Final Performance 2

8/13/2019 Final Performance 2

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EXECUTIVE SUMMARY

Habib Bank Limitedis a Pakistani owned private, commercial bank operating in Bangladesh. It

was established in 1947 as a commercial bank. It has flourished with 1!! branches, 1!!!

"#$%&' in Pakistan and branches worldwide. In Bangladesh (B) started to function in 197*.

#ill now it has branches in Bangladesh. It provides all t+pes of banking service people epect

from a commercial bank.

#he main purpose of this report is to understand performance feedback s+stem of (abib Bank

)imited and provide them feasible recommendations for organi-ational action. "t first, we

anal+-ed the overall ( polic+ of (abib bank )imited and then found out the connection among

all of these with emplo+ee performance. Because we all know emplo+ee performance is highl+

interrelated with environment, compensation, motivation, development etc. /ow a da+, (uman

esource has become one of the vital ingredients of an organi-ation0s eistences and survival in

the long run. "s we know, (uman esource is the best resource that can provide long term

sustainable advantage to an organi-ation so, it is ver+ important to appoint the right person to the

right place to achieve such competitive advantage. If we give a glance on emplo+ee performance,

it becomes eas+ to find out whether right person is in the right place or not.

"s (B) is planning to epand their business in Bangladesh and increase the number of branches

in Bangladesh, the+0ll definitel+ need more efficient manpower to manage more branches and

upcoming huge workload. &o before opening new branch and epand their business the+ need to

focus on their current performance appraisal s+stem to know what t+pe of ob the emplo+ees

perform, how the+ perform and how well the+ might perform in future and skill re2uirement in

their organi-ation. &o, this report might help them to identif+ them their current performance

appraisal s+stem and some recommendation for their organi-ation.

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INTRODUCTION

Origin o t!e Re"ort

(uman esource management deals an+thing and ever+thing that concerns 3rgani-ation

efficienc+, improvising the whole ( process for the beneficiar+ to the organi-ation. $an+ sa+s

the best wa+ to learn is to deal with them or encounter them directl+, 3ur mentor 5arhana

ashid6 who is also an "ssistant Professor of I %nited International niversit+' assigned us

with a report onnderstanding Performance 5eedback &+stem in the 3rgani-ation on a ver+

renowned organi-ation established in our countr+, (abib Bank )td. /eedless to mention of its

importance on completion of this course. 8hile stud+ing man+ ( theories in classrooms gave

us an idea how it might look or work in real life circumstances, and this opportunit+ gave us the

platform to eplore more and look more closel+ for better understanding. 8e also would like to

let +ou know that we have tried to identif+ the practice of performance feedback s+stem in the

organi-ation and also tried to provide feasible recommendation for the organi-ation.

Ob#e$ti%e o t!e Re"ort

#he main obective of stud+ing the (B) (uman esource $anagement practice in bank in orderto observe the practical approaches being applied in this organi-ation and we wanted to get

practical eposure and eperience of what we have studied during our course work. &ome other

micro obectives are as under

#o get the current performance appraisal s+stem of the organi-ation.

#o identif+ the practice of performance feedback s+stem of the organi-ation.

#o anal+-e and evaluate the result

#o provide feasible recommendation and some suggestions for the organi-ational action

to improve efficienc+.

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Met!odo&og'

In this report we got maimum information from &amsuddin Badrul who is a &enior Principal

3fficer of the #reasur+ ;epartment of (abib Bank )imited. 8e interviewed him and talked with

some other emplo+ees personall+ to know about their reaction of the performance appraisal

s+stem of (abib Bank )td. 8e have also used both primar+ and secondar+ data to make this

report.

Primar+ &ource< Primar+ data source was the emplo+ee from (abib Bank.

&econdar+ &ource< &econdar+ data sources were internet, compan+ brochures and our

tet book.

#he data provided b+ the emplo+ee were reall+ ver+ helpful to make this report. It helped us to

suggest some solutions to the eisting appraisal problems.

Limitation o t!e St(d'

"s (abib Bank )imited is an international bank = people generall+ do surve+ on local banks, so

there is no previousl+ conducted surve+ on it. #he maor limitation of this report is that no

previous stud+ is done before on (abib Bank )td0s overall ( planning. #he other

limitations are as followsmplo+ees were reluctant to give information, as the+ are afraid that their corporations0

information might get leaked outside.

