PERFORMANCE MANAGEMENT

COURSE FACILITATOR: SANA MUMTAZ

_________________________________________
MOHAMMAD JUNAID HUSSAIN
REG# (1735202)

RAHAT JAAN MOHAMMAD

REG# (1835148)

MBA (36-E)

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 ASKARI BANK

VISION:
To be the bank of first choice in the region.

MISSION:
To be the leading private sector bank in Pakistan with an international presence, delivering quality
service through innovative technology and effective human resource management in a modern and

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progressive organizational culture of meritocracy, maintaining high ethical and professional
standards, while providing enhanced value to all our stakeholders, and contributing to society.

INTRODUCTION:
Askari Bank was incorporated in Pakistan on October 9, 1991, as a public limited company. It
commenced operation on April 1, 1992, and is principally engaged in the business of banking, as
defined in the Banking Companies Ordinance, 1962. The Bank is listed on Pakistan Stock
Exchange (earlier it was listed on Karachi, Lahore and Islamabad Stock Exchanges).
Since inception, the bank has concentrated on growth through improving service quality,
investment in technology and people, utilizing its extensive branch network which includes Islamic
and agricultural banking.
Corporate Social Responsibility is an integral part of the way we do business. In order to fulfill
our CSR objectives, we attempt to promote public interest by encouraging community growth and
development through sponsoring social service events, supporting education, sports and
environment and also contribute in socio-cultural activities.

CORPORATE SOCIAL RESPONSIBILITY (CSR) OVERVIEW:

Justification:
Corporate Social Responsibility (CSR) is an integral part of the way we do business at Askari
Bank, and is a vital element of our strategy. As a socially conscious organization, Askari Bank
actively contributes to the lives of the less privileged through various charitable organizations that
work for the welfare of the society.
We promote various initiatives that encourage community growth and development. We have also
initiated an in-house training program for the graduate children of our less-earning employees with
the aim of enhancing employment opportunities for them. Through the program, the children of
low-cadre bank employees can appear for a standardized test following graduation from university,
and, upon passing the test, are given paid training and guaranteed employment. We recognize this
program as our way of paying it forward and contributing to the lives of people around us.

CORPORATE OBJECTIVES OF ABL:

 To achieve sustained growth and profitability in all areas of business.
 To build and sustain a high performance culture, with a continuous improvement focus.
 To develop a customer service oriented culture with special emphasis on customer care and
convenience.
 To build an enabling environment, where employees are motivated to contribute to their
full potential.
 To maximize use of technology to ensure cost effective operations, efficient management
information system, enhanced delivery capability and high service standards.
 To deliver timely solutions that best meet the customers‟ financial needs.
 To explore new avenues for growth and profitability.

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 BANK ALFALAH

VISION:
To inspire and empower people to do things differently and shape their own path in life and
business.

MISSION:
We look at the market with fresh eyes to find new opportunities, and seek new ways of enabling
our customers to succeed and advance the world of finance.

INTRODUCTION:

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Bank Alfalah Limited is incorporated as a public limited company on June 21, 1992, under the
Companies Ordinance 1984 and listed on Pakistan Stock Exchange Limited.“Bank Alfalah has
won the award for best bank of the year 2017”.
Bank Alfalah is the fifth largest private Bank in Pakistan with a network of over 600 branches in
more than 200 cities across Pakistan with an international presence in Afghanistan, Bangladesh,
Bahrain and a representative office in the UAE. The Bank is owned and operated by the Abu Dhabi
Group. The International Finance Corporation (IFC) of the World Bank partnered with the Bank
in 2014, and holds a 15 percent stake in Bank Alfalah.

CORPORATE CITIZENSHIP:
Justification:
Responsible Finance and Sustainability through a ‘Beyond Philanthropy’ approach are key agenda
priorities for Bank Alfalah as well as for the Abu Dhabi Group. The Bank is committed to growing
in alignment with the principle of ‘responsible finance’. The eventual aim is to serve our role as
responsible corporate citizens and give back to the communities where we live and operate.
The Bank’s two-pronged social governance approach incorporates financial investment towards
meaningful community causes coupled with employee volunteer programs in order to create
measurable, sustainable impact in our communities. We support both infrastructural development
as well as capacity building endeavors in alignment with the motto of ‘giving back to our
communities’.

