PERFORMANCE MANAGEMENT SYSTEM AT NADRA Table of Contents CHAPTER ONE Project Introduction . 1: I Introduction ..

1: II Project Description 1: III Literature Review . 1: IV Objective of the Study..

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PERFORM A N C E A P P R A I S A L ........................................................................ 17 P e r f o r m a n c e A p p r a i s a l M e t h o d s ................................................................. 18 Ra t i n g S c a l e : ............................................................................................................... 18 C o m p e n s a t i o n a n d Re w a r d s : ............................................................................ 18 C o m p e n s a t i o n : ........................................................................................................... 18 Fi n a n c i a l Re w a r d s : .................................................................................................. 18 M e d i c a l B E N E FITS:.................................................................................................. 19 CHAPTER TWO Review of Literature 2.1 Performance Management System 2.2 Elements of Performance Management System 2.2.1 Organizational Financial Reward .. 2.2.2 Non-Financial Organizational Reward .. 2.3 Designing Performance Management System .. 2.4 The Aims of Performance Management System 2.5 Pay Satisfaction . 2.6 Performance Appraisal and Compensation 2.7 Alternative Pay Strategies .. 2.8 Determinant of Performance Management System . 2.8.1 Labor Markets Influence on Organizational Reward System .. 2.8.2 Job Influence on Organizational Reward System 2.8.3 Employee Influence on Organizational Reward System 2.9 Employee Benefits . 2.9.1 Objectives of Employee Benefits ..

2.10 2.11

Managerial Employees .. Non managerial Employees

CHAPTER THREE Summary, Conclusion and Recommendations 3.1 Summary 3.2 Conclusion .. 3.3 Recommendations .. References

NADRA is one of the leading System Integrators in the global identification sector and boasts extensive experience in designing, implementing and operating solutions for corporate and public sector clients. NADRA offers its clients a portfolio of customizable solutions for identification, e-governance and secure documents. NADRA has successfully implemented the Multi-Biometric National Identity Card & Multi-Biometric e-Passport solutions for Pakistan, Passport Issuing System for Kenya, Bangladesh High Security Drivers License, and Civil Registration Management System for Sudan amongst other projects. Introduction National Database & Registration Authority (NADRA) has gained international recognition for its success in providing solutions for identification, e-governance and secure documents that deliver multi-pronged goals of mitigating identity theft, safe-guarding the interests of our clients, and facilitating the public. In-depth Research and Development efforts have enabled NADRA to become the trailblazer in the area of Software Integration, Data Warehousing, Network Infrastructure Development and Project Management. NADRA set out on the journey of Civil Registration of all Pakistanis in March 2000 and in a short span of time NADRAs team indigenously created a state of the art centralized Data Warehouse, Network Infrastructure and Interactive Data Acquisition Systems to issue secure Computerized National Identity Cards (CNIC). With the introduction of this new fool-proof, comprehensive and highly sophisticated computerized system, NADRA has been successful in reducing the identity theft to a bare minimum. NADRA prides itself on one of the largest centralized databases in the world. This highly secure and intelligent National Data Warehouse is the central hub of NADRAs extraordinary strength and growth in the last 8 years. NADRAs National Data warehouse hosts the data of over 96 million citizens and runs various Transaction Processing, Business Intelligence and Decision Support applications. Operating on international standards and models, NADRA has also developed a comprehensive supply chain, developing understandings with worldwide technology developers & resellers that give us access to state-ofthe-art technologies and also enable us to assist clients in acquiring the best value for money in the market. NADRA proudly employs a highly skilled workforce of more than 11,000 technical and management personnel, who contribute to register more than 96 million citizens and print more

than 70 million Computerized National Identity Cards. To achieve this gigantic landmark NADRA has developed 365 Multi-biometric Interactive Registration Centers and deployed 189 mobile vans to register citizens living in far-flung areas, with a motive to provide quality service and comfort. During this short span of time, NADRA has gained significant international recognition. ID World, organizers of the ID Card & Electronic Passport Forum have ranked NADRA as one of the Worlds Top 50 Suppliers of e-Passport Technology for 04 years running. Achievements NADRA has been placed amongst the Top 50 e-Passport Technology Suppliers for 5 consecutive years in ID World Magazine, for 2005, 2006, 2007, 2008 and 2009 published by Wise Media, Italy. NADRA is amongst the 3 companies selected from Asia and Africa on the list. NADRA was honored with the Outstanding Achievement Award at CARDEX Middle East in Cairo, Egypt in May, 2007. NADRA has been awarded The Merit Exporter Award by Federation of Pakistan Chambers of Commerce & Industry (FPCCI) in 2006 for achieving export of homeland security solutions in the international market. NADRAs Chief Technology Officer, Mr. Usman Y. Mobin was awarded the ID Talent Award in November, 2007 at the ID World International Congress held in Milan, Italy. He was recently awarded Tamgah-e-Imtiaz in 2009 for his services rendered to the state. NADRA has successfully achieved Capability Maturity Model Integration (CMMI) from Software Engineering Institute (SEI) Carnegie Melon, USA. Certification was assessed on Technology, Quality Management and Project Management divisions. NADRA Quality Management and CNIC Production departments are also ISO 9001:2000 Certified. Deputy Chairman NADRA, Mr. Tariq Malik was awarded ID Outstanding Achievement Award on November 3, 2009 in Milan at an exclusive ceremony during the eighths ID WORLD International Congress, the Global Summit on Automatic Identification. Mr. Malik was selected out of 250 people from 75 countries by international voting of editorial board consisting of CEOs of fortune 500 companies

