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:
- Customer focus
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 world wide.
- 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:
- Selecting and Recruiting
- Training and Development
- Performance Appraisal
- Employee relation
- 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, training and in resolving other issues which HBL faces.
- Methods used in collecting job analysis information are:
- The interview
SELECTING AND RECRUITING:
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
Performance Management at HBL:
- 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 at Habib Bank Limited:
- Performance appraisal, also known as employee appraisal is a method by which the job performance of an employee is evaluated.
- Performance appraisal is a part of career development.
- Performance appraisal at HBL is a structured formal interaction between a subordinate and supervisor.
- At HBL the formal performance appraisals are generally conducted annually for all the staff.
- Each staff member is appraised by their line manager. Directors are appraised by the CEO, who is appraised by the chairman.
- Aims of Performance Appraisal at HBL are:
- Identify employee training needs.
- Facilitate communication between employee and administration.
- Deciding promotions
- Determining transfers
- Making termination decisions
- Identifying skill and competency deficits
- Providing employee feedback
- Determining reward allocations
Performance Appraisal Methods:
The performance appraisal methods that are used by the different organizations world wide.
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.
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.
Performance Appraisal Forms of HBL:
HBL uses 2 types of appraisal methods:
1.Forced Distribution Methods / Bell Curve Method
- The raters, are “forced” to distribute ratings for the individuals being evaluated into a “prespecified” performance distribution.
- Reflects the normal curve,
- Small percentage of ratees are required to be placed in the extremes (best and worst performers)
- Larger percentages of ratees are placed toward the middle of the performance distribution.
2.Graphic Rating Scale Method
- Is used for high executive level – Vice president and above him in HBL.
- A separate bell curve is developed according to function/branch category/division and group as per existing practice.
Forced Distribution Method:
|Grading Scale||Allocated %|
|Exceeding Most Parameters||EMP||15%|
|Exceeding Some Parameters||ESP||20%|
|Meeting All Parameters||MAP||30%|
|Missing Some Parameters||MSP||15%|
|Missing Many Parameters||MMP||10%|
Graphic Rating Scale Method:
- Managers are asked to score an individual against a number of objectives/attributes.
- HBL is using graphic rating scale method for its clerical staff to appraise them.
- HBL’s Graphic Rating Scale method appraisal form contains three sheets, one is FORM B1, FORM B2, FORM B3.
- FORM B1:
- General information
- the criteria to evaluate its employees
|5||Outstanding||Performance consistently exceeds the required standards at all times. Highest level of competencies demonstrated. Exemplary performance. (Exceeds targets by 20%)|
|4||Exceeding Expectations||Performance is well above the required standards most of the time in accomplishing target/objectives of the assigned task. Exceed normal expectations. (Exceeds targets by 15%)|
|3||Meeting expectations||Performance is consistent & meets the required standards/objectives in all important aspects. Good contributor.|
|2||Missing expectations||Performance is inconsistent & behavior sometimes does not meet the basic requirements/expectations. Performance is generally acceptable but improvement is needed (misses targets up to 10%)|
|1||Below expectations||Performance falls below expectations on critical factors. Understanding is inadequate, performance & behavior is inconsistent in completing tasks (misses’ targets more than 10%)|
- two main headings
- level of achievement points.
- Level of achievement point contains five points ratings
- A (4),
- B (3),
- C (2),
- D (0-1)
- Area/factors contains five kind of factors which are
- Individual \attributes
- Customer Service
- Each area is further categorized in different factors.
- About the performance of employee in the clerical field.
- how much employee is committed with the achievement of organizational goals and objective.
