MARYAM JABEEN

8/3/2019 MARYAM JABEEN

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IN THE NAME OF ALLAH THE

MOST GRACIOUS THE MOST

MERCIFUL


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GROUP # 2GROUP MEMBERS

MARYAM JABEEN BE-08-18

AMINA ARSHAD BE-08-22

NIMRA KABIR BE-08-54


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Definition of a PerformanceAppraisal System:-

A performance appraisal system is an integral employee practice of themacro human resources (HR) framework of an organization. It is a formaland at times informaland documented process of the performance of workers, professionalsand other staff members of an organization

All professionally managed businesses and enterprises have

performance appraisal systems to measure the intrinsic worth and workperformance of employees and encourage, motivate and reward thembased on their performances.


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Significance:-

It is part of HR planning process of an organization. Well-defined structures, frameworks and procedures define aworkable and effective performance appraisal system.

A systematic and timely use of the system reflects the

commitment of business owners, enterprise topmanagement and HR personnel toward their employeesand extended workforce.

Its deployment and usage involves detailed and periodicassessment and grading of an employee's overallperformance, future potential, organizational commitmentand the resulting promotions and rewards.


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HR Department's Strategic Role in performanceappraisal and reward system:-

HR personnel and occasionally external HR managementconsultants devise the structured templates i.e

employee evaluation worksheets detailed questionnaires and other

performance evaluation documents.

1

2

Business unit managers, supervisors and other projectleaders formally assess the employees along with the HR

team. Rewards, revised compensation packages,incentives and pay raises are then given based on therecommendations and reviews of respective managers.


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ORGANIZATIONALBENEFITS:-

showcases theprofessional working

standards andgovernance ethics of an

organization.

keep employeescompetitive and

committed towordstheir responsibilites.

checks-and-balances systemkeep employees

motivated.

People focus onkey

responsibilities

and priorities.

minimize wastedeffort by keeping

people focused onobjectives and best

practices.


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selfappraisal

one-to-one

appraisal

team

basedappraisal

180 and

360degreeappraisal

thirdparty

appraisal

Types of appraisal schemes:-


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defining objectives within an organization so thatmanagement and employees agree to the objectivesand understand what they need to do in the organization

important part of the MBO is the measurement and thecomparison of the employees actual performance withthe standards set.

Management by

objectives

also known as multi-rater feedback,multisource feedback, or multisourceassessment, is feedback that comesfrom all around an employee.

360-degreefeedback

These are scales used to rate performance .BARS are normally presented vertically with scalepoints ranging from five to nine. It is an appraisalmethod that aims to combine the benefits ofnarratives, critical incidents, and quantified ratingsby anchoring a quantified scale with specificnarrative examples of good, moderate, and poor

performance.

Behaviorally Anchored

RatingScales

(BARS)

Methods of performance appraisalsystem:-
http://en.wikipedia.org/wiki/Management_by_objectiveshttp://en.wikipedia.org/wiki/Management_by_objectiveshttp://en.wikipedia.org/wiki/Management_by_objectiveshttp://en.wikipedia.org/wiki/Management_by_objectiveshttp://en.wikipedia.org/wiki/Management_by_objectiveshttp://en.wikipedia.org/wiki/Management_by_objectives


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Definition of Reward system:-

A well-designed system that attracts and retainscommitted employees who work hard to achieve yourbusiness goals because they see the connection between

their future and the future of the company.

A reward system, in isolation, can serve operational needsbadly.

Rewards influence behaviour, attitudes, job satisfactionsand performance.


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Monetary Rewards:-

Typical rewards are money in a form of a bonus, tripspaid for by the company, gifts from a rewards catalog, orservices such as cell phone or paid cable.given onmeeting sales goals, achieving quality, outstandingperformance.

Non-Monetary Rewards:-

non-monetary rewards are movie tickets, restaurantcoupons, certificates, thanks from the bosses, flexibleschedules.given for going above and beyond as a teamplayer, perfect attendance, or learning a new skills.

Other Rewards:-

are a parking space, corner office space, personalizeditems (brief cases, day planners), shirts, jackets, andemployee discounts.

Classification of reward system:-


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Reward Management Theory:-

Reward management involves defining,facilitating, and encouraging performance.

The positive effects a successful RM system canprovide to employee performance and in turn

organisational success and competitive advantage areclear.


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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 tosupport the company in return for the benefits the company provides.

Total rewards involve the combination of five essential elements needed tomotivate, attract and retain employees needed to accomplish theorganizations goals.They are:

Employee Compensation

Employee Benefits Employee Work-life Balance Employee Performance and Recognition Employee Development and Career Opportunities


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Introduction to State Bank:-

Central BankNationalization in 1974

Simple Central Banking FunctionsHuman Resource Research anddevelopment


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To strategically align HR function with the vision and missionof restructured SBP- the recruitment,promotion and

performance management policies have been revised andstreamlined keeping in view market challenges, managementfocus on performance and aspirations of the employees.

The services of National Testing Services (NTS) have beenprocured for bulk recruitment at entry level.

Global technical services were outsourced to an IT firm andvarious executive search firms have been engaged for

recruitment of senior professionals in area of Housing and Infra-Structure, Finance.