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#he volume and magnitude of information collection is another limitation of

this proect. #he amount of information needed to conduct such t+pe of assessment is

vast, but that cou ld not be gat her ed. #ha t0s wh +@ the pro ec t mi gh t l acksuf f ic ient c la r i t+ and credibilit+. ather, it recommends further and deeper stud+

on the matter.

#he stud+ area was the nonAgovernment organi-ation so the collection of information is

2uite hard to collect.

#he organi-ation is rigid to reveal the data associated with the emplo+ment polic+ and

labor relations.

Besides all these, the political unrest of Bangladesh to some etent became a limitation to

our report.

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LITERATURE REVIE)

Performance management is a more liberal and meaningful idea then performance measurement.

It involves both 2ualitative and 2uantitative methods to measure the performance. Performance

management is the wa+ of achieving efficienc+ and competitive advantage which in terms

ensures profit and success for the organi-ation.

Performance management is the s+stem of ac2uiring and maintaining the best work from

emplo+ees b+ giving them attractive compensation and keeping them motivated to give their

best. 8orkers are not alwa+s happ+ with the method of performance management and managers

are alwa+s in trouble to manage this with their workers. It is possible for the managers to

overcome this matter if the+ give the workers different t+pes of benefits and give them the proper

design of their tasks. #here are some wa+s of deciding the performance measurement criteria.

"rmstrong and Baronare mentioned two central propositions used to measure the performance

assessmentmplo+ees need

to know the standards and understand what good performance looks like, and the+ need to be

able to measure their own performance. If the appraisal form that has subective sections, work

with emplo+ees to develop clear accurate standards.

>hibit FA: lists the commonl+ used performance appraisal measurement methods and forms and

displa+s them on a continuum based on their use in administrative evaluative and developmental

decisions. In the following section, we discuss each of them, starting with the developmental

methods and working toward the evaluative.

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Ranking Method

#he ranking method is a performance appraisal method that is used to evaluate emplo+ee

performance from best to worst. #here often is no actual standard form used, and we don0talwa+s have to rank all emplo+ees.

$anagers have to make evaluative decisions, such as who is the emplo+ee of the month, who

gets a raise or promotion, and who gets laid off. &o when we have to make evaluative decisions,

we generall+ have to use ranking. (owever, our ranking can, and when possible should, be based

on other methods and forms.

anking can also be used for developmental purposes b+ letting emplo+ees know where the+

stand in comparison to their peersGthe+ can be motivated to improve performance. 5or

eample, when one of the authors passes back eams, he places the grade distribution on the

board. It does not in an+ wa+ affect the current gradesGbut it lets students know where the+

stand, and he does it to motivate improvement.

nder the ranking method, the manager compares an emplo+ee to other similar emplo+ees,

rather than to a standard measurement. "n offshoot of ranking is the forced distribution method,

which is similar to grading on a curve. Predetermined percentages of emplo+ees are placed in

various performance categories, for eample, ecellent, H@ above average, 1H@ average, *!H@

below average, 1H@ and poor, H. #he emplo+ees ranked in the top group usuall+ get the

rewards %raise, bonus, promotion', those not at the top tend to have the reward withheld, and

those at the bottom sometimes get punished.

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Graphic Rating Scale Form

#he graphic rating scale form is a performance appraisal checklist on which a manager simpl+

rates performance on a continuum such as ecellent, good, average, fair, and poor. #he

continuum often includes a numerical scale, for eample from 1 %lowest performance level' to

%highest performance level'. &elfA"ssessment and &kill Builder FA1 uses a graphic rating scale

form@ it is found at the end of this chapter.

8h+ and when do we use the graphic rating scale form Craphic rating scales are probabl+ the

most commonl+ used form during the formal performance appraisal %primaril+ for evaluative

decisions', but the+ should lead to development decisions as well. 8h+ the popularit+ Because

graphic rating scales can be used for man+ different t+pes of obs, the+ are a kind of one form

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fits all6 form that re2uires minimal time, effort, cost, and training. If we walk into an office

suppl+ store, we can find pads of them. But on the negative side, graphic rating scales are not

ver+ accurate measures of performance because the selection of one rating over another, such asan ecellent versus good rating, is ver+ subective. 5or eample, think about professors and how

the+ measure performance with grades. &ome give lots of work and few "s, while others give

less work and almost all "s.

