IN THE NAME OF ALLAH THE MOST GRACIOUS THE MOST MERCIFUL

GROUP # 2 GROUP MEMBERS

MARYAM JABEEN AMINA ARSHAD NIMRA KABIR

BE-08-18 BE-08-22 BE-08-54

Definition of a Performance Appraisal System:A performance appraisal system is an integral employee practice of the macro human resources (HR) framework of an organization. It is a formal and at times informal and documented process of the performance of workers, professionals and other staff members of an organization
All professionally managed businesses and enterprises have performance appraisal systems to measure the intrinsic worth and work performance of employees and encourage, motivate and reward them based on their performances.

Significance:It is part of HR planning process of an organization. Welldefined structures, frameworks and procedures define a workable and effective performance appraisal system. A systematic and timely use of the system reflects the commitment of business owners, enterprise top management and HR personnel toward their employees and extended workforce. Its deployment and usage involves detailed and periodic assessment and grading of an employee's overall performance, future potential, organizational commitment and the resulting promotions and rewards.

HR Department's Strategic Role in performance appraisal and reward system:HR personnel and occasionally external HR management consultants devise the structured templates i.e

employee evaluation worksheets detailed questionnaires and other performance evaluation documents.

Business unit managers, supervisors and other project leaders formally assess the employees along with the HR team. Rewards, revised compensation packages, incentives and pay raises are then given based on the recommendations and reviews of respective managers.

ORGANIZATIONAL BENEFITS:showcases the professional working standards and governance ethics of an organization. checks-andbalances system keep employees motivated. keep employees competitive and committed towords their responsibilites.
minimize wasted effort by keeping people focused on objectives and best practices.

People focus on key responsibilities and priorities.

Aims of a performance appraisal:-

Identify employee training needs. Form a basis for personnel decisions: salary increases, promotions, disciplinary actions, bonuses, etc. Provide the opportunity for organizational diagnosis and development. Document criteria used to allocate organizational rewards. Give employees feedback on performance. Facilitate communication between employee and employer. To improve performance through counseling, coaching and development

Types of appraisal schemes:-

self appraisal

third party appraisal

one-toone appraisal

180 and 360 degree appraisal

team based appraisal

Methods of performance appraisal system:Manageme nt by objectives

defining objectives within an organization so that management and employees agree to the objectives and understand what they need to do in the organization important part of the MBO is the measurement and the comparison of the employees actual performance with the standards set.

360-degree feedback
Behaviorall y Anchored Rating Scales (BARS)

also known as multi-rater feedback, multisource feedback, or multisource assessment, is feedback that comes from all around an employee.

These are scales used to rate performance . BARS are normally presented vertically with scale points ranging from five to nine. It is an appraisal method that aims to combine the benefits of narratives, critical incidents, and quantified ratings by anchoring a quantified scale with specific narrative examples of good, moderate, and poor performance.

Definition of Reward system:-

A well-designed system that attracts and retains committed employees who work hard to achieve your business goals because they see the connection between their future and the future of the company. A reward system, in isolation, can serve operational needs badly. Rewards influence behaviour, attitudes, job satisfactions and performance.

Classification of reward system:Monetary Rewards: Typical rewards are money in a form of a bonus, trips paid for by the company, gifts from a rewards catalog, or services such as cell phone or paid cable.given on meeting sales goals, achieving quality, outstanding performance. Non-Monetary Rewards: non-monetary rewards are movie tickets, restaurant coupons, certificates, thanks from the bosses, flexible schedules.given for going above and beyond as a team player, perfect attendance, or learning a new skills.

Other Rewards: are a parking space, corner office space, personalized items (brief cases, day planners), shirts, jackets, and employee discounts.

Reward Management Theory: Reward management involves defining, facilitating, and encouraging performance. The positive effects a successful RM system can provide to employee performance and in turn organisational success and competitive advantage are clear.

Total Rewards System:It is concept about the financial and non-financial benefits given to employees in trade for their services to the company.

The employees will give the company their time, their abilities and efforts to support the company in return for the benefits the company provides.

Total rewards involve the combination of five essential elements needed to motivate, attract and retain employees needed to accomplish the organizations goals. They are: Employee Employee Employee Employee Employee Compensation Benefits Work-life Balance Performance and Recognition Development and Career Opportunities

Introduction to State Bank:Central Bank Nationalization in 1974 Simple Central Banking Functions Human Resource Research and development

HR Policies and Recruitment :To strategically align HR function with the vision and mission of restructured SBP- the recruitment,promotion and performance management policies have been revised and streamlined keeping in view market challenges, management focus on performance and aspirations of the employees.

The services of National Testing Services (NTS) have been procured for bulk recruitment at entry level. Global technical services were outsourced to an IT firm and various executive search firms have been engaged for recruitment of senior professionals in area of Housing and InfraStructure, Finance. Recruitment process has been significantly simplified by developing a webbased recruitment system.

Human Resource Functions Performed in State Bank

Planning and Development

Recruitment HRIS Performance and Management Compensation and benefits Employee Relations

Compensation and benefits Provided :Job Security Training in NIBAF(national institue of banking and finance) Training Abroad (15% Top) Internship Programs Promotion at SBP

MARYAM JABEEN
BE-08-18

PERFORMANCE APPRAISAL SYSTEM IN STATE BANK OF PAKISTAN.

Bell Curve System

Computerized ranking system which is designed to

rate the entire workforce on the basis of the performance as well as on the similar activity.

