2017

Performance Management
System at NBP
Group Members

SUKKUR INSTITUTE OF BUSINESS ADMINSITRTAION

Letter of Acknowledgement

We are writing this to pay our gratitude to our respected instructor Sir Qamaruddin Maitlo who
assigned us such a learning oriented project to compile the long report on performance management
system at NBP. This project has only been possible due to the continuous support, encouragement
and guidance of our respected instructor.

We would also like to thank Sukkur IBA who provided us the required resources and required facilities
to complete the project effectively.

We would also like to mention that the project is the fruit of mutual support and teamwork of the
members of the team.

Submitted to: Respected Sir Qamaruddin Maitlo Performance Management

Contents
Letter of Acknowledgement ................................................................................................................... 1
1.1 History of National Bank of Pakistan…………………………………………………………………………………………. 4

2.1 HR Values……………………………………………………………………………………………………………………………………5

2.2 Performance Management Objectives ............................................................................................. 5

3.1 Performance Management Review .................................................................................................. 8
3.1.1 Top-Down Review .......................................................................................................................... 8
3.1.2 Peer – Review Process .................................................................................................................. 8
3.1.3 360 Degree Feedback..................................................................................................................... 8
3.1.4 Self Assessment ............................................................................................................................. 9
4.1 Analyzing Performance Problem ...................................................................................................... 9
5.1 Performance Management System ................................................................................................ 11
5.1.1 NBP Improvement Plan ................................................................................................................ 11
5.1.2 Performance Planning.................................................................................................................. 13
5.1.3 Performance Execution ................................................................................................................ 13
5.1.4 Performance Review .................................................................................................................... 14

Submitted to: Respected Sir Qamaruddin Maitlo Performance Management

Submitted to: Respected Sir Qamaruddin Maitlo Performance Management
Submitted to: Respected Sir Qamaruddin Maitlo Performance Management
HR Mission

Submitted to: Respected Sir Qamaruddin Maitlo Performance Management

1.1 History of National Bank of Pakistan:
National Bank of Pakistan (the bank) was incorporated in Pakistan under the National Bank of
Pakistan Ordinance, 1949 and is listed on all the stock exchanges in Pakistan. It is registered
and head office is situated at I.I. Chundrigar Road, Karachi.
The bank is engaged in providing commercial banking and related services in Pakistan and
overseas. The bank also handles treasury transactions for the Government of Pakistan (GOP)
as an agent to the State Bank of Pakistan (SBP).
The bank operates 1,243 (2007: 1,232) branches in Pakistan and 22 (2007: 18) overseas
branches (including the Export Processing Zone branch, Karachi).
NBP (Formerly National Bank of Pakistan) has a solid foundation of over 63 years in Pakistan,
with a network of over 1349 branches, over 750 of which are Automated Branches, over 500
NBP ATMs in 41 cities nationwide and a network of over 12 banks on the MNET ATM Switch.

Overseas Branch Network:

Paris, Frankfurt, New York, Washington D.C., Tokyo, Osaka, Hong Kong, Kowloon, Seoul,
Bahrain, Dhaka, Chittagong, Ashgabat, Bishkek, Baku, Kabul, Jalalabad and KEPZ Offshore
Banking Unit

Nature of the Organization

National Bank of Pakistan is a Governmental Organization. It is functioning as an agent of
State Bank of Pakistan. It implements the policies of SBP. It basic objective was to extend
credit to the agriculture sector. It is the major business partner for the Government of Pakistan
with special emphasis on fostering Pakistan's economic growth through aggressive and
balanced lending policies, technologically oriented products and services offered through its
large network of branches. It deals all Govt Revenue, collection and payments of salaries,
pensions and Govt Treasury. It is a complete commercial, retail and corporate bank as well.
National Bank of Pakistan is naturally a Financial Organization, which deals with lending, and
borrowing and investing activities.

National Bank of Pakistan serving following product lines:

1. National Bank of Pakistan Saiban Scheme
2. NBP Advance Salary Scheme
3. National Bank Cash Gold Scheme
4. National Bank Kisan Dost Scheme
5. National Bank Premium Aamdani Certificate Scheme
6. NBP Karobar Scheme

Submitted to: Respected Sir Qamaruddin Maitlo Performance Management

 Human resource Management at NBP
HR Mission:
Provide more talented Human Resource in all NBP functional areas in relation to competition

keep motivated all the employees and maintain total industrial harmony.

2.1 HR Values:
We believe that

 People make the organization

 People collectively yield results
 People have ambitions and aspirations to be distinguished and rewarded
 People form the human capital to be developed and invested in.

Performance Management Objectives:

The main objectives of performance management at NBP are discussed below:

 To get agreement for achieving the objectives and organisation

 To keep the employees toward the achievement of good performance at workplace.
 To support the employees in clearly identifying the required skills and competencies
that performs the job effectively and efficiently as it would keep employees to perform
the work on right time.
 To increase the employee performance can commitment by encouraging employee
motivation, empowerment and implantation of a good performance management.
 To create an environment of a two-way communication between employee and
immediate manager and clarifying the all expectations from the employees.
 Identifying the hidden barriers that detract the employees from performing well and
help the employees by mentoring, coaching and developing to enhance the personality.
 Strong support from the colleagues, managers and form the organizational culture itself
to grow the employees by giving the opportunities to make them productive
 Set standards, criteria and indicators to make sure the employees performance in
aligning with the organizational goals and objective
 Developing a basis for several strategic decision making, succession planning a
performance based pay system in the bank to ensure transparency and accountability.