Organization Structure

About HR Directorate Human Resource Directorate at NADRA attempts to provide management support to its highly specialized and diverse workforce, which is a part of Pakistans largest IT based public sector organization, and geographically spread across the length and breadth of Pakistan. Our Goals Human Resource Directorate at NADRA, focusing its IT and public sector base, aims to provide an organizational framework to recruit, select, reward, train, develop and retain a diverse workforce, while ensuring an environment that optimizes and values productivity, efficiency and effectiveness.

Objectives 1) Reach out to diverse group of workers across Pakistan, while recruiting to achieve fairness and diversity in an efficient manner. 2) Increase women participation in NADRA up to 20% to facilitate its 54% customer base. 3) Constitute and maintain a comprehensive market competitive reward system to ensure attraction and retention of qualified and experienced professionals. 4) Standardization of Directorates internal practices and procedures to improve its customer satisfaction level. 5) Enable employees to maximize their career potential by offering increased number of training and development opportunities from renowned trainers within the available resources. 6) Introduce in house training programs. 7) Introduce a performance management process across NADRA to ensure objectivity and fairness in performance evaluation and career progression. 8) Establish and maintain open communication with all level of employees. 9) We aim to create the environment of learning, culture of business excellence and belief in performance improvement. HR Diversity Management Program (HRDMP) Workplace diversity refers to the variety of differences between people in an organization. This sounds simple; however, diversity encompasses race, gender, ethnic group, age, personality, cognitive style, tenure, organizational function, education and more. Diversity involves how people perceive themselves and how they perceive others. These perceptions affect their interaction in a work place. For a wide assortment of employees to function effectively in an organization, human resource professionals need to deal effectively with issues of communication, cultural fit and change. Understanding and appreciation of diversity helps HR professionals to achieve this goal. Understanding and respect for diversity has improved considerably in recent years and learning organizations have responded positively by sensing this subtle change in their external environment. They have recognized the need for immediate action by preparing themselves to utilize human and financial capital. NADRAs 54% clientele comprises of females. Only 11% of our employees are female therefore it is our goal to increase the current female representation to 20% by the end of year 2009. Some

concrete steps have been taken to accomplish this task in order to facilitate the customer base and improve organizational diversity. Career Paths Career Opportunities NADRA offers a wide range of career opportunities to technical and non technical people both. NADRA hires highly specialized human resource, therefore, majority of the designations/specifications have been tailored according to the needs of the organization. Careers at NADRA encompass the following areas: Administration: Identifies and implements improved streamlined processes Customer Business Development: It helps business enhance its capacity by enabling proactive interactions with customers Customer Services/Integrated Logistics: Management of the flow of materials/products and services and process finished products through the supply chain. Engineering: Develop new products or design new processes. External Relations: Functions as strategic business partner in various areas of public relations. Finance & Accounting Management: Provide financial leadership at all levels. Assist in budgeting and financial resource allocating and risk management Human Resources: Partner with management to set direction, develop and implement strategies. Manages, develops and deploy the human capital of the organization. Information Technology: Impact global market, leading business objectives by employing the state of the art technology. Marketing: Deploy plans to initiate innovative products, attractive for the stakeholders and the customers. Devise and develop promotional activities. Procurement: Providing support to the main function of the organization in all areas. Research & Development: Create and develop innovative products, processes and technologies so as to help improve the quality of life of the masses. Job Environment NADRAs technological orientation has enabled it to provide a well equipped and a diverse working environment to its employees. It introduces them to a realistic challenge where an employee discovers experiential learning with a supervisory support. This challenge and support inculcates confidence and belief in his/her abilities which becomes a part of the employees personality. Career Development Professional development of its employees is at the heart of NADRA. Management has strong belief in professional development of employees that are asset to the organization. The career graph of NADRA employees moves with the growth of the organization, since both the organization and the employees grow on reciprocal bases.We arrange extensive training programs for our employees to improve their existing skills set and help them grow in their career. A fully dedicated team at the HR Directorate works full time to find the best trainers and training programs available across Pakistan. Our training and development team has developed a strong association with renowned training institutions and universities like LUMS, NUST and IBA etc.