OBJECTIVES:
• Financial strength and Profitability by making profitable advances
• Customer satisfaction by providing higher quality of services at an affordable cost
• Growth by expanding branch network and deposit base
• Profitability
• To optimize the use of resource

METHODOLOGY:
In order to get clearer concepts regarding the analysis of HRM practices and procedures, interview
was done with Askari bank’s ( Branch Manager ) which helped us a lot to answer our question to
prepare our report. Other than that we also took help from Annual reports which also helped us to
make our report.

For Bank Alfalah we tried to get some information from the front-line employees but higher
authority was slightly reserved and not interacting to a great extent because they don’t give time
without any source, so we tried our best to extract the answers from the annual reports and then
we manage to complete our report.

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FINDINGS: (ASKARI BANK)
VISION’S BACKGROUND:
Our vision was placed with a motive to provide the quality services through innovative technology
and effective human resource management by developing the customer oriented culture and high
ethical professional standards.

COMMUNICATING VISION AND OBJECTIVES WITH EMPLOYEES:

Our Vision and objectives are aligned with HR department in such a way that the HR department
has taken an initiative to clearly communicate the vision and objectives with all the employees and

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especially with MTO’s and newly hired employees by sending them to “Askari Training
Academy” in order to instruct them with the procedures and other regulations like Supervision of
Activities, Powers and Responsibilities of Regulatory Authorities, System of Internal Norms,
Guidelines and Orders and the core motive of organization so that they can aware about objectives
and aligned with the Vision and objectives of the organization.

AFTER THE VISION HAS ALIGNED WITH HR:

Once the vision and objectives are aligned with HR, then it will become convenient for the
employees to execute the work which will help them to increase the productivity of organization
and it develops them personally as well. On the other hand, when the employees have a clear image
of the vision and objectives then it will increases their motivation level that leads to employee
satisfaction.

HR ROLE:
HR continuously involves the employees with the concern initial trainings to ensure that the
employees are exactly communicated with the objectives of the organization and HR is also
facilitating the employees on their concerned issues so there would be no barriers between their
work and any other issue which sometimes lead to be an interruption.

VERTICAL INTEGRATION:
HR ROLE IN DRIVING KPI’s:
*Customers are loyal towards Askari services.
*Our ATM channel has been expanded other than just branches (i.e:) Centaurus and Safa Mall.
* Reduced amount of banking operations cost by implementing innovative technological solutions.
HR departments ensures that the employees are well aware about KPI’s and follow the required
steps for achieving those KPI’s and gains the competitive edge to increase the productivity of the
organization.

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AUTOMATED SOLUTIONS:
There is a specific Department in Askari Bank which is known as ADC “Alternate Delivery
Channel” which works (24*7) for monitoring ATM machines to provide better services to their
customers. This Department was initiated by the HR to provide the automated instant solutions to
enhance the efficiency of the organization which leads the higher satisfaction for the customers.
IT department is using the software (System Flexcube) which was purchased from India in 2010.
It is very advanced software through which IT department is facilitating and providing solutions
by their technical assistance.

SUCCESS OF HR SERVICES AND EMPLOYEE RELATIONS:

The basic measure for HR success is to provide prompt response and instant solutions regarding
employee related concerns like medical reimbursements, gratuity, provident fund, and the family
members of the employees got also facilitated with the relevant services as well.

FACTORS FOR PRODUCTIVITY:

1) Learning and development opportunities.
2) Competitive salary packages, incentives, bonuses.
3) Company’s culture.
4) Ethical and well-mannered environment.
5) Relationship with colleagues.
Above are some important factors that play an essential part to improve the individual’s
performance and organization’s productivity as well.

EFFICIENT HR DEPARTMENT:
When the HR observes that there are less conflicts and issues between the management and
employees regarding work related issue or any concern policy to follow, so it indicates that
employees are working in alignment with the vision and overall objectives of the organization.

HORIZONTAL INTEGRATION:
ENGAGING HR SUB DEPARTMENT VIA CASCADING PROCESS:
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HR department engages their sub departments through emails, internal circulars and timely
informing them about the SOP’s in order to achieve the overall goals of the organization.

