Performance Management Report on Bank Alfalah & Askari Bank

C:\mohsin laptop\d drive\Downlaods

PERFORMANCE MANAGEMENT REPORT

ON BANK ALFALAH & ASKARI BANK

SUBMITTED TO

MR. JAHANGIR ALI

GROUP MEMBERS:

MARIYA MAHER ------------------- ( 1235202)

SHAHBANO NASRULLAH -------------------(1235239)
MOHSIN RAHIM ------------------- ( 1235253)
MARYAM ZAHEER ------------------- ( 1235251)

SUBMITTED ON: 12TH APRIL, 2014

Performance Management Report on Bank Alfalah & Askari Bank

Table of Contents

Performance Management System:.............................................................................................................2

Askari Bank............................................................................................................................................3
Introduction:................................................................................................................................................3
HR Department:.......................................................................................................................................3
Organizational Structure:....................................................................................................................4
Performance Planning:................................................................................................................................9
Performance Monitoring:.......................................................................................................................10
Performance Evaluation:....................................................................................................................10
Introduction...............................................................................................................................................12
Human Resource Department of BAL...................................................................................................12
Organizational Structure...................................................................................................................14
Grade Structure..........................................................................................................................................14
Salary Ranges & Allowances for Officers and Executives....................................................................16
Forced distribution Ranking Method.........................................................................................................18
Evaluation..............................................................................................................................................18
Promotion Policy of Bank Alfalah Ltd...............................................................................................19
Recommendations.....................................................................................................................................19
Bank Alfalah..........................................................................................................................................19
Askari Bank...........................................................................................................................................20

Performance Management System:

Page | 1

Performance Management Report on Bank Alfalah & Askari Bank

Performance management is a holistic approach to optimizing human capital, which enables an

organization to implement short, and long-term results by building culture, engagement,
capability, and capacity through integrated talent acquisition, development, and deployment
processes that are aligned with the business goals. It is an ongoing, continuous process of
communicating and clarifying job responsibilities, priorities and performance expectations in
order to ensure mutual understanding between supervisor and employee. It involves clarifying
the job duties, defining performance standards, and documenting, evaluating and discussing
performance with each employee.

Askari Bank
Introduction:
Askari Bank Limited Formerly known as Askari Commercial Bank Limited. Askari Bank LTD
was incorporated in Pakistan on October 9, 1999 as a Public Limited Company and listed on the

Page | 2

Performance Management Report on Bank Alfalah & Askari Bank

Karachi, Lahore, and Islamabad stocks exchanges. The registered office of the Bank is located at
AWT Plaza, The Mall Rawalpindi. The Bank has 200 branches (2007: 150 branches); 199 in
Pakistan and Azad Jammu and Kashmir, including 18 Islamic Banking Branches, 11 subbranches and a wholesale bank branch in the Kingdom of Bahrain.
Bank is playing a leading role in the Banking sector with broad product lines & customer need
based services. Bank is operating with 200 branches in conventional banking as well as Islamic
banking moods of financing. Bank is leading the way to the most modern and dynamic banking
in the country.

The Vision: To be the bank of first choice in the region

The mission: To be the leading private sector Bank in Pakistan with an international presence,
delivering quality services through innovative technology and effective human source
management, in a modern and progressive organizational culture of meritocracy, maintaining
high ethical and professional standards, while providing enhance value to all our stakeholders
and contributing to society.

HR Department:
This section includes a summary of the HRM practices followed in ACBL and a detailed study of
Training and Development. The most important Division at the Head Office is responsible for
human resource management, including planning, recruitment, staffing, training & development,
compensation, performance management,

employee relation and evaluation.

The

division

also handles matters relating to administration that proves an integrative linkage (34) between
HRD and Administration.

