROFILE AND REVIEW OF LITERATURE

PERFORMANCE APPRAISAL

Performance appraisal has been used for decades in organisations to serve employees'

and organisations' needs. It is defined by Snape et al. as "a formal assessment of how

well an employee performs his or her job, usually carried out on a regular basis (e.g.

annually). It usually takes a systematic approach, involving documentation and possibly

a meeting between appraiser and appraisee."

Figure 2.1: Human Resource Management Process

Performance appraisal is complex of issues that need to be considered e.g. content of

appraisal, how to appraise, who conducts appraisal and who is appraised, when and

how often, how to tell and use results, etc. It is not easy to set up suitable and efficient

appraisal that would suit to organizations’ and employees’ expectations as well.

Inadequateperformance appraisal system is very costly and does not produce any

benefits fororganisation and its employees.

Need for Performance Appraisal

An appraisal is a process when a company appraises employees' performance. If the

appraisal is performed well it brings benefits to employees, their superiors, to the human

resource department and the whole company. Formal and Informal Appraisal There are

two types of appraisal conducted according to its frequency and purpose. An informal

appraisal is a part of everyday interaction superior-employee and it is very random; it is

influenced by the current situation and need. It is the part of running checking of

employee's behaviour and fulfilment of tasks. The appraisal is usually verbal and not

recorded and it does not serve as basis for performance management. It should

motivate the employees and give feedback to them and to the superiors as well. A

formal appraisal is standardised, periodical, planned and systematic. However, it

canalso be occasional in terms of actual need (e.g. before employee's promotion or

before transfer to another position). It serves as basis for performance management; it

is recorded and saved in the employee's profile. The following figure shows the formal

appraisal in time

Objectives of Appraisal

The main objective of the appraisal is to evaluate employee's performance fairly. It

creates assumptions for employee's utilization within the company and for his/her e.g.

motivation, performance or career. Only some of the main objectives are introduced as

follow :

 To appraise to what extent the employee fulfils his duties

  To qualify level of the employee's performance

 To appraise if the employee does his/her best at work

 To formulate development of the employee

 To recommend the employee's transfer to more/less exacting work place

Other objectives of the appraisal may differ according to the situation within the

company or according to the purpose of appraisal (e.g. periodicity, changes in the

company). Among these partial objectives belong.

 To improve the employee's performance

 To gain information about the employee's opinions, values

 To identify suitable candidates to be promoted

 To identify educational needs

 To check foreknowledge of the employee

 To identify how to improve relationship between management of the company

and the other employees

 To discuss work issues with the employee

 To identify work and social needs of the employee

 To check motivation impact of the appraisal and remuneration

 To find out level of the employee's satisfaction

In practice only some of these objectives are met by the appraisal. It depends on the
purpose of the appraisal. The whole appraisal is more about the performance in a case
of the appraisal focused on remuneration. The appraisal, focused on character
of the employee or his/her behaviour, is oriented on management of development and

employee's motivation.

The appraisal system, which is realised effectively, provides the company with very

important feedback about management of the company and the employee's perception

of it. Managers are supposed to do the appraisal to find out what provisions are

necessary to adopt. They are also supposed to support employee's success or on the

other hand to discipline failings and to motivate

Also employees expect benefits from the appraisal. The employee gets feedback about

his/her performance which may motivate him/her to do better job. They get an

opportunity to find out whether their requirements harmonise wi th the company's vision

or they can discuss his/her remuneration.

Appraisal Parameters

To conduct the appraisal well an appraiser must know which criteria are crucial for the

certain employee's position and which are adequate to the form and purpose of the

appraisal too. Different criteria may apply to different positions within the company.

They can be general (they apply to the all positions) or special (adjusted to the

particular position). These criteria should be clear, unambiguous, measurable or

comparable (if possible), objective, reliable and giving evidence. For example skills

which do not relate to work cannot be taken into consideration during appraisal. The
appraisal observes knowledge, skills, competence and behaviour of the employee

(work-related and social). The appraisal observes

1. Labour performance

 Quality and quantity of work during certain time and with certain costs

 Employee's value-added to the company

2. Labour efficiency (ability to reach a target)

 Behaviour

 Expertness

 Personality

 Motivation

3. Work-related and life condition of the employee However, the most common

criteria are as follow

 Character and skills needed for work performance

 Qualifications and behaviour during work

 Labour efficiency

 Interpersonal relations and style

 Appraising Methods

 Appraising method is a procedure which allows a company to collect, check,

classify, provide and use information gained from employees and about

employees in order toimprove their performance. There is a wide range of

 appraising methods in various modifications according to the employee's

position. The methods are developing and new ones are emerging. They cannot

be adopted from foreigner countries due to influence of national culture. The

appraisal cannot break the ri ghts of employees. It is important to choose the

right method which relates to certain criteria.

 Figure 2.2: Classification of Performance Appraisal Methods

 The author offers only brief summary of the appraisng methods. Appraisal

According to Defined Objectives (Management by Objectives) This method has

been used for appraisal of managers and specialists. The objectives and plans
 which should be completed by the employee by the deadline are appraised.

These objectives are measurable and should be SMART

 • Specific

 • Measurable

 • Achievable

 • Relevant

 • Time-bound

 The appraisal reviews fulfilment of the objectives, necessary improvements and it

sets up new objectives for the next period. This method is future oriented and it

has its own principles

 • Chronological sequence of company's objectives and goals

 • Certain objectives for each employee

 • Decisions made collectively

 • Definite period of time

 • Performance appraisal, evaluation and feedback

 Appraisal According to Norms

 This method is used for appraisal of employees in manufacturing and it appraises

meeting norms. These norms are usually quantified therefore measurable but it is

not possible to compare the results with other employees from different sectors.