Submitted to: Respected Sir Qamaruddin Maitlo Performance Management

  To promote personal growth and career advancement to make them the valuable asset
for the motivated workforce.
 Agree on feedback mechanism (formal or informal, use for administrative purpose)
 To consider the personal vision and short term and long term goal of employees

3.1 Performance Management Review

Employee review process depends on the type of job description and how much the dealing
with the customer involve other than the management work so following are the employee
review process:

3.1.1 Top-Down Review

It is the most important is employee’s assessment from the top down approach because the
immediate supervisor is responsible for giving the direction to employee and provide the
opportunities for learning new skills and capabilities and asses training needs to be more
productive in performing job better to be competitive in organization and market as well.

Putting a direct supervisor in assessing employee performance is prevailing in assessing the

correct performance and identify the gap because immediate supervisor can provide true
feedback about performance lacking. The whole assessment depends on meeting the annual
objective of the bank and it vary with job to job and employee to employee because each person
varies with skills and capabilities.

3.1.2 Peer – Review Process

At this review, employee performance is assessed by it co-worker although its very effective
because peers are the major source of getting the information about the task and they can be
better aware about challenges of the task and required skills and capabilities for job and can
judge better than the person from the top down or any competent authority.

The problem is attach with this peer review is that it involves the biasness of employees and
make the rating poor because in competition employees are being jealous with each other.

3.1.3 360 Degree Feedback

In a 360-degree feedback employees are assessed by assessed by stakeholders from above,
below and side like peers, managers, subordinates and even from customers to analyse the

Submitted to: Respected Sir Qamaruddin Maitlo Performance Management

behaviour with customers either pleasant, rude or any other unavoidable behaviour. This type
of review is headed by the human resource department itself and input from all of the sources
are kept secret to maintain the privacy of employees and keep the motivated and productive.

The drawback of this review is that employee is being criticized by other stakeholders who
have no direct information regarding the performance or the can be biased while rating because
employees have right to rate so organization is unable to identify the intension behind the poor
rating or very rating of employees based on may be favouritism or personal relations among
employees.

3.1.4 Self-Assessment
It is also preferred in most of organization and can be used in conjunction with any another
review method listed above. Most of the companies are using this because it helps in identifying
the which employee need training and where they need guidance in career path. It also the
employee to receive some constructive feedback from the manager and supervisor.

The drawback of this review process is that employees sometime rate themselves very good
against the manager rating so it creates conflict among employee and manager.

4.1 Analyzing Performance Problem

1.Organizational and Job Factors

Organizational and job factors are outside the control of employee and create hindrance in
meeting the organizational objectives, in this situation manager is responsible for taking
corrective action for smooth running of operations. Some of these issues are defined below:

 Poor leadership / role modelling

 Lack of clarity in meeting expectational, roles and responsibilities and authority
delegation.
 Inadequate resources to fulfil the tasks
 Unrealistic goals and individual targets, policies and procedures
 Uncomfortable work environment (harassment, discrimination, prejudice)
 Lack of reward for good performance and leads to poor and ineffective performance
 Lack of direct feedback from supervisor

2 Individual Factors

Submitted to: Respected Sir Qamaruddin Maitlo Performance Management

Some of the factors that affect employee performance are defines below:

 Personal Circumstances (Magisterial or family problem, financial issues etc.)

 Physical or emotional health problems (medical issues, depression, anxiety)
 Insufficient knowledge or incompetent to meet the job requirements or unable to use
technology based resource
 Mismatch to job, wrong person for the job
 Don’t discuss with the immediate supervisor for achivwmnrt and hesitate in

Poor Performance Vs Misconduct

Most of the time manager are confused to identify the poor performance or misconduct of
employees and find in difficulty while assessing so distinguishing factors are defined below:

Poor Performance

 Unable to fulfil task due to incompetency

 Complaints from the manager for failing in learning new skills
 Results in demotion
 Not wilful

Misconduct

 Breach of discipline
 Wrong attitude rather than performing well
 Wilful reject for instruction of competent authority
 Grieve able and ad judicable behaviour

Submitted to: Respected Sir Qamaruddin Maitlo Performance Management

5.1 Performance Management System
The NBP has developed performance management system and widely followed for all
positions of organization, from OG-1 to OG-4. NBP have total 10 criteria performance
management, which truly predict the overall performance of an employee. It covers
Emotional intelligence part, discipline part and communication skills part.

CRITERIA PERFORMANCE MANAGEMENT

 Devotion Discipline and punctuality
 Initiative and drive
 Team spirit
 Intelligence
 Honesty
 Interpersonal relationship skills
 Creativity and innovations
 Flexibility
 Loyalty and
 Fitness
The NBP have also five broad performance factor that which are sign of a large
organization having well organized and systematic performance management system.

