23034899 RBS Hrm Report

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Recruitment and Selection,

Performance Appraisal

&

Training and Development

At

RBS- Pakistan

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Mr. Imtiaz Ahmed

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MMOOHHIITT TTAANN W W AANNII ((0077--00223333))

SSAADDDDAAFF IIMMRRAANN ((0077--00113344))

SSUUBBMMIITTTTIIOONN DDAATTEE::

NNOOVVEEMMBBEERR 2211 , , 22000099

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ACKNOWLEDGEMENT

This report is a part of our course ´Human Resource Managementµ. It is a report of our topics

´Recruitment and Selection, Training & development, and Performance appraisalµ at The

Royal Bank of Scotland Pakistan. It has been written by us on the basis of our knowledge of

these topics and the way these activities are implemented at RBS . This report may not be even

close to perfection, but we have given it a Big Effort on our part.

We thank Allah Subhan Tallah, the Most Gracious and the Most Merciful.

We thank their Parents who have been supporting and loving us throughout.

Our big thanks to Mr. Imtiaz Ahmed, for giving us the opportunity to make this report.

Without his guidance and support, this report could have never reached completion. He helped

us gain command over the concepts of Human Resource Management, helping us to apply that

knowledge in the making of this report.

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TABLE OF CONTENTS

INTRODUCTION 5

HISTORY 6

RECRUITMENT AND SELECTION 10

PERFORMANCE APPRAISAL 22

TRAINING AND DEVELOPMEENT 26

APPENDIX 30

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Executive Summary

Recruitment and Selection, performance appraisal and training and

development are the three core activities of any organizations Human Resource

Department. It a challenge for every organizations HR department to chooseright people for the right job, appraise, compensate and give proper feedback to

its employees and train and teach them advanced techniques in order for them

to create a competitive edge in the industry by serving the organizations

customers well.

The organization that we have selected is The Royal Bank of Scotland Paksitan.

It is a multinational bank having its branches and offices in many parts of the

world. RBS human resource department gives tough competition to its rivals

(HR department of other organizations) as it recruits, appraises and trains its

employees properly.

This report points out the factors why RBSs HR Department is effective and

how they have given a tough competition to its opponents.

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Introduction

The Royal Bank of Scotland

|Our focus is on building stand alone strengthµ

RBS will achieve this with integrity, transparency, and by serving their

customers well.

History

Early Scottish success

The Royal Bank of Scotland was founded in 1727. Originally opened with a staff of just eight, itsfirst premises were in the Old Town of Edinburgh. For more than half a century, RBS tradedsolely from the Scottish capital, but in 1783 it opened first branch in the fast-growing trading cityof Glasgow. This new office was soon conducting over half of the Bank's entire business.Spurred on by this success, many more branches opened across Scotland and then, in 1874, their first office opened in London.

Domestic and overseas growth

In the twentieth century RBS expanded rapidly, acquiring several English banks includingWilliams Deacon's Bank, Glyn, Mills & Co and Drummonds Bank. In the 1950s their mobile banks began serving rural communities, and by 1960 their first office opened in New York. In1969 their merged with National Commercial Bank of Scotland to achieve a greater market sharein Scotland. RBS also introduced the daisy wheel brand mark which remains so central to their corporate identity.

Technology and diversification

In the 1970s they embraced computerisation and introduced a new generation of multi-functioncash dispensers. In the 1980s they launched Direct Line motor insurance and bought Citizens

Financial Group in the USA. By the 1990s they were at the forefront of telephone and internet banking.

Takeovers and acquisitions

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In 2000, they acquired National Westminster Bank in the biggest banking takeover ever inBritain and so inherited a rich heritage covering more than 200 banks that had made up NatWest.In 2005 they formed a strategic partnership with Bank of China and, two years later, in the biggest takeover in banking history, they led a unique consortium to acquire the Dutch bank ABN AMROCommitted to working together

With three centuries of banking behind them, they remain committed to making it happen for their customers, shareholders and staff around the world.

Striking the right note

In the 18th and 19th centuries hundreds of British banks - most of them small, local enterprises -issued their own banknotes. When The Royal Bank of Scotland was established in 1727, startingup a banknote issue was one of its directors' first priorities. They based their first designs on thenotes of existing rivals, but added an impressive new detail; a portrait of the King. This was thefirst banknote in Britain to include such an intricate illustration.

This was the beginning of a long history of innovation in banknote design, driven by therequirement to make notes attractive and acceptable to the general public, while always protecting them against counterfeiters. In 1777, we became the first bank in Europe to issuemulti-coloured banknotes, and in 1826 we issued Britain's first double-sided note.

Building trust and stability

Throughout all these changes, one feature that remained the same was the vital importance of banknotes to the economy in Scotland, where there were often chronic shortages of coins. Unlikemany other nationalities, the Scottish people developed absolute trust in their banknotes, whichcontributed to the near-unique stability of Scotland's early banking system.

Reflecting national pride

When the British government periodically threatened to withdraw or limit the Scottish banks'right to issue notes, the nation rose up in protest, celebrating their banknotes as a matter of national pride and identity. It is thanks to the popularity of the notes, and to the demonstratedstability of the system, that Scotland's banks have been allowed to continue issuing poundsterling notes to this day.

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The Royal Bank of Scotland ² Pakistan

The Royal Bank of Scotland Group has grown from small beginnings nearly 300 years ago to become the second largest financial services group by profit, in the world. With an AA creditrating, RBS group has more than 40 million customers worldwide, operating profit in 200710.3 billion, and total assets, as at 31 December 2007, of GBP 1,900.5 billion. Our brandsoperate around the globe and down your street to provide banking services for individuals, businesses and institutions. Proud of our history, we remain committed to innovation andservice - in business and through our many sponsorship activities.

Asia Pacific

The Royal Bank of Scotland Group is now one of the top five banks in the Asia Pacific regionfor corporate and institutional customers, and retains a strategic partnership with Bank of China. We also provide wealth management services across the region through RBS Coutts.

Europe As well as having the largest branch network in the UK and providing market-leading wealthmanagement, consumer finance, insurance and corporate banking solutions to millions of customers, the RBS Group has a growing presence across the rest of Europe.

North America The Royal Bank of Scotland Group is now one of the top 10 banking groups in the US, and an

established name across North America. Citizens Bank has retail branches in 13 states, whileRBS GloRBS Banking & Markets works with 80 per cent of the Fortune 100 companies.

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Introduction to Human Resources Department

The Royal Bank of Scotland ² Pakistan

³People are at the heart of our success´

There is possibly no greater challenge in HR than recruiting, motivating, engaging, developingand rewarding so many people in a Group with so many brands. If you consider our growthrecord, this is only likely to increase. The size of the challenge is matched only by the success of our approach. We act as internal consultants across the Group, creating and delivering business-specific solutions. Our remit covers every issue involving staff recruitment, training,development, reward, career building, and change management. We need to understand thespecifics of each business and deliver solutions which are consistent across the Group yetsensitive to individual requirements. With a consultancy HR model well established, HR servicesare delivered to the business through Business Partners, project-based HR Consultants and arange of technical specialists.

Within RBS there are HR professionals working within the Group's Central Functions as well asaligned in the business. There are also specialist technical areas such as Remuneration andBenefits, Policy and Employment, HR Shared Services, Health, Safety and Wellbeing, GroupResourcing and Group Organizational Effectiveness.

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Recruitment & Selection:

RECRUITMENT is the process of generation a pool of capable people to apply for employment

to an organization. SELECTION is the process by which managers and others use specificinstruments to choose from a pool of applicants a person or persons most likely to succeed in

the job, given management goals and legal requirements.

The step to step Recruitment process followed by organization is:

y Planning

y Sourcing

y Screening

y Interviewing

y Hiring

y R eporting

y Planning

1. Planning: Planning includes both workforce planning and individual recruitment planning. Workforce planning

typically focuses on forecasting staff and skill gaps in the most business-critical positions, while individual recruitment

planning focuses on sourcing and screening strategies for specific vacancies.

2. Sourcing: Sourcing focuses on activities to attract both passive and active candidates. Common strategies

include advertising, marketing at select schools and organizations, managing employee referral programs, and cross-

marketing new positions to prior applicants.

3. Screening: Screening focuses on creating a qualified pool of candidates to share with the hiring manager.

Common activities include resume/application reviews for select qualifications, supplemental questionnaires, and

formal testing.

4. Interviewing: Interviewing includes in-person reviews designed to select a final candidate. Common strategies

include peer interviews, panel interviews, and the use of behaviourally-based interview techniques.

5. Hiring: Hiring focuses on persuading the selected candidate to join the organization. Common activities include

making the job offer, negotiating terms and conditions of employment, and all pre- and post-start on-boarding.

6. R eporting: Reporting includes all post-hire data collection, monitoring, and reporting. Common activities include

surveying applicants and hiring managers, collecting and analyzing applicant flow data, and reporting performance

measures and processing metrics.

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Recruitment & Selection at RBS Pakistan:

RBS is interested in attracting and hiring the very best people in the market.

³We understand the integral role you play in our continued success. We're committed to

providing you with a candidate experience that is robust, transparent and gives you the

power to make choices.´

A two way process

RBS wants to make sure the hiring process works for everyone is the same. They providecandidates with all information and support they need to demonstrate their experience andcapabilities and to help them make the right career decision .Their selection experience will vary based on the role they have applied for but will typically include the following stages.

Effective R ecruiting

Recruitment is done through developing applicant pool. Employee recruiting means finding and/and or attracting applicants for the employees open positions

Why recruitment is important:

R ecruitment is an important and an important part in every organization. R ecruiting is not

only done in unemployment

Why recruitment is important:High performing staff are essential if an organisation is todeliver outstanding services to vulnerable people. Member agencies tell us they have difficultiesin recruiting and retaining great people. Other sectors seem to offer more to staff ± be it in terms

of remuneration, progression opportunities, effective support for frontline workers, job securityor just showing staff that they are valued. Long-term reliance on agency staff can be incrediblydamaging to consistency of service delivery and more importantly have a hugely detrimentaleffect on service users. Homeless people say that it is the way frontline staff works with themthat makes the biggest difference.

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Recruiting the right people is a key managerial role, yet one that agencies often do not devote

enough time to. In financial terms, the average frontline worker paid £18,000 represents an

investment of around £65,000 over a three year period. If your organisation was considering

investing a similar sum in a new IT system, a great deal of thought and analysis would go into

selecting the right system. Many organisations do not invest enough time in thinking about the

skills, attributes and behaviours they need in their staff. This guide aims to help service managers

recruit the right staff and give them the best induction into their new role.

Many organisations that are members of Homeless Link tell us they currently employ staff who

they know are not the best people for the job. Some staff recruited into the sector simply do not

have the skills they need to do their jobs, which highlights shortfalls in recruitment practice

within the sector. One hostel manager talked of the difficulty of finding suitable staff; havingtried three rounds of recruitment he was reliant on agency staff to deliver services, as no suitable

permanent staff were available. However, many frontline staff came to work in homelessness

agencies for a reason ± that they care about the service user. Staff who under-perform generally

do so for a reason ± this might be due to lack of skill to undertake the work which was not

identified during the recruitment process, poor management, lack of support and supervision,

lack of clarity about their role and how they are expected to work, or simply being burnt out after

working in the same role for a long time without the refreshers and re-motivators of training and

development activity.

Once the right staff have been recruited, they need to be supported effectively, and given the

right tools for personal and career development.

However, there are agencies in the sector that do not have a problem recruiting high quality staff,

that involve service users in recruitment and selection, and whose organisational turnover is very

low. This guide explores some of the human resources practice in these agencies, and sets out

step-by-step instructions on how to set up these systems.

Examples of organisations which operate best practice principles in this area include Broadway,Macclesfield Accommodation Care and Concern and Foundation Housing

Recruitment and selection has many processes and steps that must be followed.

y Decide what positions to fill, through personal planning and forecasting

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y Build a pool of candidates for these jobs, by recruiting internal or external candidates

y Have candidates complete application form and perhaps undergo initial screeninginterviews

y Use selection tools like tests, background investigations, and physical exams to identifyviable candidates.

y Decide who to make an offer to, by having the supervisor and perhaps others interview the candidates

`

Application stage:

Whether candidate applies directly through RBS¶ careers website or through their staff referralscheme, they'll ask you for some background information - this usually involves completing anapplication form or submitting a CV/resume.

For some roles, candidate will need to complete an online application form and then be directedstraight through to an online assessment process.

For other roles, once HR managers have reviewed your CV/resume and established there is agood fit between your background and the 'essentials' they are looking for, the candidate willhear from their recruitment team.

The team will tell you what to expect next, share information about what it's like to work hereand answer any questions, the candidates might have.

For some roles, candidates may also have an initial phone interview. This helps HR managers

assess candidate¶s skills, background and experience so they can decide if they should invite youto the next stage of the hiring process. Phone interviews usually take about 30 to 40 minutes.

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Interview stage

Interviews are usually conducted face-to-face in RBS¶ offices with of recruiters or a line

manager. The process and questions will vary based on the role you have applied for, but mayexplore:

y Candidate¶s behavioural abilities (called 'competencies')y Candidate¶s technical skills and background (based on qualifications and/or relevant

work experience)y Candidate¶s reasons for wanting to work for them.

They'll make sure candidate is fully briefed on what to expect from the interview process andwhat they are looking for.

Further selection stages

The next stages will vary based on the role candidate has applied for. In some cases a face to faceinterview will be the final stage in the process. In other cases, candidate may attend additionalinterviews, complete further individual assessment exercises or join RBS at an assessmentcentre.

Making the offer

Assuming everything has gone well for both candidate and HR managers, they will makecandidate an offer. This is a very important part of the overall process. Your recruiter or RBS

contact will help answer any questions and support candidate with any of the practicalitiesinvolved in confirming offer, such as our pre-employment screening process.

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Findings through our Direct Interview from HR managers

The potential candidates in RBS are generated through following external resources:o Direct applicants

o Job portals

o Employee R eferral

o University campuses

Employees are mainly recruited through:

The time HR Managers take from JRF ( Job R equisition Form) till the final offer is:

o For Junior level recruitment: 15-20 days

o For Middle Level R ecruitment

30-45 days

o For Higher Level R ecruitment 60-75 days

S.No Source Candidates with experience of

0-1 yr 1-3 yrs 3-5 yrs 5-10 yrs

10 yrs &

above

1 Campus

2 Employee Referrals

3 Consultants Depends on nature of job

4 Walk-ins Depends on nature of job

6 Advertisements Depends on nature of job

7 Job Fairs Depends on nature of job

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The sources HR managers prefer most for hiring:

o Junior Level employees:

External Sources

o Middle Level employees:

Both internal and external sources

o Higher Level employees:

Internal Sources

When a middle level employee is transferred from one department to another, he/she has to go

through a probation period of 6 months. During this period, the employee is trained in that

department by the supervisor and the employee is also properly scrutinized this whether

employee is capable of working in that department or not.

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Candidates can also apply at RBS via online job application form

The online job application form is given below:

Application submitted for * Here you have to specify whether you are applying for any suitable job or for

internship program.

Personal Information

Fields marked with an*are mandatory

Title: *

First Name: *

Middle Name:

Last Name: *

Gender: *

Country of Residence: *

Address: *

City: *

Contact No *

- -

countrycode

area code phone no.

Cell No:

National Identity Card No.

Passport No.*

(Without space)

Email Address: *

Date of Birth: *

Please Select

Please Select

Please Select

-- -- --

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Country of Birth: *

Education

Degree / Diploma / Certificate: *

School / Institute / University: *

City / State: *

Country: *

From:(Month / Year) *To: (Month / Year) *

GPA:

Grade:(If Applicable)

Major:

Internships (if any)

Organization *

Country *

From (Month / Year) *

Till (Month / Year) *

Assignment/Responsibilities *

Please Select

Please Select

Please Select

-- --

-- --

Please Select (If Applicable)

Please Select

-- --

-- --

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Area of Experience

Please select one *

* Banking Category:

* Non ± Banking Category:

* Fresh Category:

Professional Experience/s (if any)

Organization *

Country *

City

From (Month / Year) *

Till (Month / Year) *Responsibilities/Nature of work

Annual gross salary

Area of Interest

Field of Interest - 1st Choice

2nd Choice

3rd Choice

Please Select

Please Select

Please Select

Please Select

Please Select

-- --

-- --

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Position Applied for

Job Location

Expected Salary (PKR)

Mobility Local Yes No

Mobility InternationalYes No

Skills

Computer Skill

Skill Level

Language

Skill Level

Key Strengths

Other

Pl

¡ ¢

£

l

¤

¥

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Why do you want to join³RBS´?

Please note that mere submission of instant application or any subsequent correspondencefrom RBS should not be considered as guarantee for employment or even for an interviewcall in this regard.

After the proper filling out of this job application form, HR managers check whether the

candidate fulfills the minimum selection requirements or not and then contacts the person

for further proceedings.

¦

review

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Performance Appraisal:

Performance Appraisal is a process supporting the use of human resource in an

organization. It is possibly management¶s most powerful tool in controlling performanceand productivity of human resources in the organization. Used effectively, it can have

tremendous strategic potential for governing employee behavior and in turn,

organization¶s direction through its dynamic links to selection, training, career-path

planning and reward systems.

Performance appraisal is the process of evaluating the employee¶s performance on the job

in terms of requirements of the job. It identifies the differences among the employees in

terms of their performance.

Need, Importance and Advantages of Performance Appraisal:

Scientific basis for judging the merit or worth of employees

Sound basis for promotion, demotion, transfer or termination of employees.

Helps in distinguishing between efficient and inefficient workers.

It reveals the defects in the selection procedure

Helps to know the potentials of the subordinates systematically.

Helps correct placements.

It helps in constructively guiding the employees.

It prevents grievances and develops a sense of confidence

Protects the management against the charges of discrimination.

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Essentials of Effective Performance Appraisal: The employees should be made aware in terms of goals, targets and behavior.

Job-related.

Performance-based.

Uniform and non-variable.

Fair, just and equitable.

Appraisers should be honest, rational and objective.

Superiors should be well trained to ensure uniformity, consistency and reliability

Reports should be examined meticulously before taking any positive or negative action.

Intra and inter-departmental consistency and uniformity should be ensured.

There should be provision of appeals against appraisals to ensure confidence of the

employees and their associations/unions.

Traditional methods of Performance Appraisal:

Ranking Method

Paired Comparison

Graphic Scale method

Forced Distribution Method

Check-list Method

Critical Incident Method

Field Review Method

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Performance Appraisal at RBS Pakistan:

RBS Pakistans performance appraisal system is based on a combination of 'MBO' and 'Enabling Traits'

approaches, under which 60% weight age is given to performance goals discussed and laid out in the

beginning of the year. Another 40% weight age is assigned to enabling personality factors, which are

clarified to all employees by their supervising officers at the start of each year.

The system and process flow of the appraisal process is modified, improved and upgraded from time to

time in line with the Bank's requirements, as well as with industry practices. HR Department notifies all

units of the Bank of the PA system and procedure currently in use. Units are also notified deadlines for

goal setting, form filling, monitoring and final appraisals.

Salary increases and adjustments are based on performance of employees during a calendar year and

are finalized during the first quarter of the new year. Grade promotions on the other hand are based on

the -availability of higher positions, employees' ability to fill those positions and sustained high

performance during the last few years, and are finalized during the second quarter of each year.

RBS· OBJECTIVES OF PERFORMANCE APPRAISAL:

1. Improving the performance of the Bank and its staff members

2. Laying a solid foundation for relationships between staff and management.

3. Clarifying performance targets for all.

4. Using the process for career planning and professional development of staff.5. Review of salary, assignment and career path.

6. Award of bonuses.

7. Promotion to higher salary ranges and functional responsibilities.

ROLE OF IMMEDIATE SUPERVISOR & BRANCH MANAGER / UNIT HEAD:

Performance appraisal is an interactive exercise between the immediate supervisor and the staff

member reporting to him/her. A supervisor is defined as the person to whom one or more employees

report on a regular basis. Branch Managers and Unit Heads supervise this interaction from a distance,

and try not to dominate the proceedings. With their greater maturity and experience, they discreetly

guide the process in order to empower the departmental heads to assume greater responsibility in thisarea.

The Branch Managers and Unit Heads however, continue to bear the ultimate responsibility for

successful completion of the exercise. They discuss the goal setting done by their departmental heads

and place second signature on appraisal forms of all non-supervisory staff. Supervisory staff is evaluated

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by the Branch Manager and Unit Heads directly. In addition to personal skills, their supervisory skills are

also evaluated, using the second page of the appraisal form for 'Managerial' staff.

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Training and development

Training refers to a planned effort by a company to facilitate employees learning of job-related

competencies.

The goal of training is for employees to master the knowledge, skill, and behaviors emphasized in training

programs, and apply them to their day-to-day activities

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Assumptions of Training Design Approaches

y Training design is effective only if it helps employees reach instructional or traininggoals and objectives.

y Measurable learning objectives should be identified before training.

y Evaluation plays an important part in planning and choosing a training method,monitoring the training program, and suggesting changes to the training design process.

Needs Assessment

Effective training practices involve the use of an instructional systems design process. The

instructional systems design process begins by conducting a needs assessment.

y

Needs Assessment refer to the process used to determine if training is necessary.

y Because needs assessment is the first step in the instructional design process: If it is poorly conducted, training will not achieve the outcomes or financial

benefits the company expects.

Needs assessment involves:

y Organizational Analysis ± involves determining: the appropriateness of training, given the business strategy

resources available for training support by managers and peers for training

y Task Analysis ± involves: identifying the important tasks and knowledge, skill, and behaviors that

need to be emphasized in training for employees to complete their

tasks

y Person Analysis ± involves: determining whether performance deficiencies result from a lack of

knowledge, skill, or ability (a training issue) or from a motivational orwork design problem

identifying who needs training

determining employees readiness for training

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Training and Development at RBS Pakistan

The management of RBS believes that systematic training and development helps the Bank's human

resource in acquiring professional skills and expertise, which in turn gives RBS a sustainable edge over

their peer banks in the today's competitive business environment. Ongoing learning for all is therefore

one of the priority areas at RBS. The objectives of training activities are to keep RBS employees abreastof latest professional knowledge and skills in all areas of banking, as well as to reinforce a passion for the

highest quality of customer service at all levels.

It is obligatory for each employee of the Bank to attend at least one training course (of a minimum

duration of one full day) in a calendar year. Branches, Area Offices and Head Office

Divisions/Departments are to send their nominations for training courses at least two weeks prior to the

start of a training course. Employees may also take the initiative and get themselves nominated through

their supervising officers for training courses relevant to their needs.

The Bank has the latest state-of-the-art training facil ities at its Training & Development Center (TDC) and

a dedicated training team to look after most of the training needs of its employees.

Regular in-house training programs offered by the TDC in-house are as follows:

IN-SERVICE TRAINING PROGRAMME:

y Basic Course on General Banking Operations 4 days Officers working in general &consumer banking departments

y Account Opening & Customer Relationship 2 days Officers in-charge of account opening

y Clearing, Collections and Remittances 2 days Employees working in these areas

y Advanced Course in General Banking Operations 3 days Operations' managers

y Basic course in Processing of Credit Proposals 2 days Credit officers

y Analysis & Interpretation of Financial Statements 2 days Credit officers

y Credit Administration & Documentation 2 days Credit Adm. Officers

y Elementary Course in Trade Finance 4 days Officers working in trade finance

y Advanced Course in Trade Finance 3 days Experienced trade finance officers

y Time Management and Personal Effectiveness 1 day Officers in Range III and above whohave not attended this course

y Customer Service Skills Workshops 1-2 days All RBS¶ employees

y Telephone Handling Skills 2 days All RBS¶ employees handling telephone calls

y Selling Skills 2 days All RBS employees at branches

y Performance Appraisal Workshop 1 day All RBS employees

At the beginning of every quarter, TDC announces dates for training courses for the following quarter.

These courses are planned on the basis of training requirements received from area offices, branches or

Head Office Divisions/Departments, either through employee appraisal forms or by specific demand

from time to time. TDC may also design and offer additional training programs in other areas in

response to specific training needs expressed by its internal customers.

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Some specialized courses, especially at an advanced level, may be outsourced by using reputable

academic institutions and management consultants.

MANAGEMENT TRAINEE PROGRAM

With appropriate frequency, the Bank recruits batches of fresh MBAs and other post graduates througha competitive process and offers them comprehensive three months training, at the end of which they

are posted to various branches and offices of the Bank. Management trainees are further required to go

through on the job training through a structured rotation program.

CASH OFFICERS, OPERATIONS OFFICERS & CUSTOMER

SERVICE OFFICERS

The Bank also recruits fresh graduates as Cash Officers, Operation Officers & Customer Service Officers

through a competitive process for induction into mainstream general banking operations. The duration

of the training program in these positions is four to six weeks and frequency of the batches depends

upon staffing requirements of the Bank.

Where in-house expertise is not available in a certain area, employees may be nominated to attend

training programs offered by other institutions including Institute of Bankers Pakistan.

Alternatively, external training consultants or training providers may be invited to conduct training

programs for RBS employees whenever deemed necessary.

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Appendix

Comparison between BANK AL FALAH and R oyal Bank of Scotland

MANPOWER PLANNIG

In Bank The manpower planning of employees is done by immediate supervisor of Bank Alfalah. While recruiting and selection processes, HR manager keeps in his mind , what type of person required for what job, what are his qualifications, skills, and is he either according tospecific job or not and in which department he has to manage. So during recruitment, allconditions must be visualized, so that planning of human resources after recruitment could beeasily done. To manage employees both internal and external sources are used Alfalah.

When the need for recruiting new employee arises and for which department and job, the linemanager informs to the department head of that department, then he consults with HR manager and after interviewing and tests, that person is employed in the bank who is according to aspecific job

TUR NOVER RATE

The turnover rate for jobs in Bank Alfalah is very minimal as compared to other job industries.

JOB R OTATION

Periodic rotation of staff between various assignments is used by Bank Alfalah as a means of broadening areas of expertise of concerned staff. This is also done to ensure smooth transitionfrom one job to another in case a staff member leaves the job, or is transferred to another job or location. Furthermore, periodic job rotation has also become a standard audit requirement inBAL.

It has therefore been decided that all staff members posted at branches should be rotated periodically according to the following guidelines:

TER MINATION OF EMPLOYEE

In Bank Alfalah, severe frauds, harm to the integrity of the bank,commits a mistake beyond normal routine are the circumstances bring under consideration for the termination of an employee. If anemployee does not perform well, training, warnings and firing arethe solutions to cope with the situation.

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Article

The HR Scorecard: Linking People, Strategy, and PerformanceCompetitive advantage in the new economy relies on intangible assets like brand recognition,knowledge, innovation and, in particular, human capital. As a result, business leaders must riseto this occasion by incorporating the HR function into the firm's overall corporate strategy. Inthis excerpt from their new book, Brian E. Becker, Mark A. Huselid, and Dave Ulrich explainhow "managers throughout the firm can understand exactly how people create value and how to

measure the value-creation process."

by Brian E. Becker, Mark A. Huselid, and David Ulrich

The Evolving Picture of HR: From Professional to Strategic Partner Recent decades have witnessed dramatic shifts in the role of HR.Traditionally, managers saw the human resources function as primarilyadministrative and professional. HR staff focused on administering benefits and other payroll and operational functions and didn't think of themselves as playing a part in the firm's overall strategy.

Efforts to measure HR's influence on the firm's performance reflectedthis mindset. Specifically, theorists examined methodologies and practices that are focused at the level of the individual employee, theind ividual job, and the individual practice (such as employee selection,incentive compensation, and so forth). The idea was that improvementsin individual employee performance would automatically enhance theorganization's performance.

Although such research attempted to extend the range of HR's influence, it did little to advanceHR as a new source of competitive advantage. It provided scant insight into the complexities of astrategic HR architecture. And simply put, it didn't encourage HR managers to think differentlyabout their role.

In the 1990s, a new emphasis on strategy and the importance of HR systems emerged.Researchers and practitioners alike began to recognize the impact of aligning those systems withthe company's larger strategy implementation effort ² and assessing the quality of that fit.Indeed, although many kinds of HR models are in use today, we can think of them asrepresenting the following evolution of human resources as a strategic asset:

The personnel perspective: The firm hires and pays people but doesn't focus on hiring the very best or developing exceptional employees.

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The compensation perspective: The firm uses bonuses, incentive pay, and meaningfuldistinctions in pay to reward high and low performers. This is a first step toward relying on people as a source of competitive advantage, but it doesn't fully exploit the benefits of HR as astrategic asset.

The alignment perspective: Senior managers see employees as strategic assets, but theydon't invest in overhauling HR's capabilities. Therefore, the HR system can't leveragemanagement's perspective.

The high-performance perspective: HR and other executives view HR as a systemembedded within the larger system of the firm's strategy implementation. The firmmanages and measures the relationship between these two systems and firm performance.

We're living in a time when a new economic paradigm ² characterized by speed, innovation,short cycle times, quality, and customer satisfaction ² is highlighting the importance of intangible assets, such as brand recognition, knowledge, innovation, and particularly human

capital. This new paradigm can mark the beginning of a golden age for HR. Yet even whenhuman resource professionals and senior line managers grasp this potential, many of them don'tknow how to take the first steps toward realizing it.

In our view, the most potent action HR managers can take toensure their strategic contribution is to develop a measurementsystem that convincingly showcases HR's impact on business performance. To design such a measurement system, HR managers must adopt a dramatically different perspective, one thatfocuses on how human resources can play a central role inimplementing the firm's strategy. With a properly developed

strategic HR architecture, managers throughout the firm canunderstand exactly how people can create value and how to

measure the value-creation process.

Learning to serve as strategic partners isn't just a way for HR practitioners to justify their existence or defend their turf. It has implications for the very survival of the firm as a whole. If the HR function can't show that it adds value, it risks being outsourced. In itself, this isn'tnecessarily a bad thing; outsourcing inefficient functions can actually enhance a firm's overall bottom line. However, it can waste much-needed potential. With the right mindset andmeasurement tools, the HR architecture can mean the difference between a company that's justkeeping pace with the competition and one that is surging ahead.

A recent experience of ours graphically illustrates this principle. In a company we visited, weasked the president what most worried him. He quickly responded tha '. In simple terms, hisfirm's $100 of cash flow had a market value of $2,000, while his largest competitor's $100 of cash flow had a market value of $4,000. He worried that unless he could change the market's perception of the long-term value of his organization's earnings, his firm would remainundervalued and possibly become a takeover target. He also had a large portion of his personal

the most potent action HR

managers can take to ensure

their strategic contribution is

to develop a measurement

system that convincingly

showcases HR 's impact on

business performance.

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net worth in the firm, and he worried that it was not valued as highly as it could be. the financialmarket was valuing his firm's earnings at half that of his competitors'. When we asked him howhe was involving his HR executive in grappling with this problem, he dismissed the questionwith a wave of his hand and said, "My head of HR is very talented. But this is business, not HR."He acknowledged that his HR department had launched innovative recruiting techniques,

performance-based pay systems, and extensive employee communications. Nevertheless, hedidn't see those functions' relevance to his problem of how to change investors' perceptions of hisfirm's market value.

Six months after our meeting, a competitor acquired the firm.

The sad truth is that the HR executive in this story missed a valuable opportunity. If he hadunderstood and known how to measure the connection between investments in HR architectureand shareholder value, things might have turned out differently. Armed with an awareness of how investors value intangibles, he might have helped his president build the economic case for increased shareholder value.

The story of Sears, Roebuck and Co.'s recent transformation stands in stark contrast to thisanecdote and shows what companies can achieve when they d o align HR with the larger organization's strategy. 1 After struggling with lack of focus and losses in the billions in the early1990s, Sears completely overhauled its strategy implementation process. Led by Arthur Martinez, a senior management team incorporated the full range of performance drivers into the process, from the employee through financial performance. Then, they articulated a new,inspiring vision: For Sears to be a compelling place for investors, they said, the company mustfirst become a compelling place to shop. For it to be a compelling place to shop, it must becomea compelling place to work.

But Sears didn't just leave this strategic vision in the executive suite or type it up on little cardsfor employees to put in their wallets. It actually valid ated the vision with hard data. Sears thendesigned a way to manage this strategy with a measurement system that reflected this vision inall its richness. Specifically, the team developed objective measures for each of the three"compelling." For example, "support for ideas and innovation" helped establish Sears as a"compelling place to work." Similarly, by focusing on being a "fun place to shop," Sears becamea more "compelling place to shop." 2 The team extended this approach further by developing anassociated series of required employee competencies and identifying behavioural objectives for each of the "3-Cs" at several levels through the organization. These competencies then becamethe foundation on which the firm built its job design, recruiting, selection, performancemanagement, compensation, and promotion activities. Sears even created Sears University inorder to train employees to achieve the newly defined competencies. The result was a significantfinancial turnaround that reflected not only a "strategic" influence for HR but one that could bemeasured directly.

Few firms have taken such a comprehensive approach to the measurement of strategyimplementation as Sears has. Granted, retail service industries are characterized by a clear "lineof sight" between employees and customers. Thus their value-creation story is easier to

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articulate. But that doesn't mean that other industries can't accomplish this feat. The challengesmay be greater ² but so are the rewards.

Why HR? Why Now?Consider the following:

I n most ind ustries, it is now possible to buy on the international marketplace machinery and equipment that is comparable to that in place at the lead ing global firms. Access to machinery

and equipment is not the d ifferentiating factor. Ability to use it effectively is. A company that lost all of its equipment but kept the skills and know-how of its workforce coul d be back in business

relatively quickly. A company that lost its workforce, while keeping its equipment, woul d never recover. 3

This excerpt captures the difference between physical and intellectual capital ² and reveals theunique advantages of the latter. The Coca-Cola Company's experience testifies to this reality.According to then-CFO James Chestnut, after transferring the bulk of its tangible assets to its

bottlers, Coke's $150 billion market value derived largely from its brand and managementsystems. 4

The evidence is unmistakable: HR's emerging strategic potential hinges on the increasinglycentral role of intangible assets and intellectual capital in today's economy. Sustained, superior business performance requires a firm to continually hone its competitive edge. Traditionally, thiseffort took the form of industry-level barriers to entry, patent protections, and governmentalregulations. But technological change, rapid innovation, and deregulation have largelyeliminated those barriers. Because enduring, superior performance now requires flexibility,innovation, and speed to market, competitive advantage today stems primarily from the internalresources and capabilities of individual organizations ² including a firm's ability to develop and

retain a capable and committed workforce. As the key enabler of human capital, HR is in a prime position to leverage many other intangibles as well, such as goodwill, research and development,and advertising.

· · · ·

Excerpted from The HR Scorecard: Linking People, Strategy, and Performance

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Performance appraisal score card

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R ecruitment score card

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Balanced Score Card

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Performance Measurement is a critical issue for HR

This report provides a step-by-step process by which HR leaders can create their own dedicated

functional balanced scorecard that will clearly demonstrate how the function is helping to deliver its organization's strategic goals.

Demonstrating value is now critical. As senior managers turn the spotlight onto HR¶scontribution to the success of the organization, discover the powerful role played by performancemeasurement in enabling HR to reposition itself as a key strategic business partner

Creating the HR Scorecard reveals:

y The 'new' skills HR professionals must develop in order to become true strategic assets totheir organizations

y 10 international best-practice case studies illustrating how HR can play a critical role inshaping world-class people strategies for their companies.

y An explanation of how the ROI of HR programmes can be assessed and a detailedoverview of how to conduct an HR audit

y The demands placed on HR in the current climate and the challenges involved in becoming a strategic partner

y Complete results, analysis and commentary from a survey of over 200 leadingorganizations.

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23034899 RBS Hrm Report