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Behaviorally nchored Rating Scale !BRS" Form

#he Behaviorall+ "nchored ating &cale %B"&' form is a performance appraisal that provides

a description of each assessment along a continuum. )ike with rating scales, the continuum often

includes a numerical scale from low to high.

8h+ and when do we use the B"& form #he answer to wh+ and when is the same as for graphic

rating scales. &o let0s focus on the differences between graphic rating scale and B"& forms.

B"& forms overcome the problem of subectivit+ b+ providing an actual description of the

performance for each rating along the continuum, rather than one simple word %ecellent, good,

etc.' like graphic rating scales. " description of each level of performance makes the assessment

a more obective accurate measure. &o if B"& forms are more accurate, wh+ aren0t the+ more

commonl+ used than graphic rating scale forms

It0s partl+ economics and partl+ epertise. "gain, the graphic rating scale can be used for man+

different obs, but B"& forms have to be customi-ed to ever+ different t+pe of ob. "nd

developing potentiall+ hundreds of different B"& forms takes a lot of time %which costs

mone+' and epertise. >ven when a firm has an ( staff, the 2uestion becomes whether

developing B"& forms is the most effective use of staff members0 time. 3bviousl+, it depends

on the t+pes of obs being evaluated and the resources available to complete the evaluation

process.

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#arrative Method or Form

#he narrative method or form re2uires a manager to write a statement about the emplo+ee0s

performance. #here often is no actual standard form used, but there can be a form, so narrative

can be a method or a form.

8h+ and when do we use the narrative method or form " narrative gives managers the opportunit+ to

give their evaluative assessment in a written form that can go be+ond a simple check of a bo6

to describe an assessment item. $anagers can also write up a developmental plan of how the

emplo+ee will improve performance in the future. /arratives can be used alone, but are often

combined with another method or form. "lthough the narrative is ongoing, it is commonl+ usedduring the formal review.

Management $y O$%ective& !MBO" Method

#he $anagement b+ 3bectives %$B3' method is a process in which managers and emplo+ees

ointl+ set obectives for the emplo+ees, periodicall+ evaluate performance, and reward

according to the results. "lthough it is a threeAstep process, no standard form is used with $B3,

so it is a method. $B3 is also referred to as work planning and review, goals management, goals

and controls, and management b+ results.

8h+ and when do we use the $B3 method #he $B3 method is one of the best methods of developing

emplo+ees. )ike critical incidents, emplo+ees get ongoing feedback on how the+ are doing,

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usuall+ at scheduled interval meetings. 8e can use the $B3 method successfull+ with our

emplo+ees if we commit to the process and trul+ involve emplo+ees rather than tr+ing to make

them believe that our obectives are theirsGaccurate measures.

3n an organi-ationAwide basis, $B3 is not too commonl+ used as the sole assessment method.

It is more commonl+ used based on the evaluative assessment during the development part of the

performance appraisal. 3ne difficult part of $B3 is that in man+ situations, most, if not all,

emplo+ees will have different goals, making $B3 more difficult and timeAconsuming than using

a standard assessment form.

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Critical Incident& Method

#he critical incidents method is a performance appraisal method in which a manager keeps a

written record of positive and negative performance of emplo+ees throughout the performanceperiod. #here is no standard form used, so it is a method. (ere, and for each of the other methods

and forms, let0s answer two 2uestions< 8h+ and when is it used, and how is it used

8h+ and when do we use the critical incidents method $ost formal reviews take place onl+ once or

twice a +ear. ;o +ou want to wait for formal reviews to talk to emplo+ees about what the+ are

doing well and when the+ are not performing up to epectations 3f course +ou want to let them

know how the+ are doing on an ongoing basis. "lso, let0s sa+ we are a manager with 1:

emplo+ees. an we remember ever+thing each of them did well, and when the+ messed up, and

on what dates, so we can evaluate their total performance for the past *J1: months Ker+ few, if

an+, of us can sa+ +es. (owever, man+ managers don0t keep a record of critical incidents, which

leads to problems of accurate measures during the formal review meeting.