CUSTOMER SERVICE ORIENTED CULTURE:

HR initiates to instruct the concern employees by relevant training and providing courses related
to customer services in order to fully prepare them for making the customer satisfy.

EXPECTATION FROM HR TOWARDS THEIR EMPLOYEES:

HR is working keenly to make better policies for staff related matters regarding their growth
opportunities and it will leads to the growth of the organization as well.

GOALS ARE VISIBLE ENOUGH FOR EMPLOYEES:

The goals are clearly communicated with the employees in the initial stage through their respective
managers which helps them to execute their work more accurately and achieve the goals of the
organization.

MAJOR DIVISIONS WORKING WITHIN HR DEPARTMENT:

EMPLOYEE RETENTION:
HR Department retaining the employees of Askari Bank for a long period of time by offering good
salary packages and better incentives, planning International trips along wih employee’s family,
monetary rewards and less pressure for deposit mobilization. These are some important factors
which helps HR department to keep motivate their employees and retain them for a long time.

TRAINING AND DEVELOPMENT FOR EMPLOYEES:

On the basis of latest information according to the market trends and research, the required training
is provided to the employees in order to stand along with the competitors. There is a policy initiated

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by HR department for every individual to at least attend 10 days training which helps the individual
to develop and grow, which is beneficial for the organization as well.

COMPLIANCE:
They are ensuring that the policies are implementing timely which helps the organization to
maintain professional environment and it also reduces the chances of conflicts between employees
and the management.

RECRUITMENT AND TALENT ACQUISITION:

They are mainly focuses the qualification for that particular area, most probably they are looking
for the personnel with specialization in the specific field because the banking sector mostly needs
to have the highly qualified staff for making their name count.

COMPENSATION AND BENEFIT:

Compensate the employees by giving them timely increments according to justified percentages,
bonuses and incentives to increase their motivation level and productivity as well.

FINDINGS: (BANK ALFALAH)

VISION’s BACKGROUND:

The vision is set to inspire and empower people according to changing regulatory and operational
environment requires up-to-date knowledge and skills of latest systems. Owing to this reason
human resources development is on the management’s top priority.

COMMUNICATING VISION AND OBJECTIVES WITH EMPLOYEES:

Vision and objectives are clearly communicated to employees during the orientation and training
of the employees. HR department is responsible for the training and orientation of employees.
Training & Development Centre of the Bank are housed in state of the art facilities at Karachi and
Lahore. The centers are responsible for providing multi-level high quality training programs and

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making to understand the vision and objectives to all the staff members, So that they can be clearly
aware about objectives and aligned with vision and objectives of the organization.

AFTER THE VISION HAS ALIGNED WITH HR:

When Vision is aligned with the HR they will always make sure that objectives are well
communicated to employees, this will help to increase the productivity of the organization because
employees will have clear image of the objectives.

HR ROLE:
HR have composed data from both inner and outside sources, they figure the request of the
employment. How overflowing and what sort of individuals will be required to run the business.
Different methods estimate the request of employment and require the unique opinion. Human
resource planner tries to predict the demand of labor or workforce. It is also the responsibility of
HR to solve the problem of the employees.

VERTICAL INTEGRATION:
AUTOMATED SOLUTIONS
Technological developments are opening up new vistas of solutions of distributing traditional
financial product. Concurrently rapid change in customer preferences has related in a major shift
from manual to automated services of the bank. Information technology today is the key of the
bank to sustain and succeed into the corporate world. Therefore, during the recent past, Bank
Alfalah Limited made heavy investment towards exchanging its capabilities in the area of
automation and technology. Bank Alfalah Limited is well positioned to meet client needs with
improved competitive advantages. Bank Alfalah Limited is on the way of expansion of its business
and branches network presently. They have giving the services as per demand of the people like
online banking, mobile banking etc.

SUCCESS OF HR SERVICE AND EMPLOYEE RELATIONS:

On the basis of these motivation employee are interested in working. So, in Bank Alfalah they try
to give all the facilities as per they can. We need to ensure that our salary package and benefits are
in line with the market. Staff monthly salary is to be disbursed before the end of each month usually
on 26th/27th of the month. Salary & allowances of each employee is a confidential matter.
Employees in need of funds for an emergency may be allowed advance against salary for the
current month to be adjusted in full on disbursement of salary. In the frame of compensation there
are two types of compensation includes and they are financial and non-financial. Remuneration,
reimbursement, bonuses, commission, motivation and rewards are the parts of compensation.