- Following factors come under Productivity:
- Job knowledge
- TD clearing/Bill ledger posting
- Timely Lodgment of clearing
- Follow return unpaid cheques
- Noting of Stop payment Instruction
- Volume of work handled
- Accuracy & attention to detail
- Willingness and ability to work with other people/unit
- Ability to write effectively
- Adaptability of new assignments
- Deposit Mobilization/saving/current CPDC etc
- Number of fresh account arranged
- Reduction in customer complaint
- Hajj application target
- Timely balancing of Branch Ledger/books
- Accuracy in counting/cash handling & Counting speed
- Dispatch of requisite statements
- Maintenance of Guns in Order
- Zero Theft
- Delivery of Letter in time
- Quality of work
- Speed of work
- Filing and record keeping
- Typing/Data entry speed
- Typing/Data entry accuracy
- INDIVIDUAL ATTRIBUTES:
- About the employee’s attribute or properties in performing job.
- Followings are factors of individual attributes;
- Initiative (eagerness to learn, enlarge knowledge)
- Professional/technical knowledge & competency
- Reaction to responsibility
- Sense of responsibility
- Oral Communication Ability
- Performing under pressure
- Ability to work without supervision
- Willing to work after office hours
- Written Communication ability
- Sorting Notes
- Cash excess/shortage situation
- The capability of using of technology of employee is assessed.
- Following are major factors of technology:
- Knowledge of computer
- Knowledge of e-mail & internet
- CUSTOMER SERVICE:
- The motivational and dedicated level of employee toward customer service is assessed.
- Following are factors of this area;
- Courtesy to customers
- Rapport with customer
- Creative response to customer’s needs
- Business sense
- Personality of employee is evaluated.
- Factors of this area are as following;
- Health & Energy
- Integrity and Loyalty
- Manner or Speech
- Attendance record/Leave Record/Punctuality
Each factor is marked tick against level of achievement and in the end total points scored is written in the specific box. Also the signatures of appraisee and appraiser are taken.
- This form contains two big boxes.
- First box is about Development Plan/ Supervisor comments.
- Second box is called overall assessment box. Appraiser gives the overall performance grade to appraisee in form of A, B, C, D.
- Then comments of appraisee are also taken in form of agree/disagree.
- After it final acceptance of appraisee is also taken along with signatures.
Following guidelines are used by the HBL employees before doing a performance appraisal.
- Employees without an assignment for more than 6 months are not rated. N/R is marked against name of such employees.
- Evaluation of employees depend on achievement in three key areas;
- Business results
- Customer satisfaction
- Employee satisfaction
- Group heads assign weightages to the above sections as per the business requirement.
- With each section critical job elements are defined to facilitate development of key performance indicator.
- Group heads ensure that Key Performance Indicator’s (KPI’s) and targets are communicated to each individual within the group.
- Overall performance rating of employees will be calculated as follows:
- Total (sum of all points) divided by No. of KPIs
- Supervisor’s should give reasons in the comment column, for assigning higher than 3 rating or assigning lowest rating in any of the KPIs.
- Comments & signatures of 3 persons are necessary on the submitted forms
- Employees signature
- Supervisor’s signature
- Reviewer’s signature
- Supervisors do not assign performance Grades to the employees.
- Supervisors assign scores and submit it to divisions for finalization of performance grades.
- Staff data and the total score achieved should be mentioned on the front page.
- Specific training needs and job rotation should be highlighted in the development plan section.
- All regular employees executives on contract will be evaluated under this performance appraisal system.
- Groups must conduct mid year performance evaluation.
COMPENSATION AT HBL:
- HBL’s focus is on attracting, developing and retaining the best in the business by offering market-driven compensation and benefits packages.
- According to performance, each employee gets benefits and compensation. Employees are paid in two forms
- Direct payments
- Indirect payments
- 60% marks are taken from the appraisals of the employees.
- 10% marks are taken from the education
- 10% marks are taken from the experience
- 10% marks are taken of the mobility – hard areas
- 20% marks are taken of the interview
- Total marks are 110
- Involves the body of work concerned with maintaining employer-employee relationships that contribute to satisfactory productivity, motivation, and morale.
- Concerned with preventing and resolving problems involving individuals which arise out of work situations.
- The environment at HBL is cultural, ethical and challenging that encourages creativity and commitment among employees.
- HBL fosters a work environment where employees can realize their potential.
This project covers Performance Management and Appraisal at Habib Bank Limited and we have made this report with help from teachers and staff.