It is the performance measurement system serving as the complete organizational system.

BELL CURVE DISTRIBUTION

OFFICER GRADE 2 AND ABOVE

Performance Category
A B+ B C

Quota
15% 25% 50% 10%

PERFORMANCE DUE TO PRESSURE.

Tools for Performance Appraisal

Self Apprais al
Appraiser s Experien ce

Bell Curve System

360 Degree Feedback

Rewards

Sources of Information For Appraiser

Tools for performance Appraisal

Orientation sessions for the supervisors Performance Management Form 2

Performance Management Form 1

Appraisal Interview.

STAR Form

PMF 1

By appraisee

For the purpose of goal setting

STAR FORM

For recording the out performance

Informal Document

SBP BANKING SERVICES CORPORATION STAR FORM

STAR FORM in respect of ________________________

Appraisal Period:
Situation

Action

Result

NOTE: When you gather examples of Actions, you want to make sure that you are getting the whole story the situation in which the person acted, what he/she did, and the results of these actions. In PMS process, you gather these behavioral examples in order to justify your rating of a person and also to provide feedback to the person, whether to improve or to reinforce a particular behavior in future.

Situation
Action/ Behavior Result

Background or context in which the person took action.

What the person said or did in respect to an event or task and how he or she did it. They can also tell us what a person did not say or do. The effects of the behaviour/actions. They tell us what changes or differences the persons action made and whether the actions were effective and appropriate.

APPRAISAL INTERVIEW
Informal half an hour interview which is conducted by supervisor once an year at the end of the given performance period To appreciate achievement of the appraisee, To identify the performance gaps and submits the PMF2(form filled by the appraisee about the actual accomplishments of the individual during the appraisal period) Manager gives the reasoning for the extreme ranking.

PERFORMANCE RATING
Manager is required to prevent the Recency Effect Contrast Error

Performance Rating in State Bank of Pakistan:

on the basis accomplishment of goals on the basis of competencies

Performance Rating
Goals
Ratings 4.51 to 5.00 3.51 to 4.50 2.51 to 3.50 1.51 to 2.50 0 to 1.50 Rating Description Outstanding Very Good Good Needs Improvement Unsatisfactor y Consistently outperformed agreed goals Outperformed some of the agreed goals Met all agreed goals Met some of the agreed goals Did not meet agreed goals

28

Calculation-Goals rating
W eight (%)

Key Goals 1

Rating

Weighted Rating
2.5 0.4

50 20
10 10 10 100

5
2 2 4 3

2
3 4 5

0.2 0.4
0.3 3.8

COMPETENCIES ASSESSMENTAppraisee: Officer Grade II

1 2 3 4

5 6

Competencies Achievement Orientation Teamwork Communication Skills Customer Service Orientation Accountability Applying Knowledge

Rating 2 5 3 2 3
5

Total Average(Total / 6)

20 30 3.33

RATING PERFORMANCERATIO OF COMPETENCIES AND GOALS

This equation applies for all the grades

60% goal based rating

40% competenc y based rating

Final Rating

REWARDS SYSTEM

Annual Merit Increases: Increments in the salary which are revised after every year to retain the highly motivated people.
Officer Grade 2 and above Performance Category A B+ B C Quota 15% 25% 50% 10% Annual Merit Increases 16 12 9 5

OTHER REWARDS
Free Medical Services for employees and employees family Fifteen Day Annual Paid Recreation holidays for the employees. Bonuses on the basis of recent performances are offered to reinforce the desirable behavior. Promotions Training Abroad Recognition Rewards

AMINA ARSHAD
BE-08-22

REWARD AND RECOGNITION

There are four levels of recognition rewards in SBP. Level 1 Individual contribution rewards Informal way of recognition (at individual level) Includes simple thank you, thank you notes, Emails, letters

Level 2 Departmental commitment rewards Cash award of 5000/-Rs. Recognition certificate Department wide recognition

Level 3 Organization competence reward Cash reward of 15000/- Rs. Recognition certificate Shield Bank wide recognition Level 4 Excellence rewards Cash reward of 30,000/- Rs. Recognition certificates Shield Bank wide recognition

JOB SATISFACTION AND PERFORMANCE LEVEL

Primary interest of employees Employees basic needs to survival and security. Acceptable salaries and working environment. Appropriate job security assurance. Participation in job-related matters. Adequate working relationships with managers and co-workers.

 Open

door policy Employee Turnover Employee Turnover rates in FY10 stood at 3.27 percent, with a total of 10 early retirements and 20 resignations during the year. The resignation rate stood at 1.42 percent, decreased from last years rate of 1.66 percent of the workforce.

SWOT Analysis

STRENGTHS
Changes

in organization culture Improve the quality of HR Organizational restructuring and realignment of operational activities Raise quality of service standards General Services Department Career development opportunities competitive compensation strategy

An increase of 10 percent was allowed in the monetized salaries to all the serving employees across the board in order to compensate them for inflation. House building loan

WEAKNESSES
Biasness Wrong performance picture Misleading information Grouping Deviation from goals

OPPORTUNITIES

Introduction of automatic system Incentives on regularity, making attendance as a key measure of performance. The introduction of supervisors belonging to different departments or externals to supervise the data.

THREAT

International banks with competitive salaries are serving to be a threat for SBP administration.

RECOMMENDATIONS
The

feedback from employees about the strategies of performance appraisal and of reward system. The biasness factor should be eliminated. Inter-employee relationships should be encouraged.