8e use critical incidents to do a good assessment of the entire review period, and we coach when

needed during the entire review period for developmental decisions. 8e need to continuall+

conduct informal coaching and disciplining when needed as we make notes of critical incidents

to use during the formal review. 8ith clear standards and coaching, +ou can minimi-e

disagreements over performance during the formal performance appraisal because there are no

surprises, because emplo+ees know what is coming.

"lthough critical incidents are commonl+ used for developmental decisions, the+ are also used

for evaluative decisions. 5or legal purposes, a list of documented critical incidents is especiall+

important to have leading up the evaluative decision of firing emplo+ees.

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A""roa$!e+ to *erorman$e Mea+(rement

Performance measurement has become so widespread that it is impossible to know all that is

taking place within governments across the world. "lso, the labels and the focus of performance

measurement s+stems shift, usuall+ when a new government takes office. Positive, actionA

oriented words are usuall+ chosen as names for such s+stems G D$easuring pD in "lberta, the

D3regon BenchmarksD, the D$innesota $ilestonesD and DBest KalueD in the nited Lingdom.

;espite such inspirational language, some of the earl+ leading performance measurement

s+stems have recentl+ been reduced in scope or dropped entirel+. Leeping track of the rise and

fall of performance measurement s+stems is made somewhat easier b+ the Internet %government

websites, onAline reports and electronic ournals' but the problem has become information

overload and knowing what credibilit+ should be assigned to the Mofficial0 descriptions, given

that governments are interested in promoting the best possible reputation for their efforts.

'he Behavioral pproach

(uman behavior is learned, thus all behavior can be unlearned and new behaviors learned in its

place. Behaviorism is concerned primaril+ with the observable and measurable aspects of human

behavior. #herefore when behaviors become unacceptable, the+ can be unlearned. Behaviorism

views development as a continuous process in which children pla+ a relativel+ passive role. It is

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also a general approach that is used in a variet+ of settings including both clinical and

educational.

Behaviorists assume that the onl+ things that are real %or at least worth stud+ing' are the things

we can see and observe. 8e cannot see the mind, the id, or the unconscious, but we can see how

people act, react and behave. 5rom behavior we ma+ be able to make inferences about the minds

and the brain, but the+ are not the primar+ focus of the investigation. 8hat people do, not what

the+ think or feel, is the obect of the stud+ )ikewise the behaviorist does not look to the mind

or the brain to understand the causes of abnormal behavior. (e assumes that the behavior

represents certain learned habits, and he attempts to determine how the+ are learned.

#he material that is studied is alwa+s behavior. Because behaviorists are not interested in the

mind, or its more rarified e2uivalents such as ps+che and soul, inferences about the conditions

that maintain and reinforce human behavior can be made from the stud+ of animal behavior.

"nimal research has provided a ver+ important foundation for the behavioral approach. #he

behavioral researcher is interested in understanding the mechanisms underl+ing the behavior of

both normal individuals and those with problems that might be referred as Nmental illnessN.

8hen the behavioral model is applied to mental illness, it tends to be used for a wide variet+ of

presenting problems. It is perhaps most effective in treating behavioral disorders and disorders of

impulse control, such as ecessive drinking, obesit+, or seual problems. Behavioral approaches

ma+ be 2uite useful in treatment of aniet+ and have occasionall+ been helpful in the

management of more severe mental disorders such as.

1. #he link between behaviors and results are not obvious< &ometimes the elationship between

behaviors and the desired out comes is not clear. 5or eample< " &alesperson ma+ not be able to

close a deal because of downturn in the countr+.

:. 3utcomes occur in the distant future< &ometimes the desired result will not be seen for months

or even +ears. 5or eample< /"&".

?. Poor results are due to causes be+ond the performer0s control< &ometimes the results of an

emplo+ee0s performance are be+ond the emplo+ee0s control. 5or eample< consider a situation

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involving two assembl+ line workers@ one of them working the da+ shift and the other the night

shift.