HORIZONTAL INTEGRATION:
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CUSTOMER ORIENTED:
Prioritizing its product portfolio in line with consumer needs and wants the bank is committed to
develop product that give more value to its customers. We reinforce a passion for the highest
quality of customer service at all levels. Furthermore, the purpose of this training program is to
emphasize on customer service, courtesy and manner, as well as a number of other unique focus
areas.

HIGH PERFORMANCE CULTURE:

HR practice defines the performance outcomes which standardized the turnover rate, productivity,
quality, service etc. The employee had a satisfactory performance track record during the past
service with the Bank. By the training, compensation, performance appraisal the effective
dimensions are set up. Performance appraisal is basically maintaining a standard of their work and
giving a proper feedback on their work.

INITIATION OF STAFF HIRING:

All Units/Branches of the Bank should systematically forecast their future staffing requirements
for timely induction of competent high quality staff. All open positions are first posted internally
by HRD at the request of branch/ dept. Incase vacant positions cannot be filled in through internal
resources then such vacancies will be filled in through external hiring as per Bank’s recruitment
policy.
Staff hiring may be done in batches, in small groups or individually.
These batches will be hired under the following categories;
 Management Trainee Officers (MTOs)
 Operations Officers (OOs)
 Cash Officers (COs)
 SME Officers/ Credit Officers/ Lease Finance Officers (LFOs)/ Rural Finance
Officers(RFOs)

TRAINING AND DEVELOPMENT:

All newly inducted staff members are provided systematic training in groups at Bank’s Training
&Development Centers at Karachi or Lahore, to make them well conversant with Bank’s operating
procedures, rules, history and culture before they commence their job with the Bank.

EMPLOYEE RETENTION:
To retain the employees in an organization. This task is achieved by rewarding the efficient
employees. If Employees in need of funds for an emergency may be allowed advance against
salary for the current month to be adjusted in full on disbursement of salary. Give them bonuses
like accommodation, allowances, health insurances,etc.

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COMPARISON BETWEEN HR SYSTEMS:

ASKARI BANK:
* HR Communicates the vision and objectives with employees through initial training at Askari
Training Academy.
* They want to have that person in their organization that most probably has the specialized
certification or degree for a particular position.
*They provide market competitive salary, bonuses, and incentives.
* HR provides special relevant courses to employees to develop the customer oriented culture.
* HR engages it’s sub departments by timely informing them about the SOP’s in order to align
them with the organization’s objectives and vision.
* On the basis of latest information according to the market trends and research, the required
training is provided to the employees in order to stand along with the competitors, it also helps the
employee to develop and grow.

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BANK ALFALAH:
* They facilitate their employees with orientation at T&D centre of the bank.
* Their HR planner predicts the demand for the required workforce and does predetermined
analysis for the particular job to get the right person at right place.
* They also provide market competitive salary, bonuses, and incentives they also focuses on to
provide timely salaries so their employees don’t have any issue regarding salaries and remains
motivated to their work.
* On the basis of latest professional knowledge and skills in all areas of banking, as well as to
reinforce a passion for the highest quality of customer service at all levels.
* Due to the strong interaction about SOP’s, HR sub departments are strongly aligned with each
other to execute their concerned tasks.
* Quarterly and yearly trainings are provided to employees for their development and growth.

FINDINGS: (ASKARI BANK)

PERFORMANCE MANAGEMENT PROCESS:

Performance Planning:
A specific Job Description (JD) has provided to the new employee related to his designation which
helps the employee to construct his initial level of performance under the supervision of his
supervisor. The supervisor makes the employee involved in the organizational objectives and
goals through an interactive session with him which clarifies the parameters which should be
cover by following the SOP's to achieve the set goals and objectives.