Organizational Structure:

Page | 3

Performance Management Report on Bank Alfalah & Askari Bank

Compensation: Askari Bank places itself amongst the better paymasters within the industry
and continuously endeavors to improve the level of job satisfaction of its employees through
learning, development and making Askari Bank the best place to work.
Job Evaluation: Askari Bank shall assign a grade level to each job with relevance to the value
contributed by the role towards the achievement of organizational goals. The salary of
experienced employees may vary due to qualification, experience, past appraisals and nature of
skills. Minimum salary in different grades of fresh /non experienced staff shall be determined by
the President and CE on the basis of qualification, grading of the university and average salary
levels in the banking industry.
Salary Structure: Gross salary of an employee shall comprise of three (3) components, Basic
Salary, House Rent Allowance and Utility Allowance. In addition to the above, the employees
will be reimbursed Medical Allowance and Fuel/Conveyance Allowance as per entitlement, with
a monthly salary. Net Salary of an employee will be arrived at by deducting provident fund

Page | 4

Performance Management Report on Bank Alfalah & Askari Bank

contribution, income tax, loans installments, EOBI contribution and any other statutory
deductions from Gross salary.
Basic Salary
i. Basic salary of an employee shall be determined by the competent appointment approving
authority.
ii. On promotion to a higher grade, salary shall be fixed by giving an appropriate increase in the
basic salary, as approved by the competent authority.
iii. The annual increment will be on the basis of %age of the basic salary which will vary as per
performance rating of the employee and as approved by the competent authority.
iv. An increment cannot be claimed as a matter of right, but it depends on the discretion of the
Competent Authority. The Competent Authority may allow additional incremental on the basis of
performance.
v. As working guidelines, the HRD shall prepare minimum basic pay to be offered to a fresh
employee in a specific grade on the basis of qualification and the institution from where they
have been obtained. While for experienced candidates, pay can be fixed in any grade to
commensurate his/her experience and keeping in view previously drawn salary/market pay, as
approved by the competent authority. The guideline specifying minimum pay etc.; will be
finalized with the approval of HR Sub-Committee.

Other Allowances:
Reimbursement of Residential Telephone Expenses: The monthly telephone expenses for
residential phones shall be reimbursed on the production of telephone bills as per following
entitlement.
Grades
SEVP
EVP
SVP
VP
AVP

Monthly Limit
Rs.6, 000/Rs.3, 000/Rs.2, 000/Rs.1,000/Rs.860/-

House Rent Allowance: An employee shall be entitled to receive from the Bank a house rent
allowance @ 45% of the Basic salary.

Page | 5

Performance Management Report on Bank Alfalah & Askari Bank

Utilities Allowance: The utilities allowance for monthly gas, electricity and water charges
(Residential) etc. shall be admissible to all employees @ 10% of Basic Salary.
Medical Reimbursement: Reimbursement of Medical expenses shall be made in cash each
month with the payroll equivalent to 10% of the Basic Salary.
Fuel Reimbursement: Expenses incurred on fuel expenses shall be reimbursed along with a
monthly salary as per the premium fuel price during the month. Fuel expenses shall be
reimbursed subject to following monthly limits:
Sr. No.
1
2
3
4
5
6
7
8
9
10

Grade
SEVP
EVP
SVP
VP
AVP
MG
AMG
OG-I
OG-II
OG-III

Fuel in liters
650
500
400
350
150
120
100
80
70
60

Average rate of petrol during the month shall be applicable for reimbursement of fuel expense.
Special Allowance: An employee may be allowed a special allowance as may be determined by
the competent authority from time to time.
Additional House Rent on Transfer/ Relocation Allowance: An employee shall be entitled to an
additional house rent allowance/ relocation allowance as determined by the competent authority
on a case to case basis upon his transfer/posting from one city to another city subsequent to a
decision of the management, for operational and other reasons, made in the best interest of the
bank, provided that the transfer/posting is not effected on the request of the employee or on
grounds of discipline, and subject to following maximum limits:

SEVP
SVP/EVP
AVP/VP
Officers
Others

Married
Rs.60, 000/Rs.40, 000/Rs.25,000/Rs.15, 000/RS.8, 000/-

Unmarried
Rs.40,000/Rs.25,000/Rs.15,000/Rs.10,000/Rs.5, 000/-

Page | 6

Performance Management Report on Bank Alfalah & Askari Bank

Furniture, Fixture & Electrical Appliances for Executives
Entitlement: All executives shall be allowed to purchase furniture, fixtures and electrical
appliances for their residence as per following entitlement:
Grade
Senior Executive Vice President
Executive Vice President
Senior Vice President
Vice President
Assistant Vice President