Recruitment process has been significantly simplified bydeveloping a webbased recruitment system.

HR Policies and Recruitment :-


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Human Resource Functions Performed in StateBank

Planning and Development Recruitment HRIS

Performance and Management Compensation and benefits Employee Relations


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Compensation and benefits Provided :-

Job Security

Training in NIBAF(national institue of banking and

finance)

Training Abroad (15% Top)

Promotion at SBP

Internship Programs


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MARYAM JABEENBE-08-18


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PERFORMANCE APPRAISAL SYSTEM IN STATE BANKOF 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.


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BELL CURVE DISTRIBUTION

OFFICER GRADE 2 AND ABOVE

Performance Category Quota

A 15%

B+ 25%

B 50%

C 10%


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PERFORMANCEDUETO PRESSURE.


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Tools forPerformance

Appraisal

Bell CurveSystem

RewardsSources of

Information ForAppraiser

360Degree

Feedback

Self

Appraisal

Appraisers

Experien

ce


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Tools for performanceAppraisal

Orientation sessions for thesupervisors

STAR FormPerformanceManagement

Form 2

PerformanceManagement

Form 1

AppraisalInterview.


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PMF 1 Byappraisee

For thepurpose ofgoal setting

STAR FORM

InformalDocument

For recordingthe out

performance


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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 Background or context in which the person took action.

Action/ Behavior 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.

Result 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.


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APPRAISAL INTERVIEW

Informal half an hour interview which is conductedby supervisor once an year at the end of the givenperformance period

To appreciate achievement of the appraisee,

To identify the performance gaps and submits thePMF2(form filled by the appraisee about the actualaccomplishments of the individual during theappraisal period)

Manager gives the reasoning for the extremeranking.


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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


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Performance Rating

GoalsRatings Rating Description

4.51 to 5.00 Outstanding Consistently outperformedagreed goals

3.51 to 4.50 Very Good

Outperformed some of theagreed goals

2.51 to 3.50 Good Met all agreed goals

1.51 to 2.50 NeedsImprovement Met some of the agreedgoals

0 to 1.50 Unsatisfactory Did not meet agreed goals


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Calculation-Goals rating

Key

Goals

Weight (%)

1

2

3

4

5

50

20

10

10

10

5

2

2

4

3

2.5

0.4

0.2

0.4

0.3

3.8

Weighted RatingRating

100


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COMPETENCIES ASSESSMENT-

30

Appraisee: Officer Grade II

Competencies Rating

1 Achievement Orientation 2

2 Teamwork 5

3 Communication Skills 3

4 Customer Service Orientation 2

5 Accountability 3

6 Applying Knowledge5

Total 20

Average(Total / 6) 3.33

RATING PERFORMANCE


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RATING PERFORMANCE-RATIOOF COMPETENCIESAND GOALS

This equation applies for all the grades

60%goal

basedrating

40%competenc

y basedrating

FinalRating


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REWARDS SYSTEM

Annual Merit Increases: Increments in the salarywhich are revised after every year to retain thehighly motivated people.

Officer Grade 2 and above

PerformanceCategory

Quota Annual MeritIncreases

A 15% 16

B+ 25% 12

B 50% 9

C 10% 5


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OTHER REWARDS

Free Medical Services for employees andemployees family

Fifteen Day Annual Paid Recreation holidays for theemployees.

Bonuses on the basis of recent performances areoffered to reinforce the desirable behavior.

Promotions

Training Abroad Recognition Rewards


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REWARDAND 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, E-

mails, letters


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Level 2

Departmental commitment rewards

Cash award of 5000/-Rs.

Recognition certificate

Department wide recognition


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JOBSATISFACTIONANDPERFORMANCELEVEL

Primary interest of employees

Employees basic needs to survival andsecurity.

Acceptable salaries and workingenvironment.

Appropriate job security assurance.

Participation in job-related matters.Adequate working relationships with

managers and co-workers.


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Open door policy

Employee Turnover

Employee Turnover rates in FY10 stood at

3.27 percent, with a total of 10 earlyretirements and 20 resignations during theyear. The resignation rate stood at 1.42percent, decreased from last years rate of

1.66 percent of the workforce.


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SWOT Analysis


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STRENGTHS

Changes in organization culture

Improve the quality of HR

Organizational restructuring and

realignment of operational activitiesRaise quality of service standards

General Services Department

Career development opportunitiescompetitive compensation strategy


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An increase of 10 percent was allowed in themonetized salaries to all the serving employeesacross the board in order to compensate them forinflation.

House building loan


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WEAKNESSES

Biasness

Wrong performance picture

Misleading information

Grouping Deviation from goals


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OPPORTUNITIES

Introduction of automatic system

Incentives on regularity, making attendance as a keymeasure of performance.

The introduction of supervisors belonging to differentdepartments or externals to supervise the data.


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THREAT

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


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RECOMMENDATIONS

The feedback from employees about thestrategies of performance appraisal and ofreward system.

The biasness factor should be eliminated. Inter-employee relationships should be

encouraged.


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Documents

MARYAM JABEEN