'rait pproach

"n approach to stud+ing personalit+ that focuses on the etent to which individuals differ

impersonalit+ dispositions. "n approach to stud+ing personalit+ that focuses on how individuals

differ in personalit+ dispositions. " leadership perspective that attempts to determine the

personal characteristics that great leaders share. " perspective in which personalit+ is seen as a

combination of characteristics that people displa+ over time and across situations. "n approach

to stud+ing personalit+ that focuses on the etent to which individuals differ in personalit+

dispositions. " leadership perspective that attempts to determine the personal characteristics thatgreat leaders share. "ttempts to show that leaders possessed certain characteristics that non

readers did not. " perspective on personalit+ that views it as the combination of stable

characteristics that people displa+ over time and across situations.

Re&(lt&)Oriented pproach

#he 5ramework Partnership "greement aims at establishing a longAterm coAoperation

mechanism between the Parties, in order to ensure that humanitarian aid is delivered to its

beneficiaries in the most appropriate, rapid, efficient and effective manner. 3ne of the main

obectives of the 5P" is to optimi-e the implementation and the results of the humanitarian aid

actions financed b+ the ommission and eecuted b+ the (umanitarian 3rgani-ation.

#he "ctions shall be implemented in accordance with the principles of econom+, efficienc+ and

effectiveness. &pecific, measurable, achievable, relevant and timed obectives shall be set out for

all "ctions. Performance indicators shall monitor the achievement of those obectives. #his

would involve the further development of anal+tical tools on impact %outcome' of humanitarian

interventions.

#he conse2uences of the results oriented approach arevaluation.

#he esult approach is most appropriate under the following circumstancesven the most carefull+ planned and eecuted ($ programs are meaningless without some

wa+ to udge their effectiveness and confirm their credibilit+. #he evaluation of ($ methods

and programs should include both internal and eternal assessments. Internal evaluations focuson the costs versus the benefits of ($ methods, whereas eternal evaluations focus on the

overall benefits of ($ methods in achieving compan+ goals. )arger human resource

departments often use detailed, advanced data gathering and statistical anal+sis techni2ues to test

the success of their initiatives. #he results can then be used to adust ($ programs or even to

make organi-ational changes.

#he authors of (uman esources $anagement posit four factors, the Nfour s,N that should be

used to determine whether or not an ($ department or individual program is succeeding., (ong Long, 3man, O."., &udan, /igeria,

$ala+sia, &ri )anka, &ingapore, Len+a, &e+chelles, $aldives, Indonesia, $auritius and

"ustralia. (abib Bank )td has its registered office at Larachi.

In 197* (B) opened its branch in Bangladesh. (ere it has branches, ? in ;haka such as one is

$otiheel = other two in Culshan, head office also in Culshan. "nother two branches in

hittagong = &+lhet. 5or worldwide network epansion = better business prospectus in

Bangladesh (B) establish their branch in Bangladesh. In our countr+ this bank is a foreign

commercial bank and provides corporate banking services, such as cash management and Islamic

banking.

8hen the+ start their ourne+ in Bangladesh their mission was #o make our customers prosper,

our staff ecels and creates value for shareholders6 = vision was >nabling people to advance

with confidence and success6 still their mission = vision is same. 5rom 197* to :!!7 the+ had

two branches in Bangladesh, emplo+ee was *! = emplo+ee turnover rate was !H. 5rom 199 to

:!!4 it epanded ?H and the current growth rate is H. #ill :!!4 it was Pakistani government

bank after :!!4 it become private bank = organi-ation downsi-ed their emplo+ee according to

their skill. It means those who were unskilled organi-ation retrench them = hire skilled

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emplo+ee. "fter :!!7 this bank epanded their business = opened ? more branches. /ow the+

are planning to open more branches among them : branches this +ear and more ? branches is

going to open in the net +ear.

Brand

3ur brand identit+ is the outward epression of what we stand for as an organi-ation. #his is

summari-ed in our vision, mission and is supported b+ our values.