Entitlement
Rs.280,000/Rs.230, 000/Rs.185, 000/Rs.140, 000/Rs.100, 000/-

Cash Handling Allowance:

All staff working full time in the cash department in the branches and handling cash shall be
paid cash handling allowance equivalent to Rs. 3,000/- per month.
Fixed Bonus
This type of bonus shall be rewarded equal to X number of Basic salary to all the regular
employees of the bank. Basis for Contractual staff shall be 50% of that of regular staff. The staff
who joins the bank during the year receive bonus as follows;

Those who join during 1st quarter shall be paid 100%

Those who join during 2nd quarter shall be paid 75%
Those who join during 3rd quarter shall be paid 50%
Those who join during 4th quarter shall be paid 25%

The fixed bonus shall be paid to an employee who retires from the service of the Bank during the
year on a prorated basis. This shall also be paid to the employee deceased during the year on a
prorated basis.
Variable Performance Bonus: In addition to regular compensation benefits to employees,
Askari bank provide for a Performance based Bonus. This policy is designed to fairly reward top
performers with variable bonuses to attract, retain, and appropriately reward talent making
Askari bank the employer of first choice in the marketplace.
This bonus is awarded to regular employees only and is determined on the basis of individual
performance during a year as determined through his/her performance evaluation. Star
performers shall also be identified during the performance appraisal exercise.

Page | 7

Performance Management Report on Bank Alfalah & Askari Bank

The performance bonus shall be linked to individuals performance rating. The grid for award
of performance bonus shall be approved by the competent authority each year and shall be
awarded after the finalization of performance evaluation exercise. Staff members who are rated
D & E shall not be considered for bonus while staff members rated C may be considered
depending upon the size of the bonus pool available for distribution.
Loyalty Awards:

On completion of 10 years of Service 50% of Basic Salary

On completion of 15 years of Service 75% of Basic Salary
On completion of 20 years of Service 100% of Basic Salary & 10 gram gold coins.

Performance management System:

This policy will allow Askari Bank to propose and agree upon development / improvement
initiatives and to reward staff members in line with their performance outcomes.
All Employees are required to go through the formal process of performance planning,
monitoring and evaluation according to the terms of this policy. It may be noted that the
evaluation part of the performance management process is carried out once at the end of each
financial year. In certain cases, the Bank may also carry out a mid-term performance review as
required. Two important points regarding performance management that need to be kept in view
at all times are:
a. Performance management is a continuous process and the yearly exercise of completing the
template is only a formal document and an agreement to this effect. In light of the same Line
Managers are required to continuously monitor performance and provide feedback and coaching
throughout the year instead of waiting for the year end.
b. Performance management is not a confidential or one-time personal assessment report of an
Employee by a Line Manager. Rather, it is a two-way exercise in which the Employee must
understand and also agree with his or her performance assessment ratings and performance
improvement objectives.
The Askari Bank Performance Management System is divided into three (3) main areas namely:
1. Performance Planning
2. Performance Monitoring

Page | 8

Performance Management Report on Bank Alfalah & Askari Bank

3. Performance Evaluation

Performance Planning:
Performance Planning involves following the conventions of a comprehensive PMS policy and
defining measures of performance through the incumbents job description, specific goals set for
the year, and behavioral capabilities needed for the job. During this stage, the line manager must
communicate the performance standards and weightings for the role using key accountabilities
and behaviors. This should result in a discussion with the jobholder jointly agreeing upon on
actions to meet role expectations. For the performance planning process, the following
documents are included as part of this report:
1. Defining JDDs A detailed write up defining Job Description Documents and explaining the
sections of their related JDD Template.
2. Job Description Document A form / template designed to capture all necessaryelements of
a unique role. HRD will provide all JDDs for each unique role in Askari Bank as agreed upon in
the new organizational structure.
3. Goal Setting Form A form designed to set goals that are based upon key accountabilities as
mentioned in the job descriptions for the ensuring evaluation period.
4. About Job Families A detailed write up on the job family concept and its application to
performance evaluation system.
5. Job Family Matrix A classification of Askari Bank Departments into job families and
details of both basic and advanced attributes associated with each job family.

