PERFORMANCE APPRAISAL APPRAISAL AT ALLIED BANK LIMITED
Submitted To: To: Major Nauman Majeed
Submitted BY: BY: Muhammad Adnan Anwar
8151
Affan Ihsan
8166
Wajid Hussain Shah
8116
Mateen Arslan
8115
Atif Ehsan Ullah
8158
Saqib EHsan Ullah
8160
Sajid Altaf
8120
Ahsan Nawaz
8147
Superior University Lahore 1
DEDICATION
We dedicate this project to our Performance teacher, Major Nauman Majeed and to Our Parents who was the source of Motivation and inspiration through out of this project.
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ACKNOWLEDGEMENT
Thanks to Al-mighty Allah who bestowed us the capability and opportunities to complete this Project, and thanks to our Performance teacher Major Nauman Majeed who teaches us so well that we are able to make this project.
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TABLE OF CONTENTS
PERFORMANCE APPRAISAL
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PURPOSE OF APPRAISAL SYSTEM
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APPRAISER LEADERSHIP ATTRIBUTES
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APPRAISER AT ABL
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TIME FOR THE APPRAISAL SYSTEM
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PERFORMNACE APPRAISAL SOFTWARE
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PROMOTION CRITERIA
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PERFORMANCE APPRAISAL CRITERIA
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METHODS FOR PERFORMANCE APPRAISAL
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RATING SCALE
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CHECKLIST
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MANAGEMENT BY OBJECTIVE
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PROCEDURE FOR CONDUCTING APPRAISAL INTERVIEW
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LEGAL & ETHICAL ISSUES IN APPRAISING EMPLOYEES
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FACTORS AFFECTING THE APPRAISAL PROCESS AT ABL
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PERFORMANCE APPRAISAL APPRAISAL AT ALLIED BANK LIMITED
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PERFORMANCE APPRAISAL Appraisals are the fact of organization life. “Per “Perfo form rman ance ce appr apprai aisa sall is a form formal al peri period odic ic revi review ew that that allo allows ws an organization organization to
measure measure and and evaluate evaluate an individua individuall employee’s employee’s behaviors behaviors and and
accomplishments over a specific period of time” Hiri Hiring ng the the best best empl employ oyee ees s and and trai traini ning ng them them does does not not ensu ensure re that that employee give their best performance. To ensure this, organization must keep a check on their performance. This check on an employee’s performance can be kept through performance appraisal. In ABL the performance appraisal process has a significant and critical importance as major decision regarding promotion, transfers, a compensation& benefits for the identification of training & development needs are taken on the basis of this performance appraisal.
PURPOSE OF APPRAISAL SYSTEM ABL uses the appraisal system for:
Assessing the employee’s performance.
They follow principle of pay for performance in their organization.
They also Review and fill the performance gap of employees
For training and development needs
Compensation and benefits
Succession planning
Decisions regarding promotion, transfers
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APPRAISER LEADERSHIP ATTRIBUTES Supervisor or appraiser behavior may be more important than the format used in the performance appraisal system. Appraisers who act like leaders in their their orga organiz nizat ation ion are are more more likely likely to expe experie rience nce succe successf ssful ul result results s from from the appraisal system than will appraisers who behave as non-leaders. Leaders can model desired behavior and prescribe behavior sought from staff. This modeling carries the advantage of organizational prestige and power associated with the position.
APPRAISER AT ABL In ABL branch manger is responsible for filling the performance appraisal forms of employees on the recommendation of the head of department of each branch. The employees are not involved in the appraisal process.
TIME FOR THE APPRAISAL APPRAISAL SYSTEM ABL appraises the employees once in a year in December. And at that time, they give very serious concentration regarding performance appraisal of the employees. Performance appraisal is not done for the new employees only those employees who have provided their services for more then one year in the bank are appraised. All the employees at ABL are appraised at the same time that is in December no matter when the employee has joined the bank. The only condition for the the appra appraisa isall period period is the tenur tenure e of servic services es of the the emplo employe yees es for for the company must be at least one year.
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PERFORMNACE APPRAISAL SOFTWARE ABL uses a database database system that keeps importa important nt informat information ion about about employee’s performance appraisals forms. There is no specific software which can evaluate the performance of the employees thought the year and then fill the appraisal form. The appraisal forms are filled manually by the branch manager and then they are stored in a file the information in the data base system of the appraisal forms is related with the employees.
PROMOTION CRITERIA In ABL according to management there is only one major criterion for promotion of employees
Performance
Time span The concept of performance is emphasized and the promotion and career
development path is based on Performance of the employees, those who perform outst outstand anding ing and and accor accordin ding g to expec expectat tation ions s of the the mana manage geme ment nt have have better better chances of promotion and increase in their salary bank requirement means that the company requires particular skills and competencies and its strategy demand certain people to be promoted. A second criterion for promotion in ABL is tenure of services provided by the the empl employ oyee ee.. In this this crit criter eria ia the the prom promot otio ions ns are are give given n to the the empl employ oyee ees s accord according ing to their their range ranges s accor accordin ding g to our infor informa matio tion n provi provided ded by the the hr manager in ABL is that the range 1-3 officers get promotion after completing their tenure of services in bank for 2 years, range 4-6officers get promoted after 3 years of their services plus depending on their performance and range 7-9 get promotion as recommended by the head office in Karachi.