Performance Execution:
After a week or two, the supervisor started to monitor the performance of the new employee,
the first week is provided by the management to the employee just to have a clear understanding
and a room for making himself comfortable in the environment by not giving a pressure situation
on his side which may work as a shaky start for his career development. Afterwards, the
supervisor started to check the quality of his work and by keeping a check and balance of his
assignments and ensures whether he is following the required and defined procedure for the
given tasks by checking the end result of their work. Then the supervisor identify the gaps and
discrepancies related to is work and try fix such gaps in their performance by formulating the
required strategies which helps them to work effectively and increases their productivity.

Performance Assessment:

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The performance assessment of the employees have been taken in to consideration with various
channels, like; the first line managers are the primary source to assess the performance of the
employees, then the Audit can takes place by making the observations related to the job
performance which covers a major part in the assessment. Co-workers are also being considered
to provide the feedback for the particular employee. Compliance reviews also conducted by the
concern department to construct a comprehensive review of an organization's adherence to
regulatory guidelines. There is a specific Department of Service Quality which are responsible
that the customers are filling the service quality forms for feedback which helps in employee
evaluation. Self-Appraisals are also considered for employee's evaluation on the basis of
dimensions of the JD that what the employee have achieved.

Performance Review:
After assessing the employee's performance, the supervisor reviews the performance on the
basis of the techniques and methods that are discussed previously and ensures that the SOP's
must have not been violated while meeting their objectives. The supervisor also wants to
determine that whether the employees are over or above average while executing their
performance. In Appraisal interviews, 'Problem solving method' used in such interviews to find
out the solution that have been taken in to consideration while assessing the performance and
furthermore, these interviews are conducted in order to came to an inclusive conclusion.

Performance Renewal:
Supervisor starts the interaction by keeping highlighting the positive points of the employee's
performance and then mentions the weaknesses of the employee's performance as well in
order to look those gaps and rectify them quickly. Then the supervisor find out the reasons
whether such discrepancies and deficiencies occurs due to lack of interest or lack of knowledge.
After in-depth analysis on the employees’ performance and the weaknesses, then according to
the need and requirements, several trainings and development programs would have been
arranged at their Askari Training Academy in order to improve the performance of the
employees.

Analysis on Performance Appraisal Process:

It’s a very comprehensive form which consists of several dimensions, which will be discussed in
the later part of the report. Trait based approach has been used because in the banking industry
this approach is helpful because it measures the physical and psychological characteristics of a
person. In this form, the trait-focused system focuses on the attributes such as helpfulness,
dependability and punctuality. Close ended questions have also been asked in the first part which

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follows the scale of Graphing rating scale in their appraisal form. Essay Method has also used in
this form because in the second part some open ended questions have also been asked to cover
the detailed aspect of the evaluation. The second part in which Essay approach is used, because
it refers more towards the improvement of employee skills.

Parameters of Measuring Employees’ Performance:

The first dimension on which the employee performance has been measured is “Basic job
requirements”. This dimension covers the performance areas like, knowledge of work, initiative,
Quality of work, cooperation, effective under stress, quantity of acceptable work and
dependability. This first dimension focuses on basic job skills which must be fulfill by each
individual in order to ensure that there is a clear understanding of their assigned work which will
help them to achieve their departmental goals which ultimately leads to achieve the
organizational goals which is beneficial in the long-run.

The second dimension is “Job specific attributes” which covers the performance areas like,
planning and organizing, leading, ability to make job-related decisions, cost consciousness,
operation and care of resources. These are some specific attributes which must possess by every
individual in the organization in order to remain competitive and it enhances the competency
level of the employees as well.

The third dimension is “Accountability and Flexibility” which covers the performance areas like
compliance of rules, accepts of responsibility, and accepts change and directions. These are some
attributes which can leads to enhance an individual performance to a certain extent and
encourages others as well to perform well and achieve the certain level of excellence in their
performance.

Issues While Measuring Employees’ Performance:

Lack of Communication Skills:

In an evaluation process, when an employee is less interactive then the issue arises for the
supervisor to find the actual flaws and discrepancies in the performance of the employee.
Because, if the employee has lack of communication skills than it would be difficult for both the
supervisor and employee to find the ways to improve the performance.

Flaws in current PMS:

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The annual review is not an authentic or healthy conversation given its construct. The very fact
that you know that your manager is going to judge you impedes your receptivity to feedback and
limits honest, open dialogue between the two of you.