Potential Career Path NADRA offers internship as well as employment opportunities for those who are willing to work in a competitive and diverse environment Internship Program NADRA has developed extensive paid internship programs for the energetic and competent university graduates looking for challenging careers and diverse work environment. NADRA reachs out to the fresh graduates through job fairs which are a valuable opportunity to meet and induct fresh talent. Most recent participations are GIK and Bahria university job fairs. Internship programs are offered in the following three categories Senior Internee: Candidates having 2 years Masters Degree or 4 years Bachelors Degree with one year experience are inducted as Assistant Manager (non-technical) or System Engineer (technical) for a period of six months Junior Internee: Candidates having 2 years Masters Degree or 4 years Bachelors Degree are inducted as Assistant Manager (non technical) or System Engineer (technical) for a period of six months Student Internee: Current students taking projects as part of their course are inducted for a period of three months in early June. Our internship programs are exciting, providing valuable opportunities for student interns and the fresh graduates both. Our internships provide invaluable opportunity to put theory into practice, apply knowledge and skills to real-life business situations. It is a great prospect of experiential learning where internee may find permanent place at the end of his/her probation period. Our supervisors/managers guide our interns in every possible way. Employment Program NADRA is an equal opportunity employer where people, irrespective of their gender, age, ethnic background and disabilities are encouraged to apply against advertised jobs. We offer jobs in the fields of information technology, engineering, operations and management. As an employee, you will take on significant company projects, strengthen your professional skills and gain a wealth of career and professional opportunities available at NADRA.

COMPENSATION (http://www.scribd.com/doc/41440324/NAdra) Employees are compensating through following criteria.

Bonus: Every year bonuses are given to the employees for the performance in whole year. Performance Evaluation: After every three months company evaluates the performance of every employee at point base, When evaluation process is completed, the employees whose are scored highest points in their field, are provided by different prizes such as: Cash prizes, Hand set phones, watches, etc... Lunch Facility For the sake of refreshment the organization also provided lunch facility to the workers, Mosque: For the purpose of offering prayer, the company also provides a mosque to the workers. For every prayer they also fix the duration of half hour. Medical Facility: If any worker is injured at the time of work then he will be provided by every medical facility till he will not be complete recovered. Overtime : If a worker works extra after the office time then his work is considered as one hour extra time or over time. After more production of the employees (over time) they also awarded more. Internal Preference: If there is my seat is vacant, the company first of all checks from internal sources, if they cannot fond any person for the particular requirement then they contact externally

Performance Management Performance Management is a continues process of identifying, measuring and developing the performance of individuals and teams and aligning performance with the strategic goals of the orgainazition.1 http://www.ciitlahore.edu.pk/pl/abrc/Proceedings/All%20papers/IMPACT%20OF%20EMPLOY EES%20PERFORMANCE%20MANAGEMENT%20SYSTEM;%20TO%20ACHIEVE%20TH E%20OBJECTIVES%20OF%20THE%20ORGANIZATIONS%20(Faisal_Tehscene_Shah).pdf Organizations try to manage the performance of each employee, team and process and even of the organization itself. Employee Performance Management system is a complete process, which is based on the workforce performance and the fulfillment of organizational objectives at all levels. The basic philosophy behind the performance management system is to developing the alignment between the organizational objectives, with the employees skills and capabilities, moreover it emphasize on the Development and improvement of the overall system. People mostly misperceive the performance management to the performance appraisal; In actual performance appraisal is judging the past performance while performance management system is an ongoing process to measuring the fulfillment of objectives. Alan Nankervis, (2004) while doing his research in an Australian institute finds that there are very few organizations which shared their organizational objectives with their employees. Most of the organization use the performance appraisal as compared to the performance management in which the focus is made on the comparison between the performance standards being made by the organization and the actual performance of the employees while no one actually compares the performance against the organizational objectives. Performance management is the real theme while we work in the organization for quality control, in Quality based organization the objective of the performance is made on the achievement or fulfillment of the goals rather than established standards. No doubt in performance management system which is actually the sub part of quality control having some performance standards but these performance standards are very much aligned with the organizational objectives.
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Herman Aguinis: Performance Management 2 Ed., p.2.