Performance Monitoring: Performance monitoring involves monitoring performance of the

incumbent based on the above measurements throughout the year. This process involves
identifying performance gaps and taking remedial action through regular feedback and coaching
provided on a relatively informal basis. In certain cases, a mid-year performance review can be
conducted (after a 6 month period) using a shortened PMS form as mentioned below
Mid-Year Performance Review Template A form / template designed to document and
evaluate performance of Employees at the middle of the year. This template is generally used in
select cases for Employees who are placed on a performance watch list.

Page | 9

Performance Management Report on Bank Alfalah & Askari Bank

Performance Evaluation: Performance evaluation involves completing the PMS template
according to the PMS policy in which managers formally assess performance based on objective
grounds and provide relevant feedback and recognition to deserving candidates. Through this
assessment, improvement opportunities are discussed and agreed upon by the incumbent and
his / her supervisor. To complete the performance evaluation process, we have designed and
enclosed the following documents for Askari Bank:

Performance Management Policy

A formal write-up on Askari Banks performance management policy entailing both the theory
behind evaluation and details explaining sections of the correlating performance evaluation
templates usage.
Full-Year Performance Evaluation Template A form / template designed to evaluate
performance of Askari Bank employees between OG-III and SEVP grade levels. This template is
linked to the performance management system proposed by HRD in bringing about the major
change in the way reward and promotion is perceived. A separate Performance Evaluation
Template for Clerical/Non-Clerical staff is also developed.

Promotional Policy:
The criterion for promotion in the Bank is based on the following factors:
Performance Appraisal: The performance of each employee is established, based on the Annual
Performance Review. These reports contain a comprehensive list of character traits and the
performance evaluation against already set objectives business development and training targets.
Besides awarding Performance Rating to each employee, the Reporting Officer shall record his
opinion with regard to general profile, present performance as well as give specific
recommendations on suitability for future promotion or employment in a particular
vacancy/assignment besides ascertaining the ultimate potential of the Appraise.
While awarding marks for the Performance Rating, the Appraise shall be compared with other
employees of the same category at the entire bank level and not the branch level. This is essential
from the point of view of maintaining uniformity of efficiency at the bank level. Similarly, the

Page | 10

Performance Management Report on Bank Alfalah & Askari Bank

recommendations should also be in conformity with the marks awarded e.g. cases of promotion
should fall amongst A or a high B.
Other promotion criteria are: Educational Qualifications, Professional Qualifications,
Experience, Minimum Qualifying Service for Promotion, Marketing Achievements, Availability
of positions, Special Provisions, Accelerated promotions, Qualification improvement, Promotion
Approving Authorities.

Page | 11

Performance Management Report on Bank Alfalah & Askari Bank

Bank Alfalah
Introduction
Bank Alfalah Limited (BAL) was first established on June 21, 1992, under the Companies
Ordinance 1984, as a Public Limited Company. However, its operations began on November 1,
1997 in Pakistan. Since then, the bank has adapted and implemented various policies that have
helped it to strengthen its position and presence amongst various countries such as Pakistan,
Bangladesh, Bahrain and Afghanistan (www.bankalfalah.com).
Backed by the Abu Dhabi Group, the bank boasts of diverse board of management and driven
with the aim of growing continuously focuses its operations in commercial banking and has a
diverse portfolio of goods and services to offer to its clients. Bank Alfalah Limited currently has
over four hundred and six branches across a hundred and fifty-eight cities including seven
international branches and a offshore unit in Bahrain. The Bank added twenty new branches in
2011 alone. In Karachi, their head office is located at B.A.Building at I.I.Chundrigar Road.
Some of the associated companies of the Bank includes other industry bigwigs such as Warid
Telecom (Pvt.) Limited, Alfalah Securities, Alfalah Insurance Company Limited and Alfalah
Investment Management Limited.
The Vision of the Bank states it to become a premier organization at both local and international
level to provide all possible financial services under one roof.
The Banks Mission instates it to develop and deliver customer-oriented services that attain the
bank both profitability and market, while also garnering customer value and loyalty.