It’s human nature for us to remember and emphasize the bad stuff. Even our strong performers
often leave a review disheartened, even when that wasn’t the reviewer’s intent at all. Why?
Because we spend too much time on areas of improvement or stress that one thing that went
wrong a little too much, versus the ten things that went right.

Finally, much of traditional performance management is based on the assumption that paying
for performance causes people to perform better – and that’s simply not true. Engagement with
the company, its mission, and the work are all much more likely to drive performance.

Further Initiatives and Recommendations for improvement:

We need to move managers out of the role of reviewer and assessor and firmly into the role of
coach, guide, career navigator, mentor—pick the word you like best. If we think of the employee
– manager relationship as collaboration, then both parties will gain far more from their time
together. Improvement in the Qualification is required for particular designations; Job rotation
and enrichment can integrates the department and increases the productivity of the overall
organization as well.

Identifying Issues and motivates the low performers:

In the first phase, supervisor tries to identify the actual issue by communicating politely with the
employee whether he is stressful regarding his personal or family issues, or the processes related
to his work are not clear to him. Supervisor makes the effort to identify he real issue on the grass
root level, in order to provide the instant solutions to recover the problem.

Then supervisor gave a room to redefine and revamp the flaws which are effecting the
performance of the employee, then after an allotted period of time, supervisor recheck the
situation in order to find the improvement in the performance. Even if the employee has not
change his approach related to his work then he’ll get the warning.

Actions against Low Performers:

In such circumstances, the low performers have been added in to an specific “surplus pool” in
which they are been unprotected, because they are supposed to do the given special tasks and

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assignments in order to identify whether they are still competitive enough to remain a part of
the organization or not. If they are unable to complete such tasks according to the given
instructions then they’ll be fired.

Reward and Retention Strategy:

HR Department retaining the employees of Askari Bank for a long period of time by offering good
salary packages and better incentives, planning International trips along with employee’s family,
monetary rewards and less pressure for deposit mobilization. They also provide medical
reimbursements, gratuity, provident fund, and the family members of the employees got also
facilitated with the relevant services as well. These are some important factors which helps HR
department to keep motivate their employees and retain them for a long time.

Reward system
BEST EMPLOYEE OF YEAR

Every year on the basis of performance and ACR best employee of the year is selected
in all the branches, regional offices, and head office. The selected employee is given
shield and presented as the model for the rest of the employees.

Retention of key employees is not a complicated issue - just a neglected one. Once a company
realizes the range of factors that have to be planned, initiated, managed and reinforced, they
can organize an effective effort to build a compelling value proposition. Doing so is worth the
investment of time, focus and energy.

FINDINGS: (BANK ALFALAH)

PERFORMANCE MANAGEMENT PROCESS:

Performance Planning:
At the start of the year Job Description is provided to the employee related to his designation
goals and objectives are listed which is going to be followed. Which help Employees to a set goals,
consider the What’s and How’s which are most applicable to them and you their role in the next
12 months. The supervisor and makes sure that objectives and goals are clear to employee
through interactive session and his performance will be measured on which parameters.

Performance Execution:
Supervisor give you feedback informally throughout the year to track progress and provide
coaching and monitor the performance of the employee. Supervisors do one on one discussion

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with employees on the targets given to make sure that they are meeting the challenges.
Supervisor make sure the assignments given to the employees are up to the mark if not than
adjustments are done and guide them where they are stuck to increase the productivity and
performance of the employee.

Performance Review:
Every Bank Alfalah employee participates in a formal, documented annual performance review
with their supervisor. The review assesses each individual’s total contribution during that year,
goal achievement and role performance and displays behavior and competencies. Problems are
discussed which are faced, what should be done to increase the performance next year. Supervisor
use the annual review to consolidate a clear view of the employees and total contribution for the
whole performance year. communicate a clear assessment of the employee’s performance for the
year. Complete all parts of the performance agreement and calculate the employee’s final
performance rating and category.

Performance Renewal:
The classification of individuals into Performance Categories is intended to help catalyze honest
feedback, focus improvement and distribute compensation fairly. There is however be a
necessarily broad range of performance within each of these categories. Therefore, supervisor
provide specific feedback to individuals to help maintain consistent standards and further
encourage management accountability for challenging debates around performance. This covers
total contribution, including the What’s and How’s and that each employees knows what is
required to improve performance and what support will be provided in the coming year to achieve
the targets. After in-depth analysis on the employees’ performance and the weaknesses, then
according to the need and requirements, several trainings and development programs are
arranged to improve the performance of the employees.

