PERFORMANCE APPRAISAL AT ALLIED

BANK LIMITED

Submitted To:
Major Nauman Majeed

Submitted BY:
Muhammad Adnan Anwar 8151
Affan Ihsan 8166
Wajid Hussain Shah 8116
Mateen Arslan 8115
Atif Ehsan Ullah 8158
Saqib EHsan Ullah 8160
Sajid Altaf 8120
Ahsan Nawaz 8147

Superior University Lahore

1
 DEDICATION

We dedicate this project to our Performance teacher, Major Nauman Majeed and
to Our Parents who was the source of Motivation and inspiration through out of
this project.

2
 ACKNOWLEDGEMENT

Thanks to Al-mighty Allah who bestowed us the capability and opportunities to

complete this Project, and thanks to our Performance teacher Major Nauman
Majeed who teaches us so well that we are able to make this project.

3
 TABLE OF CONTENTS

PERFORMANCE APPRAISAL 6

PURPOSE OF APPRAISAL SYSTEM 6

APPRAISER LEADERSHIP ATTRIBUTES 7

APPRAISER AT ABL 7

TIME FOR THE APPRAISAL SYSTEM 7

PERFORMNACE APPRAISAL SOFTWARE 8

PROMOTION CRITERIA 8

PERFORMANCE APPRAISAL CRITERIA 9

METHODS FOR PERFORMANCE APPRAISAL 10

RATING SCALE 10

CHECKLIST 10

MANAGEMENT BY OBJECTIVE 11

PROCEDURE FOR CONDUCTING APPRAISAL INTERVIEW 11

LEGAL & ETHICAL ISSUES IN APPRAISING EMPLOYEES 12

FACTORS AFFECTING THE APPRAISAL PROCESS AT ABL 12

4
PERFORMANCE APPRAISAL AT ALLIED
BANK LIMITED

5
 PERFORMANCE APPRAISAL
Appraisals are the fact of organization life.

“Performance appraisal is a formal periodic review that allows an

organization to measure and evaluate an individual employee’s behaviors and
accomplishments over a specific period of time”

Hiring the best employees and training them does not ensure that
employee give their best performance. To ensure this, organization must keep a
check on their performance. This check on an employee’s performance can be
kept through performance appraisal.

In ABL the performance appraisal process has a significant and critical

importance as major decision regarding promotion, transfers, a compensation&
benefits for the identification of training & development needs are taken on the
basis of this performance appraisal.

PURPOSE OF APPRAISAL SYSTEM

ABL uses the appraisal system for:

 Assessing the employee’s performance.

 They follow principle of pay for performance in their organization.
 They also Review and fill the performance gap of employees
 For training and development needs
 Compensation and benefits
 Succession planning
 Decisions regarding promotion, transfers

6
 APPRAISER LEADERSHIP ATTRIBUTES

Supervisor or appraiser behavior may be more important than the format

used in the performance appraisal system. Appraisers who act like leaders in
their organization are more likely to experience successful results from the
appraisal system than will appraisers who behave as non-leaders.

Leaders can model desired behavior and prescribe behavior sought from
staff. This modeling carries the advantage of organizational prestige and power
associated with the position.

APPRAISER AT ABL

In ABL branch manger is responsible for filling the performance appraisal

forms of employees on the recommendation of the head of department of each
branch. The employees are not involved in the appraisal process.

TIME FOR THE APPRAISAL SYSTEM

ABL appraises the employees once in a year in December. And at that
time, they give very serious concentration regarding performance appraisal of the
employees. Performance appraisal is not done for the new employees only those
employees who have provided their services for more then one year in the bank
are appraised. All the employees at ABL are appraised at the same time that is in
December no matter when the employee has joined the bank. The only condition
for the appraisal period is the tenure of services of the employees for the
company must be at least one year.

7
 PERFORMNACE APPRAISAL SOFTWARE
ABL uses a database system that keeps important information about
employee’s performance appraisals forms. There is no specific software which
can evaluate the performance of the employees thought the year and then fill the
appraisal form. The appraisal forms are filled manually by the branch manager
and then they are stored in a file the information in the data base system of the
appraisal forms is related with the employees.

PROMOTION CRITERIA
In ABL according to management there is only one major criterion for
promotion of employees

 Performance
 Time span
The concept of performance is emphasized and the promotion and career
development path is based on Performance of the employees, those who perform
outstanding and according to expectations of the management have better
chances of promotion and increase in their salary bank requirement means that
the company requires particular skills and competencies and its strategy demand
certain people to be promoted.