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PERFORMANCE APPRAISAL CRITERIA The areas and criteria criteria focus focus in perform performance ance appraisal appraisal process process are of following.
Skill: The degree to which the job requires the person to perform different tasks and involves the use of number of different skills, abilities and talents.
Job Related Knowledge: Whether the employee has the maximum knowledge of his Respective job duties.
Behavioral competencies: Whether the attitude of the employee is positive or not. Whil While e
cond conduc ucti ting ng
the the
perf perfor orma manc nce e
appr apprai aisa sal, l,
each each
empl employ oyee ee’s ’s
performance is compared to predetermined standards and expected levels of output. Thus it is determined that to what extent the respective employee has been been able able to achi achiev eve e its its targ target et.. Good Good perf perfor orma manc nce e is a key key crit criter erio ion n for for prom promoti otion ons s in ABL. ABL. Simu Simulta ltane neous ously ly the the conce concept pt of pay pay for perfor performa mance nce is empha emphasiz sized ed and and being being practice practiced d in the the bank, bank, whic which h is cons conside idered red to be a motivational, tool being acquired by the bank. Thus those who perform to the best of their their knowle knowledge dge and and abili abilitie ties s and and accord according ing to the the expec expecta tatio tions ns of the management have better chances of promotion and increase in their salary.
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METHODS FOR PERFORMANCE PERFORMANCE APPRAISAL ABL use different techniques techniques for assessing assessing employee’s employee’s performance and performance appraisal form are made at corporate level. They use following techniques:
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Rating Scale
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Checklist
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Management by objective
RATING SCALE In ABL rating scale is the oldest and most widely used method of appraisal for their employees. In this method, method, they evaluate employees employees job related aspects i.e. i.e. work work skills skills like like recor record d keepin keeping g and and solve solve queri queries es and and also also empl employe oyees es perso persona nall chara characte cteris ristic tics s which which inclu includes des Coope Cooperat ratio ion, n, loyalt loyalty, y, depe depend ndab abili ility, ty, atten attendan dance, ce, hones honesty ty,, integr integrity ity,, attitu attitude de,, initi initiat ative ive,, writte written n and and interp interpers erson onal al communication. This rating rating scale scale is used used for measuring measuring “quantity “quantity of work and quality of work”. To use the rating scale, the assessor goes down the number of traits and a range of performance for each the employees is then rated by identifying the score that best describe his or her level of performance for each trait. According to ABL, this method is
less-time consuming to measure performance
It provides a quantitative analysis as well as qualitative data.
CHERKLIST The second second techniqu technique e used in the perform performanc ance e appraisa appraisall is checkli checklist. st. Some pre determined task and responsibilities are kept in a written form by the management management and a copy of that is provided tot the employee employee who has to perform
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those task in a given span of time and the tasks done or performed successfully add points to the appraisal forms.
Management by objective A thir third d tech techni niqu que e used used in the the perf perfor orma manc nce e appr apprai aisa sall meth method od is management by objective. The performance of the employee is rated according to the goals and achievements achieved by the employees during the appraisal period .the larger weight age in the appraisal form regarding the performance of the employee is provided thorough this technique.
PROCEDURE FOR CONDUCTING APPRAISAL APPRAISAL INTERVIEW In ABL, Appraiser conducting appraisal interview before the filling of the appraisal form. In this interview branch manager ask the employees what they are expecting from the bank after their performance appraisal form is signed by the employ employee ees s befor before e it is fille filled d by the bran branch ch manager manager..
The The perfor performa manc nce e
appra appraisa isall interv interview iew is to make make plan plan to reme remedy dy defic deficien iencie cies s and and reinf reinforc orces es strengths and also reviews the extent to which objectives have been achieved. They also analyze the reasons, why the objectives have not been achieved. They have written record of this discussion. The appraisal interview is conducted on individual basis and it is kept confidential.
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LEGAL & ETHICAL ISSUES IN APPRAISING EMPLOYEES The legal issues involved in the appraisal process in ABL is that their registration will be cancelled by the state bank of Pakistan if they don’t conduct the appraisal process for the employees .this condition is must for every bank operating in Pakistan. The state bank of Pakistan audits each private bank for their practices regarding appraisal process. The ethical issue faced by ABL in the appraisal process is the dissatisfaction of the employees after their appraisal. As the hr manger told us that not even a singl single e empl employe oyee e is satis satisfi fied ed with with the appra appraisa isall syste system m of the bank bank .every .every employee puts his heart in the work so he expects high reward from the bank side but his expectations are not met .
FACTORS AFFECTING THE APPRAISAL PROCESS PROCESS AT AT ABL Following are the factors which seem to affect the appraisal process at ABL
Legal requirements by the government
Motivation of the employees
Ethical responsibility of the bank
Competitive niche
Global consideration
Retention of employees
Employees’ expectations
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