Human Resource Department of BAL

At Bank Alfalah Limited the human Resource motto is described as We are Struggling for
People. Like any other organization, HR department of Bank Alfalah acts as a vital organ to the
organization, it is also important to mention that the HR department at BAL acts as a strategic
partner to the bank, in fulfilling all its workforce related needs and functions. As this department
is specifically focused to carry out the following key functions of the organization

Conducting job analyses (determining the nature of each employees job)

Planning employee needs and recruiting job candidates

Selecting job candidates

Orienting and training new employees

Page | 12

Performance Management Report on Bank Alfalah & Askari Bank

Managing wages and salaries (compensating employees)

Providing incentives and benefits

Appraising performance

Communicating (interviewing, counseling, disciplining)

Training and developing managers and executives

Building employee commitment

Other Key Departments

Bank Alfalah Limited has various departments/divisions, a complete list of these includes

Strategic Planning & Global Marketing

Corporate Banking & Home Finance
IT Division
Credit Monitoring System
Credit Division
Systems & Operations
Legal Affairs Division
HR Division
Business Development Business
Finance Division
International Operations
Islamic Banking
Audit & Inspection Division
Cards Division
Administration

Page | 13

Performance Management Report on Bank Alfalah & Askari Bank

Organizational Structure
The organizational structure of Bank Alfalah Limited is as follows:

Compensation System of Bank Alfalah System

Grade Structure
Bank Alfalahs salary ranges provide a structure to which basic rates of pay is linked to various
positions. All the employees placed in these ranges are based on seniority level, current
responsibilities, and market value of these jobs. The constituents of a pay range are minimum
pay, maximum pay and a midpoint. Freshly appointed employees are given the midpoint salary,
which is usually considered as the market rate for the job in question. This salary usually falls in
the 60th to 65th percentile. As the employees become more experienced, their salaries are moved
above the midpoint, thus defining their level of seniority.

Page | 14

Performance Management Report on Bank Alfalah & Askari Bank

However, the decision of assigning the salary of any employee remains with the authorized
managers, which can be set at any point of the predefined salary range for the relative grade.
BAL salary ranges start with Range I (entry-level position) end with Range IX [Group Head/
General Manager level position]. These ranges reflect an individuals position, responsibilities,
size of the operation (Branch / Dept.) and scope of assignment. Based on these considerations,
various positions fall into BAL Salary ranges as follows:
Job Positions
Grades
Group Head/ General Manager
IX
Head of Division/ DGM/ Regional Manager/ Regional Heads/
VII - VIII
Product Heads
Senior Managers at HO and Group Offices/ AGM
VIII
Area Managers/ Zonal Managers
VI - VII
Branch Managers according to size of the branch

Team Leaders according to size of portfolio

Head of Department of Large Size Branch (Credit/ Trade

Finance/Operations Manager etc.)

National Sales Managers

Head of Large Department at Head Office Division

Head of Credits/Foreign Trade/Operations Dept. of Medium size

Branch

V VII

IV - V

Relationship Managers at SME

Dept Heads at HO with more than 5 years relevant experience

Head of Dept at Small size branch

Branch Sales Officer or Branch Sales Supervisor

Senior Officer at HO Divisions with more than 5 years of III - IV

relevant experience

Secretaries of Group Heads & GM

Credit Officer or Trade Finance Officer

CD In-Charge or Chief Cashier of Large size branch

Officers with more than 3 years of relevant experience ( Officers

III

at Head Office, Officers of Consumer Finance, Mortgages, SME,

Rural Finance, Leasing, General Banking, Operations, Cash, CD
In-Charge, IT, Accounts, Customer Service/ Relationship Officer
etc.)