The appraisal measures fulfilment of norms and it sets up new norms to be

accomplished.

 Appraisal According to Scale

  Appraisal according to scale is probably one of the oldest and the most wide-

spread form of performance appraisal. An appraiser subjectively evaluates

employee's

performance according to scale. It is multi-purpose method which can be used

for self-appraisal as well. Each criterion of performance (e.g. quality, accuracy,

knowledge) is appraised separately by identifying achieved level of performance.

This method relates to pay rise according to achieved level of performance or for

example according to the number of points gained. The appraisal according to

scale is unexacting, not time-consuming and can be used for large amount of

employees.

However, the problem is formulation and interpretation of criteria and level of

performance. There are three types of scale which can be used

 Numerical

 Graphic

 Verbal

Behaviourally Anchored Rating Scales Method (BARS)

This method is used for behaviour appraisal. It focuses on employee's approach to

work, working technique and behaviour during work. Each activity is recorded and

appraised according to scale with up to 7 levels supplemented with verbal characteristic

(e.g. 7- outstanding, 6-above average,...1-unacceptable).

The appraisal is conducted according to reality and feedback is assured. It minimise

subjectivity, bias and misleading numerical or volume measures. The only disadvantage
is demandingness of preparation. However, when this type of appraisal is understood

and set up properly, it is a valued method

Descriptive Appraisal

Descriptive appraisal is quite problematic method due to its subjectivity (every appraiser

is subjective to some extent) and lower comparability. The appraiser evaluates

employee's performance in writing, his/her strengths and weaknesses and the appraiser

proposes how the employee could improve his/her performance. This method is difficult

and its results are not quantifiable. Therefore they cannot be comparable.

Appraisal According to Key Events

The appraiser must record every situation of extraordinarily good or bad behaviour of

the employee which relates to his/her work duties. These situations are called key

events. The appraiser records these events during the whole appraisal period. He/she

records positive and negative situations which are then classified and serve as objective

basis for the appraisal interview.

However, there are some limitations as well. Negative events tend to be more easy-

toremember and remind all the complaints on the employee. The supervisor must watch

the employee very closer that may be unpleasant for the employee and he/she also

may forget to record some key events due to busyness.

Appraisal According to Employees' Comparison

This type of appraisal includes several methods which compare employee's

performance with performance of his/her colleagues. The comparison is usually

conducted by superiors. The results of these methods help distinguish the worst and the

best employees and they also identify percentage of pay rise, possible promotion or

bonuses. These methods are very practical but they offer low feedback and they could

be prejudiced against the employee due to the appraiser's subjectivity. The most

common forms of the employees' comparison are:-

• Sequence of employees – the appraiser creates the sequence of appraised

employees from the best employee to the worst one; it is simple evaluation with simple

interpretation but you never know to what extent is one employee better/worst

than the other one

• Forced classification into categories – the employes are divided into categories

according to their performance, credibility, etc.; differences among employees are not

known as well as in the previous form and there must be employees who get worst

ratings (due to the forced classification) even if their performance is not so bad

• Paired comparison – the appraiser compares employee's performance individually

with other employees within the same group and he/she identifies the final sequence

according to scoring in certain criteria; the employee who is in most cases first will be

the best employee.

Appraiser
It is clear that everyone (from employees to directors) within the organisation should be

appraised whilst the question arises who should conduct appraisal. The following figure

shows who can conduct appraisal

Figure 2.3: Types of Appraiser

A traditional supervisor or boss appraisal approach as been widely used as a rationale

that the boss is the most suitable person for appraiser position due to relationship and

contact with subordinates. However, this type of appraisal has become problematic in
terms of fairness and objectivity. New variations of appraisal have been developed and

some of them are characterized as follow.

Self-Appraisal

According to Shore and Tashchian self-appraisal system has long tradition and in recent

years it has been applied in the overall performance appraisal in terms of subordinates'

comments and registration of any disagreements. They suggest that selfappraisal is

connected with a range of benefits such as higher employee's focus

Figure 2.3: Types of Appraiser

A traditional supervisor or boss appraisal approach as been widely used as a rationale

that the boss is the most suitable person for appraiser position due to relationship and

contact with subordinates. However, this type of appraisal has become problematic in

terms of fairness and objectivity. New variations of appraisal have been developed and

some of them are characterised as follow

Self-Appraisal

According to Shore and Tashchian self-appraisal system has long tradition and in recent

years it has been applied in the overall performance appraisal in terms of subordinates'
comments and registration of any disagreements. They suggest that selfappraisal is

connected with a range of benefits such as higher employee's focus on development,

higher perception of fairness, accuracy and acceptance of appraisal and finally it

positively affects employee's performance.

In contrast, according to Bretz et al., there is a danger of leniency in self rating

(especially if the appraisal is pay-related) and inaccuracy. Also Shore and Tashchian

admit other disadvantage of possible influencing supervisor's opinion when supervisor

receives employee's self-appraisal prior finishing his own evaluation of the employee.

Selfappraisal is the most effective where appraisal is not pay-related and where self-

appraisal is not based on comparison against the other employees

Appraisal by Peers

Appraisal by peers has been popular for quite short time. Some authors emphasises

benefits of peer appraisal such as identifying individual and also organisational actions

needed for achieving objectives or greater perception of responsibility within teamOn

the other hand others highlight negative aspects of peer appraisal in terms of rating

severity (or leniency) and limitation caused by conducting appraisal by the same peers.

Appraisal by peers is mostly perceived as a part of multi-source appraisal (or 360°

feedback), other type of appraisal

Multi-Source Appraisal - 180° Feedback

180° feedback is a combination of the appraisal by superiors and the appraisal by

subordinates as it is shown in the following figure: