Performance Management System

HABIB BANK LIMITED

By

ARSLAN ALI

HBL was the first commercial bank to be established in Pakistan in 1947.

The largest private sector bank with over 1,450 branches across the country

Customer base exceeds five million relationships.

51% of the shares are owned by AKFED, 42.5% by Government of Pakistan and 7.5% by General Public.

Key areas of operations encompass product offerings and services in Retail and Consumer Banking

Introduction

HBL established operations in Pakistan in 1947

First international branch was established in Colombo, Sri Lanka in 1951

Holds the domestic market share of 40%

Nationalized in 1974

In 2003, AKFED purchased the rights to 51% of the shareholding, against an investment of PKR 22.409 billion.

THE HISTORY

Vision

“Enabling people to advance with confidence and success”

Mission

“To make our customers prosper, our staff excel and create

value for shareholders”

Excellence

Integrity

Customer Focus

Progressiveness

Meritocracy

VALUES

Board of Directors Sultan Ali Allana

Chairman R. Zakir Mahmood

President & CEO Sikandar Mustafa

Director Sajid Zahid

Director Ahmed Jawad

Director Mushtaq Malik

Director Moez Jamal

Director

HUMAN RESOURCE MANAGEMENT DEPARTMENT

HRM department plays an important role in value of any company.

HBL has very active and one of the best HR department in Pakistan as well as world wide.

The total staffing in HBL is 23022.

The StructurePresident

Board of Directors

10 SEVP

29 EVP

154 SVP

420 VP

831 AVP

2350 OG-I

4108 OG-II

3364 OG-III

10658 clerical/non-clerical employees

THE HR MANUALThe HR manual contains five major processes

Selecting and Recruiting

Training and Development

Performance Appraisal

Compensation

Employee Relation

Selecting and Recruiting

TRAINING & DEVELOPMENT

For training and developing HBL follows five steps process

Need Analysis

Instructional Design

Validation

Implementation

Evaluation

Performance Appraisal

Evaluating an employee’s current and past performance relative to its performance standards is called performance appraisal.

Performance Management

A process that consolidates goal settings, performance appraisal, and development into a single common system to ensure that employee’s performance is according to company’s aims is called performance management.

Performance management and appraisal at HBL

At HBL, performance management and reward systems ensure that goals are met in an effective and efficient manner.

HBL defines a clear path for employees to contribute to the organization’s overall goals, peppered with regular reviews and feedback to help them gauge their progress.

At HBL, growth is not a function of time but rather of performance.

As employee’s performance improves, the role that he plays within the organization will accelerate to reflect his input.

Performance Appraisal form of HBL

HBL’s performance appraisal form contains two sheets

Form B2

Form B3

Form B2There are two main headings in form B2 i.e.

level of achievement points.

Level of achievement points contain five points ratings

• A (4), • B (3), • C (2), • D (0-1) • N/A.

Areas/Factors

It contains five types of factors which are:

A-Productivity

B-Individual \attributes

C-Technology

D-Customer Service

E-Personal

Area A-Productivity Job knowledge

TD clearing/Bills Ledger Posting

Timely Lodgment of Clearing

Followed Return unpaid cheques

Nothing of Stop Payment Instruction

Volume of Work Handled

Accuracy & Attention to Detail

Willingness & Ability to work with other units/people

Ability to write Effectively

Adoptability of new assignments

Deposit Mobilization /saving/current etc.

Number of fresh accounts arranged

Reduction in customer complaints

Hajj application target

Accuracy in counting/cash handling & counting speed

Receiving of payments of utilities

Dispatch of requisite statements

Maintenance of guns in order

Zero theft

Delivery of letters/mails in time

Quality of work

Speed of work

Filing and record keeping

Typing/data entry speed

Typing/data entry accuracy

B-Individual Attributes Professional/technical knowledge & competency

Initiative (eagerness to learn, enlarge knowledge)

Reaction to responsibility

Sense of responsibility

Oral communication Ability

Written communication ability

Sorting of notes

Cash excess/shortage situation

Performing under pressure

Ability to work without supervision

Willing to work after office hours

C-Technology

Knowledge of computer

Knowledge of internet & E-mail

D-Customer

Courtesy to Customer

Creative response to customer needs

Business sense (maximum revenue/ minimum cost)

E-Personal

Health & energy

Appearance

Integrity & loyalty

Grooming

Manners of speech

Attitude

Intelligence

Leave record

Attendance 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.

Form B3

This form contains two boxes

Development Plan/ Supervisor comments

Overall assessment box

Compensation

At HBL, compensation and benefits strategy combines the need to maintain a high performance culture along with market competitiveness.

Each employee gets benefits and compensation according to performance, not according to seniority.

Employees are paid in two forms:

Direct payments

Indirect payments

Employee Relation Involves the body of work concerned with maintaining employer-

employee relationships that contribute to satisfactory productivity, motivation, and morale.

The environment at HBL is cultural, ethical and challenging that that encourages creativity and commitment among employees.

HBL believes in two skills for employee relation:

Interpersonal communication

Conflict management

Critical Analysis Annual performance management system

Employees are evaluated by the supervisors only; not by customers, co-workers or by themselves.

Chances of personal biasness.

No feedback mechanism.

Weaker checks and balances.

The decision makers rely mostly on the reports given by immediate supervisors/managers.

Promotions/compensation decisions are made through result-oriented approach.

Not enough HR staff to effectively handle this large workforce.

Subordinates cannot appraise the superiors.

Employees from smaller branches do not have direct linkages with HR department.

Promotion is a slower and time taking process and depends a lot on supervisor’s approval, not solely on performance.

HR manual is not followed strictly when it comes to promotions and benefits.