Page | 15

Performance Management Report on Bank Alfalah & Askari Bank

Secretary with 5 years or more relevant experience

MTO (Post Graduates or foreign qualified)

Fresh Officers Post Graduates or 4 years BBA/BS etc

Officers who are Graduates with less than 3 years of relevant

experience (Officers at HO, Officers of Consumer Finance,
Mortgages, SME, Rural Finance, Leasing, General Banking,

II

Operations, Cash, CD In-Charge, IT, Accounts, Customer Service

Officer etc.)
Entry level position / Fresh Graduates / Cash/Operations Officer I

Salary Ranges & Allowances for Officers and Executives

Since the exact salary of each grade has not been shared by the bank for confidentiality issues,
apart from the starting basic salary of Grade I personnel, we have assumed the minimum and
maximum salaries for each grade. The organizational structure followed by Bank Alfalah is
narrow banded so the overlap and range limits have been applied accordingly (Range= 1.1;
Overlap= 0.4). The allowances are also assumed to the nearest possible percentages and amounts
for each.
(All Amounts in PKR)
House
Basic
Utility
Conveya
Allowanc
Drivers
Salary
Allowance nce
Furniture Telephone Cellphone
Grade
e
Allowanc
Ranges
(%
ofAllowanc
Allowance Allowance Allowance
(%
of
e
(Min-Max)
Basic)
e
Basic)
I

II

III

IV
V

2000042000
28000-

40%

10%

40%

10%

40%

10%

40%

10%

40%

10%

58800
3920082320
54880115248
76832-

3100

4650

6200

7750

17000

9300

17000

Page | 16

Performance Management Report on Bank Alfalah & Askari Bank

161347
VI

VII

VIII

IX

107565-

40%

10%

40%

10%

40%

10%

40%

10%

225886
150591316241
210827442737
295158619831

17000

45000

31000

20000

15000

50000

42000

30000

20000

55000

50000

40000

25000

Note: The formula used for basic salary calculation by Bank Alfalah is
Basic salary = 0.607 * Gross Salary

Performance Appraisal System

Through performance appraisal, organizations assess each of its employees in a systematic
manner. Where an employee performance is being measured against several factors including;
job knowledge, quantity and quality of output, loyalty, leadership abilities, cooperation, decisionmaking abilities etc. Performance appraisal is highly important for all the organizations because
it helps them to take decisions regarding; promotions, bonuses and incentives, employee training
and determining the future workforce needs of the organization.
Bank Alfalah Ltd. also uses performance appraisal system in order to enhance the efficiency of
employees. This system composes of setting targets or objectives in the beginning of the year, the
progress of which is then determined by the respective supervising officer on half-yearly basis.
Using the standard tools of performance evaluation such as appraisal forms, performance
assessment is conducted. This helps the HR manager of the bank in gauging the work standards
and employee performance, providing feedback and to eliminate performance deficiencies.

Appraisal Approach Adopted by Bank Alfalah Ltd

Page | 17

Performance Management Report on Bank Alfalah & Askari Bank

Forced distribution Ranking Method

Bank Alfalah uses the bell curve or forced distribution method to appraise their employees.A
forced

distribution

method

requires

rater

to

compare

performance

of

employees

and place a certain percentage of employees at various performance levels. It assumes performan
ce level in a group of employees will be distributed according to a bell-shaped or normal curve.
Their criteria are base on the performance of quantity of output, quality of output, timeliness of
output, presence at work and cooperativeness.
There is no favoritism and discrimination at any level in the performance appraisal system. BAL
uses 20-60-20 distribution the top 20 percent is rewarded for best performance, the middle 60%
employees are rated as average and the bottom 20% are trained for improvement.
Thus, this method of appraisal is regarded as important by many HR managers and is commonly
used by many organizations for rewarding the top performers and setting the specific deadlines
for the improvement of poor performers. However, this system has some drawbacks as well. For
example, the system promotes individual performance over teamwork and often leads to
dissatisfaction between average and poor performers.
Evaluation
Besides, following forced ranking distribution method, BAL has also developed their own
performance management process, which is performed biannually in the months of June and
December. This approach is named as evaluation approach in which manager conducts thirty
minutes interview with his subordinate to discuss about the projects and the goals that have been
assigned to them and then rates the employee according to appraisal form established at the start
of the year. Employees are aware of these evaluation criteria at the start of the year so that they
can improve performance according to criteria set by the bank.
This performance management process differentiates the employees as following three categories

Partially performing: if an employee does not achieve his goals in given period, he would

be rated as partial performing employee.