Performance Appraisal:

It is a structured discussion between employee and supervisor. It provides an opportunity for the
supervisor to recognize an employee’s achievement, offer suggestions for improvement when
needed, discuss job responsibilities, define objectives, counsel for career advancement, and justify
a pay adjustment. Regarding the performance appraisal, bank adopts both type of approaches.

Traditional Approach:

The traditional approach is primarily concerned with the overall organization and its past
performance. In Bank Alfalah, overall performance is reviews at branch level. Each branch is liable
to show its performance in a positive direction according to set goals.

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Development Approach:

This approach viewed the employees as individuals and has been forward looking through the use
of goal setting. All the employees in the each of the branches are given a performa. Every employee
working in the bank is assigned targets, usually their target is in the form of amount. The
performances of all the branches are reviewed in the end of December. Till yet Bank Alfalah, has
no computerized system to assess the performance of employees

Performance Appraisal Process in Bank Alfalah:

 The performance appraisal process in the Bank Alfalah Ltd. is carried out in the following
manner:
 A work target is given to the employees in accordance with the expectation of the
employers through which employees are evaluated.
 The Bank Alfalah develops performance appraisal form at the beginning of the year and
makes it known to all employees about their criteria of evaluation.
 The employees are observed and checked on that fixed criteria for certain period of time
say 1 year or 6 months and their points are scored at the end of that period.
 It establishes the assessment of performance and the progress against work expectation.
 This formal documentation of performance through completion of the Performa provides
a tool for evaluation of the work of each employee.
 After completion of the form, they discuss the appraisal with the employees.
 At the end, appropriate action is recommended in accordance with the appraisal of
employees.
 Report is submitted by the manager to the higher authorities about the evaluation of
employee from different dimension, which help them to award them with increment or to
stop their increment for the coming year.

Issues While Measuring Employees’ Performance:

Weaknesses of Performance Appraisal

On the downside, appraisals have been criticized on a lot of grounds. One of the arguments
against performance appraisals is that they get affected by office politics.
Personal Assessment

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The superior or the manager may not assess his subordinates fairly. Instead of basing his evaluation
on the employee's actual behavior, the manager might give his feedback on the basis of his personal
likings and disliking.

Biased Managers
Managers sometimes show bias towards employees with whom they have a friendly relationship
as compared to those who are just acquaintances. This creates nepotism and negativity in the
workplace and hampers the morale of hard-working employees.

Lack of Training

There is need of Training at many areas Employees and Managers do not understand about the
PMS forms, and especially for new hired employees.

Transfer of Assignment and Change of Goals

Employee transfers after their Goal settings and at new department the new Goals setting
assignment performed, at the time of Performance appraisal the employee performance evaluated
from two departments and the calculation of goals at current PMS is not possible there is not any
other option for change of goals or assessment from more than one department.

Further Initiatives and Recommendations for improvement:

Although Bank Alfalah Performance management system is working good but still there are some
chances of improvement so we suggest the following recommendation:

We recommend that Bank Alfalah which has successfully implemented the Performance
Management System should, as further step, consider the advisability of reviewing the PM cycle
every year for further improvement. Supervisors should be unbiased during conducting
Performance Appraisal because this creates nepotism and negativity at work place and moral of
the other workers get down. This also increases turn over in the organization. Proper training
should be given to supervisory staff conducting and implementing performance management
system. Organization should ensure the timely implementing and monitoring of PMS in all
departments of the Bank.

Identifying Issues and motivates the low performers

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When you get to know about low performers after performance appraisal. Now they try to know
where the issue is and why is the employee not performing well. They try to identifying the real
issue in order to provide the instant solutions to recover the problem. Employees are asked about
the reason of low performance, after investigation right decision is taken and time is given to them
because sometime people skills become outdated and they can’t go with the pace of change pf
technology. If they need any training than employees are trained by the colleagues and training
sessions if needed.

Actions against Low Performers:

Low performers remain under the supervision, their performance is being measured regularly and
feedback is given to them so that they should know where they stand and to enhance their
performance. After that targets are given to them to whether they have improved or not, are they
capable for the organization or not after this further actions are taken.

Reward and Retention Strategy:

In Bank Alfalah the elements of reward management system are consists of Basic Pay; the fixed
salary or wage which constitutes the rates for the job. This rate is varied in a skill based or
competence based system according to the individual’s skill or competence. The rates are fixed by
managerial judgement of what is required to recruit and retain the employee.

In Bank Alfalah there is no any concept of individual performance related pay except to the
Business Development Officer. Business Development Officers are those who are hired at
contractual basis. They are assigned different targets. If they exceed to the targets they can enjoy
the individual performance related pay otherwise they are fied.

There is no concept of bonuses, commission or over time related pay. The official timing of bank
is 09.00 AM to 06.00 PM but sometime employees have to work till near 08.00 PM. However, for
this additional work they are not getting any additional bonuses / over time.

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Comparison of PMS (Askari Bank):

 A comprehensive meeting regarding the discussion of JD held between the employee and
supervisor which provide a lot of help to the new employee in goal setting.
 Supervisor tries to fix the identified gaps and discrepancies through formulated strategies.
 Compliance review and Department of Service Quality provides a lot of help in the
assessing the employees’ performance.
 Supervisor use Problem solving approach and recommends those employees who need
improvement by sending them to Askari Training Academy.
 They use online system for performance appraisal and previously they use Trait-based
approach, their form contains mostly the closed ended questions and Essay method is
also used, and they use Graphic Rating Scale.
 Their foremost parameters in evaluation process are “Specific Job Attributes” and second
one is “Accountability and Flexibility”.
 Flaws in PMS are lack of communication skills and performing Evaluation on yearly basis
instead of quarterly basis.
 After giving a warning to low performers, they’ve been added in to “surplus pool” in which
they have to complete certain tasks in order to regain their position.

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  Less pressure of deposit mobilization and giving increments on justified %, better
incentives, salary rise, international trips along with their family, and gives best employee
award on ACR basis to retain their potential employees.

Bank Alfalah
 At the start of the year Job Description is provided to the employee related to his
designation goals and objectives are listed which is going to be followed
 Supervisor give you feedback informally throughout the year to track progress and
provide coaching and monitor the performance of the employee
 Every Bank Alfalah employee participates in a formal, documented annual performance
review with their supervisor
 Problems are discussed which are faced, what should be done to increase the performance
next year
 The classification of individuals into Performance Categories is intended to help catalyze
honest feedback, focus improvement and distribute compensation fairly
 After in-depth analysis on the employees’ performance and the weaknesses, then
according to the need and requirements, several trainings and development programs
are arranged to improve the performance of the employees
 They are using traditional and development approach to measure the performance of the
employees.
 Weakness of performance management system is biasness of managers lack of training and
yearly basis instead of quarterly basis.
 Low performers remain under the supervision and trainings are given to them to enhance
the performance.
 In Bank Alfalah there is no any concept of individual performance related pay except to
the Business Development Officer

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APPENDICES:

(SUB-Questions)

1)
(a) What is the basic perspective/aim behind your vision?
(b) How do you communicate your organization’s vision with your employees?
(c) How you vision is aligned with HR Department and objectives?
(d) What do you believe is the role of HR Department in relation to the mission, vision, and
strategies of the business?
2)
(a) How can HR play a role in helping to drive the KPI?
(b) How automated solutions can help get your employees working on the tasks that will accelerate
your business toward even greater success?
(c) How you were able to assess the success of HR services and employee relations?
(d) What factors do you think are essential for organization’s productivity in order to achieve goals
and overall improved performance?
(e) How HR evaluates that the employees are working in right direction in order to ensure that it
will meet the organizational goals?
3)

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(a) How do you engage the employees of sub Departments of HR in order to achieve the company
wide goals through cascading process?
(b) How do you develop the customer service oriented culture?
(c) What are your expectations in terms of behavior from HR Department toward their employees?
(d) Are the organizational goal are visible enough for the employees in order to make execution
to achieve the goals?
4)
What processes you follow for Employee retention, Training and Development, Compliance,
Recruitment and Talent Acquisition, Compensation and Benefit?

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