A second criterion for promotion in ABL is tenure of services provided by

the employee. In this criteria the promotions are given to the employees
according to their ranges according to our information provided by the hr
manager in ABL is that the range 1-3 officers get promotion after completing their
tenure of services in bank for 2 years, range 4-6officers get promoted after 3
years of their services plus depending on their performance and range 7-9 get
promotion as recommended by the head office in Karachi.

8
 PERFORMANCE APPRAISAL CRITERIA
The areas and criteria focus in performance appraisal process are of
following.

Skill:

The degree to which the job requires the person to perform different tasks
and involves the use of number of different skills, abilities and talents.

Job Related Knowledge:

Whether the employee has the maximum knowledge of his Respective job
duties.

Behavioral competencies:

Whether the attitude of the employee is positive or not.

While conducting the performance appraisal, each employee’s

performance is compared to predetermined standards and expected levels of
output. Thus it is determined that to what extent the respective employee has
been able to achieve its target. Good performance is a key criterion for
promotions in ABL. Simultaneously the concept of pay for performance is
emphasized and being practiced in the bank, which is considered to be a
motivational, tool being acquired by the bank. Thus those who perform to the best
of their knowledge and abilities and according to the expectations of the
management have better chances of promotion and increase in their salary.

9
METHODS FOR PERFORMANCE APPRAISAL
ABL use different techniques for assessing employee’s performance and
performance appraisal form are made at corporate level. They use following
techniques:

♦ Rating Scale
♦ Checklist
♦ Management by objective

RATING SCALE
In ABL rating scale is the oldest and most widely used method of appraisal
for their employees. In this method, they evaluate employees job related aspects
i.e. work skills like record keeping and solve queries and also employees
personal characteristics which includes Cooperation, loyalty, dependability,
attendance, honesty, integrity, attitude, initiative, written and interpersonal
communication.
This rating scale is used for measuring “quantity of work and quality of
work”.
To use the rating scale, the assessor goes down the number of traits and a
range of performance for each the employees is then rated by identifying the
score that best describe his or her level of performance for each trait.
According to ABL, this method is
 less-time consuming to measure performance
 It provides a quantitative analysis as well as qualitative data.

CHERKLIST
The second technique used in the performance appraisal is checklist.
Some pre determined task and responsibilities are kept in a written form by the
management and a copy of that is provided tot the employee who has to perform

10
those task in a given span of time and the tasks done or performed successfully
add points to the appraisal forms.

Management by objective
A third technique used in the performance appraisal method is
management by objective. The performance of the employee is rated according
to the goals and achievements achieved by the employees during the appraisal
period .the larger weight age in the appraisal form regarding the performance of
the employee is provided thorough this technique.

PROCEDURE FOR CONDUCTING

APPRAISAL INTERVIEW

In ABL, Appraiser conducting appraisal interview before the filling of the

appraisal form. In this interview branch manager ask the employees what they
are expecting from the bank after their performance appraisal form is signed by
the employees before it is filled by the branch manager. The performance
appraisal interview is to make plan to remedy deficiencies and reinforces
strengths and also reviews the extent to which objectives have been achieved.
They also analyze the reasons, why the objectives have not been achieved. They
have written record of this discussion. The appraisal interview is conducted on
individual basis and it is kept confidential.

11
 LEGAL & ETHICAL ISSUES IN APPRAISING
EMPLOYEES
The legal issues involved in the appraisal process in ABL is that their
registration will be cancelled by the state bank of Pakistan if they don’t conduct
the appraisal process for the employees .this condition is must for every bank
operating in Pakistan. The state bank of Pakistan audits each private bank for
their practices regarding appraisal process.
The ethical issue faced by ABL in the appraisal process is the dissatisfaction of
the employees after their appraisal. As the hr manger told us that not even a
single employee is satisfied with the appraisal system of the bank .every
employee puts his heart in the work so he expects high reward from the bank
side but his expectations are not met.

FACTORS AFFECTING THE APPRAISAL

PROCESS AT ABL
Following are the factors which seem to affect the appraisal process at ABL

 Legal requirements by the government

 Motivation of the employees
 Ethical responsibility of the bank
 Competitive niche
 Global consideration
 Retention of employees
 Employees’ expectations

12