PERFORMANCE MANAGEMENT AND APPRAISAL AT HABIB

BANK LIMITED

SUBMITTED BY:
DANIYAL ALAM P1591011
SYED BASIT ALI KAZMI
ATIF

CLASS:
MPA FINAL

SUBMITTED TO:
SIR SHAHZAD AHSAN

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1 TABLE OF CONTENTS
Performance Management and Appraisal at Habib Bank Limited – INTRODUCTION ............... 3
HR DEPARTMENT OF HABIB BANK LIMITED ........................................................................... 4
HR Processes at Habib Bank Limited .......................................................................... 4
Job Analysis ................................................................................................................ 4
Training and Development: ....................................................................................... 4
How and What of Performance Appraisal ................................................................. 5
Performance Appraisal Methods at HBL .................................................................... 5
MANAGEMENT BY OBJECTIVES............................................................................ 6
GRAPHIC RATING SCALE ....................................................................................... 6
360 DEGREE APPRAISAL ...................................................................................... 6
TRAIT RATING ...................................................................................................... 6
BEHAVIORALLY ANCHORED RATING SCALE ........................................................ 6
Identification of Development needs ........................................................................ 6
Outcomes of the Appraisal Process ........................................................................... 7
Appraisal Form ........................................................................................................... 8

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Performance Management and Appraisal at Habib Bank Limited –
INTRODUCTION:
 Habib Bank Limited commonly referred to as “HBL”
 HBL was established in 1941.
 Head-quartered in Habib Bank Plaza, Karachi, Pakistan.
 Largest bank in Pakistan.
 Network of 1425 branches in Pakistan
 55 branches worldwide.
 Domestic market share of over 40%.
 HBL has operations in the following countries:
Afghanistan, Australia, Bahrain, Bangladesh, Belgium, Canada, China, France, Hong Kong, Iran,
Kenya, Lebanon, Maldives, Nepal, Netherlands, Nigeria, Oman, Singapore, Sri Lanka, Turkey,
UAE, UK & USA.

Services provided by HBL:

Commercial, Corporate, Investment, Retail Banking, Treasury, and Islamic Banking.

Brand of HBL:
HBL says “Our brand identity is the outward expression of what we stand for as an organization.
This is summarized in our vision, mission and is supported by our values.”

VISION OF HBL:
“Enabling people to advance with confidence and success.”

MISSION STATEMENT OF HBL:

“To make our customers prosper, our staff excel and create value for shareholders”

VALUES OF HBL:
HBL’s values are the fundamental principles that define its culture and are brought to life in its
attitudes and behavior. Company values are defined below:
o Excellence
o Integrity
o Customer focus
o Meritocracy
o Progressiveness

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HR DEPARTMENT OF HABIB BANK LIMITED

The HRM department plays an important role in value of HBL. HBL has very active and one of the
best HR department in Pakistan as well as worldwide. The existence of a HR department is vital
to overall productivity and efficiency of the strong workforce in HBL.

HR PROCESSES at Habib Bank Limited

HR manual contains five processes:

1. Selecting and Recruiting
2. Training and Development
3. Performance Appraisal
4. Compensation
5. Employee relation
JOB ANALYSIS

HBL determines the duties and skill requirements of a job and the kind of person who should be
hired. It is important as this information is used in selecting and recruiting, compensation,
performance appraisal and training and in resolving other issues which HBL faces. Methods used
in collecting job analysis information are:
 The interview
 Questionnaires

Training and Development:

HBL’s training is the process of teaching new employees the basic skills they need to perform
their jobs and development is result of that training. The training methods used by HBL are:
 On-the-job Training
 Off-the-job Training
 Apprenticeship Training
 Effective lectures

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 How and What of Performance Appraisal

 Performance management at HBL is a forward looking process for setting goals and regularly
checking progress towards achieving those goals.
 At HBL it is a continual feedback process whereby the observed outputs are measured and
compared with the desired goals.
 Performance management includes activities to ensure that goals are consistently being met
in an effective and efficient manner.
 Performance management at HBL is a system of evaluating employees to help them reach
reasonable goals and thus ensure that the company performs better.
 In HBL’s performance management model employees are given opportunities to work on
harder projects, paired less-skilled employees with expert employees and employees can
direct and make decisions.
 At HBL growth is not a function of time but rather of performance.
 Tools used by HBL for performance management are:
 Developmental goal setting
 Ongoing performance monitoring
 Ongoing feedback
 Coaching and support
 Performance appraisal
 Rewards, recognition, and compensation

Performance Appraisal Methods at HBL

Performance appraisal, also known as employee appraisal, is a method by which the job
performance of an employee is evaluated (generally in terms of quality, quantity, cost and time).
Performance appraisal is a part of career development.
Performance appraisals are regular reviews of employee performance within organizations.
Generally, the aims of a performance appraisal are to:

 Give feedback on performance to employees.

 Identify employee training needs.
 Document criteria used to allocate organizational rewards.
 Form a basis for personnel decisions: salary increases, promotions, disciplinary actions,
etc.
 Provide the opportunity for organizational diagnosis and development.
 Facilitate communication between employee and administration

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  Validate selection techniques and human resource policies to meet federal Equal
Employment Opportunity requirements

MANAGEMENT BY OBJECTIVES:
This approach is used to compare expected performance with actual performance. The goals are
established at the beginning of the appraisal period and measured at the end of the appraisal
period.

GRAPHIC RATING SCALE:

To use a numerical or scalar rating system whereby managers are asked to score an individual
against a no. of objectives.

360 DEGREE APPRAISAL:

Employees receive assessments from their manager, peers, subordinates and customers while
also performing a self-assessment.

TRAIT RATING:
A list of personality traits to which the appraiser must assign a numerical rating or a descriptive
rating of adjectives.

BEHAVIORALLY ANCHORED RATING SCALE:

BARS use the constituents of critical incidents and graphic rating scales. BARS involve identifying
the range of relevant job behaviors and a design of the appropriate performance dimensions.

Identification of Development needs

The key performance indicators in the appraisal are identified from the points in the form. Those
indicators are:

 potential for growth

 optimum utilization of resources and managing existing head counts

 Adherence to Laws, regulations, policies and procedures set by internal and external
regulators

 Number of new initiatives taken for business development, improve operational

efficiency, cost reduction etc.

 Determination of the gap between individual’s performance output and the performance
expected by the organization.

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If the individual passes the aforementioned criteria, he/she is then selected for the further
training courses required for the promotion. Such training and development courses are also
conducted to increase the efficiency in the performance of individuals which are necessary for
the career development.

Outcomes of the Appraisal Process

Some of the most common outcomes of the entire appraisal process are:

 Employees learning about themselves

 Employees knowledge about how they are performing

 Employees knowledge about what management expects from them

 Improvement in the accuracy of employee performance and establishing relationship

between performance on tasks and a clear potential for reward

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APPRAISAL FORM

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