Vi+ion

>nabling people to advance with confidence and success6

Mi++ion#o make our customers prosper, our staff ecel and create value for shareholders6

Va&(e+

3ur values are the fundamental principles that define our culture and are

brought to life in our attitudes and behavior. It is our values that make

us uni2ue and unmistakable. 3ur values are defined belowvaluating an emplo+ee0s current and past performance relative to its performance standards is

called performance appraisal. " process that consolidates goal settings, performance appraisal,

and development into a single common s+stem to ensure that emplo+ee0s performance is

according to compan+0s aims is called performance management.

*erorman$e Management and A""rai+a& at HBL

(B)0s performance management and reward s+stems ensure that goals are met in an effective

and efficient manner. (B) defines a clear path for +ou to contribute to the organi-ation0s overall

goals, prepared with regular reviews and feedback to help in measuring progress. "t (B)

growth is not a function of time but rather of performance. "s emplo+ee0s performance

improves, the role that he pla+s within the organi-ation accelerates to reflect his input. (B)

generall+ uses B"& %Behaviorall+ "nchored ating &cale' it is an appraisal method that uses

2uantified scale with specific narrative eamples of good and poor performance.

*erorman$e A""rai+a& orm o HBL

(B)0s performance appraisal form contains two sheets, one is 53$ B: and other is 53$

B?.

FORM B1contains appraisal for lerical staff at branch or 5ield 3ffices there are two main

headings "reaEfactors and level of achievement points. )evel of achievement point contains five

points ratings " %4', B %?', %:', ; %!A1' and /E".">"Efactors contains five kind of factors

which areA Personal >ach area is further categori-ed in different factors. >APersonal contains

1. (ealth= energ+ :."ppearance ?.Integrit+= lo+alt+ 4.Crooming .$anner of speech *."ttitude

7.Intelligence F.)eave record 9."ttendance record 1!.Punctualit+

>ach factor is marked tick against level of achievement and in the end total points scored is

written in the specific bo. "lso the signatures of appraise and appraiser are taken.

FORM B+

#his form contains two big boes5 4ir+tbo is about ;evelopment PlanE &upervisor comments.

In this bo supervisor gives comments about appraisee strengths and further "ppraisee0s

development needs %need to improve academic = professional 2ualification'.&econd bo is

called overall assessment bo. In this bo appraiser gives the overall performance grade to

appraisee according to B: form and the grade is given in form of ", B, , ;. #hen comments of

appraisee is also taken in form of agreeEdisagree. #hen overall assessment is reviewed b+

reviewer and reviewer gives its comments too, but it is not necessar+. "fter it final acceptance of

appraisee is also taken along with signatures.

5ollowing is some brief detail about appraisal areas

"AProductivit+ntr+ &peed

#his is about computeri-ed record keeping. In this factor it is assessed that how much the

emplo+ee has speed in t+ping data.

#+pingE;ata >ntr+ "ccurac+

In record keeping it is noted that how much accurate the emplo+ee is in t+ping data for database.

BAIndividual "ttributesagerness to )earn, >nlarge Lnowledge'

In this factor it is noted that how much emplo+ee is eager to learn new thing about ob and how

much heEshe is interested in enlarging knowledge of ob. Initiative factor is ver+ important in ob

field because initiate new task in the field is good attribute of professional emplo+ee.

eaction to responsibilit+cessE&hortage &ituation

ash handling is noted in this factor. It is a negative appraisal. &ome time emplo+ee gives or

receives more or less amount b+ customers, if heEshe gives more than real amount then heEshe

has to compensate this mone+ from hisEher own pocket.

Performing nder Pressure

In this factor the performance of emplo+ee is assessed under pressure situation. It is checked that

how much heEshe is capable and confident to perform under pressure circumstances.

"bilit+ to 8ork without &upervision

In this factor it is checked that how much the emplo+ee is able to perform hisEher dut+ efficientl+

without supervision and it is also assessed that whether supervisor has to keep e+e on hisEher to

get the work one.

8illing to 8ork "fter 3ffice (ours

In this factor it is noted that how much emplo+ee is dedicated towards hisEher ob even after

office hours.

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A#echnolog+Amail = Internet $3/#>")'

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A**ENDIX

>I3//"I>

Please tick the appropriate answer or fill in the blanks

Documents

Final Performance 2