PERFORMANCE FACTOR
 Professional knowledge
 Improving corporate culture
 Decision making ability
 Ability to visualize and plan
 Ability to act on emergent situation

5.1.1 NBP Improvement Plan

In this stage, crisp arrangement of objectives is set up for a worker and new due date is
accommodated finishing those destinations. The representative is obviously imparted about the
zones in which the worker is relied upon to enhance and a stipulated due date is likewise
allocated inside which the representative must demonstrate this change. This arrangement is
together created by the evaluate and the appraiser and is commonly affirmed
As every organization have its own performance management system that depict how careful
and serious attitude they are possessing for appraising and performance management of
employees. The NBP have its own step by step performance management system. PMS of
NBP almost following same step by step which we read in our book.
 Prerequisite
 Performance planning
 Performance execution
 Collecting and sharing performance data

Submitted to: Respected Sir Qamaruddin Maitlo Performance Management

  Performance assessment
 Preparing for performance reviews

Prerequisite
Knowledge of Knowledge of job
mission and goals in question

Behaviour

Performance Planning
Improvement plan

Performance Performance
Execution Assessment

Performance Review

Model of Performance Management in NBP

Association Practice
NATIONAL BANK OF PAKISTAN incompletely takes after Graphic Rating Scale technique.
Here every individual has diverse arrangement for assessing. Practically junior to senior
workers have comparative configuration to fill in however there is some exemption for the
senior level. The arrangement is outlined in the way like Fist page must be topped off by the
workers without anyone else yet they need to sign in every one of the pages. There is point
framework for assessing representatives.

Submitted to: Respected Sir Qamaruddin Maitlo Performance Management

Prerequisites
 Knowledge of the organization’s mission and strategic goals
Knowledge of Organization is important to implement prerequisites step of
performance management system. This knowledge helps in doing strategic planning
process which takes place after collecting organization mission and goals. As strategic
planning process clearly define its purpose or reason for existing.

 Knowledge of the job in question

Then comes what job position is taken for performance management. All position
across organization is consider under each factor and criteria of performance
management. After taken a position, knowledge is acquired by appraiser to evaluate
this. NBP is one of organization in Pakistan, which has organized and well developed
records of knowledge of each position. Which position should possess number of
leaves, what roles and responsibilities are necessary, merit and benefit salary
increased annually.

5.1.2 Performance Planning

 Results
In NAP, goal and competencies are set by a mutual agreement between appraiser and
appraise. Results are measured based on competency. There are two types core
competencies (mandatory for all), role specific and function specific.
 Behaviours
Behaviours are carefully considering and evaluated through trait, knowledge and
skills approach. NBP as a finance company give more important to knowledge based
approach for evaluating serious attitude of employees, higher serious attitude means
higher knowledge of employee.
 Improvement Plan
After the outcomes are measured, preparing need are recognized in discussion with the
appraiser. The appraiser is your quick supervisor and the analyst will be the individual
next in the chain of command. For instance, for OG-2, OG-3 and OG-4 the appraiser is
divisional head and the analyst is HOOD/Director

5.1.3 Performance Execution

As arranging contributing much significance, execution is likewise well contributing in
compelling execution of execution administration.

 These are progressing execution input and instructing: he ought to request the input on
fulfilment of assignment .it is very suggesting for the appraisers and appraisers both to
make utilization of STAR shape (connected) to record achievements/basic occasions
all through year and utilize it at the season of evaluation. In NAP, STAR Model is taken
after, STAR remains for circumstance, activities and results

Submitted to: Respected Sir Qamaruddin Maitlo Performance Management

  Correspondence with boss

The idea of worker engagement is worked exceptionally well in NAP. Every single
Junior representative are solace with their quick administrator. Every single junior
worker and their chief are settled on one page. like when leaves and unlucky
deficiencies are concerned, assess, appraiser and commentator are altogether
encouraged to stay away from nonattendances from work and timetable their leaves and
authority assignments as needs be empowering us to settle the PMS evaluation stage
and consequent process well in time.

Performance Assessment
 Evaluation and advising is given a considerable measure of significance in the
execution administration handle. This is the phase in which the representative gets
mindfulness from the appraiser about the regions of changes and furthermore data on
whether the worker is contributing the normal levels.

5.1.4 Performance Review

Employer measure real execution of representatives with predefined gauges. Real
accomplishments are composed against objectives and behavioural cases against skills .an
examination meeting is led and the appraisals of objectives and abilities are settled. There are
5 evaluations level for objectives (Outstanding, estimable, equipped, negligible and
inadmissibly) and 5 levels for abilities (constantly powerful, normally successful, every so
often viable, once in a while viable, never compelling).

 Planning for execution audits

Regularly performed twice in a year in an association as mid surveys and yearly audits
which is held toward the finish of the monetary year. assess first offers the self-topped
off evaluations in the self-examination shape and furthermore depicts his/her
accomplishments over a timeframe in quantifiable terms.

Submitted to: Respected Sir Qamaruddin Maitlo Performance Management