Performing: if an employee completes his work in the given time he would be rated as a

performing employee.
Excellent: if an employee is doing the work designated to him as well as showing
concern for other projects, he would be rated as an excelling performer.

Page | 18

Performance Management Report on Bank Alfalah & Askari Bank

After this, evaluation process is carried out where the employees who lie among the performing
and excellent rank are given bonuses and only excellent employees are given performance
bonuses as for their good performance. These are given to appreciate employees and to motivate
partially performing and performing employees. After the completion of evaluation process
manager discusses or provides feedback to the employees.

Promotion Policy of Bank Alfalah Ltd

Promotion to higher grades depends upon operational needs based on current assignment of the
incumbent. The other important reason for promoting employees is to reward the high
performing individuals, as and if the organization is itself growing, as the growing organization
as BAL. The process of promoting employees the chosen employees is finally determined
through an interview process conducted by the respective departments head and the HR
representative illustrated as below.
For promotion to
1st Interview
2nd Interview
3rd Interview
Ranges II, III, IV, V BM / Dept. Head
AM/ RM/ Div. Head/ GM/ GH Ranges VI and above BM / Dept. Head
AM/ RM/ Div. Head/ GM/ GH Panel
GM HR, Co-Chairman Executive Committees / CEO duly approve all promotion

Recommendations
Bank Alfalah
The current compensation and performance management structure is quite good but definitely,
there is a room for improvement, which helps BAL in reducing its employee turnover rate and
increase employee loyalty and dedication towards the achievement of organizational goals.
Therefore, there are some recommendations defined below for BAL:

Since BAL has different job families, so the organization should adopt such pay structure
which is based on different job families that can define a varied salary pattern of the
organization in the market.

Secondly, in order to minimize the tall hierarchal structure of the organization and bridge
the distance between the employees and employers BAL should adopt broadband grade
structure.

The performance appraisal system of BAL is based on two methods forced distribution
method and evaluation method both these methods are good enough to evaluate the

Page | 19

Performance Management Report on Bank Alfalah & Askari Bank

performance of its employees but the constant feedback from the supervisors has been
observed to be absent to the employees regarding their performance. This feedback is
important as it helps the employees in improving their performance which in turn
enhance the organizations performance.

Bank Alfalah doesnt have any goal setting policy for their performance evaluation
system, like Askari Bank, who has developed and communicated clear policies about
their performance structure and evaluation systems.

Therefore, in order to retain the qualified, talented, competent and motivated staff in the
organization to operate their business activities effectively, a good recommendation to
BAL is to timely modify its compensation and performance appraisal system as per the
changing market trends.

Askari Bank
Comparatively, Askari Bank has a proper outlined and structured PMS then Bank Alfalah.
However, some key recommendations for improvement are listed as follows:

The bank places great importance on performance monitoring phase in its annual
evaluations. The parameters outlined by the management for this phase includes the
employees having to discuss and set their own goals or targets for the upcoming year with
their line managers and update and get them signed from them on the goal setting form.
Although, the goals and targets can vary afterwards, for which they need to fill in/update
their old or new forms and get it signed in by their line managers again. This is a tedious
process and should be altered or be upgraded from paper to automated filing.

The PMS of the bank places great emphasis to evaluate performance based on the targets
achieved by an employee. A significant lack of emphasis made on evaluating the
behavioral traits has been observed. Thus, it is recommended that the management
incorporates or considers the behavioral aspect of the employee during their performance
appraisal and evaluation.

Page | 20