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2 SHIFT FROM PERFORMANCE APPRAISALTO PERFORMANCE MANAGEMENT There is a lot of research has been made in the performance appraisal but unfortunately it did not give any satisfactory results as Thomas B. Wilson, (1994) tends to describe the performance appraisal as it did no work for the employees as well as on for the organization except developing the dissatisfaction or expiation. Same Wendy K. Soo Hoo, (2004) concluded two of his researches that 90% of the employees found the performance appraisal as an ineffective. The reasons he deduced from his research are like the Managers avoid giving honest critiques because they dont want any conflict. Often times managers dread the appraisal process as much as employees do, so they procrastinate and dont prepare adequately. Employees can be demoralized by ratings and statistics from the research said that 80% of people see themselves in the top 25% of all performers. So 55% will be really demoralized by honest feedback about where they stand. We come to know from all above discussion that performance appraisal is not doing something extra for the organization and the organization awarded employees based on the appraisal unable to get the required result. Reward does not change the performance of individuals who work exclusively for reward. Better remuneration system can never be a good option for the organization for achieving its objectives. On the counter part it can demotivate the employees due to unequal distribution of rewards on the basis of performance appraisal. On the whole consequences of performance appraisal may lead to the decline of overall performance of the organization. On the other side, Performance management of the employees is the system which enable the organizations to achieve their goals by utilizing the fully skill level of their employees. It begins when an employee joins the organization and ends when he leaves your organization. Glendinning, (2002) suggest that performance management is the system which is supposed to be the need of the hour for organizations and a replacement of old performance appraisal system. He further argued that an organization with out a performance management system has no vision for its future. Linda Gravette, (2006) with her research concluded that employees must be familiar with the performance management system, working in the organization and there should be a discussion with the employees about the scale and the measures you are using for the performance evaluation. 3 NECESSARY ELEMENTS OF PERFORMANCE MANAGEMENT SYSTEM Andr A. de Waal; Vincent Coevert (2007), conducted a research for knowing the effect on the productivity of the newly implemented performance management system in two public and private banks. Results of the research was that in private sector it made a significant improvement while in public sector it did not play any significant role. The reason behind this

duality of result was implementation of the system in both of the bank and the management philosophy. In public bank management did not bother enough for the implementation of the newly developed system while in private bank the management tried to implement it with its real soul. So it is the management commitment towards the implementation that how committed the managers are in order to performance management. Performance management and getting the required behavior is one of the core issues which most of the organization fails to analyze in order to achieve the required goals, (Nicholas L. Weatherly; Richard W. Malott 2008). Organization behavior should be developed among the individual in such a way which is performance oriented and behavior should be analyze and then modified to develop the required behavior,(Hal J. Whiting; Theresa J.B. Kline; Lorne M. Sulsky 2008). The success of the system is correlated with employees expectations if the employees expectations fulfill with the appraisal system, then there exists positive relationship and vice versa. The other thing which must be kept in mind while developing the goals, that it should be in accord with the employees and organization capability, (Gary P. Latham; Laura Borgogni; Laura Petitta 2008). Individual should be accountable in promoting of a performance management system which actually promote the quality culture. Describing the same things by Nonna Turusbekova; Manda Broekhuis; Ben Emans; Eric Molleman (2007), describes the need of the quality management system in the organization to get the desire behaviors of workers because workers some time violate the rules and detract the quality processes. The basic purpose of performance management system is to creating the alignment in between the organization objectives and its sub systems to achieve the organization objectives, Carter McNamara, (2008). In modern organization there should be a balanced performance management system to achieve the organization objectives. By strategically using the performance management system organizations can develop its performance standards, can develop the measures and then reports the finding for further improvement and in this a continuous process keep running (South Carolina, 2002). In TQM techniques Performance management system play an important role for developing as well as measuring and achieving the objectives. The approaches like balance score card, metrics, indexes should be match with the system in the quality process to the organizations, (Stivers, Bonnie P. Stivers, Bonnie P; Joyce, Teresa Joyce; Teresa, 2000). A balance performance management system initiative was taken by Kaplan; Norton, (1992) to achieve the organizations vision strategically. Balance score card focusing on the four business prospective i.e. financial, customer satisfaction, business process and the organization learning and innovative culture. A recent survey determined that the companies use an average of 13 management tools at the corporate level. These tools are intended to help measure or monitor the performance of an organization, and within this the most popular performance related tool was the Balanced Scorecard (Rigby and Bilbo bead 2005). In the absence of a basic strategic context, managers found it hard to agree on an appropriate set of measures of organizational performance (Ahn, 2001). Balance scorecard is the platform for

measuring the organization performance having coordinating with financial and non financial aspects of business (Irwin D, 2002).

Links have to see:

http://www.aafp.org/fpm/2003/0300/p43.html http://hr.commerce.gov/Practitioners/PerformanceManagementandAwards/DEV01_006173 http://www.phrresources.com/documents/10stepstomeaningfulperformance.pdf