PERFORMANCE APPRAISAL AT ALLIED

BANK LIMITED

Submitted To:

Major Nauman Majeed

Submitted 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

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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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TABLETABLE OFOF CONTENTSCONTENTS

PERFORMANCE APPRAISAL 6

PURPOSE OF APPRAISAL SYSTEM 6

APPRAISER LEADERSHIP ATTRIBUTES 7

APPRAISER AT ABL 7

TIME FOR THE APPRAISAL SYSTEM 7

PERFORMNACE APPRAISAL SOFTWARE 8

PROMOTION CRITERIA 8

PERFORMANCE APPRAISAL CRITERIA 9

METHODS FOR PERFORMANCE APPRAISAL 10

RATING SCALE 10

CHECKLIST 10

MANAGEMENT BY OBJECTIVE 11

PROCEDURE FOR CONDUCTING APPRAISAL INTERVIEW 11

LEGAL & ETHICAL ISSUES IN APPRAISING EMPLOYEES 12

FACTORS AFFECTING THE APPRAISAL PROCESS AT ABL 12

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PERFORMANCE APPRAISAL AT ALLIED

BANK LIMITED

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PERFORMANCE APPRAISAL

Appraisals are the fact of organization life.

“Performance appraisal is a formal periodic review that allows an

organization to measure and evaluate an individual employee’s behaviors and

accomplishments over a specific period of time”

Hiring the best employees and training them does not ensure 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 organization are more likely to experience successful results 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 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 appraisal period is the tenure of services of the employees for the

company must be at least one year.

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PERFORMNACE APPRAISAL SOFTWARE ABL uses a database system that keeps important information 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 outstanding and according to expectations of the management have

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 employee. In this criteria the promotions are given to the employees

according to their ranges according to our information provided by 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 focus in performance appraisal 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.

While conducting the performance appraisal, each employee’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 able to achieve its target. Good performance is a key criterion for

promotions in ABL. Simultaneously the concept of pay for performance is

emphasized and being practiced in the bank, which is considered to be a

motivational, tool being acquired by the bank. Thus those who perform to the

best of their knowledge and abilities and according to the expectations of the

management have better chances of promotion and increase in their salary.

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METHODS FOR PERFORMANCE APPRAISALABL use different techniques for assessing employee’s performance and

performance appraisal form are made at corporate level. They use following

techniques:

Rating Scale

Checklist

Management by objective

RATING SCALEIn ABL rating scale is the oldest and most widely used method of appraisal

for their employees. In this method, they evaluate employees job related aspects

i.e. work skills like record keeping and solve queries and also employees

personal characteristics which includes Cooperation, loyalty, dependability,

attendance, honesty, integrity, attitude, initiative, written and interpersonal

communication.

This rating scale is used for measuring “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.

CHERKLISTThe second technique used in the performance appraisal is checklist.

Some pre determined task and responsibilities are kept in a written form by the

management and a copy of that is provided tot the 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 objectiveA third technique used in the performance appraisal method 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 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 employees before it is filled by the branch manager. The performance

appraisal interview is to make plan to remedy deficiencies and reinforces

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

EMPLOYEESThe 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

single employee is satisfied with the appraisal system of the bank .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 AT ABLFollowing 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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